LUKE DARCY:
The Federal Treasurer of Australia, Josh Frydenberg, has been doing a great job for the country and lot’s to talk to Josh about, he joins us on the line now on Triple M’s Hot Breakfast, welcome Josh.
JOSH FRYDENBERG:
Good morning Darce, good morning Eddie.
EDDIE MCGUIRE:
Good on you Josh, great to have you here mate. Hey Josh let’s get into the first story, the big story of the day and that is, you’re looking at foreign ownership. There’s a lot of Australians worried that as China comes roaring out of this pandemic they’re involved in, that they’re going to be in pretty good shape to actually come in and hoover up Australian assets, what are you going to do about all that mate?
JOSH FRYDENBERG:
Well we are abolishing the threshold of which companies are subject to the scrutiny by the Foreign Investment Review Board which effectively means every foreign investment proposal will be scrutinised by me and my department to ensure that it’s in the national interest. So that means, taking into account the character of the investor, the tax implications, the competition implications, and of course the national security implications. Because as you know guys, there’s a lot of companies that are quite distressed at the moment, their values have fallen quite dramatically on the stock market and we don’t want any predatory behaviour that’s not in the national interest.
LUKE DARCY:
Josh that’s a great move and congratulations for that, it makes a lot of sense. I suppose the most emotional one is for renters and landlords and the banking system at the moment, how that all works together. We heard the Prime Minister last night explain it, can you give us some more detail around exactly what is that case in that situation?
JOSH FRYDENBERG:
Well there will be some people who have kept their jobs and businesses that continue to run and do quite well, and in those cases we would expect them to continue to meet their rent obligations under their lease. But there will be others that will be severely impacted by the coronavirus and indeed, if you are in the retail sector many of those businesses have closed. In that event, what we are saying is that landlords cannot evict, over the course of the next six months, tenants, whether they’re residential, retail or commercial on the basis of an inability to pay their rent due to the impact of the coronavirus. But at the same time there needs to be some burden-sharing, the conversation needs to be had between landlord and tenant and they’ve all got to do a bit of the lifting here because everyone has the same interest in terms of getting to the other side of this coronavirus, and continuing to operate as they were before the coronavirus.
EDDIE MCGUIRE:
So how does that work though Josh? You come to me, you’re my tenant and you say hey look I’ve had to shut down the shop I can’t pay anymore I’m in a bit of trouble and I go look I’d like to help you but I’ve got a mortgage and I’ve got to pay land tax and I’ve got to pay rates, where do we go to from there? Who’s the next phone call we make together?
JOSH FRYDENBERG:
So a couple of things. Firstly the State and the Commonwealth Governments are both looking at what help they can provide so for example, a number of the states are moving on land tax relief, that will help the landlord reduce their costs. The second is that the banks have today announced that effectively 90 percent of landlords who have loans with the banks of up to $10 million will not have to pay any interest, or principal for the next six months. That’s going to again be another important initiative for the landlords, because that will reduce their burden. And then when it comes to the tenant, if they are like a café and they are still operating take-away as opposed to having people inside their premises like before, but they’re still earning some income, well then they should be looking to pay a proportion of their rent consistent with that and that’s the discussion that needs to be had. But the States and the Commonwealth are working on more detail which will be out in coming days.
LUKE DARCY:
Josh we keep hearing of the term that you and the Prime Minister are using around ‘building a bridge’ and ‘hibernation for business to get through’ and six months is the length we keep hearing, is there a number of coronavirus cases, does it have to get down to zero before we can boost the economy? Can you put a number to when you feel like it’s okay to release more of these businesses back into operation?
JOSH FRYDENBERG:
Well the only answer I can give you to that question Darce is to say that businesses will get back to normal when it’s safe to do so and the people who will be advising the Government on that are the medical experts. All along, we have sought to take the advice of the Chief Medical Officer at the Commonwealth level who has been working on a daily basis with his state counterparts. Neither you, nor I, scientists or medical researchers, or doctors, we won’t find the vaccine, they will. But what we can do is safeguard the public and ensure that their health and their economic security is protected and that’s why we’ve articulated this hibernation strategy, because whether it’s with the banks providing relief, whether it’s the energy companies providing relief, the insurance companies relief on their premiums, the moratorium on rent evictions, or indeed the announcement that will be made later today about income support and a wage subsidy, that’s all about ensuring that businesses and families can get to the other side of this crisis.
EDDIE MCGUIRE:
Josh it is a tough thing at the moment, we got some good news last night that there seems to be a slight drop off on the contagious nature of the coronavirus here in Australia, but it’s still over 10 per cent. I get the feeling that people think it’s starting to be the end of it now, we still have to knuckle down, we’ve got knuckleheads like Andrew Bolt saying we should be back at work in two weeks’ time. Can you give it to us once again on this Monday morning, March 30, what the position is as far as where we are going? Is this the beginning of the end or the end of the beginning or we haven’t even got into the first quarter?
JOSH FRYDENBERG:
Well some people are saying it’s the second game of a five setter or you can say it’s midway through the first quarter. Look I wouldn’t be harsh on Andrew, everyone’s entitled to their opinion but…
EDDIE MCGUIRE:
Yeah but not if it’s a stupid one…
JOSH FRYDENBERG:
Well Eddie, I’ll leave you and Andrew to sort that one out but look the reality is, this is deadly serious. Young people are dying from the coronavirus, elderly people are dying from the coronavirus. Everyone’s immune system is different so everyone who’s listening to your program this morning needs to understand that they have to embrace the social distancing measures. They have to listen to the Prime Minister and the Premier, Daniel Andrews, when they say stay at home, unless you have other things you must do like go and get food or go to the chemist. And that is really important, that people understand we’re in this for the long hall and we’ve got to join together, we’ve got to look after one another because it’s enormously selfish if you breach these requirements because you will end up getting the virus, not only doing damage to yourself but potentially infecting others, and no one wants that.
LUKE DARCY:
Hey Josh you mentioned the big energy companies having to come to the party as well and a lot of people are at home now, have either lost their jobs, their incomes been reduced in a big way, but we’re using more power because we are at home and kids are home on computers at school. I mean have you had some guarantees? Energy companies haven’t got a great record Josh in passing through these things quickly, can you give us an update on whether they’re coming to the party?
JOSH FRYDENBERG:
Well they are and I’ll send you a piece of paper with a series of measures that myself and the Energy Minister, Angus Taylor, announced a few days ago. I would say to your listeners get on the blower to their energy company and explain the predicament that they’re in if they’ve lost their job or their business has had to close and the impact that is having. Because this is part of the hibernation strategy. But all your listeners need to know that the Government has their back. This is a great time of difficulty for the Australian people, but it’s also a Team Australia moment and the Government will do what is required to help people get to the other side.
EDDIE MCGUIRE:
Actually I make a correction, I said that Andrew Bolts’ column was stupid, it’s not, it’s dangerous because my worry is Josh that people see that and they start to think okay they’re saying we have to have social isolation but you know we will be back at work in a couple of weeks look it’s starting to drop now. That’s the bit that I’m worried about, that we’re just starting to get slightly ahead of things, I mean, I wish I was getting 10 percent compound interest going at the moment, that’d be pretty happy in my bank account but 10 percent of people getting coronavirus still scares the hell out of me. So Josh, a final message to people, and I like that last one that we’re all in it together but also that the Government has got our back and you’ve been a calming voice and I think the Prime Minister and the Premier of Victoria, Daniel Andrews, have been great leaders in recent times. What’s the main thing today that you want people to do? What is the key for you to be able to keep things going at the moment?
JOSH FRYDENBERG:
I want people to look after one another, and that means taking the medical advice, and understand that this is deadly serious. When you turn on your TV and see what is happening in Italy, or in Spain or in the United States, you are very pleased that you are here in Australia, because we don’t want to go down that path, and the only way we won’t go down that path is everyone joining together and following the medical advice. So we are dealing with a war on two fronts Eddie; the health crisis and the economic crisis. The Government’s doing what it can and will continue to do so. But people also need to play their role and their part.
LUKE DARCY:
Hey Josh Ed normally asks one final question. I’ve got one, this is unprecedented times…
JOSH FRYDENBERG:
Sure is mate.
LUKE DARCY:
in all of the big black swan events in the past we’ve never seen a situation where the world freezes and the economy stops. You’re having conversations with your overseas counterparts as the Federal Treasurer, is 2021, everyone’s wanting a time frame Josh and I know it’s impossible for you to do, but have you got some positivity around the fact that the economic climate will change and any time frame around it? Because we haven’t got a play book on this one, have you got a final word on that?
JOSH FRYDENBERG:
Well Darce, I’m a glass half full bloke, and I believe in the strength of our country, the Australian spirit of our health workers who are on the front line treating people right now in emergency wards who have got coronavirus. They’re the heroes. Not us media commentators or politicians, they’re the heroes. And I am very confident that we will get to the other side of this, and as a result we’ll be stronger as a nation. This is a reminder that we have to work together and that materialism doesn’t matter. What matters is the health of our family, our friends and our fellow Australians and that’s what we are determined to safeguard.
EDDIE MCGUIRE:
Good on you Josh, you’re doing a great job mate and we appreciate the fact that you come on and chat to Triple M’s Hot Breakfast listeners whenever you can.
JOSH FRYDENBERG:
Of course.
EDDIE MCGUIRE:
Thanks mate we will talk to you, I’m sure, later in the week.
JOSH FRYDENBERG:
I think you’ll be happy with, and your listeners, will be happy with today’s announcements.
EDDIE MCGUIRE:
Good on you mate, thank you very much.