JOSH FRYDENBERG:
While we’ve been here at Moorabbin, the job numbers have come out for the month of October and today’s job numbers confirm that Australia’s economic recovery is gaining momentum. 178000 jobs have been created in the month of October, bringing to 650000 jobs that have been created over the last five months. Significantly, 80 percent of those Australians who either lost their jobs or saw their working hours reduced to zero at the start of the pandemic are now back at work. 80 percent of those Australians who lost their job or saw their hours reduced to zero at the start of the pandemic are now back at work. And we have seen the effective unemployment rate for all of the country fall from 9.3 to 7.4 percent. Significantly there was good job growth here in Victoria as the restrictions started to ease and the effective unemployment rate in Victoria fell from 14 percent to 10.5 percent. The road ahead is long, it’ll be hard, it’ll be bumpy, it will not be without its challenges as we see in South Australia today. But there is a light at the end of the tunnel. The measures that the Morrison Government have already undertaken through Jobkeeper, Jobseeker, the cash flow boost, the payments to pensioners, to carers, to others, to bring forward infrastructure projects, the announcements in the budget to support a business-led recovery with investment incentives, with the loss carry back measures, with the tax cuts that will flow into people’s pockets before Christmas for eleven and a half million Australians, they are all measures that are designed to do one thing, create jobs and get Australians back into work and today’s job numbers are encouraging. Are there any questions?
JOURNALIST:
Yes could I ask you where does the government stand on the scheduled rise in superannuation contributions?
JOSH FRYDENBERG:
Well, as you know, there is a legislated increase in superannuation guarantee that will take place from mid next year but the government will make a decision on that matter prior to that taking place. So while it is legislated, we continue to look at the arguments. Tomorrow I’ll be releasing the retirement income review. That is a very substantial piece of work that’s been undertaken by the panel led by Mike Callaghan, a very distinguished and experienced former Treasury official and that report has some words to say about the trade-off between wages and superannuation contributions, particularly about the guarantee. So we’ll obviously hear many arguments, for and against, as we have done to date over the space of the next few months and the government will make a decision on that legislated increase before it takes effect from mid next year.
JOURNALIST:
Just a quick follow up, why has that decision been delayed until May [inaudible]?
JOSH FRYDENBERG:
Well again, the decision doesn’t actually take effect until mid-next year so we don’t need to rush a decision on that. I note that there have been many senior voices out on this issue. I note the Grattan Institute, ACOSS and others have pointed out the trade off in wages, the Governor of the Reserve Bank had some very clear and strong words on this matter and you’ll see this issue reflected in the retirement incomes review out tomorrow.
JOURNALIST:
Treasurer, Victoria has shut its border to SA from midnight tonight, do you think it’s the right move?
JOSH FRYDENBERG:
Well the decision on borders or those that have been taken by state premiers as we’ve seen has been much talked about with Queensland and Western Australia. The Government’s position has always been closed borders does cost jobs. There is a lockdown in South Australia, it’s a temporary one, just a matter of days that has been outlined so far by the Premier of that state. As for decisions about the Victorian border and other borders, they are matters obviously, and decisions that are taken by state governments.
JOURNALIST:
Yeah but to be fair you’ve spoken a lot about restrictions and been quite critical of Victoria when it comes to that, so with regard to the borders decision, do you believe they should have left it open?
JOSH FRYDENBERG:
Well my criticism about the Victorian government was in terms of the lockdown…
JOURNALIST:
Which is their decision as well…
JOSH FRYDENBERG:
and that was also about the consultation with the business community, it was also about a timetable for easing those restrictions , it was also about dates for giving school kids in years 8 9 10 a definitive timetable so that they could come back to work, it was obviously about the small business community that was hit hard. As for state border closures those are decisions that have to be taken based on medical advice because the impact on economies is real.
JOURNALIST:
Do you think though, given it is such a short lockdown hopefully in South Australia and a short closing of the border, will it really have any effect on jobs in this particular case?
JOSH FRYDENBERG:
Well in terms of border closures I did note that the medical officer, the Chief Medical Officer was saying at a commonwealth level that it’s effectively a moot point because they’re locked down for only six days in terms of border closures. But they’re decisions that have been taken by Daniel Andrews so I’ll leave him to explain them.
JOURNALIST:
Do you now accept that the plan to reopen completely by Christmas is off the table?
JOSH FRYDENBERG:
Well certainly that is a guide to see the nation open up by Christmas and I have to point out that Australia has done remarkably well on both the health and the economic front. We have been very successful in suppressing the virus across the country. We obviously saw a second wave here in Victoria but outside of this state the number of cases has been effectively managed and business has been able to continue to operate and to people move freely. On the economic front we’ve seen job numbers today, we’ve seen consumer confidence and business confidence, strong improvements there so we shouldn’t lose sight of the broader picture which is that Australia has managed this crisis very well. We’ve also seen improvements here in Victoria but also around the country in our contact tracing which is absolutely key to managing future cases, so the intent is still to open on Christmas.
JOURNALIST:
The intent is still there but is it realistic, particularly given how quickly things happened in South Australia?
JOSH FRYDENBERG:
I think it’s realistic, absolutely. Obviously we don’t know what’s around the corner. If anything, recent events in South Australia have confirmed that the virus cannot be eliminate. Until we have a vaccine the virus cannot be eliminated. You will have new pockets of cases. It’s how Governments, health officials manage those pockets of cases which will determine how successful we are as a nation with the economic recovery and our re-opening.
JOURNALIST:
What do you make of the report that 39 war crimes have allegedly been committed by SAS personnel?
JOSH FRYDENBERG:
Well as I understand it the Chief of the Defence Force just completed his press conference and he has made clear that he will be accepting the recommendations from that report. We obviously take these matters very seriously and that the Government has setup processes for the further assessment and investigation of those allegations. But I also want to make a broader point which we is as a nation can be enormously proud of the men and women in the Australia Defence Force. They have performed so well here in the crisis’ we have faced whether it’s been the bushfires or the pandemic but also, broader and further afield around the world in responding to security threats. These events and these allegations are obviously very serious and we will follow them up with a proper process. But they shouldn’t be used in a way that takes away from the broader reputation of our defence force who I think do a remarkable job of whom Australians can be very proud.
JOURNALIST:
Just moving onto China. What sort of pressure do you think China wants to bring onto Australia by releasing this list of its grievance against Australia?
JOSH FRYDENBERG:
Well if you go through that list you will see there are many issues that go to Australia’s economic and national security. We make no apologies for having free press. We make no apologies for encouraging, enabling, allowing our politicians to speak their mind and representing the constituents that put them into our democratically elected Parliament. We make no apologies for making decisions around our foreign investment where it’s in the national interest to do so. We make no apologies for calling out human rights abuses by whoever, wherever they occur. This is what it means to be an Australian. This goes to the heart of our identity and we don’t resile from those decisions that are in the national interest. Our national interest is non-negotiable. That being said, the relationship with China is an important one for Australia. At an economic level it’s been worth more $250 billion a year to our two way trade. Not just in the resources sector but also in the agricultural space, education, tourists. We want that relationship to continue and it’s mutually beneficial. The iron ore that we provide to China helps fuel their economic development. The agriculture that we produce and sell to the world is among the best products in the world and so that relationship we want to continue with China but we are not walking backwards from defending our national interest.
JOURNALIST:
Is it that a tactic to deliberately inflame tensions between the two countries?
JOSH FRYDENBERG: I’m not going to comment on Chinese Government day to day actions or [inaudible] commentary. What I will say is what I said in a speech yesterday, that the Morrison Government is looking to engage with China in a mutually beneficial and respectful dialogue. Our values, our histories are very different, that’s not new. We won’t walk away from defending our national interests but we do want to continue to have a productive and important relationship with China.
JOURNALIST:
Will we give up anything on that list of grievances?
JOSH FRYDENBERG:
Which one are you suggesting?
JOURNALIST:
I don’t know. Huawei? Any of them?
JOSH FRYDENBERG:
Well the decisions that we have taken have been decisions that we’ve taken based on the national interest. They’ve been decisions that we take following appropriate consultation with our relevant experts. The international environment is increasingly complex and challenging. The United States has changed their views on China from one where they saw it as a strategic partner to one where they see it as a strategic competitor. I also want to point out that China’s economic rise has been good for the world. Deng Xiaoping famously said to get rich is glorious and in the time that he was there and the reforms he undertook, China’s economy has continued to grow. What that has meant is that hundreds of millions of Chinese have come out of poverty and moved into the middle class. What it has meant for Australia is that we have been a great beneficiary from that growing trade relationship but it’s not just a China story. Australia is focused on strengthening and building its relationships right around the region. The Prime Minister made a very important and significant visit to Japan. For the Japanese Prime Minister to invite the Australian Prime Minister to be his first official visitor following his ascension to that role is very significant. Obviously the defence ties are helping to strengthen regional security as well. Last week I signed an agreement with my Indonesian counterpart Sri Mulyani for a $1.5 billion loan to Indonesia to help them get through the COVID pandemic. Between 2014 and 2019 Australia’s trade with India doubled. We’ve just entered a 15 nation free trade agreement, RCEP, Regional Comprehensive and Economic Partnership. Again Australia is doing lots of work with our partners in the region which helps not only our security here at home but also our economic prospects as well. Thank you.