Federal ministers now tell so much bad news, like debt from COVID won’t be paid off for 30 years.
They want to get householders spending, so tax cuts are needed, immediately.
Simultaneously, JobKeeper support money needs to continue along with tax cuts for business.
Then they say “receipts are down”, people paying low tax or no tax; working few hours or zero. Can they really do big outgoings without incoming $? Ultimately, recovery could take 10 years.
Main problem is nobody knows what to do, especially in absence of any plan.
Big crisis, all hands to the pumps, what ideas can we come up with to help them?
Considering likely no wage or low wage, for so many people, about where to put money, for what kind of jobs, isn’t it best to think of places where the money can’t be turned on and off like a tap?
A solution example here is EUF (Environmental Upgrade Finance) with projects for business already more than $200 million. It’s now extended to residential, tenanted as well as owner occupier.
The way EUF works is, with local government help to fill forms, a project application is lodged and evaluated, to make sure it pays for itself, then money is provided by a bank.
Terms of finance are not the usual two years high interest but four to 20 years at 5 per cent or so. This can mean loan instalments, paid to local government and passed through to bank, similar to
garbage charge, are less than savings on cost of energy.
Projects can be usual rooftop solar PV, or heat pump for aircon or hot water, or more energy efficient appliances or. best bang for the buck, for both job creation and energy saving is building efficiency audit, to work out where to stop drafts and upgrade insulation. Houses built before mid-1990s are lucky if they’re two-star efficient, so plenty jobs, especially in regions.
End result is serious economic recovery, rock solid reliable plan, helps people’s money go further, so they’re safe, warm, comfortable and able to afford food, health and happiness. Easy as that.
Bernie McComb, Cowes.