Why ‘most Qld businesses will go bust in the next year’
Opinion piece by Gympie MP Tony Perrett
There is no doubt the legacy of the enormous impact of the economic crisis facing Australia will take generations to overcome. That’s why it’s imperative that governments are open and transparent about the economic conditions we face.
Two weeks ago, the Federal Government delivered its stark news with predictions of national unemployment to reach 9.25% by Christmas and at $184.5 billion the largest Budget deficit since World War II. The Federal Government was not only upfront about the economic challenges it has also done most of the heavy lifting injecting and eye-watering $289 billion to support business, workers, and households.
As the real impact hits, it’s time for the State Government to front up.
We don’t need media games and more of the same.
In a cynically political exercise, the State debt bill was quietly revealed on the same day as the national budgetary and economic fallout. Queensland will break the $100 billion barrier in less than 12 months - a $17 billion blow out since December.
Astonishingly, we still will have no Budget. No Budget means no economic plan to lead us out of recession. It means you are flying blind through the biggest economic crisis in almost a century.
Well before Coronavirus our economic vital signs were in a bad way. We had some of the worst unemployment numbers, the most bankruptcies nationwide, and business confidence was in freefall.
Yesterday we learned that most Queensland businesses will go bust in the next year, one in five are running ‘zombie businesses’ being kept afloat with Federal Government assistance, a third believe trading conditions are so poor they will permanently shut their doors in the next year.
In these conditions governments need to pivot.
They cannot keep doing things the way they’ve been done before by just rolling over existing programs.
That’s the merry-go-round which put us at the bottom of almost every performance measure in the country.
It’s even more reason to invest in growth and rein in wasteful spending.
We not only need a Budget we also need to build job-creating infrastructure such as roads and dams and the New Bradfield Scheme, a tax freeze, limiting general government expenditure to less than revenue, and stabilising our debt.