City can lead recovery
Treasurer shares true cost of COVID-19
ALMOST 300,000 jobs are on the line with the true economic brunt of the coronavirus crisis yet to be felt.
Victorian Treasurer Tim Pallas said it could take at least a decade to recover from the “once in a generation” health and economic crisis of the coronavirus.
In a Geelong Chamber of Commerce-hosted webinar, Mr Pallas said more than 270,000 Victorians would lose their jobs in the next six months, with unemployment likely to peak at 11 per cent.
He said the coronavirus would lead to a 14 per cent decline in the state’s economy, with the projected growth for the 2019-20 financial year now not expected until 2023.
“My assessment is this will be a challenging time for Victorians,” Mr Pallas said.
He steered clear of suggestions of an economic snapback, instead suggesting there would be a sharp decline ahead of a longer than expected recovery.
But he said Geelong was in a better position than other parts of the country and that its ability to survive through an unstable economy would be buoyed by the State Government’s stimulus package.
“We think that regional Victoria will be in a strong position to return to economic normality . . . sooner than most of Australia,” Mr Pallas said.
Under the state’s $1.7 billion economic survival package, 438 Geelong businesses received full payroll tax refunds worth $7.41 million; 2434 businesses received $24.34 million worth of grants and 350 employers received full waivers of their 2019-20 payroll tax.
On the Surf Coast, 52 businesses received full payroll tax refunds worth $1.05 million; 473 businesses received $4.73 million worth of grants and 60 employers received full payroll tax waivers.
But Mr Pallas said Victorians and Australians should feel “very, very confident” the country had done “exceptionally well” in the context of coronavirus.
Chamber of Commerce chief executive Ben Flynn said the Treasurer’s comments showed Geelong was in a strong position.
“I got the feeling Geelong has a lot of advantages and that we shouldn’t expect Geelong to lag behind metropolitan areas,” Mr Flynn said.
“Overall Victoria is in a very good place nationally and globally.”
He said local businesses felt the Geelong economic environment was improving following a period of uncertainty and instability.
“They are feeling a lot more positive, but many businesses feel the worst hasn’t occurred and we need to be totally empathetic,” Mr Flynn said.