DAVID KOCH:
Treasurer Josh Frydenberg joins me now from Canberra. Treasurer, good to see you again.
JOSH FRYDENBERG:
Good to see you Kochie.
DAVID KOCH:
You said the longer people are unemployed, the harder it is to get them back into work. So what are the plans to have unemployed Australians get back into the workforce?
JOSH FRYDENBERG:
Well the best way to do that is through the JobKeeper program and through re-skilling and training. The JobKeeper program, as you know, has already been taken up by more than 725,000 businesses representing more than 4.7 million employees and that will maintain that formal relationship between the employer and the employee. So even if they’re stood down, then we can get them back into work as soon as some of these restrictions are lifted. But the reality is, the history of the 1990s when Australia had very high unemployment, is that unemployment goes up on the elevators but comes down by the stairs and it does take quite a while to get people back into work.
DAVID KOCH:
And that was reinforced, so we’ve got to get used to this don’t we, that was reinforced by the Reserve Bank yesterday saying they expect unemployment to get to 10 per cent this year, but still 7 per cent next year. So while the economy might V-shape back, as you say unemployment doesn’t, does it?
JOSH FRYDENBERG:
Well it can be a bit sticky and that’s why we’re going to be focused on a whole range of initiatives to keep people in a job or to get them back into the workforce after the coronavirus…
DAVID KOCH:
…like what?
JOSH FRYDENBERG:
…and that includes infrastructure spending, keeping that 10 year $100 billion pipeline going because we’ve got to pick up that aggregate demand that may have fallen in other areas. The skilling and the training is going to be critically important. Cutting red tape, so make it easier for businesses to invest time growing their businesses as opposed to filling in forms. And of course we’ve continued to cut taxes for both small and medium sized businesses as well as households. And that’s all important in encouraging aspiration, welcoming investment and keeping people in a job.
DAVID KOCH:
Yeah and there’s some low hanging fruit isn’t there, because of the million people who’ve lost their job between middle of March and middle of April, 33 per cent were in hospitality, 27 per cent in arts and recreation, so it’s getting those sectors back, which are quick job hits aren’t they?
JOSH FRYDENBERG:
Well they’re massive employers those sectors and you can actually start to see the cars on the road in the city centres now where people are sort of looking forward to getting back into work and resuming some of their normal activities that they were doing pre-crisis. But of course we’ve got to continue to take the medical advice which has served Australia so well, we haven’t had the full lockdowns that we’ve seen in Europe, we haven’t had the death toll that we’ve seen in the United States. But at the same time, the quicker we can get people back into their jobs, the stronger the economy will be because for every week these restrictions stay in place, we lose $4 billion worth of economic activity.
DAVID KOCH:
So the plan to get hotels, restaurants, cafes up and going, sport going, still July?
JOSH FRYDENBERG:
Well these are the issues that have been worked through by the National Cabinet yesterday and again on Friday. They’re setting out a staged approach, they’re looking at how they can keep some of the social distancing requirements but also enable people to move about and to engage in their daily activities that may have been restricted as a result of the COVID-19 crisis. So they’re working though all those conditions that need to be met before we can lift restrictions but also the protocols and processes that need to be in place.
DAVID KOCH:
Just while we’ve got you, how are you going, with all of this? There’s a report in the West Australian today, saying you’re now having to have 24 hour security, the first time a Federal Treasurer has had that, because of threats against you during the crisis. Is that right?
JOSH FRYDENBERG:
Well it is right, but at the same time these assessments are done independent of Government by the relevant agencies and as you would expect, we follow that advice and…
DAVID KOCH:
Wow, that’s a bit unsettling for you and the family?
JOSH FRYDENBERG:
Well, it may be, but at the same time I’ve got an important job to do and there are many lives that are on the line right now in terms of ensuring that the economy bounces back, ensuring that the health restrictions are adhered to and that’s what I and the Prime Minister and our Parliamentary colleagues across both sides of the political divide have been focused on.
DAVID KOCH:
You’ve got some big decisions still to make. Keep well, appreciate your time.
JOSH FRYDENBERG:
Thanks Kochie.