Treasurer Josh Frydenberg has called for the global economy to be put into "controlled hibernation" during the coronavirus emergency, in a virtual meeting of Group of 20 (G20) finance ministers and central bank governors last night.
Key points:
* Mr Frydenberg said the G20 should aim to minimise job losses globally
* The Federal Government has its own economic "hibernation" strategy
* The G20's coronavirus plan will be fleshed out over the next fortnight
The meeting saw the economic leaders of the world's top economies discuss a new plan to address the risk of debt vulnerabilities in low-income countries hit by the pandemic, and deliver financial aid to emerging markets.
Mr Frydenberg said leaders should take quick, strong and co-ordinated action to "minimise the permanent human and economic damage."
"First, our priority should be putting the global economy into controlled hibernation while quarantine measures are in place," he said in a statement.
"That is — finance the global health response, maintain financial stability, minimise job losses, keep businesses going, and ensure the basic needs of the global population are met.
"This includes committing to a G20 fiscal support target, to encourage all economies to act urgently, and send a clear signal to citizens that the G20 is doing whatever it takes."
Mr Frydenberg also said the G20 must lead the long-term global recovery once the health crisis passes, and that all members should unblock global supply chains, especially for vital medical supplies.
Josh Frydenberg @JoshFrydenberg
Tonight I joined G20 Finance Ministers & Central Bank Governors to discuss the G20's Action Plan and the importance of the IMF in assessing the adequacy of the global financial safety net as we deal with the economic impacts from the coronavirus. View image on Twitter 11:21 PM - Mar 31, 2020
A joint statement released after the virtual meeting said details of the plan would be fleshed out before the group's next meeting on April 15.
It said roles for the International Monetary Fund and the World Bank in deploying resources and exploring measures to alleviate a lack of liquidity in emerging markets were discussed.
They also committed to fund all necessary measures to stop the virus's spread and expressed concern about the risks to fragile countries, notably in Africa.
They told their top finance officials to coordinate regularly with each other and with international organisations to develop an action plan in response to the pandemic.
G20 trade ministers agreed on Monday to keep their markets open and ensure the continued flow of vital medical supplies, equipment and other essential goods.
The G20 comprises Australia, Canada, Saudi Arabia, the United States, India, Russia, South Africa, Turkey, Argentina, Brazil, Mexico, France, Germany, Italy, Britain, the European Union, China, Indonesia, Japan and South Korea.
Child care will be made available for free for parents who continue working during the coronavirus pandemic, Prime Minister Scott Morrison has announced.
The Federal Government will also provide financial support to 13,000 centres around the country as the sector struggles to remain viable.
The announcement comes after the sector pleaded for a bailout, saying it was facing a crisis like never before because of a massive hit to both of its income streams because of falling attendance.
Federal Education Minister Dan Tehan said the childcare sector would be overhauled to provide free care for working parents from next week.
"The old system was drafted for a pre-pandemic time," he said.
"We'll be moving to a different childcare system as of Sunday night. It will be a system that will mean parents will get their child care for free.
"Can I say to all of those parents: what we want to do by doing this is ensure your childcare centre will remain open so that where you normally take your child to get cared for, that will be there for you so you are not looking to have to go to a new centre."
Mr Morrison said child care and early childhood education was crucial, particularly for parents who relied on it so they could continue working in critical industries.
"Critical areas are not just the obvious ones — it is not just the doctors or the nurses who are at the hospitals, it is the cleaners at the hospitals as well.
"It is the people driving trucks to get food out to supermarkets and ensure the supplies continue.
"If you have a job in this economy then that is an essential job, in my view, in terms of the running of the economy and it is important that all of those parents who have children, that they get access to child care and those facilities will be there for them in the many months ahead.
"I don't want a parent to have to choose between feeding their kids and having their kids looked after."
Childcare centres close after double-whammy hits sector
The childcare sector has been struggling to remain viable because of an exodus of children, and has been desperate for a bailout.
It relies on a mix of payments from the Federal Government and parents.
The Commonwealth Childcare Subsidy (CCS) makes up, on average, about 60 per cent of the upfront payment to centres. The rest comes from parents.
In the past month, many parents have kept their children at home over fears their children may get sick.
Children have also been kept home because parents have lost their jobs and can no longer afford childcare, or no longer need it.
That has meant the sector's been hit by a double-whammy, losing both sources of income, and more than 600 childcare and after school care centres have closed.
The industry immediately welcomed today's package, saying its future was now secure.
Early Childhood Association CEO Samantha Page said it meant childcare centres could keep operating, educators would remain employed and parents would have a place to send their kids.
"We were really not exaggerating things when we were talking about the sector being in crisis," she said.
"A lot of businesses will be relieved, particularly the fast-tracking of putting a new system in place so that services can implement that from next week," she said.
But there are questions about the largest childcare operator, Goodstart. It does not yet qualify because its revenue is too large, and it has not yet lost 50 per cent of it.
Mr Tehan said he would continue to liaise with the company, but he was "not saying exemptions will be made".
"They make a profit of $100 million annually," he said.
But Goodstart told the ABC it had never made a $100 million profit and the company would have more to say later.
"Our profit last year was just 1 per cent — $11 million," a spokeswoman said. "The money the Minister referred to was net assets — not profits."
EU condemns Trump travel ban from Europe as virus spreads Thursday, 03/12/20 [...] Irish Prime Minister Leo Varadkar, meanwhile, announced the closure of all schools, colleges, childcare facilities and cultural institutions from Thursday evening until March 29. He encouraged people to work from home. https://investorshub.advfn.com/boards/read_msg.aspx?message_id=154304421
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