Australia’s Morrison Wants Pensions to Fund Company Bailouts
Australia’s Prime Minister Scott Morrison wants the nation’s pension funds to take more action to cushion the blow from the coronavirus crisis.
In an interview with the Australian Broadcasting Corporation’s 7:30 program Thursday night, Morrison said the nation’s A$2.95 trillion ($1.9 trillion) pension pot should be used to bail out companies as the government “is not the only economic actor in this event.”
“I’d like to see the industry and broader superannuation funds playing a more active role in dealing with the economic issues that we’re dealing with at the moment,” he said.
The plea comes as Australia begins pumping an unprecedented amount of stimulus into the economy in a bid to avert falling into a crippling long-term recession. It’s pledged more than A$320 billion in fiscal and monetary measures, including an A$130 billion jobs-rescue plan to subsidize wages and keep struggling businesses afloat.
The government has also relaxed rules to allow people hit by the epidemic to dip into their retirement savings early. Pension funds expect up to A$50 billion will be given to those taking advantage of the scheme, causing liquidity fears at the worst affected funds.
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