PM stands by Covid aid, export surge
JobKeeper off the agenda as growth takes a hit
With NSW, Victoria and South Australia under Covid-19 restrictions, Prime Minister Scott Morrison has again rejected calls to re-introduce the JobKeeper scheme. The PM said the level of current special payments in designated Covid hotspot areas was the same that was provided by JobKeeper in the December 2020 quarter. Meanwhile, Australia’s economic forecasts face a major revision, given that Federal Treasury’s May budget assumptions were predicated on no extended or sustained state border restrictions, with any localised outbreaks being “effectively contained”.
Retail trade falls as restrictions bite
Stay-at-home restrictions imposed in New South Wales and Victoria have led to a 1.8 per cent drop (-$575 million) in national retail trade in June, according to the Australian Bureau of Statistics. Seasonally-adjusted preliminary estimates show that retail trade fell 3.5 per cent in Victoria and by two per cent in NSW, as well as by 1.5 per cent in Queensland. Food retailing rose 1.5 per cent, the only retail sector to increase during June.
Minerals and resources power trade surplus
A year-long surge in exports has continued to drive Australia’s economic recovery, with monthly exports in June up 33 per cent or $10.25 billion on June 2020 figures. ABS figures on international trade show that exports in goods last month rose eight per cent on May to $41.28 billion, led by strong growth in shipments of iron ore, coal, non-monetary gold and gas. While imports rose 21 per cent ($4.77 billion) on June 2020 figures, the monthly trade surplus in goods for June 2021 was $13.2 billion. China, Japan, South Korea, the USA and Taiwan remain Australia’s leading destinations for goods exports.
China accused of malicious cyber activity
Australia has elevated its concerns about cyber activities by China’s Ministry of State Security, claiming that it had exploited vulnerabilities in Microsoft Exchange software to affect thousands of computers and networks worldwide. Defence Minister Peter Dutton and Home Affairs Minister Karen Andrews said they were concerned at reports that the Chinese Ministry was engaging contract hackers who had conducted cyber-enabled intellectual property theft for personal gain and for commercial advantage to the Chinese Government.
Defence supply chain scheme under review
Australian small businesses will have the opportunity to contribute to an independent review of the Federal Government’s global supply chain program for the defence industry. Defence Industry Minister Melissa Price said the review would identify how Australian businesses could be better positioned to meet Defence’s future requirements. The program is aimed at identifying opportunities for domestic companies in the international supply chains of eight multinational defence companies.
Federal grants for critical minerals projects
Federal Industry, Science and Technology Minister Christian Porter has announced around $50 million in funding for resource technology and critical minerals projects under the Government’s Modern Manufacturing Initiative. The funding for eight companies is mostly directed at projects involved in battery production and energy storage. Mr Porter said it was critical that Australia build its sovereign capability in the sector, given that China was the world leader in critical minerals processing.