JOHN MCVEIGH:
Well, fantastic to have the Federal Treasurer Josh Frydenberg here in Toowoomba this morning. We’ve already had a packed program, Josh, talking about Toowoomba and the Darling Downs. We’ve met with Heritage Bank for example, Australia’s largest customer-owned banking organisation, the Chamber of Commerce Breakfast this morning, we’re heading to the Second Range Crossing, we’ll be at Pulse Data Centre, Aclas, looking at agricultural technology of course, inspecting the magnificent well-cared airport as well. Josh has been here in Toowoomba previously in his previous role as Environment Minister, looking at Acland Stage 3 and getting the necessary Federal approvals for that. Great to have him back in his capacity as Treasurer and a good mate! We have so much to offer the nation here from Toowoomba and the Darling Downs in agriculture, in energy, in health, of course in education, all of those, all of those elements go very much to the national economy from this part of the world. Really important to show you how we do it here, Josh, in what I consider to be the leading regional area in the country.
JOSH FRYDENBERG:
Thanks John, and thanks for your advocacy on behalf of your community here in Toowoomba. It’s been terrific to meet with local businesses and the local Mayor, and to hear about some of the issues and some of the challenges that they face. But also to see the great resilience of the people of Queensland in the face of fire and flood, and I’ve been in Queensland a number of days. Started in Townsville and obviously there was a very positive response to the Morrison Government’s funding that they provided in the wake of those terrible floods. Off to Caboolture, from there I met with some small manufacturers who are providing jobs for apprentices and ensuring that we are having a vibrant and impactful sector. From there, I went to the Lockyer Valley yesterday where I met with growers, farmers, who have some real water challenges, but also are producing the fruit and veg, the vegetables that fill our tables across the country, and also good to meet with the Fassifern farmers who have been struck by a devastating hailstorm last year and the Government, again, stepped in to provide assistance which was really appreciated. So it’s been great to be in Queensland, northern and south, as well as in Brisbane, to talk about the issues that are important to this great state and also to see how positive and resilient the people of Queensland are.
I also just wanted to comment on the APRA report that was released yesterday following a review of APRA’s capability by Graeme Samuel. This followed a recommendation from the Hayne Royal Commission, and the Government quickly announced this panel led by Graeme Samuel to look at APRA’s capability. There’s no doubt APRA does need to do better and this report makes it very clear that they have been too slow to respond to some of the technological challenges that organisations such as that face, particularly around the cyber risk, but too many of their negotiations with the organisations that they prudentially regulate have been conducted in secret as opposed to in public view and then when it comes to superannuation, there hasn’t been a sufficient focus on member outcomes and ensuring that they get the best possible deal. So APRA is very now conscious, I spoke to Wayne Byres yesterday, he is very conscious of the need to act quickly and he’s already taking action. I do want to point out though, that the APRA report by Graeme Samuel does say that APRA has been very impressive when it comes to managing the financial stability of our system, and when the GFC hit, our top four banks were in the world top ten global banks for the way that they were prudentially sound and now that continues to be the case, and APRA has done a lot of really good work to ensure the stability of our system which is really, really important, particularly when you get a financial crisis as we did during the GFC. But the Government’s focus, APRA’s focus, must be on ensuring that there is the right accountability, the right transparency, the right governance and the necessary attention to producing the best possible member outcomes in super. So the Government is taking direct action on the five recommendations that were made to them from Graeme Samuel’s report, the 19 recommendations made to APRA are also being followed through. And our focus as a Government is on ensuring the best possible outcomes for Australian banking and superannuation customers.
JOURNALIST:
Minister, in the breakfast this morning, what was raised was where to next on the infrastructure pipeline for Toowoomba. The Second Range Crossing is almost done. Will you be looking to fund more projects in our area?
JOSH FRYDENBERG:
Well we always keep an open mind in terms of the infrastructure pipeline and we have $100 billion that has already been allocated for important projects and this Second Crossing will be of great use to this area. We’re looking also at fast rail on the east coast of Australia, in Queensland and in Melbourne and Sydney, and of course there are a number of other infrastructure projects underway here in Queensland. So we’ll continue to look for opportunities, we’ll continue to partner with the State Government, and obviously we are always looking to produce value for money for the people of Queensland.
JOURNALIST:
Are you concerned that inland rail is stalling in Queensland?
JOSH FRYDENBERG:
Well it’s incumbent upon the State Government here to sign up to the Inter-Governmental Agreement as the other states have done, and as I pointed out in the speech, you will see this freight corridor dramatically increase its volumes over time, and the creation of 7,000 jobs, including here in Queensland, will be very much welcome as a result of this $9 billion dollar plus investment. This is a significant investment that we’re making in inland rail and it will produce a much more efficient and effective freight corridor.
JOURNALIST:
Treasurer, your Housing Minister today is encouraging people to buy houses before the Government’s Deposit Scheme kicks in. Is that advice you’d endorse?
JOSH FRYDENBERG:
Well people need to make their own choices about when to enter the housing market. What we do know is that the housing market has started to stabilise and we have seen prices come down over the last year in capital cities like Melbourne and Sydney. But now, prices have started to stabilise, indeed start to increase a little, and we’ve also seen clearance rates at auctions go from about 50 per cent at this time last year, to over 70 per cent at the most recent weekend auctions. So Australians should look for every opportunity to make an investment that suits them, but what we do know is with interest rates having come down and the softening in the housing market over the last year, there are opportunities for that.
JOURNALIST:
And do you expect the recovery in the market to continue next year?
JOSH FRYDENBERG:
Well again, there is a sense that the housing market has stabilised and the credit conditions will improve.
JOURNALIST:
And do you expect the Government to expand its deposit scheme beyond the 10,000 borrowers that you’ve initially outlined?
JOSH FRYDENBERG:
Well, let’s make that a reality as we have committed to do, and that’s what Michael Sukkar is focussing on, and will continue to make a watching brief, but it will be welcomed, this initiative, by first homebuyers.
JOURNALIST:
Just on Newstart. Business groups have been saying lifting Newstart will help stimulate the economy. Why won’t you increase the rate as a financial stimulus to the economy?
JOSH FRYDENBERG:
Well Newstart is different to other welfare payments in the sense that over 90 per cent of people who receive Newstart are actually receiving other benefits, namely Rental Assistance or a parenting payment or other payments. At the same time, two thirds of the people who are on Newstart move in to a job within a year and so our focus is on ensuring we have an environment where those jobs are being created, and since the Coalition came to Government over 1.3 million new jobs have been created and that is a good thing. And eight out of 10 new jobs over the last year that were created were fulltime and we’ve seen a record number of women in the workforce, a record number of seniors and a record number of young people get a job. Indeed, the workforce participation rate is now at a record high. So our focus is on ensuring the appropriate tax, regulatory and infrastructure settings so that those jobs are being created and that is what will continue to help people who are on Newstart continue to get in to the job market.
JOURNALIST:
But advocates are saying Newstart isn’t enough to support people while they’re looking for a job. How do you respond to that?
JOSH FRYDENBERG:
Well, we are working to create the jobs where people can move from a Newstart payment into full employment.
JOURNALIST:
The ABC has spoken to Newstart recipients who are saying the Government’s refusal to increase the payment goes against the Prime Minister’s Christian values. How do you respond to that?
JOSH FRYDENBERG:
Again, our focus for people on Newstart is to get them into a job and that’s where we’ve created over 1.3 million new jobs since we’ve come to Government and getting the infrastructure settings right, getting the tax settings right, getting the regulatory settings right. We’ll create that environment where more jobs will be created. That’s our focus and the fact that we’ve just passed over $158 billion worth of tax relief for Australians, we’ll see $8 billion flow into the economy every year, and that money will help stimulate further economic activity and that will also create more jobs.
JOURNALIST:
The Reserve Bank Governor said tax cuts and lifting Newstart would both help the economy. Why not do both?
JOSH FRYDENBERG:
Well the Governor’s also made clear that infrastructure spending is critically important and that we are starting to see improvements in the housing market and we’re starting to see a lift in mining investment as well. So, where the Governor’s focus has been, has been where the Government’s focus has been, and that’s ensuring that the economy continues to grow as it has done for 28 consecutive years.
JOURNALIST:
Treasurer, there’s been reports again about your eligibility to sit in Parliament. Do you have any concerns or worries about what’s happening there?
JOSH FRYDENBERG:
Well I question the motives of that particular person who’s pushing that particular case. This issue was comprehensively dealt with in the last Parliament, the people of Kooyong had their say just a few weeks ago, and I was very grateful for their support to be re-elected as their Member and I’ll continue to work hard for them, and indeed for the people of Australia as Treasurer.
JOURNALIST:
Minister, do you still claim your mother is stateless?
JOSH FRYDENBERG:
My mother’s documents show that she was stateless.
JOURNALIST:
The AEC website though was changed before the election to reflect that she was a Hungarian citizen. What do you say to that?
JOSH FRYDENBERG:
Like all my colleagues I complied with those requirements but these issues were comprehensively dealt with in the last Parliament and the motives of that particular person have been questioned.
JOURNALIST:
Minister, I understand though there are other constitutional experts coming forward to look at those claims a bit more closely and that they do find some validity to that. Are you concerned at all?
JOSH FRYDENBERG:
We’re absolutely focused now that I’ve been elected by the people of Kooyong on delivering for my community and delivering for the people of Australia. Those issues were comprehensively dealt with in the last Parliament and that’s where they should remain.
JOURNALIST:
So the AEC website saying that she’s a Hungarian citizen is incorrect.
JOSH FRYDENBERG:
Well, like every Member I actually filled in the forms like everyone else is required to do, and again, the people of Kooyong spoke just a matter of weeks ago and I was very grateful for their support and the person who’s been pushing this case has been exposed and their motives have been exposed and I think a lot of people have been turned off by that.