DAVID KOCH:
Treasurer, we have got to remember these are the June quarter figures, isn’t it? Before Sydney and Melbourne went into lockdown. September is going to be a shocker, you've got to be happy with June?
JOSH FRYDENBERG:
They are a solid set of numbers, because it shows, Kochie, the economy continued to grow in June, and it was better than what the market was expecting. 29 days out of the June quarter saw lockdowns in one part or another of Australia, including across our large states. But you’re right, the September quarter is expected to see the economy contract and see the fuller impact of New South Wales and Victorian lockdowns. What was pleasing about yesterday’s numbers is that housing investment was up off the programs of the HomeBuilder. Machinery and equipment sales were up off the back of our immediate expensing provisions, and household consumption was up off the back of our tax cuts, so there is some good economic activity that has been occurring and it does show the resilience of our economy.
DAVID KOCH:
Economic recession is defined as two consecutive quarters of negative economic growth. We will be negative in September, we need growth in December, but that depends on how lockdowns are extended, how far they are. Are you confident that lockdowns will be over in the December quarter? You've got WA and Queensland saying ‘we’re going to keep our borders closed for an extended period of time.’
JOSH FRYDENBERG:
I'm very confident that we'll start to see the easing of restrictions 70 to 80 per cent, and once restrictions are eased, households will be able to spend and travel more freely, and will see strong economic activity…
DAVID KOCH:
But Queensland and WA are saying we are pulling out of the agreement, we’re not going to abide by the 70 and 80 per cent.
JOSH FRYDENBERG:
Kochie, I will join with your proprietor, Kerry Stokes and so many others, in saying that all states and territories, regardless of their political persuasions, should stick to the plan agreed at National Cabinet. Yesterday, we saw 80 of Australia's largest companies go very public and say how important it was for the economy that we stick to that plan. In Western Australia, they’ve got job shortages. In Queensland, the tourism businesses are doing it tough. Annastacia Palaszczuk will have to tell the Sunshine Coast, or the Gold Coast tourism operator or theme park operator, the fishing charter operator in Cairns; why does she want to keep the borders closed when the rest of the country is opening up.
DAVID KOCH:
She is saying she is scared for Queensland kids, under 12 year olds, does that wash with you?
JOSH FRYDENBERG:
No, it's a desperate denial of the reality and it is not based on the medical advice. The medical advice is that the illnesses in kids is much less severe than we see in adults. The medical advice is that we should vaccinate people aged 12-15, which we’re doing. Of course, with the older population. The medical advice is what we are following, the medical advice is what the Doherty plan was based on. I think the people of Queensland are recognising they have to live with COVID, it's a reality that is now being accepted in Victoria, with yesterday's announcement that they can't eliminate it; no country has eliminated it, and that’s why it is so important we stick to the plan and open up accordingly.
DAVID KOCH:
Speaking of the plan, the New South Wales Premier was very open with us on Sunrise yesterday, and has promised to resume international travel once the state hits that 80 per cent double dose target.
Plays clip of NSW Premier
DAVID KOCH:
Treasurer, She says she will go it alone, but you control the borders...
JOSH FRYDENBERG:
We do.
DAVID KOCH:
Will you allow her to open the international borders once New South Wales gets to 80 per cent double dose vaccination, even if other states don't want it?
JOSH FRYDENBERG:
I can't give that commitment right now…
DAVID KOCH:
Why?
JOSH FRYDENBERG:
Because obviously those are decisions that need to be worked through in a lot of detail, but we are prepared to have the conversation with New South Wales at about their opening up and about what their plans are for home quarantine, for example, which would be a key part of getting more and more people into the state from overseas. It is really important we work through these issues in a methodical way, but Gladys Berejiklian is taking the lead now in easing restrictions in her state, just as her state has seen a rapid number of people who are getting the vaccination, and that is to be welcomed. I could understand the frustration of people in New South Wales who reach those targets, and then say ‘hang on, those people in Queensland or those people in Western Australia aren't getting vaccinated at the same rate we do, we want our restrictions eased, we want our freedoms back.’ I can understand that frustration, we will have that conversation and we will work through those issues.
DAVID KOCH:
Okay, Treasurer. Appreciate your time.
JOSH FRYDENBERG:
Good to be with you, Kochie.