BEN FORDHAM:
The federal Treasurer, Josh Frydenberg, is live from Canberra. Treasurer, good morning to you.
JOSH FRYDENBERG:
Good morning, Ben, and it’s pleasing to speak to you about the strengthening Australian economy.
BEN FORDHAM:
I know a lot of people are going through tough times, but they are a beautiful set of numbers.
JOSH FRYDENBERG:
Well, that’s what a former treasurer once said, I won’t repeat that line. But what I will say is that it beat market expectations. The market was expecting 2 and a half per cent growth; we saw 3.1 per cent growth. But what was particularly encouraging about yesterday’s numbers was that the recovery is broad based, and it’s the private sector, it’s the mums and dads, it’s the small business owners that are driving this recovery now with household consumption picking up as the savings rate comes down and people feel more confident to spend. But also business investment was up, housing investment was up, as people go and buy or build a new home. Motor vehicle sales are substantially up and, overall, Australia has outperformed all other major advanced economies over the course of the last 12 months.
BEN FORDHAM:
We’ve all done our bit. We spent up big time over Christmas. Obviously people are splurging on property, particularly in Sydney. You have a look at holidaying in-home, that’s the message at the moment - holiday at home, get out there and make sure you spend some money in the regions. I wonder whether we can all do a little bit more, Treasurer - mainly the bosses out there - by giving workers a pay rise. Would you like to see that?
JOSH FRYDENBERG:
Well, that will be a matter for the particular boss, but I always welcome more money into people’s pockets, and we’re actually enabling that by the tax cuts, Ben, that we’ve been rolling out across the country, which are putting an extra billion dollars plus a month into the pockets of Australian families. But the way you get wage rises is that you lower the unemployment rate so you get more tension in the labour market as employers compete for workers. What’s also pleasing is to see the resilience in our labour market with about 2.7 million Australians graduating off JobKeeper, the unemployment rate falling to 6.4 per cent, bearing in mind that Treasury told me last year when the crisis had really hit that we could be facing 15 per cent unemployment. Even though, in the December quarter the amount of direct economic support halved from the federal government, we still saw 320,000 new jobs and we still saw 3.1 per cent growth. So, it is a very encouraging set of numbers, but we’re not out of the woods just yet.
BEN FORDHAM:
Treasurer, you’re happy to give people a nudge when it comes to their spending habits, whether it’s Christmas time - we had a former Treasurer, in Peter Costello, who once encouraged families to have an extra baby - one for mum, one for dad, one for the country, because it was good for the economy. So, why not use your power to encourage the bosses, who are in a position to do so, to give their staff a pay rise? Then there’s more money in their pockets.
JOSH FRYDENBERG:
Well, no-one would ever discourage an employer from doing that; of course, I would welcome that from employers around the country. But, we also have to understand that it’s still a crisis that Australia is going through. We’ve faced the biggest economic shock since the Great Depression. There are still sectors and regions across the country that are doing it tough, and JobKeeper is coming to an end in March. Our economic support will continue even after JobKeeper ends, but as for the individual circumstances of particular work practices and businesses, that’s going to be a matter for employers and employees.
BEN FORDHAM:
I spoke with your former boss earlier, John Howard, who’s singled out Scott Morrison, Gladys Berejiklian and you, Josh Frydenberg, as three strong political leaders in Australia. You’d be happy with that high praise?
JOSH FRYDENBERG:
Well, that’s good company to be in because obviously I think both Scott and Gladys are doing an outstanding job leading the country and leading New South Wales. In the case of Gladys and her team, New South Wales has been the standout without having to go into a statewide lockdown, while at the same time managing the COVID cases. New South Wales is a third of the Australian economy, so it remaining open has been critical to our economic success. I continue to work closely with my counterpart, Dom Perottet, to ensure that the people of New South Wales, indeed, the people of Australia, are getting the best possible economic recovery.
BEN FORDHAM:
Defence Minister Linda Reynolds has not denied calling alleged rape victim Brittany Higgins a “lying cow” in front of her staff. That’s not the sort of language she should be using, Treasurer, you’d agree with that, surely?
JOSH FRYDENBERG:
Well, I’ve read her statement, and she didn’t say in her statement that she actually said that.
BEN FORDHAM:
She hasn’t denied saying “lying cow”.
JOSH FRYDENBERG:
But what she has said in the statement is that at all times she has agreed with the version of events put forward by Brittany Higgins. She may have disagreed with some of the interpretations in the media about her own conduct, but at all times, as Linda said to the Parliament, she said that she believes that she has been acting in the best interests of Brittany Higgins.
BEN FORDHAM:
But where’s her judgement, though? Because you know if she didn’t say “lying cow”, she would have come out today and said, “I did not say that.” She hasn’t denied it. Where’s her judgement in using that kind of language?
JOSH FRYDENBERG:
Well, again, you’re a media commentator, I’m a parliamentary colleague. She hasn’t said that she’s used that language. That’s been reported in the media. That’s what you’re speculating on.
BEN FORDHAM:
But she’s not denying it.
JOSH FRYDENBERG:
I’m not going into that speculation.
BEN FORDHAM:
She’s not denying it.
JOSH FRYDENBERG:
Well, she’s actually taken leave to look after her own health, as Christian Porter has done, and we want them both back at work as soon as practicable.
BEN FORDHAM:
We appreciate your time, Treasurer, as always.
JOSH FRYDENBERG:
A great pleasure to be with you and your listeners, Ben.
BEN FORDHAM:
Josh Frydenberg, the federal Treasurer.