Ragtrader founder Fraser McEwing asks, 'Where did the JobKeeper money go?'
I hope that ASIC’s recently published list of companies that had their snouts in the JobKeeper trough will follow up with more detail.
The purpose of JobKeeper was to save employees from being sacked during the periods when businesses were closed because of COVID.
In its effort to being seen as a caring saviour, the Morrison Government was quick to open the money trough so that the worst affected businesses could attach snouts and keep employees on the books.
Now, with the trough closed, we are being shown where the money went.
ASIC has revealed which companies received major payouts and how much was paid back as an act of decency - because some companies hadn’t needed all the money after all.
That especially applied to those who used COVID to beef up their online business.
What ASIC needs to reveal is not just how many dollars went out and how many were paid back, but how many employees were retained as a direct result of the JobKeeper payments.
If a company took the money, sacked employees and then used it to pay creditors, or shareholders via profits, ASIC should tell us.
While this would have no legal implication, we’re in the naming a shaming era, where a drop in public image can mean a drop in turnover.
The two biggest JobKeeper fashion industry recipients were Mosaic Brands and Myer.
Out of its $96.5 million Mosaic refunded a modest $2 million while Myer got $77 million and gave back SFA.
Premier Investments accepted $46.45 million and returned $15.6, which put it at the head of the decency list – although it turned in its best profit ever and would have looked miserable to have not made a substantial refund.
As to the others on ASIC’s list, not a cent has done the U turn.
I’m not accusing any of the one-way-streeters of not using JobKeeper as intended, but I’d like to hear it from ASIC.
The only way that will happen if ASIC insists on accountability from all JobKeeper recipients over a million dollars and publishes the results.
Let us not forget the fashion companies that took it on the chin, either. The Sussan Group springs to mind.
Here we have a major apparel retailer that coped without getting out its snout.
There are many others, too, and I take my hat off to them.