KATIE ALLEN:
...The Honorable Josh Frydenberg, Treasurer of Australia. And we’re here to talk about some amazing economic outcomes and our economic recovery, following through from this COVID crisis which we know has not been just a health crisis, but an economic crisis and the fact that our Government has the back of business, like we have here. And Katie Graham is the owner, founder of this amazing business. It’s actually three businesses in one, a homewares business, some beautiful products you can see around us here, a cafeteria and then upstairs, an entrepreneurial business really. And Katie has been part of my Women in Business forum, which we have founded at the end of last year, in response to COVID. And Katie has taken advantage of what has been really important support program for her, as so many millions of Australians have actually accessed, including JobKeeper, so her cafe required two people to be supported by Jobkeeper and this homewares business has had five JobKeeper support programs, but now, thankfully, off JobKeeper. She was able to access the cash flow boost, which was incredibly important to help pay for rates and rent and things like that. But also, she’s also accessing our Women’s Leader and Founding program, grant program going forward. She’s hoping to access a grant program to help get women into these sorts of entrepreneurial businesses and just last week took on someone for the JobMaker program. So, I’m so delighted to hear from Katie today about how tough it’s been going through this, that Chapel Street here, the heart of Higgins, is in recovery mode and that people like Katie are leading, helping to lead Australia out of what’s been a really tough twelve months and looking forward to a very positive future with an incredible sentiment that’s coming back into the community. We’re seeing people coming back in numbers again, which we really wanted to see and that’s what JobKeeper, the cash flow boost, and things like the JobMaker Program are all about, supporting businesses to get off their knees. And it’s just so thrilling to see these businesses getting back to work, the consumer sentiment with people coming into these beautiful stalls that we’re seeing down here on Chapel Street. And I’d like to introduce Katie to a few words. Thank you Katie.
KATIE GRAHAM:
Well firstly, thanks for having me and thanks for coming to visit me. I’m very excited to be finally open again after six months of being closed so that’s been, since we opened, I feel like we bounced back pretty much straight away, which was fantastic. And it’s fantastic to see Chapel Street come alive again, it’s a lot of people around, the cafe next door is buzzing again, We’d only been open for six months when COVID hit so we were still kind of not on our feet, opening the businesses and it was very tough times, and so we’ve come out the other end and looking forward to that continuing. The traffic on Chapel Street has been fantastic, I feel like there’s a real sort of revival again. So it’s great.
JOSH FRYDENBERG:
Well thank you very much Katie and Katie. It’s a great pleasure to be with you both. Firstly to my electorate neighbour, my great Parliamentary friend and colleague Katie Allen, thanks for your outstanding leadership for the people of Higgins, as everyone knows, Katie brings to the Parliament incredible expertise in the health space, expertise that is so important today in our public policy debate, a member of the Academy of Health Sciences, somebody who has held very senior positions, at our leading hospitals and education institutions, Katie thank you for gracing the Parliament, for your continued contribution and for your support of people like Katie Graham. Thank you Katie for being a small business owner in this great country, one of the millions of small businesses that are the backbone of the Australian economy. Katie’s experience is like so many others across the Australian economy. She was hit very hard by COVID-19, this wonderful homewares store with a cafe as well as a special space for young female entrepreneurs, was hit hard. Katie was telling us how she started to stand down her workers, but when JobKeeper came, it was an economic lifeline for her. So much so that she had seven workers on JobKeeper, but now Katie and her business and her workers are graduates of Jobkeeper, no longer needing that economic support as the customers have started to come back. We know in the month of October, there were two million fewer workers who were on JobKeeper and 450,000 fewer Australian businesses on JobKeeper compared to the month prior. Here are seven workers and here is one business just here. We should be celebrating that fact, recognising that there is still a long, hard bumpy road ahead but businesses are getting back on their feet and the jobs are coming back.
Katie has also been a beneficiary of the cash flow boost. The cash flow boost saw $35 billion go out to more than 800,000 businesses, with a focus on businesses with a turnover of less than $50 million. Now these businesses desperately needed the working capital; working capital to meet the rent, working capital to meet the energy bills and the water bills and, of course, to retain their staff and meet some of their stock expenses, as well. That money has again been another economic lifeline for businesses such as this one. The focus and the delivery of that payment has been overwhelmingly on small businesses, with 90 per cent of the recipients on the cash flow boost having a turnover of less than $10 million. That’s very, very significant. Again, the cash flow boost has been part of a mosaic of economic support measures that the Government has put in place.
As the economy recovers, as the restrictions are eased, as the jobs are coming back, we’re seeing strong economic numbers. We saw the unemployment rate fall to 6.6 per cent, we saw 50,000 jobs being created over the month of December, more than 70 per cent of those jobs were full-time and the majority of those jobs went to women, which again is very pleasing. We’re seeing in the economic data that the recovery is well underway and it’s very pleasing to be here at another business that has graduated from JobKeeper.
I also wanted to mention today that we have seen from the Health Minister, Greg Hunt, new data showing that Australia’s immunisation rates for five year olds has reached a record high; 97 per cent among Aboriginal and Torres Strait Islander kids and around 95 per cent for the broader community. This compares to a World Health Organisation average for five year-old immunisation rates at 86 per cent. It reflects the capacity of Australia to very successfully immunise the population more broadly and also the faith the people have in the TGA and our health systems and our processes. We’re investing $400 million a year in our immunisation program. That is what the Morrison Government is delivering to Australians to secure their health. Again, that (inaudible) well for the roll out of the vaccine, our success with our immunisation programs for younger people across the country.
I also wanted to mention that we are now asking for nominations across the country for people to be recognised for their bravery, for their courage, for their contribution, for their service during the COVID-19 pandemic. Whether they are a professional or whether they are a volunteer, these people had made enormous sacrifices on our behalf. They have helped make us safer, and help our businesses get back on their feet. Doesn't matter if they worked in the Defence Force or if they worked as mental health professionals or they’re allied health professionals, or they are working in the essential services sectors; everyone has put their hands to the task to help make Australia a stronger place and to bring us all together and to get through COVID-19. And we will recognise these names at the Queen's Birthday long weekend in a special COVID-19 honour roll, a special COVID-19 honour roll for those Australians, volunteers and professionals, who have given service beyond self to help us get through the COVID-19 pandemic. Thank you. Ask for any questions?
QUESTION:
Just regarding the AMA and doctors pushing for COVID camps and your response to that?
JOSH FRYDENBERG:
On the issue of COVID camps, again, we have had lots of ideas that have been put forward but we haven't seen yet concrete proposals, and as the Prime Minister said late last week, he has an open mind, but we have to focus on the standards, obviously, of our quarantine system and local communities need to be fully engaged and obviously supportive of such measures. So again, it’s the states’ responsibilities to be putting forward their proposals, and when those proposals come forward we look forward to assessing them carefully.
QUESTION:
Will there be a delay with the rolling out of the Pfizer vaccine in Australia due to supply issues internationally?
JOSH FRYDENBERG:
Well, we're on track to receive the Pfizer vaccine mid to late February, and obviously the Pfizer vaccine, we have secured 10 million doses of it, and it is a vaccine that Katie knows better than anybody else, has shown very positive efficacy results. We have adopted a portfolio approach when it comes to vaccines, what we have really sought to do is to put Australia's best foot forward, and to give us the best opportunity to provide that level of support across the community, based on the best medical advice to us. And what Australia must do is to carefully consider those vaccines through the TGA process. That process is underway, we are not about to cut corners, we are not in the same position as the United States, and the UK, where they have seen tens of thousands of new cases every day and obviously tragically many, many lives being lost. We have the virus under control here in Australia, but we do want to roll out the vaccine and that is why the TGA is going through its normal processes and we're still on track to receive those Pfizer vaccines in mid to late February, I’m advised.
QUESTION:
Just in relation to Google, on Friday Google threatened to pull search out of Australia. Is this a threat to democracy?
JOSH FRYDENBERG:
Well as the Prime Minister has said, we don’t respond to threats. We have worked with the ACCC very carefully over more than two years now to come up with a proposal for a mandatory code which will see the digital giants pay for original content that is generated by our media businesses, as you would expect it to do. But it seems the digital giants keep changing the goalposts. Originally they were against what we were putting forward on algorithms, then they were against what we were putting forward on a final arbitration model. Now, it seems they are against paying for any clicks on search. They keep changing the goalposts, and if the clicks for media content is such a small proportion of their overall clicks on the search, then ultimately, the independent arbiters will find that it should reflect that payment for content reflecting the benefit to Google, to Facebook, from having that media content on their sites. But these are decisions that will be decided by independent experts if a commercial outcome cannot be achieved. But it seems that the digital giants, I think, did themselves a big disservice last week when they very openly and publicly threatened the Australian public with pulling out of Australia effectively with search if the legislation proceeds as it currently stands. We’ve heard from the crossbenchers, they’ve been speaking pretty clearly in support, we’ve even heard from the Greens. And of course, our position is very clear. I'm not so sure what the Labor Party's position is. They seem to be getting splinters from sitting on the fence, they’re either for a mandatory code as put forward into the Parliament and now before the committee, or they’re against. And we’ve heard from the media businesses that they’re for, and we’ve seen that reflected in the polls as well. This is a very carefully considered proposal, put forward after months and months of detailed deliberation. My view is that it is inevitable that the digital giants will be paying for original content and the choice for Australia, as we can be world leaders as we are with our report, and first off the rank when it comes to putting in place such a code. Or we can follow others, when down the track they do it. We are now in a position to implement a world leading code, a code that is fair, a code that takes into account mutual value exchange, that is the benefit to the digital giants as well as the benefit to the traditional media businesses and we think it is a fair outcome. We await the committee’s report and we will proceed thereafter.
QUESTION:
And so you are confident that that will be the working solution, that they’ll end up paying for it?
JOSH FRYDENBERG:
Well, that is the purpose of the code and once the code is in place, then it will take effect. But again, we wait for the committee report but our position has not changed. Our position has not changed.
QUESTION:
I know you’ve touched on Google’s threat but I also wanted to get your thoughts on whether it’s enough for Google to pay $59 million in tax when they earn $4.3 billion in advertising revenue over the past financial year? And you mentioned the importance of the mandatory bargaining code, do you aim to legislate this within the next six months?
JOSH FRYDENBERG:
We don't go into specifics about the tax affairs of company A or company B. What I can tell you is that we’ve put in place very rigorous processes around multinational tax avoidance and we’ve worked very closely with the OECD and with the G20. We have been working on a program called the BEPS program, the Base Erosion Profit Shifting Program, which brought a lot more of that global revenue into the tent for the tax office to take the next steps. When it comes to the mandatory code, that is what is before the committee with the legislation that I introduced to the Parliament before Christmas. We will await that report, but what we do know is that that code is very comprehensive, it follows detailed, considered advice and recommendations from the ACCC, it’s world leading, it’s drawn the attention of regulators from abroad, from governments abroad, who have said that this is something that they are looking to follow, and, of course, we will then seek, following the committee report, to take the next step, which is to pass the legislation through the Parliament, and one would hope that on such an important topic as this, that it would receive bipartisan support. No ifs, no buts.
QUESTION:
Treasurer, just quickly on borders, we have had a week of zero community transmission nationally, given that great result for the country, is there any case for the border restrictions imposed by state premiers?
JOSH FRYDENBERG:
Well my position on domestic borders is consistent and clear. And so is the Morrison Government’s. Closed borders cost jobs. We have to take the medical advice but we have also seen the Commonwealth work very hard on a national definition of a hotspot. I’d love to see that national definition of a hotspot adhered to by the states. I think it would bring a lot more certainty for business and I think that would mean more jobs and, as we know, the tourism industry particularly, the aviation sector have been hit really hard by those closed borders at the end of last year. And so many families had their travel plans interrupted with very short notice. So, yes, we need to take the health advice, that must be our first and foremost priority; always follow the health advice, but at the same time, we need a level of consistency around the approach to borders and the national definition of a hotspot is a good way to go.
QUESTION:
Sorry, just to piggyback off that, will the Government be considering more support measures then for tourism and hospitality industries?
JOSH FRYDENBERG:
Well again, we have put in place a number of programs in addition to JobKeeper, which will see billions of dollars flow through to the Australian economy, long after JobKeeper ends at the end of March. And the tax cuts, we have already seen more than $7 billion flow in the last six months and on average, more than $1 billion will flow over the next nine months. The JobMaker Hiring Credit, to help businesses such as the one we are here with today to take on young people who have been on the unemployment queue and to get them into work. The infrastructure spending that we’ve brought forward, the business investment incentives, to allow businesses with a turnover of up to $5 billion to write off immediately, all in year one. The purchase of new equipment and machinery on office or shop upgrades. There are so many programs that we have put in place, including support for the tourism industry. We announced more than $100 million of support for travel agents. I announced in last year's Budget $350 million to support regional tourism. So I very much understand that there are some sectors that are doing it tougher than others and tourism and aviation are two among them. Depending on the region, hospitality is also facing some challenges as well, particularly with the uncertainty around border closures. But we do have a vast array of support measures that are in place that are designed to continue to help generate economic activity and create jobs.
QUESTION:
Just this morning, it emerged MPs have been asked to finalise preselection by March, is the PM going to call an election this year?
JOSH FRYDENBERG:
Well I spoke to the Federal Director and that report is untrue that there is some federal directive about the timetable for preselections by March. That is untrue. As the Prime Minister said as recently as last Friday, the election is due in 2022. Our focus is on maintaining the momentum of the economic recovery. Our focus, Katie and I and our Parliamentary colleagues and of course the Prime Minister, is to get more Australians into jobs. There were 1.3 million Australians who either lost their jobs or saw their working hours reduced to zero at the start of this crisis, 1.3 million. 90 per cent of those are now back at work. We understand the road ahead is long, it’s hard, many other countries are doing it much tougher than Australia and there’s a lot of uncertainty around the world right now and you wouldn't want to be anywhere else except Australia. But what we do know is that we still need to maintain that momentum of the recovery and that is what our focus is on. Our focus is not on the timing of the next election, our focus is on jobs and helping Australians get into jobs. Now, that’s our focus. I saw today Bill Shorten, Opposition Leader in waiting, say that Anthony Albanese, criticising Anthony Albanese, saying he had a tiny policy agenda in opposition. That’s a telling criticism of the Leader of the Opposition, a very telling criticism. Because if you stand for nothing, you have nothing to say. And we haven’t seen anything from Anthony Albanese and the Labor Party of substance since the last election. We’ve seen them try to walk back, in the dead of night, over the Christmas period from some of their disastrous policies in the last election, we’ve seen that. But no one believes them. Bill Shorten had a lot to say at the last election, it was just the wrong thing to say, hundreds of billions of dollars of higher taxes on people’s superannuation, higher taxes on people’s investments, higher taxes on people’s income, well obviously higher taxes on retirees as well. No one will ever forget them accusing small business, like this one, of being the top end of town and retirees, you know, hitting golf balls from the back of their yacht. That’s what the Labor Party said about retirees and small businesses at the last election. That’s what the Labor Party still thinks. But what is clear from today’s leaked comments, Tanya Plibersek and Jim Chalmers running around the country and telling anyone who’s interested, that they’re interested in the top job, is that the Labor Party is hopelessly divided. At a time of a pandemic, the Labor Party is fighting amongst themselves. The drums are beating very loudly on Anthony Albanese’s leadership and Labor’s game of musical chairs has just begun. And I think it’s going to be an interesting few months for observers of what’s going on the other side of politics.
QUESTION:
I just have one more question…
JOSH FRYDENBERG:
Sure.
QUESTION:
Do you support Margaret Court being awarded the Order of Australia and what’s your response to the backlash?
JOSH FRYDENBERG:
Well again, the Order of Australia and various awards are announced on Australia Day so it would be premature for me to comment about who and who does not get such awards and we’ll wait for tomorrow’s announcements. Thank you.