ABC NEWS RADIO
FRIDAY, 18 SEPTEMBER 2020
SUBJECTS: Australian universities facing job losses after missing out on JobKeeper; Companies treating JobKeeper like BonusKeeper; Charities facing a perfect storm.
GLEN BARTHOLOMEW, HOST: The ABC is revealed one of America's top universities, with revenue of 16 and a half billion Australian dollars, has received the JobKeeper payment at its Sydney campus. New York University is an elite institution with outposts all over the world, but staff at its Sydney campus were apparently able to access Australia's taxpayer funded JobKeeper program. Its eligibility could infuriate Australian universities, who missed out and where job losses have exceeded 11,000 with more to come. Federal Labor MP Andrew Leigh is the Deputy Chair of the House of Representatives Economics Committee. He recently asked why many corporations in receipt of millions of dollars in JobKeeper payments seem to be passing it on to their executives in the form of large bonuses, while the taxpayers cover their wage cost. Andrew Leigh, good morning.
ANDREW LEIGH, SHADOW ASSISTANT MINISTER FOR TREASURY AND CHARITIES: G’day, Glen. Great to be with you.
BARTHOLOMEW: First, reaction to this news that a New York University was eligible for this taxpayer assistance.
LEIGH: Look, I don’t begrudge NYU getting it. I don’t begrudge a private Australian university - Bond University - getting it. But it is pretty extraordinary, isn't it, that the government's changed the rules three times to prevent public universities from accessing JobKeeper. We're now seeing 11,000 job losses. Universities Australia say it might go to 21,000 losses. And all this at a time in which young people are facing the worst labour market in decades, when we should be opening up university places. Now the smart thing to do during a downturn is to provide young people with a chance to study. We ought to be expanding universities, not contracting them.Read more
FAIRNESS IS ANOTHER CASUALTY
The Herald Sun and Courier Mail, 15 September 2020
When coronavirus hit, the Australian Government followed other nations in implementing JobKeeper, the most expensive program in Australian history. It’s also the most effective. Labour economists estimate that JobKeeper saved 700,000 to 900,000 jobs.
To keep the connection between firms and workers, JobKeeper was paid to companies. Most firms did the right thing with the money. But not everyone. IDP Education and Star Casino used JobKeeper to pay executive bonuses. Harvey Norman and Crown Casino paid out massive dividends, benefiting billionaire shareholders.
It ain’t fair. JobKeeper was meant to save the jobs of battlers, not line the pockets of billionaires. If your firm is getting taxpayer assistance, the boss shouldn’t be getting a bonus, and shareholders shouldn’t be getting a stonking dividend.
Some rewarded the top and penalised the bottom.Read more
2GB MONEY NEWS
THURSDAY, 10 SEPTEMBER 2020
SUBJECT: JobKeeper, BonusKeeper, DividendKeeper
BROOKE CORTE, HOST: Dr Andrew Leigh is the Shadow Assistant Minister for Treasury. Welcome to Money News, Andrew Leigh. Do you reckon it passes the sniff test?
ANDREW LEIGH, SHADOW ASSISTANT MINISTER FOR TREASURY AND CHARITIES: I don't, Brooke, and very few people I've spoken to think it does. We had the head of the Business Council Jennifer Westacott out on Sunday, saying that she didn't think that firms receiving government subsidies through JobKeeper should be paying the executives a bonus. It's just one of those basic principles, that if you have to put your hand out to the taxpayer to ask for assistance in order to hold onto your staff, then you shouldn't be paying executive bonuses to those at the very top of the organisation. Yet we've seen some of those firms which are paying bonuses of over a million dollars, despite being in receipt of taxpayer assistance.
CORTE: The BCA as you said, I saw that too, they’ve called it out. Jennifer Westacott. It's tricky though, isn't it? The companies haven't done anything wrong. They met the eligibility requirements for JobKeeper.
LEIGH: Just because something's legal doesn't mean it's morally the right thing to do. People need to recognise that in a crisis like this, we need to pull together. There's a great Australian egalitarian tradition. We're a nation that does prize the notion of working together, and most firms did do the right thing. The purpose for JobKeeper was not to keep billionaires in champagne - it was to keep battlers in jobs. It's called JobKeeper. It's not called BonusKeeper. It's not called DividendKeeper. The fact is if you've got enough money to be paying bonuses, then you should think about doing what the New Zealand company Mainfreight did. They actually went back to the New Zealand government and said ‘we're eligible for the wage subsidy payment, but we don't need it - spend the money on others who need it. Spend the money on people who are living pay cheque to pay cheque, who are worried about how they're going to feed their family’. This is the worst economic downturn in nearly a century, and we don't need to be paying million-dollar bonuses to people on multimillion dollar salaries.Read more
ABC CANBERRA BREAKFAST
WEDNESDAY, 9 SEPTEMBER 2020
SUBJECTS: R U OK Day; Parliamentary Friends of Suicide Prevention.
LISH FEJER, HOST: Dr Andrew Leigh is the federal Member for Fenner, and Shadow Assistant Minister for Treasury and Charities. He is also co-chair of The Parliamentary Friends of Suicide Prevention, which is the crux of all of this, in checking in ‘are you okay’. Good morning, Dr Leigh.
ANDREW LEIGH, SHADOW ASSISTANT MINISTER FOR TREASURY AND CHARITIES: Good morning, Lish. That was a beautiful summary of the issue that you gave earlier. It's a real challenge for our community right now, isn’t it?
FEJER: It really is, and it's only going to get more challenging as certain things are wound back, as the full extent of COVID-19 comes to the fore. What is the Parliamentary Friends of Suicide Prevention? What does this group do?
LEIGH: It's about raising the profile of the issue of suicide prevention and mental health in Australia, co-chaired with Julian Leeser, the federal Member for Berowra and a good mate of mine. He’s somebody who has been working for a long time on this issue, and he like me has had his life touched by the issue. I don't think people realise that suicide takes twice as many lives every year as the road toll. An average of eight Australians every day die by suicide, and it's a particular issue among LGBTI+ communities, rural communities, Indigenous communities. So we need to do more to bring that toll down.Read more
ABC MELBOURNE DRIVE
TUESDAY, 8 SEPTEMBER 2020
SUBJECT: China; JobKeeper payments; holding the Morrison Government to account; aged care.
RAF EPSTEIN, HOST: The federal government says it has spent an extra $15 billion widening the criteria for those who are eligible for JobKeeper, and they widened those criteria because of the situation in Victoria. Labor is unimpressed. Dr Andrew Leigh joins us. He's the Shadow Assistant Minister for Treasury, one of the MPs in the city, the capital, Canberra, and part of Anthony Albanese’s team. Andrew Leigh, good afternoon.
ANDREW LEIGH, SHADOW ASSISTANT MINISTER FOR TREASURY AND CHARITIES: Good afternoon, Raf. Great to be with you.
EPSTEIN: Just on the journalists in China, do you think China's singling Australia out?
LEIGH: It certainly feels that way, and I guess we need to remember that the relationship is strongest when there's frank media on both sides. That was something that the deputy ambassador emphasised at the National Press Club when he spoke recently, and I hope that underlies China's approach.Read more
ABC NEWS RADIO
FRIDAY, 4 SEPTEMBER 2020
SUBJECTS: Economics Committee Hearing with the Major Banks; JobKeeper as DividendKeeper; International Day of Charity.
ANDREW LEIGH, SHADOW ASSISTANT MINISTER FOR TREASURY AND CHARITIES: I think it’s going to important to delve into how the banks have responded to the crisis, to find out why the loan facility provided by the government hasn't been accompanied by a surge in small business lending. We've seen big businesses taking out more loans, but small business lending has contracted 8 per cent. So I'll be keen to explore that some of the big banks.
GLEN BARTHOLOMEW, HOST: It's been estimated that bank loans have been deferred for more than 700,000 mortgages and businesses, adding up to around $260 billion. Now, total equity in banks is estimated at only about $250 billion. The big four budgeted just $3.7 billion for impaired loan write offs in the last financial year. That's been increased a little now. Is there a reckoning coming, given the amnesty for businesses trading while insolvent is about to expire? Are defaults likely?
LEIGH: That's certainly something on which I get very mixed messages speaking to people in the industry. Whether there's likely to be a surge of insolvencies or not at the beginning of October is up in the air, and obviously a crucial issue for the banks. One of the other issues for householders is what's going to happen when repayments recommence, and often at a higher rate. For people who've had their interest capitalised into their payments, they may now find themselves facing higher monthly repayments than they did last year. So that could place a significant strain on households, particularly people where there's been a job lost.Read more
Charities dwarf mining and agriculture in our economy, but many face ruin - Op Ed, The Sydney Morning Herald
CHARITIES DWARF MINING AND AGRICULTURE IN OUR ECONOMY, BUT MANY FACE RUIN
The Sydney Morning Herald, 4 September 2020
The charity sector is 8 percent of the economy, 10 percent of the workforce, and mobilises 3 million volunteers. It dwarfs agriculture, mining or manufacturing.
Saturday is International Day of Charity, a day chosen because it marks the passing of Mother Teresa, whose life was dedicated to serving the poor and homeless. It’s a chance to honour Australia’s more than 50,000 charities – but also to recognise that many are doing it tough.
Yet while the supply of resources has plummeted, the demand for help has skyrocketed.Read more
ABC ADELAIDE MORNINGS
WEDNESDAY, 2 SEPTEMBER 2020
SUBJECT: JobKeeper payments.
DAVID BEVAN, HOST: Andrew Leigh is making headlines. He’s the Labor MP for the ACT seat of Fenner. He's making headlines because he had a good look at the JobKeeper scheme, and he says ‘you know what? I'm not happy with where some of this money is ending up’. Andrew Leigh, good morning to you.
ANDREW LEIGH, SHADOW ASSISTANT MINISTER FOR TREASURY AND CHARITIES: Good morning, David. Great to be with you.
BEVAN: What's the problem?
LEIGH: Most firms did absolutely the right thing when the downturn hit. They received government subsidies if they’d had a big drop in revenue, and they used them to support jobs. But there's a small number of firms that appear to have done the wrong thing - paying out substantial bonuses to executives, paying out significant dividends, which in some cases have ended up lining the pockets of billionaires. The thing about JobKeeper is it was designed to support the jobs of battlers, not to benefit billionaires. It's there in order to reduce inequality, but some firms seem to be using it to increase inequality.Read more
6PR PERTH LIVE
TUESDAY, 1 SEPTEMBER 2020
SUBJECT: JobKeeper payments.
ANDREW LEIGH, SHADOW ASSISTANT MINISTER FOR TREASURY AND CHARITIES: Good afternoon, Olly. Great to be with you and your listeners.
OLIVER PETERSON, HOST: You have named and shamed some businesses which appear to be rorting the JobKeeper scheme.
LEIGH: JobKeeper was designed in order to keep battlers in work, not keep billionaires in champagne. What I've been concerned about is the small number of firms that seem to be using taxpayer subsidies in order to pad profits, and to pay executive salaries and dividends.Read more
TUESDAY, 1 SEPTEMBER 2020
CARRIE BICKMORE: Shadow Assistant Minister for Treasury Andrew Leigh isn't a fan of JobKeeper as it is, and he joins us now. Andrew, executive salaries are quite complex. A lot of them earn the bulk of their pay through bonuses. It is a bit simplistic to say that they should just go without?
ANDREW LEIGH, SHADOW ASSISTANT MINISTER FOR TREASURY AND CHARITIES: JobKeeper was designed as a program to keep battlers in work, not to top up the salaries of millionaires and billionaires. Firms ought to recognise they have a social obligation to spend this money on looking after their workforce.
BENJAMIN LAW: That said, Andrew, if a company has landed themselves in serious trouble and has since turned that around, shouldn't they be entitled to enjoy the benefits of that success?
LEIGH: This is taxpayer money we’re talking about. It was given to firms for one specific purpose: to make sure that the unemployment rate didn't skyrocket as much as it would otherwise have done. I don't remember any member of parliament standing up when we were debating JobKeeper and saying, ‘this will be great because it will be used to pad profits and pay highly paid CEOs even more.' Indeed, you’ve seen a New Zealand company Mainfreight saying, ‘we don't deserve this money‘, and giving it back to the New Zealand taxpayer. If only we had a few Aussie firms that took that approach.Read more