The Federal Government is preparing for what’s being described as “massive” spending in the October budget.
So will it throw a lifeline to the beleaguered ABC – and if not, why not?
The Reserve Bank has given a green light to the government to borrow heavily to save the economy from getting any worse as a result of the pandemic.
Reserve Bank deputy governor Guy Debelle delivered a speech recently in which he said the government had room to borrow due to record low interest rates.
(RBA Deputy Governor Guy Debelle)
Guy Debelle said:
“The increase in debt is definitely manageable. Moreover, there is not, in my judgment, a trade-off between debt and supporting the Australian economy in the current circumstance.”
Restoring funding to the ABC is a good investment in the Australian economy.
In 2018, then ABC Managing Director Michelle Guthrie released details of a Deloitte Access Economic study that showed the ABC gave back $1billion to the Australian economy.
Michelle Guthrie said:
“Far from being a drain on the public purse, the audience, community and economic value stemming from ABC activity is a real and tangible benefit”
(Jon Faine with former ABC MD Michelle Guthrie)