DAVID KOCH:
Joining me now, Treasurer Josh Frydenberg. Good morning to you.
JOSH FRYDENBERG:
Good morning, Kochie.
DAVID KOCH:
Look, the rest of the country are learning to live with the virus. Do you agree with Premier McGowan to keep WA shut? He says hospitalisations up 900 per cent over East and their economies are in tatters.
JOSH FRYDENBERG:
Well, this is a decision that the Western Australian Government themselves have taken and one for them to explain. But obviously many people in Western Australia will be disappointed with the decision and will be asking if not now, when? It’s not a federal state issue this one. This is a decision of the Western Australian Government. But the Western Australian people have been fantastic through this whole pandemic and the Morrison Government has provided them with an unprecedented amount of economic support. It’s really pleasing, Kochie, to see the double‑dose vaccination rate now in WA approach 90 per cent, the boosters are rolling out.
DAVID KOCH:
Yeah, yeah, but that’s not the issue.
JOSH FRYDENBERG:
And as you know, we’re in a new phase of the virus.
DAVID KOCH:
That’s not the issue, because Premier McGowan said the second dose really doesn’t count for much against Omicron, that it’s the third dose that makes all the difference. And West Australia’s third dose percentage is 28 per cent. He said he’s aiming for 80 to 90 per cent third dose. Now, if we wait that long, it’s going to be months and months and months before WA opens up.
JOSH FRYDENBERG:
And that’s why many Western Australians will be asking if not now, when? Because the Omicron variant is a new phase in the pandemic, a pandemic that is nearly two years long. And there is changes in the way that we’re responding, and obviously the number of cases has increased with transmissibility, but it’s also less severe. So, of course, we want to see Australia united. We will continue to support the Western Australian economy and the Western Australian people, but we do understand the need now to live with the virus in a COVID‑safe way.
DAVID KOCH:
And we have to understand in the Eastern states that Premier McGowan is incredibly popular, isn’t he? That most West Australians actually agree with him, that he’s doing the right thing.
JOSH FRYDENBERG:
Well, Western Australians have not seen the extended lockdowns that we’ve seen in the Southern states like New South Wales and in Victoria. So they’ve had quite a different experience. That being said…
DAVID KOCH:
A better experience.
JOSH FRYDENBERG:
The virus is expected to be around for some time to come. So it’s about getting back to normalised settings, understanding that you have health precautions that are in place like mask wearing or social distancing, and you’re rolling out the PCR and the RAT test more broadly. But the key here is that we need to learn to live with the virus because the virus could be with us for some time to come.
DAVID KOCH:
Okay. Let’s move on to the Government funding surveillance testing for students. We’ve been repeatedly told for workplaces and non‑household contacts that’s not needed.
JOSH FRYDENBERG:
And that is the view of AHPPC, the overarching health body that is made up of Chief Medical Officers, that the RAT tests are not designated as a universal screening tool that’s required in every workplace. Now with respect to schools, it’s really important that they open in term 1 and that they stay open. It’s important for the workforce participation for the parents, but it’s also important for the mental health and the educational development of the kids themselves, many of whom have been out of the classroom for far too long. So it’s a confidence measure. It’s not based on the absolute medical advice that the National Cabinet has received.
DAVID KOCH:
Right, so it’s to give parents confidence to send their kids back to school. Just, lastly…
JOSH FRYDENBERG:
And obviously teachers.
DAVID KOCH:
Yeah. The economy, 4.2 per cent unemployment, best for 13 years. There’s certainly a job shortage out there. Will this start to put pressure on rising interest rates?
JOSH FRYDENBERG:
Well, certainly these are remarkable numbers, Kochie. I mean, you’ve been around economic news for some time, and to see the unemployment rate hopefully being sustained in the low 4s will be only the second time in some 50 years. And what is really pleasing about yesterday’s numbers is that young people got the majority of the jobs that were created in the month of December and that two‑thirds of those new jobs that were created were full time. One million women, additional women, are in work today than compared to when the Coalition came to Government. Now this tighter labour market is expected to put upward pressure on wages. With respect to what the Reserve Bank does with interest rates, that’s their own independent decision. But what they’ve said is that the key for them is whether inflation stays sustainably within the band of 2 to 3 per cent. And as you know, inflation hasn’t been within that band until now, since 2015. So it’s been some time coming, and hopefully it can stay within the band at a reasonable rate.
DAVID KOCH:
The economy going gangbusters. Treasurer, appreciate your time. Thank you.
JOSH FRYDENBERG:
Good to be with you.