Modern Australian
Times Advertising

Government forced to "scale up" fiscal response to deal with impact of "scaled up" health response

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra

It’s appropriate the federal-state national cabinet is being dubbed a “war” cabinet because surely this country has not experienced such a sense of crisis since the dark days of World War 2.

As the coronavirus cases escalate rapidly, there is an increasing feeling things are starting to run out of control.

More and more drastic measures have been imposed, with further ones certain to follow, and critics declaring they are not enough.

Many people are strung out.

Read more: Can I take the dog for a walk? Can I put the kids to bed? What you should and shouldn't do if you're in coronavirus self-isolation

Coronavirus tests must be restricted, because required material is in limited supply, a preparedness problem. When told they don’t qualify for testing some people are reacting aggressively.

Some businesses are already collapsing. Others, including bigger ones, are coming under acute pressure.

The community’s ability to maintain normal standards of rational behaviour and civil conduct is proving worryingly fragile.

The initial, slightly amusing, assault on toilet paper has turned into continuing bizarre scenes in supermarkets as people rush to hoard a range of food and other items. Special shopping times are being set aside in some stores so the elderly and frail can get access to what they need.

Alarmed parents are demanding the schools be closed, despite the medical advice that shutting them could be counter-productive. Some are withdrawing their children anyway.

On the Nine Network Karl Stefanovic had a run-in with Scott Morrison, dismissing the medical advice. “I worry about my kids getting it, irrespective of whether it’s harder for them to get it or that they can handle it better,” he said.

What’s really alarming is that all this is happening before the big impact even starts to hit.

On Tuesday the national cabinet will discuss reducing the 500 limit on inside gatherings, restricting visits to aged care facilities, and ANZAC Day arrangements (with the RSL already cancelling plans).

The size of indoor gatherings is expected to be cut, and ANZAC Day events will be symbolic, rather than occasions for public participation. On Monday more information was being sought about visits to aged care facilities.

Further economic measures are in the pipeline. Within days of announcing its $17.6 billion stimulus package Morrison, Treasurer Josh Frydenberg and Finance Minister Mathias Cormann are drafting a multi-billion top up.

Read more: Grattan on Friday: Will many people be too worried to spend the cash splashed their way?

It seems no one is even thinking about the budget bottom line anymore – the urgent imperative is to put a floor under the economy. A week ago all the attention was on the June quarter – now the September one must be under threat of negative growth.

In this vicious viral spiral, there is a cruel irony.

The latest “scaling up” of the health response, including the ban on mass gatherings and requiring everyone arriving from overseas to self isolate, delivers a blow to the economy and businesses – which now requires a “scaling up” of the fiscal measures to deal with the impact.

The new package is set to be announced later this week. If it needs legislation, that would be amalgamated with the first package, which goes to parliament next week.

Further initiatives on the health side may do additional economic damage, and so the cycle will continue.

Radio presenter Alan Jones on Monday condemned what he saw as excessive hype. Interviewing Morrison, Jones said: “ I do feel that this alarmism has taken root and it has overtaken the persistence with which you have said [for] the majority, about 8 in 10, it’ll be a mild illness and it will pass.”

Jones regarded Peter Dutton as “a metaphor” for this.

Dutton, who tested positive last week, is now home from hospital. He told Sky his family had been willing to “clear out” to enable him to self-isolate there. The home affairs minister participated in Sunday’s cabinet national security committee meeting remotely.

Read more: View from The Hill: Coronavirus hits at the heart of Morrison's government, with Peter Dutton infected

Meanwhile a second federal parliamentarian from Queensland, Nationals senator Susan McDonald, has confirmed she’s tested positive.

Speaker Tony Smith and Senate president Scott Ryan on Tuesday issued planned changes to reduce the risks in parliament house.

Members of the public will still be free to access the public areas. But they won’t be able to watch proceedings in the chambers next week. Fewer passholders will be allowed into the private parts of the building, and MPs’ staff numbers will be kept down next week.

Parliamentary committees have been asked to limit their activities.

The meeting of the Senate committee inquiring into the sports rorts affair, due on Monday to hear long-awaited evidence from the secretary of the Prime Minister’s department, Phil Gaetjens, was postponed. No dates have been set for the hearings to resume.

Morrison is still working on proposed arrangements for the sitting that will pass the stimulus package. It will be done with a “mini” parliament.

Those who do have to come to Canberra will be anxious to be out of the place as quickly as possible.

The opposition has promised co-operation with the government’s measures. Labor has been treading a fine line during the crisis, extending broad bipartisanship but also arguing more should have been done and faster.

On the ground, people will be grappling with extraordinary realities that would have been absolutely inconceivable just a couple of months ago but could extend many months into the future.

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more https://theconversation.com/view-from-the-hill-government-forced-to-scale-up-fiscal-response-to-deal-with-impact-of-scaled-up-health-response-133816

What People Mean by “Alternative Doctor” And Why Expectations Around Care Are Changing

When people search for an “alternative doctor,” they’re usually looking for something specific, even if they haven’t fully defined it yet. I...

Why Does My Power Keep Tripping? Common Causes Explained by Electricians Sydney

The electrical system is the lifeblood of your home, powering everything from your phones to cooking utensils and more. But from time to time, your po...

Interstate Car Transporter Urges Buyers to Book Early

As the conflict in the Middle East continues to put increasing pressure on local fuel supply, Australian transport companies are experiencing increasi...

Digital Minimalism for Business Owners: Fewer Tools, Better Systems

Be honest. How many apps are open right now? One for scheduling, another for invoices, a third for customer notes, plus a spreadsheet someone email...

The Importance Of Proactive NDIS Renewal Preparation For Sustaining Your Provider Business

Your NDIS renewal notice is not a signal to start preparing. By the time it arrives, preparation should already be well underway. For new providers, s...

Why Fire Extinguisher Testing in Sydney Is Becoming a Records Game, Not Only a Maintenance Job

A fire extinguisher used to feel like one of the simpler parts of building safety. It hung on the wall, wore a service tag, and sat there quietly unle...

The Switchboard Upgrade Question Every Melbourne Renovator Should Ask Before the Walls Close Up

Renovations have a funny way of making people think on surfaces first. Splashback, stone, joinery, tapware, paint. Fair enough too. That is the exciti...

Winter Sanitation Gaps in Parramatta Kitchens: A Hidden Pest Risk

Winter brings a host of changes to our homes, from the chill in the air to the cozy warmth indoors. However, this season also introduces sanitation ch...

When to Seek Advice from Employment Lawyers in Melbourne

Australian employment law is detailed and, at times, complex, with rights and obligations that aren't always obvious to employees or employers witho...

7 Benefits of Professional Gutter Cleaning for Australian Homeowners

Gutters aren't exactly glamorous. They sit up there on the edge of your roof, doing their job quietly - until they stop working. Clogged, overflowing ...

Pipe Floats Strengthening Pipeline Performance In Demanding Environments

Pipelines often travel through environments that are anything but predictable, water currents shift, terrain changes, and materials keep moving unde...

Why Ceiling Fans Are Essential For Comfort, Efficiency, And Modern Living

Creating a comfortable indoor environment is not just about temperature; it is about how air moves, how a room feels, and how efficiently energy is ...

Why Duct Cleaning In Melbourne Is A Smart Investment For Healthier Living Spaces

Behind your walls, ceilings, and vents lies a network quietly working every day to keep your home comfortable. Yet over time, this system can become...

Disability Service Providers Supporting Inclusive And Independent Living

Finding the right support system can feel like assembling a puzzle where every piece must fit just right. For individuals and families navigating di...

A Beginner's Guide to Owning a Caravan in Australia

Owning a caravan opens up a style of travel that's hard to match for freedom and flexibility. However, for those just starting out, the process of c...

Preparing Your Air Conditioner for Summer: What Most Homeowners Overlook

As temperatures rise, many homeowners switch on their air conditioning for the first time in months — only to find it’s not performing the way i...

What Actually Adds Value to Properties in Newcastle

Newcastle has seen steady growth over the past few years, with more buyers looking beyond Sydney for lifestyle, space, and long-term value. As dema...

What is Design and Build in Construction?

Imagine you’re about to start a new construction project, maybe it’s a custom home or a commercial building. You’ve got the idea, the land, an...