Inquiry into supply chains, vaccinations kick off and space deal with UK
Covid-19 vaccination underway
Prime Minister Scott Morrison was on Sunday among the first Australians to receive the Covid-19 vaccine, with 60,000 people due to be vaccinated this week. The PM emphasised that the vaccination was non-mandatory; the vaccine program is being conducted in five phases, with older Australians of the highest immediate priority.
Lift-off for Australia, UK space agreement
Australia and the United Kingdom are to formally co-operate in developing their respective space industries. The Space Bridge Framework Arrangement, signed this week, connects the Australian Space Agency and the UK Space Agency and seeks to increase engagement and investment. Industry Minister Karen Andrews said Australia’s space priorities ranged from communications and Earth observation to robotics and automation.
Inquiry into supply chain issues
As Australia recovers from production disruptions during Covid-19, the Federal Treasurer has requested the Productivity Commission (PC) to review the status of the nation’s supply chains. Josh Frydenberg said Covid-19 had highlighted Australia’s potential vulnerability to global supply chain disruptions. The PC will examine longer-term trends relating to Australia’s linkages and dependencies, and the nature of the risks to the national economy.
Trade surplus surge under weaker machinery imports
Australian exports continue to boom, with a trade surplus of $8.75 billion registered in January, according to the Australian Bureau of Statistics. While exports of goods fell nine per cent during the month – attributable to lower demand for iron ore and meat - imports fell 10 per cent. Export levels were 13 per cent higher than in January 2020, and imports seven per cent lower. Weak global production of road vehicles, and of machinery in general, is contributing heavily to lower imports levels in Australia. China, Japan and the USA remain Australia’s top destination and source countries for exports and imports.
Treasurer floats targeted business aid
Federal Treasurer Josh Frydenberg has flagged targeted support for industries that continue to be worst-affected by Covid-19 restrictions, saying that it should be “proportionate, temporary and accompanied by a clear exit strategy.” In a speech this week, the Treasurer said hospitality and accommodation, the travel sector and air and space transport continued to be the industries most impacted, with Sydney and Melbourne Central Business Districts under greatest pressure. He also said targeted support should not get “in the way of the broader economic recovery.”
Investment fillip for economy
In a positive indicator for future economic growth, the level of private capital investment in Australia is rising again after an 18-month decline. In the December quarter of 2020, the ABS reports that private capital investment rose three per cent, to $29.38 billion. During the quarter, private investment in buildings and structures rose 0.7 per cent, and in equipment, plant and machinery by 5.7 per cent. The level of private capital investment, however, remains 20 per cent well behind the five-year high recorded in December 2015.