JOHN STANLEY:
Treasurer, good morning.
JOSH FRYDENBERG:
Good morning to you.
JOHN STANLEY:
I guess what you were asking them was what I was asking before and you had all their representatives there. How quickly can you do it and have you got the resources to do what you need to do?
JOSH FRYDENBERG:
They certainly guaranteed that they would deploy all the resources necessary to, not only assess these claims, but then to process them as quickly as possible. As you said John, around 9,000 claims already and that number will only increase, totalling around $700 million. Obviously there are claims for a whole range of different things that were insured, whether it was motor vehicles, whether it was home and contents, whether its commercial properties. Some of the claims are more complex than others but they’re looking to get cash out the door between seven to fourteen days for the easy ones and then when it comes to the rebuilding of people’s houses or commercial properties, they’ve already engaged builders and I emphasised to them the importance of using local tradesmen because we need to see the creation of jobs in these local communities once the fires have ended.
JOHN STANLEY:
I had the conversation with their spokesmen in the previous hour and we’ve had correspondence and callers. I’m guessing the issue is that they say it’s got to be done on a commercial basis, we tender the job out and whoever can do it cheaper. I was asking if there was any flexibility there where there is a local tradie who is not too far off the tender, should they be getting precedence. Is that part of what you’re talking to them about?
JOSH FRYDENBERG:
We’re absolutely focusing on local tradespeople because they’re obviously not only close to the action there but they’ve also got the local know-how and skills. They understand the moral as well as the economic imperative of creating jobs in these communities after these devastating fires. But I do want to emphasise John that the insurance companies are providing emergency accommodation to people, they’re making cash advances because obviously, when you lose everything you need that cash flow to afford the basics that we take for granted. They’re bringing in staff, in many cases from overseas. They’ve got a 24/7 hotline and I will repeat that number to your listeners; 1800 734 621, for anyone who has been bushfire impacted - who can get 24/7 assistance. And, of course, they will do what is required to ensure that people get the support they need.
JOHN STANLEY:
The money you’ve put into this Bushfire Relief Disaster Fund, we’ve talked about infrastructure and businesses as well. How are you going to marry that in with say, for instance, you’ve got a dairy farmer who might have lost a couple of sheds, a milking shed, whatever, so is that covered by insurance? Or is that going to be covered by you? How is this going to work?
JOSH FRYDENBERG:
Obviously, if people have got insurance and they need to make those claims as soon as feasible, and again the insurance companies will work through that. What we are doing is providing money on top of what people would otherwise get from their insurance. So as you know, this National Bushfire Recovery Agency is modelled on our response to the North Queensland floods. Andrew Colvin, a former Federal Police Commissioner, is in charge of this agency and he will help administer the $2 billion. The money will go towards backing small business and we saw in Queensland grants of up to $75,000 which can help with farmers who are replanting or restocking. We’re going to be providing a major mental health package. There’s been devastation to wildlife, flora and fauna and so therefore that will need to be assisted in the recovery, as well as rebuilding some of the key community economic and social infrastructure. So this $2 billion will go a long way but as the Prime Minister underlined it’s an initial contribution and it’s on top of the existing recovery payments and allowances John that we are providing which money is already going out the door.
JOHN STANLEY:
Yeah and is it flexible enough, I’m trying to think through say you’ve got a small town, you’ve got a bloke - his power’s out, he needs a generator to keep his dairy going, is it flexible enough for someone to say look - go down on the Government account, go down to Bunnings or wherever it might be, buy a generator, stick it in there, that’s what he needs and we’ll get a sparky in and we’ll pay that sparky to connect it all up and get it happening. Is it that flexible?
JOSH FRYDENBERG:
Well, there’ll need to be flexibility and that’s what Andrew Colvin will be working through in conjunction with the states. But I also want to emphasise there already are disaster recovery payments and allowances which include support for small business. And this money, this $2 billion is over and above those existing grants and allowances.
JOHN STANLEY:
I mean you’ve got an economy to manage, you’ve got to make sure the economy keeps growing, cause we talk about the surplus but the broader question is keeping the economy growing, keeping people in jobs so how are you looking and how are you keeping an eye on the impact this might have on employment, on spending, we’ve got tourism spending, all of that. How is that being done?
JOSH FRYDENBERG:
Well first thing I want to underline to your listeners is how resilient the Australian economy has been. I mean, we’ve seen a devastating drought which has really destroyed many livelihoods but also had a major impact across the economy. We’ve also seen the trade tensions between the US and China dent global economic confidence. But despite that the Australian economy has continued to grow and in the last jobs numbers that we saw, we saw 40,000 new jobs being created and the national unemployment rate coming down to 5.2 per cent. So it’s too early to tell what the full economic impact of these fires will be but no doubt it will have a major impact and as the Prime Minister has said our focus is not on the surplus, our focus is on getting support to the communities in need and the reason John why you need disciplined economic management, the reason why we sought a surplus is that Australia can live within it’s means, so we can respond…
JOHN STANLEY:
Sure…
JOSH FRYDENBERG:
With flexibility to these economic shocks.
JOHN STANLEY:
But you’d think with all this building and it’s tragic and it’s awful, that there’s going to be a lot of work presumably if we can manage it the right way and make sure people are looked after and that work can be done quickly?
JOSH FRYDENBERG:
Well absolutely, there’s going to be jobs that are created in these communities following these devastating fires. But as you know, many of these communities, particularly those that rely on tourism, rely on those few months a year to sustain them for the other nine months and that has been devastating for them at this time.
JOHN STANLEY:
And look, this mightn’t be your area in planning but I know the insurance companies are saying well if we’re going to keep our premiums down for people who rebuild in these areas then the areas themselves have got to be mitigated, there’s got to be more clearance around the areas, more clearing of the fuel loads. Was that raised yesterday and can you as a federal government put pressure on in that area?
JOSH FRYDENBERG:
Well we did discuss with the Insurance Council the importance of mitigation and adaptation because we are seeing a hotter, dryer climate and we have to be ready for disasters such as these. So I think there will be a lot of lessons out of this bushfire season and that is why we’ve foreshadowed a formal inquiry working with the states and I’m sure that will look at issues such as fuel reduction, zoning, planning and a whole host of issues which can help prepare Australians for the next catastrophic event whenever that may occur.
JOHN STANLEY:
Alright, Treasurer I thank you for your time.
JOSH FRYDENBERG:
Good to be with you.