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Coronavirus Australia: PM Scott Morrison announces plan to hibernate Australian business

bitbydeath

Member
Nov 25, 2015
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Will be interesting to see how this unfolds, it does seem like the only logical move so businesses can survive without any income.

Prime Minister Scott Morrison has announced a plan to “hibernate Australian business” during the coronavirus crisis, highlighting there is a “burden to share” on all Australians as the economy suffers.
Mr Morrison said part of that plan was for Australian business to “hibernate” during what he said would be “the many difficult months that are ahead”.

The exact details of the hibernation plan haven’t been fleshed out, but it’s expected to include rental issues that have been bubbling away in the background of the crisis.

Mr Morrison described it as a “very innovative approach in the circumstances we find ourselves in”.
“The idea is simple – there are businesses which will have to close their doors. They will have to keep them closed either because we have made it necessary for them to do so, or simply there is just not the business to keep their doors open,” Mr Morrison said.

Mr Morrison said he wanted those businesses “to start again” and he does not “not want over the course of the next six months or as long as it takes, for those businesses to be so saddled by debt, so saddled by rental payments, so saddled by other liabilities that they will not be able to start again on the other side”.

“This will underpin our strategy as we go to the third tranche of our economic plan, and that will include support by states and territories on managing the very difficult issue of commercial tenancies and also dealing ultimately with residential tenancies as well,” he said.

The Prime Minister said he and Treasurer Josh Frydenberg would have more to say on the hibernation plan “in the next few days”.

“We will make announcements on the details. I today wanted to speak about what the objective was,” Mr Morrison said.
LANDLORDS, BANKS, COUNCILS TO TAKE A HIT

In terms of residential and commercial rentals, Mr Morrison said everyone involved will have to take a hit, as well as banks and landlords.

“There will be landlords who will suffer. The banks will be having to make arrangements with them. Whether councils are involved in providing waivers on rates, things of that nature that, will be something states work through,” he said.

“Whether land tax will be relieved for those who have tenants in a distressed situation — all of these are what we are working through. It isn’t simple.

“The intent is as far as possible to ensure that a business that through no fault of its own, just like if there’s any Australian who has lost a job through no fault of their own, we are simply trying to preserve and support them in the best way we possibly can for the simple reason that, A, they are Australian, and that is what we should do, and, benefit.

“B, on the other side we want them to surge. We want Australia to rise again on the other side of this and to go forward strongly.

“We have to keep doing it. We have to keep sticking together. We have to keep supporting each other. We’ve got to keep sharing the right information with each other. And we have to stick together and support each other through what I know is becoming day by day a much tougher job for all of us. We can do it.

“The next few weeks will be particularly vital and so we’re getting this together at a time when it is most necessary and your response this week has been simply awesome.”
 
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Cato

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Good luck.

If he plans to shutdown virtually the whole economy for 6 months there won't be a middle class anymore or anyone left with any kind of discretionary income to spend once he "un-hibernates" the businesses.
Everyone will be broke, all savings evaporated, and most everyone lives on the dole. These are the customers that will support and sustain the stores then when they re-open? Good luck with that.


I think if he does this then we will be guaranteed to go into a deep depression. It won't be a matter of un-hibernating over a few months and everything is back to normal. It will be, like every other depression, a decade or more with mass unemployment and poverty while the economy is slowly re-built from scratch. This takes 10-15 years to recover from.

If we need to that, then that is fine, but be honest about it Slowmo, don't try to pretend to people we can do this and just go back to a working economy just like that.
 
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Cato

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People gonna be living that penny pinching corona life for months after it’s all done
Exactly. So he unhibernates the businesses and they immediately go out of business anyway because there are no customers
and people are super careful about spending on anything.

Recovering from a deep depression takes not months, it will take at least a full decade.
 
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llien

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Feb 1, 2017
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FINALLY!!!
Couldn't agree more with Australian PM:


Why did the AUS gov' wait this long to start this? Even later than US?
In terms of % infected, it's not "later than US".

penny pinching corona life
Staying home you naturally consume less.
Income should drop proportionally.
 
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TTOOLL

Member
Mar 22, 2012
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These people are getting mad and have no idea of the impact of things like these.
 

Cato

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You're absolutely right, enjoy your retarded Prime Minister.
Regards, NZ
Verdict 2/10 low effort trolling. could not maintain stringent message.

Hey, kiwi,
I think virtually every aussie on the board agrees that Schlowmo is possibly either retarded for real
or just deserves to be called a retard because of observed behaviour.
I have no problem with either. I lean towards the former myself.

You don't attack people by saying things that people "yeah, I agree he is possibly retard."
It is not very effective. Poor strategy.
Unless this is an attempt to build bridges and meet on common ground.
 
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All Hail C-Webb

Hailing from the Chill-Web
Jun 6, 2004
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I actually agree with this strategy, and just wish they had decided to take it a few weeks earlier.
If done effectively, you lose 2 months, and you get to start working towards getting back to normal.
I just hope that when this works, they allow Australian citizens to return (will certainly need to close the borders to all foreigners til the rest of the world has fixed their shit).
 

poppabk

Member
Jan 21, 2008
11,482
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Good luck.

If he plans to shutdown virtually the whole economy for 6 months there won't be a middle class anymore or anyone left with any kind of discretionary income to spend once he "un-hibernates" the businesses.
Everyone will be broke, all savings evaporated, and most everyone lives on the dole. These are the customers that will support and sustain the stores then when they re-open? Good luck with that.


I think if he does this then we will be guaranteed to go into a deep depression. It won't be a matter of un-hibernating over a few months and everything is back to normal. It will be, like every other depression, a decade or more with mass unemployment and poverty while the economy is slowly re-built from scratch. This takes 10-15 years to recover from.

If we need to that, then that is fine, but be honest about it Slowmo, don't try to pretend to people we can do this and just go back to a working economy just like that.
We have never had a depression like this though. Normally a depression is a cyclical mood of the stock market. A normal depression or recession is entirely imaginary, a collective madness or collective coming to senses depending on how you look at it. This will be a real, physical regulated recession/depression. All bets are off on how the cards will fall.