Super fund CEO slams economic weaknesses

By Grace Ormsby

October 08 2020
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One of Australia’s biggest super funds has called the 2020 budget a “missed opportunity” to address the systemic weaknesses in the economy which have been exposed by COVID-19.

Super fund CEO slams economic weaknesses

HESTA CEO Debby Blakey said that while announcements of significant spending to stimulate jobs and economic recovery is welcome, the budget does nothing to address issues facing women and lower socio-economic groups during the pandemic.

“Women and the lower paid have been hit hardest by the economic impact of COVID-19,” she said.

Instead of recognizing the gendered nature of the economic slowdown, Ms Blakey explained that “the budget directs many stimulus measures towards male-dominated industries and will do little to address entrenched social and gender inequality holding back our economy”.

HESTA stated that such persisting inequalities are systemic weaknesses in the national economy “that represents risks to investments and sustainable long-term economic growth”.

According to the CEO, “There is ample evidence to show that applying a ‘gender lens’ to stimulus measures ensures governments maximise the effectiveness of public expenditure.”

She said it was particularly disappointing that the government did not look at childcare reform to broaden access to affordable, high-quality early education “as this is one of the most effective ways to support the economic recovery and improve women’s workforce participation”.

Ms Blakey is appealing to the government “to work with us and invest in overcoming these systemic weaknesses” – and put policies and investment initiatives in place that support social infrastructure.

“This includes childcare, aged care, disability care and public and affordable housing, all of which will increase women’s workforce participation, provide further social infrastructure investment opportunities and, in turn, strengthen the economy by placing it on a more sustainable, resilient and equitable footing,” the CEO argued.

“Get this right and Australia could land a ‘triple dividend’ – a more efficient acceleration of economic growth, higher long-term productivity and greater resilience to meet future challenges like our ageing population and pandemic shocks,” she concluded.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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