DAVID KOCH:
Joining me now is Treasurer Josh Frydenberg. Appreciate your time. Why are these two Labor states backing away from their commitment? Are they playing politics?
JOSH FRYDENBERG:
Good morning, Kochie. That is a question you will have to put them. My point is that we need to reopen our country in a COVID‑safe way, as one. That means states and territories sticking to the plan that they agreed to at National Cabinet. It is becoming ever more apparent to everyone across the country that you cannot eliminate COVID. You need to learn to live with it. What started as a seven‑day snap lockdown in Victoria, is now going into its 27th day, that is because of the changing nature of Delta and it is increasingly contagious. We need to know that the states and territories will stick to the plan, because the families watching your program this morning, the small business owners, they need that level of certainty that their lives will come back, their kids will go back to school, and their businesses can reopen.
DAVID KOCH:
But in WA, though, small businesses are open. They are actually making good money because of these border lockdowns. You are saying business has got to put the pressure on these premiers, but that's your job, isn't it? You guys run the country.
JOSH FRYDENBERG:
Well, more voices absolutely help make the same point, and I have been making, as you know, pretty forcefully, the point that we need to as a country open up and stick to the plan. If you look at business leaders...
DAVID KOCH:
But what can you do? Can you cut funding?
JOSH FRYDENBERG:
Firstly, if you look at business leaders that you referred to, proud Western Australians like Kerry Stokes and Rob Scott, have been saying in recent days that Western Australia needs to reopen in accordance with the plan because they are seeing the labour force shortages across the state. I know first hand there are a number of West Australian tourism businesses that are struggling, that is why we agreed to a package of economic support in partnership with the McGowan Government for the tourism industry in Western Australia because the border closures and lockdowns have hurt them. When it comes to our Federal Government support, which is now tracking at more than $1 billion per week, I have been very clear that there can be no expectation by the states and territories that that level of support will continue once we hit those 70 to 80 per cent targets.
DAVID KOCH:
Are you telling us that once we hit that 70 per cent, if states don’t open their borders, you will cut off their money?
JOSH FRYDENBERG:
I'm making the point that at 70 to 80 per cent, you won’t need the stringent lockdowns. That’s what the Doherty Institute report is telling us…
DAVID KOCH:
And you will cut them off?
JOSH FRYDENBERG:
If they go down the path, and have lockdowns when you hit that 70 and 80 per cent targets, that will be against what the report has said should happen. We need to ensure that our lives can get back to a COVID‑safe normal because that is what we are seeing around the rest of the world.
DAVID KOCH:
So, you will cut their money off if they don't abide by that?
JOSH FRYDENBERG:
Again, at 70 to 80 per cent, there should be no expectation that the Federal economic support that we are providing right now can continue in that way.
DAVID KOCH:
That seems a yes to me. These latest Newspoll figures show the Coalition is in trouble, falling to its lowest primary rating since the 2019 election. Do you think the lockdown and border confusion is turning voters away from the Party?
JOSH FRYDENBERG:
Well, I am not running a daily commentary on polls, because there was another one just last week which had a different result to this one. There is no doubt, though, that people being in lockdown in our two major states is having an impact on how people are feeling about not just their governments, but about their livelihoods, and that is why it is so important to give those people hope. There is both a health and economic imperative, Kochie, for Australia to open up in accordance with that plan. Those numbers that you see of young teenagers turning up at emergency departments with mental health issues is skyrocketing and it is because of the nature of these lockdowns.
DAVID KOCH:
It is a big issue, we will come to that shortly with an expert. If the states don't open their borders on time, will that push the economy into recession?
JOSH FRYDENBERG:
Well, it certainly will cost jobs. It certainly will see businesses close. It will certainly see our debt burden increase and it will see the well-being of Australians suffer. You could have the ridiculous situation where somebody in New South Wales could travel to Canada before they could go to Cairns, or somebody in Victoria could travel to Singapore and Bali before they could go to Perth. That would be ridiculous. That is why it is so important that the agreed national plan is adhered to by the states and the territories.
DAVID KOCH:
Treasurer, I know you have got other obligations, I have to let you go. Thank you.
JOSH FRYDENBERG:
Good to be with you.