Australian PM Scott Morrison unveils $11B stimulus plan

March 12 (UPI) -- Australian Prime Minister Scott Morrison on Thursday proposed an $11 billion financial stimulus package intended to stave off the country's first recession in nearly 30 years amid the spread of the coronavirus.

Morrison's plan to combat the effects of the global pandemic includes $4.3 billion in direct help to 700,000 small and medium businesses in the form of cash payments to be used for paying wages and hiring extra staff.

Another measure would funnel one-time cash payments to more than 6 million social welfare recipients such as retirees living on pensions, families, young people and veterans starting on March 31, at a cost of $3 billion.

"Our plan will back Australian households with a stimulus payment to boost growth, bolster domestic confidence and consumption, reduce cash flow pressures for businesses and support new investments to lift productivity," Morrison said.

"Australia is not immune to the global coronavirus challenge but we have already taken steps to prepare for this looming international economic crisis."

The opposition Labor Party indicated it would support the plan in Parliament, but voiced concerns that it didn't do enough to persuade casual workers to stay at home while sick.

"We don't want Australians to have to choose between doing the right thing by their co-workers, or going to work so they can afford to live and eat," said Shadow Treasurer Jim Chalmers.

The prime minister announced the stimulus package as a measure to fight off the first potential recession since 1991.

The Australian economy was already slowing before one of the worst outbreaks of wildfires in its history this summer delivered a blow to the tourism industry. The government said the fires were expected to shave nearly 0.2 percent off economic growth in the first quarter.

Last week, Treasury Secretary Steven Kennedy predicted the coronavirus would take at least another 0.5 percent off first quarter growth.

The Australian stock market absorbed another beating Thursday as shares fell to their lowest level in more than three years on sharply escalating fears of a coronavirus-related global recession.

The benchmark S&P/ASX 200 index plunged 421 points, or 7.4 percent, closing at the lowest level since November 2016.