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Clime Calls on Canberra for Urgent Summit on Fiscal Stimulus

06 Mar 2020
From

Rod Bristow

Clime Investment Management Limited (ASX: CIW) has called for an urgent Summit to discuss a coordinated approach to fiscal stimulus to support the ailing Australian economy.

The Reserve Bank of Australia (RBA) yesterday cut the official cash rate by 0.25% to 0.50%.  Notably, the RBA called out the negative impacts of the coronavirus on global growth.  It also called out that policy measures have been announced in several countries, including China, to help support growth.

“These are unprecedented times, with the impacts of the coronavirus coming so soon after the devastating bushfires.  The time for the Australian polity to show genuine leadership and support for the Australian economy is now”, Clime CEO Rod Bristow said.

“It seems that because one side of politics provided fiscal stimulus during the GFC, the other side of politics feels they cannot repeat this policy idea.  The Reserve Bank of Australia is nearly out of ammunition to provide further monetary stimulus and fiscal stimulus is urgently required to prevent the Australian economy going into recession”, Bristow said.

“We speak to thousands of Australian investors each year.  Our view is the Australian public cares less about wedge politics and budget surpluses and more about maintaining an adequate standard of living and an appropriate level of support for communities.  This has to take place by stimulating the economy by directly supporting, in particular, consumers and small businesses”, he said.

Clime said the Summit should call together leaders and finance representatives of the major political parties, the Departments of Treasury and Finance, representatives of small, medium and large business and community groups.  Collectively, the Summit should aim to develop a fiscal stimulus package that will have broad support across Government and Opposition, business and the community.  The fiscal stimulus package should be able to be rapidly implemented for maximum positive impact on the Australian economy.

 

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