ALLISON LANGDON:
Treasurer, good morning.
JOSH FRYDENBERG:
Good morning to you guys.
ALLISON LANGDON:
So Gladys is clearly pursuing a live with it mentality rather than elimination. I mean, we are clearly not in this together are we?
JOSH FRYDENBERG:
Well they are very challenging times in New South Wales unlike the situation in Queensland where they came out of the lockdown in the south‑east, or in South Australia where they came out of the lockdown and hopefully in Victoria. They had a smaller number of cases. In New South Wales they are dealing with much larger number of cases. And so therefore, it's more difficult. But we stand with the people of New South Wales. We have got our income support payments that have been going out to around 700,000 people in New South Wales. Around $2 billion has already been delivered around the country under those COVID disaster payments, we’ve partnered with the New South Wales Government on business support and of course we have the Australian Defence Force there helping in the task. We are doing everything we can to assist New South Wales get out of lockdown.
KARL STEFANOVIC:
We had respected epidemiologist Mary‑Louise McLaws on the show about half an hour ago. She said, conservatively another seven weeks for New South Wales. What does that do to the economy?
JOSH FRYDENBERG:
Well this is obviously a significant hit to the economy, Karl. But to put it in context, it’s certainly not as severe on a national basis as it was last year when we had nearly every state in effective lockdown. So we saw in the June quarter last year the economy contracted by 7 per cent. Whereas the medium market expectation of economists is that this September quarter, the economy will contract by 1.5 per cent We also know that consumer spending is around 30 per cent higher today than it was in April of last year. And consumer confidence is more than 50 per cent higher today than it was in March last year. So we need to maintain a sense of perspective. But that is not to in any way talk down or dismiss the very significant economic challenges that the lockdown in New South Wales is creating for both that state economy and the national economy.
ALLISON LANGDON:
Well that's just it, it is not just New South Wales. And we have been speaking to businesses for weeks now across numerous states and they’re saying that they’re all hurting, they need wage support, what you’re offering isn’t enough. You’ve also got plenty of those who have applied for help who haven't received a cent yet.
JOSH FRYDENBERG:
Well the Services New South Wales is delivering the business payments and tens of millions of dollars has already been going out the door and more is still to come. As you know we have committed to paying businesses between $1,500 and $100,000 a week if their turnover is down by 30 per cent or more. And these are businesses up to $250 million in annual turnover. So we are providing very substantial business support. But we also do knosw that the COVID disaster payments which are the $750 a week payment to people who have lost 20 hours or more of work, they have gone out the door much quicker than JobKeeper did, they have gone out the door within an hour in many cases of those applications. More than 90 per cent have been online and across the country we have seen around $2 billion already delivered.
KARL STEFANOVIC:
If the other Premiers, and it looks like they won't and from their perspective why would they, open their borders to New South Wales given the rate of infection in New South Wales and how easily this spreads, do we head into recession?
JOSH FRYDENBERG:
Well, again, I have seen the economy and you've seen the economy bounce back very strongly after last year's recession where we had two consecutive quarters of negative economic growth. I know that the economy is resilient, I know that consumers ultimately optimistic about their future. Businesses have been increasing their investment. But, of course, this is primarily a health challenge. So long as we are able to suppress the virus, get on top of it and ultimately ease restrictions in due course then we will see the economy...
KARL STEFANOVIC:
Treasurer…
JOSH FRYDENBERG:
I want your viewers to understand that the fundamentals...
KARL STEFANOVIC:
I get that but there are businesses literally, I know of five who are going to shut down in the next couple of weeks. There are others across the state that there is no cash flow. They can't sustain themselves. And we are talking about hardworking families here who no longer can keep the doors open to their business.
JOSH FRYDENBERG:
Absolutely. These are very difficult times. And that is why that economic support is very substantial. Services New South Wales is getting out that money and we have seen them already get money out the door. But more is to come. And of course, you've got those income support payments which go to sole traders by the way, as well as workers who have lost a certain number of hours every week. And that payment is at the level where JobKeeper was at the start of the crisis last year. So no, I agree with you Karl, this is really difficult for small businesses. And that is why I have been speaking to the banks about ensuring that they provide the flexibility to those businesses to provide them with that relief they may need on payments on their loans. That’s why I have been speaking to the Tax Office, to ensure that the Tax Commissioner provides the flexibility for tax payers who are undergoing hardship. This is very much a Team Australia moment, we’ve all got to come together…
KARL STEFANOVIC:
Yeah..
JOSH FRYDENBERG:
…recognising how difficult it for those businesses.
KARL STEFANOVIC:
It is tough….
JOSH FRYDENBERG:
…so I agree these are very tough times.
KARL STEFANOVIC:
Okay. It’s tough. Look, if this Treasurer thing doesn't work out for you, you know you can always go coach Carlton. David Teague looks like he’s on his way out, hey?
JOSH FRYDENBERG:
Well, as Number One Ticketholder I am hoping that they get some wins under their belt in the lead‑up to the end of the year. That's all.
ALLISON LANGDON:
Willing to do whatever it takes, even if it means coaching?
KARL STEFANOVIC:
Why don't you just hire Alastair Clarkson? What’s wrong with that?
JOSH FRYDENBERG:
Well he has a lot going for him. Those are decisions for the club. I will just turn up and support as loudly as I can.
KARL STEFANOVIC:
You’ve got influence.
JOSH FRYDENBERG:
Not in that sense, Karl.
KARL STEFANOVIC:
Alright, good on you Treasurer, thank you. Best of luck.
ALLISON LANGDON:
Thanks Treasurer.