KARL STEFANOVIC:
Treasurer Josh Frydenberg is live in Sydney for us. Treasurer, good morning to you. Thanks for your time this morning.
JOSH FRYDENBERG:
Nice to be here.
KARL STEFANOVIC:
Thirty eight billion – is it enough?
JOSH FRYDENBERG:
Obviously, it's an important and significant amount of money, but it's not the first nor the last contribution we'll be making to defence spending. And we'll obviously have even further announcements in the Budget in just a few weeks’ time, Karl. But we're lifting the size of our Defence workforce by more than 18,000, taking it over 100,000 people at a cost of nearly $40 billion. And this is on top of the additional spending that we've done on the latest weapons systems and our major Defence capability plan with new ships, new aircraft and it does reflect the pretty uncertain and dangerous international environment that Australia now faces.
SARAH ABO:
Well, it is all about tackling this uncertainty, perhaps flexing a bit of Australian might here as well on the international scale, Treasurer, but do we really think that this is going to have an impact on China? Will they really be shaking in their boots following this announcement?
JOSH FRYDENBERG:
This is about Australia ensuring that we have the access to technology, that we have the access to defence equipment and that we have the sufficient number of Defence personnel to protect and advance our national interest. Australia is just 26 million people; China, as you say, is a country of 1.3 billion people. But what we need to do is partner with our allies and friends, and that's why we're not just investing in hardware; we're also investing in the partnerships, the relationships like through the AUKUS arrangement with the United States and the United Kingdom, like the Quad arrangement with Japan, with India and the United States, all of which put Australia at the top table with an ability to influence outcomes, to swap notes and, in the case of AUKUS, to exchange and access the best technology available.
KARL STEFANOVIC:
But, Treasurer, I think the point that Sarah makes is a good one. Xi Jinping is not going to be quaking in his boots. And he's not going to be worried about nuclear subs that are going to be built in 20 years. We've seen what's happened in Ukraine. No‑one's done anything about Russia. Everything that they're doing from a diplomatic point of view is not working. How is this going to make any difference to how we're viewed worldwide?
JOSH FRYDENBERG:
Just to say that the Chinese and the Russians have had a thing or two to say about the AUKUS arrangement. They haven't been too pleased about that, so that is certainly on their radar because what it does do is put Australia in partnership with two very important strategic allies in the United States and the United Kingdom.
With respect to Russia, Karl, I do think the international efforts are having an impact. The Russian currency, the rubble, is in free fall, the stock market has closed, the Russian central bank can't access their $600 billion of foreign reserves. And the pressure is being put not just by governments but also businesses – Google, Apple – have withdrawn services, the big oil and energy companies are withdrawing their partnerships with Russian counterparts.
Earlier this morning I was on a call with my counterparts from the United States, the United Kingdom, Canada and New Zealand, and we took a stocktake of the measures that we have put in place collectively to put pressure to turn the screws on Putin and his cronies, and they are working. And there'll be more measures that we'll continue to take in partnership with the international community. It's very important that we are on the same page with like‑minded in rejecting this unjustified use of force against 44 million Ukrainians.
SARAH ABO:
Well, certainly the world's in agreement about this awful war and wanting it to stop. It's just about making it happen.
KARL STEFANOVIC:
Well, the bombs are still coming. I mean, they bombed a hospital with babies and kids and women.
SARAH ABO:
There's just no care given at all for those poor civilians.
KARL STEFANOVIC:
Shocking.
SARAH ABO:
Now let's just come back home, Treasurer, and I want to read you this tweet from local MP Justine Elliott who says that, "Scott Morrison has announced that Ballina, Byron and Tweed Shire residents will not be able to access the Federal Government's additional disaster payments." How is it that Ballina misses out but locals in Lismore 30 minutes away don't? There's obviously seething anger out there Treasurer, as you well know. Just how has this decision – you know, how did the come about? Why are some towns excluded?
JOSH FRYDENBERG:
We have been providing support right across New South Wales and Queensland to flood‑affected areas. That included those thousand dollar one‑off non‑taxable cash payments to adults, $400 to children as well as the disaster recovery allowance which allows up to 13 weeks of payments for people who can't access work. And then we've triggered with Queensland and with New South Wales broader payments to support small businesses get back on their feet. We know that in the area of Lismore it's been a catastrophic event and the damage that we've seen there is greater than what we've seen in other parts of the country due to floods. What we did is we sat down with the experts. They gave us the facts on the ground. We made the announcements yesterday, not just additional monetary support for households but also support for businesses, mental health support, legal assistance, child care support to recognise…
KARL STEFANOVIC:
But, Treasurer, Treasurer – I'm sorry to interrupt; we're running out of time – but if you're saying to someone in Lismore who lost their house you get an additional payment but someone in Ballina who lost their house doesn't get that payment, it's just weird.
JOSH FRYDENBERG:
But we're going to continue to take the advice from the agencies about those most affected areas. But what we did do before announcing this, Karl, is we did sit down with the experts who had a good understanding of what is happening on the ground. This is not the first nor the last payment that we'll be making to support people in need in these flood‑affected areas. As you know, we've got thousands of Defence Force personnel who are on the ground helping right now, and my thoughts are with obviously those families and businesses that have been impacted, but also a very big thanks to our selfless volunteers in the SES as well as our Defence Force who are helping people in need.
KARL STEFANOVIC:
Right. Treasurer, good to talk to you today. There's lots on. And there's a lot still to come. Appreciate your time.
JOSH FRYDENBERG:
Thank you, Karl.
SARAH ABO:
Thanks, Treasurer.