JOSH FRYDENBERG:
Well it's great to be back here in Queensland to speak to the Australian Chamber of Commerce and Industry about the outlook for the domestic and global economy. The focus of my speech today was how we, through the tax cuts, are providing important relief to millions of Australians; through our support of small to medium businesses with the extension of the Instant Asset Write Off announced in the Budget is enabling businesses to grow and to invest in that strategy, and our support for $100 billion of infrastructure spending including major projects here in Queensland is boosting the productive capacity of the country but also easing the congestion in our cities and unlocking the potential of our regions. Together with the interest rate cuts, this will all put more money in the pockets of hardworking Australians, money that will be spent all across the economy and money that will help Australia continue its record 28 years of consecutive years of economic growth.
JOURNALIST:
Treasurer there are reports today that your Department's observed wages growth has been kept low by working either being unwilling or unsupported or unable to move between companies in search of a better job and a more productive company. Do you share that view, and is there anything that you can do about it?
JOSH FRYDENBERG:
Well the focus of that research is how to we boost productivity across the nation and boosting productivity is a key to higher wages and it's no secret that wages have grown at 2.3 per cent, the latest data from the wages price index, that's above inflation, but we always want it to be higher. So the emphasis is how do we boost the productive nature of the economy and that will attract more workers to those businesses and we're doing that through tax cuts which will increase workforce participation and reward effort, encourage aspiration and put more money into the pocket of hardworking Australians through the infrastructure spending pipeline which is significant, with nation building projects, with the 80,000 new apprentices, with the deregulation agenda, with also the changes that we are making to create more lawful workplaces with our ensuring integrity bill. All of that will boost the productive nature of the economy and create more productive businesses and therefore lift wages over time.
JOURNALIST:
On the subject of infrastructure, is there more that the Federal Government can do? Or is the reality that a lot of these really big projects that will boost productivity and create jobs are not shovel ready?
JOSH FRYDENBERG:
Well a number of them are and we obviously are focussing on ensuring that those projects that we proposed in the Budget become, you know, shovel ready if they're not already. The key with our infrastructure projects is we have both a $4 billion congestion busting fund which is focussing on commuter carparks and a series of local initiatives. We have some of the big projects, and obviously the Melbourne to Brisbane inland rail which we're contributing over $9 billion is important, but also the $5 billion we're contributing to create a Melbourne Airport Rail Link. Or the money that we're putting towards creating a second airport for Sydney, as well as a number of other initiatives including fast rail on the east coast of Australia, both the business cases but also the projects like the Melbourne to Geelong where we're contributing $2 billion. So, we have a series of major projects. Some are going through the approval phase, some have already reached the approval phase and are shovel ready, others are already underway. That's the purpose of having a $100 billion pipeline is that you can provide certainty to industry so that they can go out and hire, go out and skill up their workers so we can deliver the product to benefit all Australians.
JOURNALIST:
Just a quick follow up. Why is there such a reluctance to do another round of the Asset Recycling Fund? A lot of the State Governments, Queensland notwithstanding, are behind the idea and say that they would definitely get on board.
JOSH FRYDENBERG:
Well we are working closely with the states because we're funding a lot of the projects in co-operation with them. And the Asset Recycling program was successful, as you know. Our focus now is sitting down with Premiers and Treasurers, and Infrastructure Ministers at the State level and at the Federal level to swap notes, to align those project timetables to ensure that there are no capacity constraints in getting the right skills, or getting the right equipment or getting the right materials, and to ensure that those projects are implemented as promised.
JOURNALIST:
Would you urge Queensland to have another look at Asset Recycling? Do you think that's important?
JOSH FRYDENBERG:
Look, Queenslanders will make their own minds up about, and the Queensland Government and the Opposition in Queensland mill make their own minds up about their own priority projects. Well I can say to you is that we're investing heavily here in Queensland. Both in the local congestion busting projects but also some of the other major projects across the state.
JOURNALIST:
In Victoria, just on the cladding issue, Treasurer; will the Federal Government be contributing money to the rectification works? And if so, how much?
JOSH FRYDENBERG:
Well we're not picking up the bill for what is a state responsibility. The problems in relation to cladding have been a product of a failure of compliance and enforcement at a state level. This is a state issue. I mean, it's a fundamental business of state governments to ensure the safety of their buildings, and the Australian people would expect that being a state responsibility, it's carried out appropriately by state governments. What we have offered to do at the Federal level, through Karen Andrews as the relevant Minister, is to set up a taskforce to see through the recommendations from that report that has been discussed by building industry Ministers. That offer is on the table, it was offered in February and it will be offered again when the Ministers next meet.
JOURNALIST:
They're saying that if they don't get Federal funding that they're going to have to put an increase on a building permit. What do you make of that warning?
JOSH FRYDENBERG:
Well the states shouldn't burden shift what is their responsibility. There are some things that are federal responsibilities and other things that are state responsibilities. The safety of buildings is a state responsibility and the problem with cladding has come from a lack of compliance and enforcement at a state level. So I say to the states, look in your own backyard, make sure it's fixed, deliver the services that the people of your state expect and deserve and don't look to the Federal Government to solve what is a state problem.
JOURNALIST:
How confident are you with your prepared legal defence with regards to the Hungarian citizenship and the High Court ruling?
JOSH FRYDENBERG:
These issues were dealt with comprehensively through the last Parliament and the Coalition is confident that none of its Members or Senators have issues in that regard.
JOURNALIST:
The gentleman who's preparing the defence, he's an interesting chap. A denier of the Holocaust I believe. What are his motives do you think?
JOSH FRYDENBERG:
Holocaust denialism is appalling. No one should deny what was an appalling and tragic event in world history. And it wasn't just the Jewish people who were the victims of the Holocaust. It was many other minority groups. It's a tragic period in world history and it should never be forgotten nor forgiven. And what we need to do is understand as Australians that our people not only lost their lives in the Holocaust, but our people lost their lives fighting fascism and Nazism and defending the reality that is our democracy and the freedoms and values that we hold dearly. So I have no time, nor should anyone have time for people who deny what is the most tragic event in world history.
JOURNALIST:
Just finally, Treasurer. The Grattan Institute's warning that the health system is facing an 'impending crisis', they've called it, if there's not a reform on private health. Firstly, what do you make of the state of the private health system, and what will the Government do to prevent this crisis?
JOSH FRYDENBERG:
Well as Coalition members, we firmly believe in having a strong public and private system whether it's education or in health and that is why we have supported the private health insurance system and that's why 13 million Australians have taken up private health insurance. Now the Labor Party went to the last election promising to cut private health insurance. We have committed, and will continue to do so, support for private health insurance. So our focus is on delivering the services and the quality of services to Australian people in the health system, and there have been a number of reforms that has made it easier for young people to access private health insurance and made it easier for people in regional areas to also access private health insurance.