Virus hit us like a torpedo, says PM

SCOTT Morrison has described Australia’s first recession in 29 years as a heartache for the country.

The economy shrank 0.3 per cent in the March quarter due to the bushfires and coronavirus lockdowns, and a much larger fall is expected in the June quarter.

“I really didn’t want to see a recession ever again in Australia,” the Prime Minister said yesterday.

“As a government we worked so hard to bring the budget back into balance ... to see COVID-19 hit it like a torpedo is absolutely devastating. Where we find ourselves now is heartbreaking.”

Mr Morrison said the economic fallout could have been much worse, were it not for his Government’s response to the pandemic.

He said Australia was making its way back from the coronavirus crisis with the help of a $688 million home builder scheme. “It’s going to be a hard road back,” Mr Morrison said.

The income-capped construction scheme will offer grants of $25,000 to people who want to renovate their home or build a new one before the end of the year.

Labor criticised the Government for overlooking social housing. It also pointed out the Government had previously claimed the budget would be back in black, describing the premature boast as humiliating.

Treasurer Josh Frydenberg will deliver an economic update in July, a month later than planned. Opposition Leader Anthony Albanese has accused the Government of delaying the update because of the Eden-monaro by-election.

Mr Frydenberg will also announce changes to the JobKeeper wage subsidy scheme. Unions and business say the recession shows the need for government support beyond the six months envisioned when the pandemic hit.

I REALLY DIDN’T WANT TO SEE A RECESSION EVER AGAIN IN AUSTRALIA. WHERE WE FIND OURSELVES NOW IS HEARTBREAKING

ACTU president Michele O’neil said the Government needed a comprehensive plan to create jobs and lift Australia out of doldrums.

The union movement has proposed an eight-point plan that includes lifting wages and living standards, investing in public and community services, infrastructure spending and investment in education and training.

“The uncertainty created by the Government’s refusal to both broaden who is receiving Jobkeeper today and extend its life beyond September is causing additional hardship and reducing consumer confidence,” Ms O’neil said.