THE TEXTILE, Clothing and Footwear (TCF) workers’ union is calling on Prime Minister Scott Morrison to deliver on his promise to protect lives and livelihoods by ensuring Australian manufacturing workers are deployed to produce critical medical supplies and personal protective equipment (PPE) to Australian Governments.

Local manufacturers have indicated to the union that they can save jobs by immediately transitioning their production away from clothes to in-demand products like surgical gowns, face masks, clinical waste bags and waste bag closure devices which the Commonwealth is seeking.

The Commonwealth’s Department of Industry put out a Request For Information about Australian industry’s capability to supply these products ten days ago and Australian industry is ready to commence production now. 

“In order for jobs to be saved, all the government needs to do is provide local manufacturers the specifications and orders and production can immediately start,” said TCF sector secretary of the manufacturing division of the Construction Forestry Maritime Mining and Energy Union, Jenny Kruschel.

“Using existing TCF supply chains, capabilities, skills and manufacturers’ expertise is the most efficient and effective way to deliver these vital supplies, allowing medical professionals to get on with their jobs and if done right it will save jobs,” Ms Kruschel said.

“It should be a no brainer and we are hoping common sense will prevail and these businesses and workers will be given the opportunity to deliver these orders.”

The union has been in contact with the Commonwealth and several State Governments to try to confirm their growing requirements for medical supplies and PPE. 

With orders from retailers being cancelled, thousands of TCF manufacturing workers have already been stood down, had their hours slashed or been made redundant, but several manufacturers are holding out hope for a fair go in the medical supplies’ contracts.

“Manufacturers are holding on for dear life and holding out hope that the right thing will be done by them and the workforce,” Ms Kruschel said.

“But we need action now, the prompt supply of these protective items isn’t just critical to the health effort, it is vital to saving local manufacturing jobs.

"The union will leave no stone unturned to protect the jobs of our members whilst ensuring the efficient delivery of vital medical supplies to front line medical professionals, hospitals and clinics.

“Workers in the industry are ready to play their part by using their skills to ensure the vital supply of quality products, they just need to be provided the chance."

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THE Federal Government’s second stimulus package contains welcome measures to support the viability businesses, particularly the viability of small businesses, including sole traders, and non-profit-organisations to keep people in jobs.

“We commend the government for its commitment to doing what it takes to see the country through the health and economic shock of Covid-19 and we restate the importance of building and construction as an essential service,” Master Builders Australia CEO Denita Wawn said.

"Economically it's one of the main chances of stimulus measures hitting the ground hard and fast,"she said. 

“Maintaining building and construction activity around the country is one of the most effective ways of injecting money into the economy at this time of crisis. A shutdown on construction sites will have devastating impact on the economy and the well-being of millions of Australians.

"Our industry is already implementing social distancing and risk mitigation policies and we are working collaboratively with trade unions to this end. We will continue to enact measures to safeguard the health of the 1 in 10 Australians employed in our industry and call on governments to keep them in jobs by keeping our industry building,” Ms Wawn said.

www.masterbuilders.com.au

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POTENTIALLY $100 million could be immediately unlocked to provide a life line for startups, entrepreneurs and emerging companies which are being crippled by the COVID-19 crisis, if applications under the Significant Investor Visa (SIV) program were reopened.

Executive chairman of Atlas Advisors Australia, Guy Hedley called on the Australian Government to give urgent priority to fast-tracking capital flows under the SIV program.

Mr Hedley said there were probably around 40-50 final stage applications under the SIV program that had been stalled since travel restrictions were imposed.

“This could provide up to $100 million in urgently needed funds which could save many startups and emerging companies from closure,” Mr Hedley said.

Since travel restrictions were imposed no visa approvals have been granted enabling these investors to fulfill their complying investment obligations under the SIV program.

Applicants should be permitted to execute their investment obligations while delaying their physical stay in Australia until travel restrictions are lifted, he said.

“An unintended consequence of this is that startups do not have access to money that would otherwise have been available,” Mr Hedley said.

“As a result, the financial health and wellbeing of many Australian start-ups is at stake and unnecessary failures of great entrepreneurial and employment-generating companies could result.”

University-backed investment fund Uniseed and venture capital fund Follow[the]Seed have united with Atlas Advisors Australia, a top SIV fund manager, to call for measures to help startups.

“Reopening approvals under the SIV program would fulfill the program’s original intent to support thin capital markets,” Mr Hedley said.

The COVID-19 crisis follows a serious drop in early stage venture capital investment in recent years.

“Atlas Advisors Australia has allocated more than $40 million to early stage venture capital investors from SIV investors,” Mr Hedley said.

“However, we cannot meet growing demand for early and seed stage ventures who now find themselves heading for the rocks through no fault of their own.

“The Australian Government should harness the opportunity now to support local startups starved of growth capital because of the devastating impact of COVID-19.”

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THE Financial Services Council (FSC) has announced that it supports the package of temporary measures "which will greatly assist Australians in financial hardship during the current national emergency".

The measures include temporary early release of a limited amount of superannuation for individuals in financial stress; temporary reduction in minimum superannuation drawdown rates for retirees; temporary reduction in social security deeming rates.

FSC CEO Sally Loane said the FSC had always supported the early release of superannuation in cases of genuine hardship, and recognises that the existing early release framework was not designed to address the needs of individuals during a national emergency such as the current pandemic. 

"We understand that the government's temporary measures for early access to $10,000 tax-free this financial year and another $10,000 the following financial year will apply only to those in severe economic hardship, such as people who have lost their jobs as a result of the coronavirus crisis,” Ms Loane said.

"The FSC will continue to work closely with our industry, the agencies and government to understand the potential impact of the package and ensure these measures are implemented in a way that manages liquidity and systemic risks.

"Accessing superannuation should not be the default response to providing income support for Australians in need over the short term, so we are pleased to see that this is a temporary measure as part of a broader income support package," Ms Loane said.

“Also, the decision to support retirees at this time by temporarily reducing minimum drawdowns and halving social security deeming rates is a welcome acknowledgement that it is inappropriate to force individuals to crystallise investment losses in a volatile market.

“We urge the government to continue working with the superannuation sector as we focus on safeguarding the retirement savings of Australians through this period of uncertainty, and look toward the industry’s role in investing to support the economic recovery effort,” Ms Loane said.

About the Financial Services Council

The Financial Services Council (FSC) has over 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing almost $3 trillion on behalf of more than 14.8 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange and is the fourth largest pool of managed funds in the world.

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A SURVEY of Queensland’s resources leaders taken before the impacts of COVID-19 started to unfold found the sector was in a good standing to create an economic buffer in 2020.

Queensland Resources Council chief executive Ian Macfarlane said the State of the Sector report gave hope to the Queensland economy with the sector in a strong position to maintain production and employment.

"The QRC CEO Sentiment Survey in the report found 55 percent of QRC member CEOs expected to increase their workforce, with 20 percent expecting substantial increases of more than a quarter of their workforce (25 percent). Meanwhile, only 15 percent expected a decrease in their workforce over the same period," Mr Macfalrane said. 

“A lot has changed since this survey was taken and the COVID-19 situation continues to evolve, but what it does tell us is the resources sector was performing strongly with future employment intentions very strong.

“The resources sector is taking extraordinary measures to keep their staff, their communities and their state safe.

“QRC and our industry continues to work with all levels of government," he said. "Early on the National Cabinet led by Prime Minister Scott Morrison and Queensland Premier Annastacia Palaszczuk declared our industry as an ‘essential activity’.

“In relation to FIFO (fly-in-fly-out) operations, the Queensland resources sector is working with the State Government to implement protocols to assist with the separation of the community and FIFO workers while in transit. This will ensure the resources sector can continue to deliver its much needed economic benefits to the economy by producing commodities and employing people."

www.qrc.org.au

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INDUSTRY Super Australia (ISA) has acknowledged the announcement made by the Federal Government today and is ready to work through the all important detail that will enable people suffering hardship access to some of their super in an efficient way that doesn’t undermine our national savings system.

"As we have been indicating publicly, this is an issue that must be handled very carefully in order to prevent the compounding of liquidity pressures that may be faced by superannuation funds in the current market conditions, and as they support anxious members," Industry Super Australia chief executive officer Bernie Dean.

"Although industry superannuation funds were not consulted in the formulation of this proposal, we stand ready to engage with government and the ATO to make it work.

"Assisting those in financial hardship will come down to how well the ATO works with the funds, given each superannuation fund will have to manually issue the money," he said.

"Effective co-ordination from the government and the ATO will be vital to ensure the scheme works efficiently and does not frustrate people further, remembering that the workforce of many funds are working remotely just like other affected businesses. 

"Aside from getting the details right, we need a commitment from the government to transparently report the scheme’s applications and any issues encountered. The scheme should also be reviewed as it is rolled out to ensure it will not hamper funds’ capacity to support the macro economic recovery."

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THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed the Federal Government’s latest support measures designed to see small businesses through the COVID-19 crisis.

Ms Carnell said the economic support package includes: Support for households including casuals, sole-traders, retirees and those on income support; assistance for businesses to keep people in a job; regulatory protection and financial support for businesses to stay in business.

“The Federal Government has listened to the feedback we have provided and responded to the needs of small and family businesses accordingly,” Ms Carnell said.

“In particular, we support the measures extended to sole traders, which make up more than 60 percent of Australia’s business community.

“Importantly, sole traders who experience a significant loss of income, will be eligible for the coronavirus supplement and jobseeker payment which will assist them to continue working for the next six months. 

"The government is providing small and medium sized businesses that employ people with up to $100,000 (minimum payment of $20,000) to assist with outgoings so they can keep their doors open for as long as possible.

“People experiencing financial hardship can now access up to $10,000 of their superannuation this financial year and an extra $10,000 the year after without paying tax," Ms Carnell said.

“The creation of the Coronavirus SME Guarantee Scheme will help businesses gain access to the working capital they need. We support the government’s pledge to guarantee 50 percent of new loans issued by approved lenders.

“Ultimately, this package gives small and family businesses some breathing space until circumstances return to normal, which will play a critical role in their survival and the ability for our economy to bounce back.”

www.asbfeo.gov.au

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“IN TIMES of financial crisis such as now, retirees need more flexibility in the minimum amount there are required to draw from their superannuation,  Association of Independent Retirees president, Wayne Strandquist said this week.

“Retirees living off their superannuation usually have some investments in shares and they have experienced a dramatic fall in their account balances due to the current share market collapse," he said.

Legislation requires retirees to draw a minimum percentage from their superannuation pension account, usually drawn monthly. Being forced to withdraw from superannuation when the value of the account is substantially diminished will have long term impacts on how long superannuation lasts in retirement.

Currently, retirees do not have the option to preserve their account balance by stopping the minimum superannuation drawdown amount.
 
“The Association of Independent Retirees seeks government intervention to give immediate relief to the current age-based drawdown percentages for account-based pension income streams and allow greater flexibility for retirees to vary the amount they can draw from their superannuation account," Mr Strandquist said.
 
“The Association has previously called on the government for greater flexibility by broadening of the age ranges and a lowering of the minimum drawdown percentages, but with the current investment market crisis, the Association seeks immediate options for retirees to lower or cease withdrawals from their superannuation account and resume their usual drawdowns when the investment markets improve."

www.independentretirees.com.au

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