Government needs a clear plan to avoid the economy going "pear shaped"

Release Date: 18/01/2021
TCCI CEO, Michael Bailey, has called on the Government to immediately outline its plan to support the economy when JobKeeper payments stop at the end of March.

Mr Bailey’s call follows the release of the Deloitte Access Business Outlook Report (see attached), which says there is a risk “…that a few things could go pear shaped” without a strategy to cope with JobKeeper payments winding up.

“The Government has done a fantastic job to date,” Mr Bailey said.

“Of course, there have been testing times along the way but the economy is in reasonable shape considering we’ve endured a pandemic and a recession.

“But clearly the end of JobKeeper is going to be a huge challenge for the Tasmanian Government.  The Deloitte report makes it clear that Tasmania benefitted more than other states from JobKeeper and it follows that when it’s wound back in March we stand to lose more than other states.

“JobKeeper was vital because it helped people keep their jobs and also boosted spending in tens of thousands of Tasmanian businesses in areas like retail and hospitality.  Without that spending boost, it could cause the economy to slow down, which would impact on jobs.

“The Government has generally relied on infrastructure stimulus whenever they have encountered strong economic headwinds and we certainly welcome that, but I’m not sure they can go back to the same well again this time.

“The Government needs to articulate a clear plan that includes incentives for businesses to retain current staff and hire more people, incentives for people to shop local and measures to boost confidence in the local economy so that we can ride out the challenges that we will face at the end of March.”

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