JOSH FRYDENBERG:
Good afternoon. I’m joined by General Frewen, Coordinator General of the COVID Vaccine Task Force. He, together with the Chief Medical Officer, Professor Paul Kelly, the Secretary of the Federal Treasury, Dr. Steven Kennedy, and myself, held a business roundtable and we were joined by more than 30 of Australia's leading CEOs and representatives of Australia's leading industry representative groups. CEOs from Coles, from the Commonwealth Bank, Telstra, Wesfarmers, Virgin, Qantas and many other companies were present for this virtual discussion. It was a very important discussion and it continues the strong cooperation we have seen between the Federal Government and the business community from day one of this pandemic. Last year, we partnered with the business community to provide rent relief, mortgage relief to millions of Australians, as well as to ensure our supply chains were resilient when states went into lockdown and when the pandemic was at its peak. The support of the business community has been extremely important in Australia's strong economic recovery; a recovery which has seen our unemployment rate come down to 5.1 per cent, with 115,000 jobs created in the month of May. Which has seen economic growth faster than even the most optimistic expectations of Treasury and the Reserve Bank, and which has seen Australia ahead of any advanced economy around the world, have more people in work today than before the pandemic, and our economy bigger today than before the pandemic. But today's cooperation with the business community came as we moved into a new phase of our COVID response. And in particular, the acceleration of the rollout of the vaccine. More than 8.5 million jabs have been delivered across Australia. As you know, we have focused on the most vulnerable cohorts in the community, with more than 70 per cent of Australians aged over 70 receiving their jab, more than 50 per cent of Australians aged over 50, and more than 30 per cent of the eligible Australian community receiving their first jab. This is a number that will only increase as more supply comes online. As you know, we have got about 300,000 mRNA Pfizer vaccines coming in each week. That will increase to around 600,000 to 700,000 by the end of July and into August, and the expectation is around 2 million by October. This is where the involvement of the Australian business community will be so important. And today we discussed how we can cooperate on issues such as transport, logistics, premises, community engagement, as well as communications. It was agreed by all members present that businesses will write to all their workers about the importance of being vaccinated and in some cases will be reaching out to the customer base. The Commonwealth will work with the business community about that particular message. For example, Alan Joyce, CEO of Qantas, talked about how he has 13 million frequent flyers and over 22,000 workers. We heard from the Minerals Council how their businesses, their members, reach out into Indigenous communities in the remotest parts of Australia and how they are willing to work with us to get that message about how important it is to vaccinate. There were many offers of premises for vaccinations being rolled out, including from Wesfarmers that raised the opportunities that could be provided at the local Bunnings or local Officeworks. There was extensive discussion about a whole range of issues. It was a constructive and productive meeting. Treasury will be following up with all members involved because we not only discussed opportunities where we can work together, but also some of the barriers that may be in the way right now preventing the business committee from playing a greater role. I want to emphasise that this is the first of a number of meetings that we will be having with the business community as we seek to meet the challenges created by this virus and General Frewen will talk to that. So I think today was a very positive step and I think the business community for their active involvement. It was at a very high level, it was something the Prime Minister and I were very keen to occur and it builds on the very extensive, cooperative, constructive business - government relationship that we have had from day one of this pandemic. General Frewen.
GENERAL FREWEN:
Thank you, Treasurer. I do think this was a very important meeting and it was heartening to see industry's commitment to supporting the vaccination rollout. There were a range of initiatives discussed and a range of support offered from industry and these included things such as workplace vaccination, offers of workforce support, access to venues and support in promulgating that important message about encouraging Australians to get vaccinated. In turn, I have offered to bring industry more closely into our planning process and I’ve offered to run an activity to brief them more fully on our plan in line with the sort of wargaming activity that we did yesterday with the states and territories. But I think overall, this will be a very powerful partnership going forward in helping us continue to keep people safe, to protect people's livelihoods and to allow us all to return to freedoms we wish to enjoy. Thank you.
QUESTION:
Treasurer, you spoke this morning about possible incentives for people to be vaccinated at the workplace. What might they be? And also, have you decided now on financial assistance to New South Wales? There are concerns there that $350 and $500 a week won’t be enough to cover mortgages and rents in the city.
JOSH FRYDENBERG:
Well there are two questions there, so let me just deal with the first one because I know then that General Frewen can add to that in terms of the timing of the incentives. Yes, there was extensive discussion about it but it also goes to how quickly we get the additional supply online as to when those incentives are best put to effect, but yes, a number of businesses raised some very interesting and exciting ideas about how they can put their resources to work.
QUESTION:
Such as?
JOSH FRYDENBERG:
Well, I mean, airlines were talking about free frequent flyer points and other benefits for example. I think it is more than a snag at Bunnings that we are talking about as our potential opportunity for incentives. But the timing Mark, of those incentives are very important. With respect to New South Wales, and I note the announcement by the Premier, the first thing to say is we are providing the same support to New South Wales in this lockdown that we did to Victoria just weeks ago. And that is where there is a lockdown that extends beyond one week in a designated hotspot, the payments of $500 and $325 are available. And as you know, the $500 payment is the same quantity or the same quantum that was provided when JobKeeper ended in March and that is important. The Treasurer of New South Wales has written to me asking for the reinstatement of JobKeeper. We’re not bringing back JobKeeper. That was an emergency support payment that we introduced at the height of the pandemic. We then extended it beyond the initial six months to 12 months. We brought in a tiered payment to take into account the number of hours that were worked and that JobKeeper payment played a very important part in our economic recovery, and particularly in keeping the formal connection between employers and employees and I don't need to remind you, Mark, that since the end of JobKeeper the unemployment rate has actually come down to 5.1 per cent. What we did anticipate in the Budget just weeks ago was that there would be further lockdowns and there would be further outbreaks. And that is why we kept our foot to the accelerator with $41 billion in direct COVID economic support. But it was a more targeted and a different support than in that initial emergency phase. We also had an agreement through National Cabinet that the Federal Government would provide that income support in the event of future lockdowns and state governments would provide the business support. Now in Victoria, Tim Pallas announced around $450 million of additional business support. Dominic Perrottet has announced up to $10,000 payments for businesses and I note that the Premier today has said that they will give further consideration as to what additional economic support, but we aren't about to bring back JobKeeper. That was an emergency support payment that had an initial time frame and as you know, we expected that there would be further lockdowns and we do have payments available.
GENERAL FREWEN:
You asked about specific incentives, is an example of where industry might come further into play, we talked about workplace vaccinations. Now workplace vaccination won’t be for every workplace and it won't be immediately. There will be a time in the year when we have the adequate supplies to support workforce vaccination. But in the meantime, industry have offered up workforce perhaps to support administration around setting up other pathways for vaccination and in the fullness of time, they have workforces that may support their own workplace vaccination that they would offer for vaccination more broadly. When it comes to incentives, right now, the key message is that vaccinations is the right thing to do and people should be getting out and getting vaccinated and I think industry have committed to supporting us in that messaging. But we will look at our range of incentives and how they might support incentivisation but again, I think that is for a time later in the year when we get beyond the immediate.
QUESTION:
On the incentives Treasurer, you mention that the incentives depend on supply. What have you done and what can you do to increase the supply of vaccines for Australia? For instance, the US Administration under Joe Biden is exporting Pfizer to Canada. I don't think it’s exporting to Australia. Why not? Can you raise that with your counterparts? Have you raised it with any of your global counterparts to see if Australia can get vaccine supply? More of it sooner from the European Union and from the United States?
JOSH FRYDENBERG:
The Prime Minister and Health Minister have been very focused on ensuring we continue to secure that supply and we have agreements to get more Pfizer and mRNA vaccines into Australia and we had the Chief Medical Officer at the meeting today who spoke about that additional supply coming online and I mentioned the 2 million in October. I have not spoken to my counterparts directly. I was meeting yesterday with my counterpart from Indonesia and we did discuss how our two countries can move together in the face of COVID. As you know David, we are providing vaccines into our regions to support some of those countries that do not have ready access like we do, for example, to the AstraZeneca vaccine. We continue to secure as much supply as we can. We continue to have discussions with those major companies.
QUESTION:
Are we not paying enough for Pfizer and Moderna? Is that why other countries are getting their vaccine supply before us?
JOSH FRYDENBERG:
I don't think it is an issue of paying enough. In fact, as you know we have put more than $7 billion to work in terms of the vaccine distribution as well as the acquisition of the vaccine. With Australia's position, having very successfully compared to many other countries, suppressed the virus, we didn’t receive as much as other countries in more emergency situations were, but we do know the supply is coming online in very significant quantities.
QUESTION:
Treasurer, you mentioned the prospect of future lockdowns and restrictions. Is the slow vaccine rollout doing economic damage to Australia?
JOSH FRYDENBERG:
We are rolling out the vaccine as fast as we can. The good news is that 8.5 million doses have already been delivered. On Monday we saw a record number, for Monday, being delivered across the country. If you look at the first million doses, it was delivered in 45 days. If you look at the last million doses, I think it was delivered in 8-9 days. We have dramatically reduced that time in which we are getting large numbers of the vaccine out to as many people as possible. And with that vaccine rollout, there have been challenges. And some of those challenges have been forced upon us, for example the aged cohort in which the AstraZeneca vaccine is available to us. With respect to lockdowns, yes, they do cost the economy. There is no secret in that. Treasury had estimated the Victorian lockdown was costing at least $100 million a day. The lockdown in New South Wales is a slightly different nature, it’s not across the whole state and there are less restrictive restrictions, if you like, in place in New South Wales compared to what we saw in Victoria. But it definitely dents confidence and one of the real positives out of today's discussion was that we are incorporating business into the rollout plan for the vaccination and their role. And that can help build their confidence because they are the employers who are willing to take on new staff. They are the investors that are willing to purchase new equipment or undertake a new building. That is why their engagement as well as the resources they bring to the table, is so important.
QUESTION:
Just on that you talk about working with Treasury and business to remove barriers. What sort of barrier are you referring to, is it insurance indemnity? What sort of barriers are actually in place at the moment preventing?
JOSH FRYDENBERG:
You’ve seen it publicly reported for example that the Australian Industry Group has raised issues about indemnities, has raised issues about information sharing. They’ve raised issues about incentives. There are a lot of things that have been raised in the context of today's meeting that require follow-up. And the Chief Medical Officer made a commitment that where possible we will seek to clarify some of those rules where there was uncertainty. And this is important, to have this level of dialogue, particularly the CEOs were giving us first hand experience of what they were seeing on the ground.
QUESTION:
Why has it taken until now to sit down with business to try and sort out the vaccine rollout? And is this essentially you outsourcing your responsibility as a government to convince Australians to get the jab?
JOSH FRYDENBERG:
Well as I said, we have partnered from day one very effectively and successfully with business. It’s been a really important partnership that has seen our economic recovery take hold. With respect to business, my dialogue with them has been ongoing. With respect to the vaccine rollout, it has been subject to getting more supply online. And what the General spoke today about was where the vaccine numbers are likely to be in August, September, and October. And that gives us more flexibility to bring in, for example, workforce vaccinations. That is not what is happening right now. Right now, we are using the GPs, we are using the centres set up by the states. That is the primary mechanism for rolling out the vaccine. But as more supply comes on board, using businesses and their resources is going to be important.
QUESTION:
To that question, you know, businesses have been talking the whole year about how they can help with the rollout. Jennifer Westacott said with more time they can plan and then they can start vaccinating as soon as possible. So why didn't you start this conversation with them in this sort of format much earlier than now?
JOSH FRYDENBERG:
Well firstly, we do have regular dialogue with business communities. For example Treasury have a business liaison unit that has been conducting regular discussions about the vaccine rollout, about the economic conditions, about a whole series of issues related to COVID. The premise of that question is actually wrong in that we have been engaged with them from day one, including through this vaccine rollout. But with respect to today, it was about accelerating that involvement, commensurate with the acceleration in the vaccine rollout. And as more supply comes on board, the businesses can play a greater role. And of course their advocacy about the importance of getting the jab is going to be vital.
GENERAL FREWEN:
In a specific sense of timing also as you know, I have completed my review now. Yesterday I was able to synchronise our revised plan with the states and territories. So today I had the opportunity to come to speak to business about exactly where we are with the rollout. So today is a fresh line in the sand.
JOSH FRYDENBERG:
We’re going to take two more questions.
QUESTION:
Treasurer as you said, the original plan was GPs, pharmacies, state vaccination clinics. What are their deficiencies that they won’t be enough to rely on come September, October? Why are we having to pivot away from GPs and pharmacies and rely on an as yet unformed plans for businesses?
JOSH FRYDENBERG:
Well firstly, General Frewen can add to this, but if you look abroad, America is a good example, they have been actively engaging the business community in the rollout. And they’re not mutually exclusive. Just because you actively engage business and they have a role to play in workplace vaccinations doesn’t mean there is no role to play for the GPs and the pharmacies. It is about having as many points of contact as possible so you can reach as many people as possible.
QUESTION:
So was it an under estimation?
JOSH FRYDENBERG:
No, it’s about what is consistent with the amount of supply that we have available. And as more supply becomes available, it opens up more opportunities to work with the business community as a point of contact. General.
GENERAL FREWEN:
So, Commonwealth GPs and hubs, and state and territory clinics will remain the backbone of the plan. But I think as we get, especially into those later months of October, November, December, where the supply that we will have, and it will be really important for people to have a more diverse range of ways to access the vaccine. It will give us greater flexibility. It will give us greater choice, and will give us greater convenience.
QUESTION:
Will the supplies come in all at once? Is that why?
GENERAL FREWEN:
Later in the year we will have additional Pfizer, we will have Moderna coming online as well. But in my look at the plan, there is a very strong backbone based on GPs, Commonwealth hubs and state hubs. These will be additional options that people will have and I think later in the year the more convenience and the more flexibility we can offer people that will just enhance.
QUESTION:
Treasurer, Kurt Campbell from the Biden administration says Australia needs to settle in for a long period of tension with China, including ongoing economic coercion. What is your response to that statement?
JOSH FRYDENBERG:
We are definitely living with a different China than what we have seen in years prior. The China under Xi Jinping is very different to the China that Scott Morrison is dealing with - is very different to the China under Hu Jintao that John Howard dealt with. I remember well, I think it was in October 2003, when in the Australian Parliament just 150 metres from here, we had in successive days - Mark, you’ll remember it well - the President of the United States and the President of China. And, gone are those days. There is a lot more strategic competition in the world and China has been a lot more assertive, in not just its diplomacy but also in its other positions. We have seen across a range of issues the consequences of that assertiveness. The Federal Government, the Coalition Government under Prime Minister Morrison, under his predecessor Malcolm Turnbull and before that Tony Abbott and John Howard, has consistently stood up for the national interest. Now, that has occurred in relation to telecommunications infrastructure, that’s occurred in relation to the Belt and Road Initiative, that’s occurred in relation to foreign interference. In my own space, that’s occurred in relation to foreign investment, where I have increasingly seen foreign investment applications that are being pursued not necessarily for commercial objectives but strategic objectives, and as you know I have said no to applications that in the past may have been approved. And we passed through the Parliament, the most significant legislative changes to our foreign investment review framework in the last 50 years. All of that being said, China remains a very important economic partner for Australia. They have made no secrets of the fact that our exports are not making its way to China; barley, wine, coal. But what is making its way to China, because they need it most, is our iron ore. And the price of iron is at near record highs, and that is providing significant revenue into our economy both at a state and a federal level. But we will not put economic interests first, we will put the broader national interest first, and that means standing with a very clear and consistent sense of where our national interest is, and that is what we have done under Prime Minister Morrison.