Govt should ‘take an equity stake’ in Virgin Australia

Centre Alliance Senator Rex Patrick says the government should “take an equity stake” in Virgin Australia rather than just granting a loan to the company, which was struggling to keep afloat amid the coronavirus pandemic. Mr Patrick told Sky News “there are similar downsides for a loan and an equity stake but significant upsides for an equity stake”. He said “the taxpayer would likely make a profit” once the pandemic passed and the market “restores back to normal”. “It is not the same thing as owning a company outright,” he said. “The Australian government should not simply be handing out money to companies left, right and centre. “We do need to have a multifaceted approach.” Image: Getty

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