JAKE DINGLE:
Good morning, everyone. Hopefully you can hear us okay. Welcome to Carbon Revolution. I'd particularly like to welcome the Treasurer Josh Frydenberg and Senator Henderson, my name is Jake Dingle I’m the Chief Executive of Carbon Revolution. Before I hand over to the Treasurer, I just like to say we're a very proud Australian advanced manufacturing company we've developed globally unique technology that we are commercialising and industrialising here in Waurn Ponds in Geelong, which is a great thing to be doing in this country. And we've really appreciated obviously, the support that we've received, particularly over the last year with things like JobKeeper from the Federal Government and also continue to benefit from, including the apprenticeship boost scheme, which we are now utilising and will continue to do so in the future. So it's great to have you here, Treasurer and Senator Henderson and I’ll hand over to you.
JOSH FRYDENBERG:
Well, thanks Jake, it’s great to be here and meet your staff at Caron Revolution. To be here with Sarah Henderson, a great advocate for Geelong and the broader region. Well, we're here because it's another Australian success story, a success story that was made possible with support through the Federal Government at a time when Carbon Revolution needed in most. Last year, a lot of their customers closed their doors around the world. It’s the factories that make cars closed because of the COVID health restrictions. This put real pressure on the workers here and JobKeeper came to the rescue, as it did for 3.8 million Australian workers around the country. And you hear about this story that started about a decade ago, Jake was telling me, four guys in a shed. Now we've got around 400 guys and girls in a much bigger shed. And the plans are to extend this business to 1,000 employees. And while 40,000 wheels have been put on the road with carbon fibre wheels, the plan is to put hundreds of thousands of these wheels on the road right around the world servicing everyone from Ford to Ferrari. And it's a great story. It's a great story about Australian technology, Australian entrepreneurship and the willingness of Australian investors to have a go. And of course, the skilled staff that we've had an opportunity to meet today. And a couple of those staff are apprentices who have come on board as a result of the Morrison Government’s plan to support apprentices. And in Tuesday night’s Budget, we announced $2.7 billion to extend our apprentices support program to 170,000 new apprentices that's going to lead to apprentices in hospitality, in the trades, in manufacturing, and a number of sectors right across the economy. And it's really good to hear that this business like so many others has used that wage subsidy, a 50 per cent wage subsidy to take on a new apprentice. Tuesday night's Budget was all about creating jobs, building on the momentum that we've already seen across the economy, where the unemployment rate has fallen to 5.6 per cent, lower than when we came to government. And around a half a million new jobs have been created since last year’s October Budget alone. But we know we can't be complacent. We know that the job is not done. We know that the virus is still all around us, indeed 800,000 new global cases of COVID a day and we've seen Europe go into a double dip recession. So we are backing more jobs with investment in skills. in infrastructure, tax relief for more than 10 million Australians. That's going to create more economic activity. And that gives us an opportunity to create another 250,000 jobs and to drive the unemployment rate back to where it was pre pandemic and even lower still, with the Budget printing a number of the unemployment rate coming below 5 per cent by the end of next year. That's what we're striving to achieve, supporting businesses like Carbon Revolution, helping to get new apprentices into jobs. This is the Morison Government's plan, a plan that is working. Sarah.
SARAH HENDERSON:
Well, good morning everyone and thank you to our wonderful Treasurer Josh Frydenberg and to Jake and James for hosting us here today at Carbon Revolution. This Budget is all about creating jobs. This Budget is all about securing Australia’s economic recovery and Carbon Revolution is not only a great Geelong success story, in advanced manufacturing, in innovation, it's a great Australian success story. And it is wonderful to hear the news that Carbon Revolution plans to add its workforce, including apprentices, using the schemes that have been announced in the Budget. We are so proud the Morrison Government is backing apprentices and traineeships, another 170,000. And that is going to continue to drive jobs, including here in Geelong and including here at Carbon Revolution, to the point where Carbon Revolution will be employing over 1,000 people here in Geelong, producing some 600,000 carbon fibre wheels a year, exporting them to the world. I'm so proud to be here again, this, as a I say, is a great success story underpinned by a great Budget. And of course, the Morrison Government working in partnership with manufacturers, innovators, not just here in Geelong but right across this country. Thank you.
JOSH FRYDENBENBERG:
Well, while we've got James and Jake here, any questions about the business and the apprenticeships and the like?
QUESTION:
I was just going to ask you, car sales is something that have increased over the last year with COVID lockdowns, have you actually seen an increase in demand for your product over 2020, going into 2021?
JAKE DINGLE:
Yeah, that's a good question. Our product is all export. We're working with the Big car makers around the world. And the biggest really driving increased demand is the electrification of the world’s vehicles, so our technology adds a lot of value from an efficiency point of view and as a range and range extension and range anxiety become really the selling point for new vehicles, that dynamic is really pushing our technology harder and harders into those customers. So quite apart from the gradual increase in sales, we're seeing our technologies a great fit for the next generation of mobility, which is here to stay, it’s a structure shift in the industry globally so that’s really benefitting us and our technology.
QUESTION:
Would you like to see then more support for EVs from the Federal Government rather than rhetoric about killing the weekend?
JAKE DINGLE:
I won’t comment on that. But I think what we're seeing globally is a structural shift towards EVs and we expect to see that in Australia. And obviously, there's encouragement for that in this country, as well. So looking forward to just taking that technology further and further into that sector.
QUESTION:
Do you think you can ramp up to those sort of figures?
JAKE DINGLE:
I can't give you exact numbers, but the demand that's coming on from the global automotive market, and bear in mind, the 600,000 wheels that the Treasurer mentioned is still a very small quantity relative to the total size of the *inaudible* market. So we will be ramping up as quickly as the demand comes on.
QUESTION:
*Inaudible*
JAKE DINGLE:
Yes, it certainly helped us. Our customers closed their factories for several months at a time. And have obviously had to do with the fallout of that and get back on their feet. So we certainly were, with JobKeeper, we’re very grateful.
JOSH FRYDENBERG:
Thanks guys, are there any other questions for the day?
QUESTION:
Sure, we will start with the vaccine timeline. On the rollout, can you clarify what actually the goal is for the end of this year? Is it that Australians will have one shot or is it two shots?
JOSH FRYDENBERG:
Well, the expectation is a Budget assumption. This was not a policy decision. This is a Budget assumption we made around vaccines, around border closures about containing the new virus cases is that Australians will get access to the vaccine by the end of the year. Now it's not specific about one or two doses. But as I said, in the House, as the Health Minister said, the Prime Minister said, when it comes to the Pfizer vaccine, there’s only about a three week difference in having your first shot and your second shot. So you're having a Pfizer shot now, you're going to have your second shot in a few weeks. The AstraZeneca vaccine is a longer period between your first and your second shot. The key point is that the vaccine rollout is really gaining pace. We've seen more than 400,000 people over the last week get a vaccine shot and now more than 10 per cent of the population has received a shot and importantly, around 30 per cent of the population of those aged over 70, and we’ve had a strong rollout across aged care facilities again, a vulnerable cohort across the community. So we've got about 5,000 contact points now, GPs, state and territory health clinics, they're all designed to roll out the vaccine right around the country as quickly as possible. But the key assumption, the key for the Budget is that we continue to be successful in suppressing the virus. This is primarily a health crisis, with a very severe economic impact. And if we continue to suppress the virus, including states ensuring that their response is proportionate with the outbreaks when they occur, then we can continue to see more people in work, that’s what’s really important.
QUESTION:
But you said it wasn't a policy decision, but we've heard a number of different things from some Cabinet Ministers. Greg Hunt is saying one shot by the end of the year, Peter Dutton is saying two, I mean, what clarity can you provide Australians around what you hope to see by the end of the year?
JOSH FRYDENBERG:
Well you only have to look at I think its page 36 in Budget Paper Number One, where it spells out what the actual assumptions are, it doesn't mean….
QUESTION:
And what are they?
JOSH FRYDENBERG:
Sure.
QUESTION:
Because Australians aren’t going to read the Budget.
JOSH FRYDENBERG:
Well I hope they do. The first assumption is about the likelihood of the rollout being available to Australians by the end of the year. Another assumption is that the borders will gradually reopen from mid next year. Another assumption is that while there will be outbreaks, that they can be contained without an extended lockdown, like we saw in Victoria last year, all of those are assumptions that feed into the Budget numbers and quite clearly, a critical determinant of our success as a country in maintaining economy recovery, will be our ability to suppress those cases when they appear. We're not seeking to eliminate the virus, we can’t, the virus is with us. What we can do, though, is be effective in dealing with outbreaks when they occur and best in class, the gold standard, the elephant stamp has gone to Gladys Berejiklian. Because as the Premier of New South Wales, they’ve had outbreaks, but they haven't had a statewide lockdown.
QUESTION:
Still with COVID, this time with India, travel exemptions on compassionate grounds were permitted for countries like the UK and the US at the height of their COVID outbreaks. Why do different rules apply for Australians wanting to attend funerals here?
JOSH FRYDENBERG:
Well, as you know, we invoked the Biosecurity Act. We now have flights resuming to bring Australians home from the weekend. What's been important is the number of cases in quarantine has come down quite substantially. This has given us the flexibility to move. The Prime Minister has always said it was going to be reassessed in a couple of weeks’ time, which it has been, and the decision has now been made. It's really important to understand that the virus is still very deadly and it’s stubborn, and we do need to ensure that we put the health and safety of Australians first and that means taking the medical advice which we will continue to do.
QUESTION:
So, is that medical advice for the region there’s no compassionate grounds to go to India?
JOSH FRYDENBERG:
Well the medical advice is that we need to be vigilant around India that’s what’s led to our positions to date.
QUESTION:
Are you still on track to lift the India travel ban?
JOSH FRYDENBERG:
Well again, flights are starting to resume from this weekend.
QUESTION:
With the borders opening, is that more likely to be different bubbles…
JOSH FRYDENBERG:
… mid next year.
QUESTION:
Mid next year. So is that more likely to be more travel bubbles with Singapore and Hong Kong? Or is it likely to be open slather and you must be vaccinated to travel?
JOSH FRYDENBERG:
Well in terms of Budget assumptions, we would have gradual reopening from mid next year. But again, these are assumptions made in the middle of a once in century pandemic, it’s a high degree of uncertainty, you can’t be precise about these assumptions because of global context in which we operate. What we will do is take the medical advice and that would be obviously better ascertained closer to that time. But with respect to the travel bubble, like New Zealand, we are exploring other countries to do such travel bubbles with but that will be based on those countries’ abilities to suppress the virus and protect the safety of Australian citizens.
QUESTION:
I’ve spoken to Sarah about the extra $128 million for Round Two of the Travel Agents Assistance Package, is there likely, if this gets blown out beyond mid next year, that there’ll be more packages for travel agents?
JOSH FRYDENBERG:
Well we’ve already announced more than *inaudible* for support for travel agents. Very supportive of *inaudible*, very significant package for travel agents on top of what was available in JobKeeper. We did have in the Budget extra money around tourism and aviation. One being the 800,000 half-price tickets, this has been a very successful program, a lot of people want to fly to Cairns and to Gold Coast and…
SARAH HENDERSON:
And fly to Avalon as well.
JOSH FRYDENBERG:
And Queenslanders flying to Avalon, exactly, very good point. And the purpose of those half price tickets is to continue to see more people in the air and more people therefore on the ground as tourists.
QUESTION:
On Israel, the Israeli military has intensified its attacks on Palestinian militants in the Gaza Strip, what do you make of the situation over there?
JOSH FRYDENBERG:
We’re very concerned by the escalation of violence and the loss of life. Marise Payne put out a statement, the Prime Minister’s commented today, it’s very concerning, the loss of live on both sides.
QUESTION:
On the economy, the Budget says debt is set to peak at almost $1 trillion, can you guarantee it’s not going to exceed that?
JOSH FRYDENBERG:
Well as I said, the Budget is a serious of forecasts. One of those forecasts, you’re right, is the net debt to GDP, so net debt to the size compared to the size of our economy, comes down each and every year from what was forecast in last year’s Budget just last October. We forecast that net debt to GDP, which is a key indicator of fiscal sustainability, would be around 43.8 per cent, we have now said it would be 40.9 per cent and that is just under $1 trillion. And what it does indicate is the Budget has strengthened since last October. The deficit has come down by two thirds over the forward estimates and we have seen a boost to the bottom line from more Australians being in work. You see, compared to even the Mid-Year Economic and Fiscal Outlook last December, compared to where we are today, there are 200,000 more people in work. And that's been a $5 billion benefit to the Budget bottom line in more income tax receipts and less welfare payments. So the key to the economic repair job ahead of us is to get more Australians into work and that’s why we are chasing a lower unemployment rate. Now we heard from Anthony Albanese last night, a lot of smear but no new ideas. And our focus in the Budget has been about driving more people into work, that’s our focus.
QUESTION:
You didn’t really answer my question. Can you guarantee that debt won’t exceed $1 trillion?
JOSH FRYDENBERG:
The numbers are there for you to see, they are the best available evidence that we have about net debt peaking at 40.9 per cent. That is about half of the debt to GDP ratio you see in the US and the UK, about a third of what it is in Japan. People need to very clearly understand the size of the economic shock that Australia has endured. Last year, Treasury said to me the unemployment rate could peak as high as 15 per cent. That would’ve been more than two million Australians unemployed, that GDP could fall by more than 20 per cent, that would be the equivalent of taking the agriculture, the construction and the mining sectors out of the economy. We responded with JobKeeper, with the JobSeeker Coronavirus supplement, $750 cash payment for millions of parents, veterans and others on income support. And the cashflow boost that supported 800,000 businesses and not for profits. That has helped stem the tide of those jobless figures. When we ended the emergency payments, like JobKeeper, the Labor Party said the sky would fall in if JobKeeper was ended, we said no, we held firm and we brought to an end that emergency program after it supported 3.8 million Australians. What we’ve seen in the five weeks since JobKeeper ended is 120,000 people come off income support in just those five weeks since JobKeeper ended. So the Labor Party will always spend more, and they will always tax more. We didn’t hear anything from Anthony Albanese about his proposal to back in our stage three of the tax cuts, we heard nothing about mental health, we heard no new ideas about aged care, what we heard is recycled failed policies of Bill Shorten and plagiarising failed slogans from Jeremy Corbyn. It was a pretty poor effort. Like I said, what we heard from Anthony Albanese it was a lot of smears but no new ideas. Thank you.