O75 Public Administration

Isolate rule to kill airlines: Flight Centre

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 16-Mar-20

Flight Centre CEO Graham Turner does not expect that self-quarantining people who arrive in Australia will be effective in stopping the coronavirus from spreading, while he warns that it will have a major impact on airlines and the domestic economy. Meanwhile, Qantas and Jetstar will offer travel credit vouchers to customers who want to cancel domestic and international flights that have been booked up to the end of May. Virgin Australia has advised that it is still considering its response to the new travel restrictions.

CORPORATES
FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, QANTAS AIRWAYS LIMITED – ASX QAN, JETSTAR AIRLINES PTY LTD, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH

Virus puts nation on war footing

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Original article by Geoff Chambers, Simon Benson
The Australian – Page: 1 & 6 : 16-Mar-20

The global death toll from the coronavirus has risen to 6,492. More than 168,000 people worldwide have been diagnosed with the respiratory illness, including 300 in Australia, while the nation has recorded its fifth death from the pandemic. The federal government has announced that all people arriving in Australia from overseas will be required to self-isolate for 14 days; those who fail to do so can be jailed for up to 12 months and fined up to $50,000. International cruise ships will also be banned from Australian ports for at least 30 days, while a ban on non-essential gatherings of more than 500 people takes effect on 16 March.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Woolies to pay self-isolating casuals

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 6 : 13-Mar-20

Woolworths announced on 12 March that it would pay its casual workers two weeks pay if they have to self-isolate because of COVID-19. The retailer is Australia’s biggest employer, with 190,000 staff and around 55,000 casual workers. It will also pay full-time and part-time staff if they have to self-isolate and have used up all their paid sick leave. Meanwhile, the federal government has announced it will waive the waiting period for casuals who wish to apply for sickness payments available through the federal welfare system.

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WOOLWORTHS GROUP LIMITED – ASX WOW TELSTRA CORPORATION LIMITED – ASX TLS

Coronavirus crisis: stay calm and keep spending, says Scott Morrison

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Original article by Geoff Chambers Simon Benson
The Australian – Page: Online : 13-Mar-20

Prime Minister Scott Morrison has urged Australians to keep calm over the coronavirus crisis in a nationally televised ­address on 12 March. Morrison said the federal government was taking the crisis seriously, and that it had a "clear plan" to see Australia through it. Treasurer Josh Frydenberg had earlier unveiled a $17.6 billion stimulus package, aimed at preventing Australia from falling into recession for the first time since 1991; it will include $11 billion worth of direct stimulus prior to 30 June. Frydenberg noted he was in contact with global counterparts who were working on their own stimulus packages.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET AUSTRALIA. DEPT OF THE TREASURY

Productivity lags France, US

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Original article by Matthew Cranston
The Australian Financial Review – Page: 3 : 13-Mar-20

Australia has the fifth-highest hours worked per person in the OECD, according to the Productivity Commission. However, it only ranks 16th among OECD nations when it comes to productivity. Productivity commissioner Michael Brennan notes all available evidence indicates higher productivity results in higher wages. Australia is more productive in sectors such as mining and construction when compared to the US, although its service industries are reckoned to be between 20 per cent and 60 per cent less than those in the US; however, this is in part due to the long distances that Australian service workers have to cover in their jobs.

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ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT AUSTRALIA. PRODUCTIVITY COMMISSION

Warning virus could hit 20pc of NSW population

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Original article by Bo Seo Tom McIlroy
The Australian Financial Review – Page: 11 : 13-Mar-20

New South Wales chief medical officer Kerry Chant said on 12 March that COVID-19 could infect up to 20 per cent of the state’s population. Chant’s comments came as the number of COVID-19 cases in Australia rose past 150, with 78 of those being in NSW. International travel has now been banned for all federal MPs, while Prime Minister Scott Morrison has asked the government’s expert panel for advice on whether Australia should follow the US’s lead and ban all travel from Europe. NSW Health Minister Brad Hazzard said there were fears the COVID-19 outbreak could extend into the flu season, and he urged everyone to get their flu shots.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET NEW SOUTH WALES. MINISTRY OF HEALTH

May budget ready to add to stimulus

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 13-Mar-20

The federal government’s $17.6 billion stimulus package includes a one-off $750 payment to all welfare recipients, with the payment to be tax-free. The package also includes an increase in the instant asset write-off from $30,000 to $150,000. The measure will apply until 30 June, and will be available to businesses with turnover of up to $500 million, up from the current threshold of $50 million. Other measures include a $1 billion payment to a regional and community fund that will assist businesses most badly impacted by the coronavirus, along with a 50 per cent wage subsidy for apprentices that will provide up to $21,000 to employers.

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Italy’s crisis could end the euro

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Original article by Robert Gottliebsen
The Australian – Page: Online : 13-Mar-20

Italy is facing financial collapse, and this could mean an end to the euro. Of all the nations that adopted the euro, Italy has suffered the most from doing so. Under the lira, its ‘business model’ relied on regular devaluations of its currency. However, once it adopted the euro, it no longer had this option. It needed to increase its productivity to compete with other Eurozone nations, but this did not occur. The coronavirus means that Italy’s tourist industry is at risk of collapse, and its debt-to-GDP ratios could increase to more than 150 per cent by the end of 2020.

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Politics is killing productivity, says McKibbin

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 8 : 12-Mar-20

Professor Warwick McKibbin of the Australian National University warns that productivity reform will not be achieved without support from both sides of politics. The former Reserve Bank board member has told a business summit that the political system is the biggest hurdle to achieving such reform. Meanwhile, Business Council of Australia CEO Jennifer Westacott has called for an overhaul of the enterprise bargaining regime, arguing that it is no longer working.

CORPORATES
AUSTRALIAN NATIONAL UNIVERSITY, RESERVE BANK OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA

Grand prix rocked by pit lane virus fear

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Original article by John Stensholt, Damon Johnston, Stephen Lunn
The Australian – Page: 1 & 5 : 12-Mar-20

The Australian Formula One Grand Prix is still expected to go ahead on 15 March, but fans could be locked out if three members of the Haas and McLaren teams test positive for the coronavirus. They have been placed in isolation pending the outcome of the tests. All three recently arrived in Australia, and spectators will be forced to watch the race on TV if they test positive and are deemed to have caught the virus in Australia. The opening race of the F1 season at Albert Park had been expected to attract more than 300,000 fans over four days.

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AUSTRALIAN FORMULA ONE GRAND PRIX