Cafes and restaurants will be among the first businesses to re-open after lockdown

Cafes and restaurants will be among the first businesses to re-open as coronavirus restrictions are relaxed, Treasurer Josh Frydenberg said today. 

Getting those businesses open is crucial to reducing unemployment and prevent food from being wasted, he said. 

The treasurer did not set out a timeframe but the relaxation of national baseline restrictions will be discussed by the national cabinet on Friday. 

‘Opening our cafes and restaurants will mean that farmers will have a home for their produce,’ the treasurer said.

Cafes and restaurants will be among the first businesses to re-open, treasurer Josh Frydenberg said today. Pictured: Bucket List at Bondi Beach before lockdown

The treasurer (pictured today) did not set out a timeframe but the relaxation of national baseline restrictions will be discussed by the national cabinet on Friday

The treasurer (pictured today) did not set out a timeframe but the relaxation of national baseline restrictions will be discussed by the national cabinet on Friday 

‘We have actually now seen rains in recent weeks and months that is making a real difference to the capacity of the farmers to produce more from their land. 

‘So, we need to find a home for that produce and getting those cafes and restaurants and other activities open as quickly as possible will be a way of getting more people back to work and reducing that unemployment.’ 

The other industries Mr Frydenberg said were crucial to recovery are childcare and education and logistics. 

‘There are some sectors of the economy that are not only significant contributors to employment and output in their own right, but are also important enablers for the broader economy,’ he told reporters at the National Press Club.

‘Early childhood and school education, because of their impact on the labour force, and transport and logistics, because of their impact on supply chains, are cases in point.’  

He also said he did not want to have to reimpose restrictions once they are relaxed. 

‘Going forward, we need to ensure when sectors are open – for example, in retail – that there is both consumer confidence to engage in these activities, but also business confidence that they are unlikely to be disrupted again and forced to close,’ he said.  

Almost one million Australians have lost their jobs since the coronavirus crisis hit. 

Mr Frydenberg revealed that lockdown is costing the economy $4billion a month and said: ‘We must get people back into jobs and back into work.

‘History shows the longer people are unemployed, the harder it is to get a job.’

A closed Donut King store in western Melbourne on Monday. Treasurer Josh Frydenberg said Australians must get back to work to kick-start economic productivity

A closed Donut King store in western Melbourne on Monday. Treasurer Josh Frydenberg said Australians must get back to work to kick-start economic productivity

Treasury estimates predict the country’s GDP will fall by 10 to 12 per cent by the end of June – a fall which would represent a $50billion drop-off in economic activity in the space of a single quarter. 

But Mr Frydenberg said that number would double if Australia’s restrictions mirrored the strict eight-week lockdowns like the one introduced in Italy. 

‘This was the cliff we were standing on,’ he said. ‘This would have seen enormous stress on our financial system as a result of increased balance sheet impairments, widespread firm closures, higher unemployment and household debt.

‘If these restrictions were increased even further, akin to the eight-week lockdown in Europe, then the adverse impact on GDP could double to 24 per cent, or $120 billion, in the June quarter.’    

A deserted entrance to a David Jones store in Melbourne's western suburbs pictured on Monday. Australia is on track to enter its first recession since the early 1990s

A deserted entrance to a David Jones store in Melbourne’s western suburbs pictured on Monday. Australia is on track to enter its first recession since the early 1990s

Treasurer Josh Frydenberg told reporters overall consumption is down 19.5 per cent since the beginning of the year

Treasurer Josh Frydenberg told reporters overall consumption is down 19.5 per cent since the beginning of the year

In Tuesday’s speech, the treasurer gave his backing to the National Cabinet’s decision to bring forward its decision to relax its coronavirus restrictions by three days to this Friday. 

‘For every extra week the current restrictions remain in place, Treasury estimates that we will see close to a $4 billion reduction in economic activity from a combination of reduced workforce participation, productivity, and consumption,’ Mr Frydenberg said.

He said total spending in the recreational, accommodation and food industries is down by as much as 70 per cent. 

Overall consumption is also down 19.5 per cent since the beginning of the year according to data from the National Australia Bank.

Mr Frydenberg also suggested that company tax cuts will be considered to stimulate growth.

At 30 per cent, Australia has the second highest company tax rate to Portugal among developed countries, making it a less attractive place to do business.

‘What we are doing is looking at how can we continue to compete for capital. Tax rates, flexible work places, infrastructure, deregulation, are all key factors,’ he said.  

Josh Frydenberg’s 100-year-old constituent’s heartwarming letter 

Mr Frydenberg concluded his speech by quoting a message of hope sent to him from an eldery constituent named Enid. 

He said: ‘Three months shy of her 100th birthday, Enid recently wrote to me as follows

“Here in Australia we have always found ways and means of growing and responding to life’s difficulties. When this corona pandemic is under control, I believe we will be like a phoenix, rising from the ashes, and with our innate resilience become stronger, hopefully more caring, hopefully more integrated, hopefully more cooperative in achieving a better community and a better world. 

Just a dream? Yes. But don’t just follow that dream, chase it.” 

Thank you, Enid. That is all what we must do.’ 

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