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HDPA: Government needs to act on coronavirus economic crisis

Author
Newstalk ZB,
Publish Date
Thu, 12 Mar 2020, 4:41PM

HDPA: Government needs to act on coronavirus economic crisis

Author
Newstalk ZB,
Publish Date
Thu, 12 Mar 2020, 4:41PM

What’s happened around the world today has made this coronavirus crisis a whole more uncomfortable for this government. 

Up to this point, I think we can all agree, the government’s done a good job of its response.

Yup, there’s been a bit of criticism from national and the universities, but largely I think we can all agree, the government done a good job of mostly keeping this thing out.

Today though, that reputation is at risk because it can’t make it up its mind about what to do to help business.

This afternoon Australia’s announced its pumping $18 billion into the economy to ward off a recession. Overnight, the UK’s government’s dedicated $25 billion in its budget to combat coronavirus. In the US Trump is trying to find $80 billion for small business loans.

We’ve got 200 hospitality businesses apparently on the brink of collapse. The logging industry is in crisis. Our national airline is cutting flights and executive pay to get through.

It sounds like it’s getting pretty hairy for a lot of businesses out there, and the trick for the government is to respond before they fall over. Once they’re gone they’re gone, it’s too late.

The response needs to come before that, but will it?

The government might announce what it’s going to do on mid-next week, but don’t treat mid next week like a deadline.  It’s not like businesses just need to reach mid next week and then they’re safe.

That’s just the announcement. It’ll then take days or weeks after that before any assistance form the government actually reaches businesses.

You know it feels a lot like the government’s stalling for time because it actually doesn’t know what to do.

It feels like Grant Robertson and his team might actually have waited for these announcements from the US ad Australia and the UK to see what ideas the rest have, what ideas they can borrow.

This is the working group problem all over again isn’t it? Don’t know what to do, stall for time, then come up with a plan.

But unlike wi.th those working groups, this is an unfolding economic crisis. Time is something struggling businesses don’t have

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