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Unemployment Spike Is the Worst in the Nation

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Unemployment Spike Is the Worst in the Nation COVID-19 RESPONSE May 2020 michaelobrien.com.au COVID-19 RESPONSE Dear fellow Victorians, By working with the State and Federal Governments, we have all achieved an extraordinary outcome in supressing COVID-19 that makes Victoria – and Australia - the envy of the world. We appreciate everyone who has contributed to this achievement, especially our essential workers. You have our sincere thanks. This achievement, however, has come at a significant cost to our local economy, our community and to our way of life. With COVID-19 now apparently under a measure of control, it is urgent that the Andrews Labor Government puts in place a clear plan that enables us to take back our Michael O’Brien MP lives and rebuild our local communities. Liberal Leader Many hard lessons have been learnt from the virus outbreak; we now need to take action to deal with these shortcomings, such as our relative lack of local manufacturing capacity. The Liberals and Nationals have worked constructively during the virus pandemic to provide positive suggestions, and to hold the Andrews Government to account for its actions. In that same constructive manner we have prepared this Plan: our positive suggestions about what we believe should be the key priorities for the Government in the recovery phase. This is not a plan for the next election; Victorians can’t afford to wait that long. This is our Plan for immediate action by the Andrews Labor Government so that Victoria can rebuild from the damage done by COVID-19 to our jobs, our communities and our lives. These suggestions are necessarily bold and ambitious, because we don’t believe that business as usual is going to be enough to secure our recovery. Peter Walsh MP Our Plan has four themes – Securing Your Personal Finances, Rebuilding Local The Nationals Leader Economies, Building Better Communities, and Keeping Your Family Safe. No single political party has a mortgage on good ideas. With Victoria’s future at stake, the Liberals and Nationals urge the Andrews Labor Government to adopt our Plan to Get Victoria Back to Work and Back in Business. May 2020 P2 Getting Victoria Back to Work and Back in Business OUR PLAN SECURING YOUR 1.PERSONAL FINANCES REBUILDING 2.LOCAL ECONOMIES BUILDING BETTER 3.COMMUNITIES KEEPING YOUR 4.FAMILY SAFE P3 michaelobrien.com.au COVID-19 RESPONSE Background and context Victoria’s economy was Businesses, including restaurants, cafes, the number of jobs in Victoria decreased food courts, pubs and clubs, cinemas, by 8.6 per cent - the worst in the nation. already underperforming galleries, theatres and even community The Andrews Government admits Victoria’s prior to this year’s sport were all forced to shut down. unemployment rate could increase to 11 per bushfires and the outbreak This has had a devastating effect on cent this year which would see Victorian our local economy, forcing thousands unemployment more than double and of COVID-19. of small business closures and hundreds 400,000 Victorians unemployed. of thousands of Victorians into the Our unemployment rate was above the On top of the hundreds of thousands unemployment queue. national average. We were halfway to appearing on the official unemployment recession with economic growth going rate, many more will face loss of income, backwards in the December quarter. Unemployment spike is underemployment or a cut in hours. the worst in the nation The Budget was in deficit to the tune of Every Victorian who has lost their $1.1 billion to 31 December 2019 - that According to weekly payroll jobs data job was, only a few months ago, is, before the state faced bushfires and collected by the Australian Bureau of working and financially contributing COVID-19. Statistics between 14 March and 18 April, to our shared prosperity. On top of this, net debt had doubled under Labor when 12% we were already the 11% VIC highest taxing state 10% UNEMPLOYMENT RATE in the nation. 9% 8% Bright spots in the economy were 7% testament to the hard work and ingenuity of Victorians prepared to have a go and 6% take financial risks to get ahead. 5% Now, the actions taken by the Andrews Government to address the virus have Dec Qtr Mar Qtr June Qtr Sep Qtr Dec Qtr Mar Qtr Sep Qtr 2020* 2018 2019 2019 2019 2019 2020 *Andrews Government estimates smashed local economies. ABS Data ABS Data ABS Data ABS Data ABS Data ABS Data P4 The way back The Andrews Government must deliver. It is the responsibility of the Andrews Government to take strong action to help Victoria recover, not just leave it all to the Federal Government. But the ability of the Andrews Government to properly fund an economic recovery is compromised by the rapid increase in That’s why Victoria has only reduced The time for rebuilding is a time for bold one business licence fee while New and constructive ideas to transform debt it built up before South Wales has removed twelve. Victoria into a jobs powerhouse. COVID-19 hit. Post-COVID-19, Victoria needs a Good, well-paid and secure jobs will give Before COVID-19, the Andrews real plan to Get Back to Work and people back the income and security that Government had already doubled net Back in Business. is needed to rebuild their lives. state debt. $80 billion Now, net debt is on track to more than triple to $74 billion by 2021. $70 billion VIC Despite promising no new or increased $60 billion NET DEBT taxes, the Government has introduced 28 $50 billion new or expanded taxes, making Victorians the highest taxed of any Australians. $40 billion Too much debt, too high taxes and a $30 billion budget deficit means there is nowhere $20 billion to move. $10 billion That’s why the Victorian Government has announced less support to help 2014-15 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 businesses survive this pandemic than PEBU Forecast Actual Actual Actual Actual Actual Forecast with Forecast with COVID-19 COVID-19 has New South Wales. borrowing borrowing P5 michaelobrien.com.au SECURING YOUR 1. PERSONAL FINANCES Personal financial security means financialpeace of mind. P6 COVID-19 RESPONSE Unfortunately, household A freeze on council rates finances have been badly The Andrews Government should support local government to hit by COVID-19. implement a freeze on all rates Victoria’s unemployment could more categories for 12 months. than double, with over 400,000 Victorians unemployed. On top of that, Real action to reduce tens of thousands of families have seen a reduction in take-home wages. energy costs Policies the Government should To help Victorian families with their implement to reduce energy costs hip-pocket costs we propose: include: No new taxes A one-off increase to the energy The Andrews Government has introduced 28 new or expanded taxes concession to $1000 per household despite promising not to do so before in 2020-21. it was elected. Implementing the Liberal Nationals’ The Government must not increase Zero to Landfill plan including taxes to fund its unprecedented debt supporting new Energy From blowout. Waste facilities to create a new, low The Government must not increase or emission baseload energy supply introduce any new taxes. for Victoria. A freeze on transport fees Immediately remove the current and charges moratorium on conventional The Government should negotiate onshore natural gas. with Transurban and ConnectEast for a freeze on all toll road charges until 1 July 2021. Lower energy prices All metropolitan and regional public transport fares should be frozen at will also help attract current levels until 1 July 2021. new industry and Registration payments for commercial manufacturing to vehicles grounded because of COVID-19 should also be waived. our state. P7 michaelobrien.com.au REBUILDING 2. LOCAL ECONOMIES COVID-19 has devastated Waive payroll tax below The Government should: our local economies, $10 million threshold Establish a $1 billion “Bringing Payroll tax can be a disincentive for Manufacturing Home” fund to with thousands of small business to hire. encourage manufacturers to locate businesses forced to shut their facilities in Victoria. The Andrews Government should Prioritise support for industries of and hundreds of thousands raise the payroll tax threshold so national importance such as PPE of jobs forecast to be lost. that businesses do not pay this tax manufacture, medical research, on the first $10 million of payroll to defence procurement and rare The loss of these mainly small businesses 30 June 2021. earths processing. has changed the nature of our local community for the worse. Reduce business taxes and COVID-19 has also exposed massive excessive regulation shortcomings in our local economy, The Government should waive fees particularly in our lack of local and charges for businesses to 1 July manufacturing capacity. 2021, including business licensing fees, labour hire registration scheme Now is the time for fees and place a moratorium on the employer levy under the long service bold action to turn leave portability scheme. this around. The Government must also cancel Get the employment rate back its $700 million dividend raid from to pre-COVID-19 levels by the WorkCover and provide WorkCover end of 2021 premium relief to businesses in 2020-21. The Government must reduce our unemployment rate back to Enforce statutory timeframes on 5.3 per cent (pre-COVID-19 level) State Government decision-making. by the end of 2021. The Andrews Government must Bring manufacturing home commit to delivering 10,000 to Victoria additional apprenticeship and Over the past 20 years, the number of traineeship commencements by manufacturing jobs in Victoria has fallen the start of 2022.
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