16 December 2021

Interview with Peter Stefanovic, First Edition, Sky News

Note

Subjects: MYEFO;

PETER STEFANOVIC:

Treasurer, good to see you as always. Thank you for your time. So, the headline figure this morning, one million new jobs over the next four years. How are you going to do it?

JOSH FRYDENBERG:

Well, we’re creating one million new jobs by growing the economy. You’re seeing, Pete, a 16 per cent increase in business investment over this year and next. Non-mining investment, the strongest on record. The tax relief that we’ve provided to families and to small businesses is helping to generate more jobs and greater economic activity. We’ve got a large infrastructure pipeline – $110 billion strong. We’ve invested in the JobTrainer program; 450,000 places. And today, we have 217,000 trade apprentices, the highest since records began back in 1963. So, whether it’s with record spending on health to help Australians stay safe during this pandemic or our economic recovery plan that has seen the labour market rebound really, really strongly, it’s a good news story for the Australian economy.

PETER STEFANOVIC:

As you know full well, Treasurer, Budgets have been hit in the past by lockdowns. You can’t guarantee they won’t happen, can you, again, because that’s out of your hands and with the Premiers, right?

JOSH FRYDENBERG:

Well, as you know, in the Budget that I handed out in May, we did not forecast the Delta variant and, as a result, we provided $25 billion in economic and health support. Those businesses support payments as well as the COVID disaster payments of up to $750 a week for people who lost work, were really important in helping people get through those lockdowns, but we do live in uncertain times. We’re not out of the pandemic yet and Omicron is a reminder of that. But, Pete, when you listen to the Chief Medical Officer of the Commonwealth, he says very clearly that while Omicron is transmissible, early signs are that it’s less severe; it’s more mild than other variants and that the vaccine is an effective defence against serious illness. So, we need to learn to live with the virus. There will be more variants, but there is no need to panic. There is no need to overreact, and the states need to keep calm and carry on.

PETER STEFANOVIC:

On that, New South Wales is predicting 25,000 cases by late January. WA has already reacted to that by tightening restrictions. It’s roulette on Queensland flights at the moment. You’ve got these new records being broken in the UK overnight. I mean, these are some pretty big problems already for you, aren’t they?

JOSH FRYDENBERG:

The states need to show compassion and common sense when it comes to requiring people to go into quarantine. I welcome what the Queensland Government announced yesterday when they backflipped on their earlier announcement to put those people on the plane, all of them, in quarantine, including for Christmas Day. That was a ridiculous scenario, and I’m glad that common sense has prevailed. But we do need to keep reminding ourselves that the virus is not going away, and we need to learn to live with it. Our economic recovery depends upon it. Indeed, people’s mental health and wellbeing depend upon it. Pete, you and I have talked many a time about the shadow pandemic that Patrick McGorry has talked about. We can’t go back to lockdowns. We must look forward. And Australians have every reason to be confident, to be optimistic, to be hopeful going into Christmas and into 2022.

PETER STEFANOVIC:

Okay. Well, you brought up Queensland there. Should Queensland drop its quarantine for close contacts from 14 days to seven days in line with southern states?

JOSH FRYDENBERG:

Well, again, Queensland has its own Chief Medical Officer, but I point to the words of the Commonwealth Chief Medical Officer and indeed Sharon Lewin, the head of the Doherty Institute; and she’s played a fundamentally important role in helping prepare the road map for all states and territories to come out of this crisis. And she has said that there is not a reason to panic, and we have to learn to live with Omicron and it is not the right response to have a knee-jerk reaction and close down borders.

PETER STEFANOVIC:

So, they should drop them –

JOSH FRYDENBERG:

We need to ensure that we can live with – well, we need to ensure that the borders remain open. We got some other good news today. As you know, after the two-week pause, those international students and those skilled workers from overseas are coming back and coming into our country. That will help meet some of the skill shortages. That will also provide welcome revenue to our universities with the students and, of course, boost greater economic activity right across the country.

PETER STEFANOVIC:

Will you extend the low to middle–income tax offset?

JOSH FRYDENBERG:

Well, I know, Pete, you want me to rule in and rule out what may and may not be in the Budget –

PETER STEFANOVIC:

Tanya Plibersek said that you’re going to rule it out; that it’s going to expire. Is that true?

JOSH FRYDENBERG:

I also heard Tanya Plibersek talking down the economy. I’ve got news for Tanya Plibersek. Even after the first recession in nearly 30 years, unemployment under the Liberal and National Parties is lower than it was under the Labor and Greens Coalition. That’s a fact. Unemployment today is lower than it was under Labor. Labor keeps talking down the economy. I mean, don’t they want Australians to get ahead? Don’t they want to welcome the news of a strong economic recovery? Don’t they want to welcome the news of high vaccination rates? They’re talking about the past. They’re talking about the past; we’re talking about the future. When it comes to Tanya Plibersek talking about taxes, give me a break. This is the same person who said that Australians would be relaxed and comfortable with Labor’s $387 billion of higher taxes when they knew the detail. I mean, Jim Chalmers said Labor was proud and pleased at the retirees and housing tax, and Chris Bowen said, “If you don’t like our taxes, don’t vote for it.” Well, the Australian people took them literally. Anthony Albanese knows one thing about the economy: more spending, like a $6 billion waste of taxpayers’ funds on people getting paid for having the jab even though they’ve already had it and also the $387 billion of higher taxes. Higher spending, higher taxes –that’s what you’re going to get from a Labor–Greens Coalition. From the Liberal and National Parties, you’re going to get lower taxes and, as you know, at every turn, Pete, Scott Morrison and his Government has reduced taxes for small businesses down to their lowest level in 50 years and for families and households we’ve passed some $300 billion of lower taxes –

PETER STEFANOVIC:

Quickly. I know you’ve got to go. Yes or no – will you extend the low to middle–income tax offset?

JOSH FRYDENBERG:

You can ask me many a time between now and the March Budget, but you’ll have to tune in that night to see what we’re doing, but we are the party of lower taxes.

PETER STEFANOVIC:

Josh Frydenberg, appreciate your time as always.