20 July 2020

Interview with Karl Stefanovic, The Today Show

Note

Subjects: July Economic and Fiscal Update; Coronavirus SME Guarantee Scheme extension; 

KARL STEFANOVIC:

Josh, good morning to you.

JOSH FRYDENBERG:

Nice to be with you.

KARL STEFANOVIC:

Good to have your company. What can we expect and when?

JOSH FRYDENBERG:

Well, we'll be making a major statement on the economy on Thursday and obviously that will detail where the economy is at - the forecast, the deficit, the growth levels. But also we'll be providing an update on the future of JobKeeper and JobSeeker and both initiatives from the Government have supported Australians through a very difficult time and we recognise that while many of the states and territories are opening up their economy, a quarter of the national economy, with Victoria, is in lockdown. This has had the effect of diminishing confidence beyond the Victorian borders and the jobs market is still very tough and so the support will continue to be rolled out.

KARL STEFANOVIC:

Okay. Earlier we spoke to Richard Denniss from the Australian Institute. Here is what he had to say.

RICHARD DENNISS:

Unemployment is going to be with us for a lot longer than the Government thought when it introduced this supplement so if unemployment is going to last for longer then I think it's only fair that the unemployment supplement lasts for longer.

KARL STEFANOVIC:

Okay, your response to that, Josh?

JOSH FRYDENBERG:

Well we saw the jobs numbers just a few days ago which showed that 210,000 people had got a job over the course of the last month. Now this was double what the market was expecting, 60 per cent of those new jobs went to women, 50 per cent went to young people. And it was a sign that outside of Victoria the economy is opening up. But we're under no illusions; this is a very, very tough economic environment. There are many people who are either working zero hours having been stood down or seen their hours reduced or indeed lost their jobs and the Government is there, whether it is with the $1.5 billion that we committed to apprentice wage subsidies, whether it is the extra investment we're doing in skills or whether it’s through the JobKeeper and the JobSeeker programs, the Government has the public's back.

KARL STEFANOVIC:

Okay, I mean, you can't return JobSeeker to what it was can you and people will fall below the poverty line.

JOSH FRYDENBERG:

Well we're ensuring that there is generous Government support for those people who are doing it tough and there's a range of measures that we've introduced. We know that there's also going to be a transition and you saw that with our announcements around childcare. You've seen that with the announcements with the banks, that they're extending the loan deferrals for another four months, you saw that with the business incentives that we extended those. So we're ensuring that there is a transition, that there is no economic cliff and that we can smooth out the changes that are being undertaken across the economy.

KARL STEFANOVIC:

We know also, and I hear from them every day, about how tough small businesses are going. You are also talking about loans for small businesses. How is that going to work and are you concerned at all that some will have dramas paying it back if they get them?

JOSH FRYDENBERG:

Well businesses will make their own assessment about their economic circumstances and will take out loans to support their growth opportunities or to maintain their working capital to stay operational and viable. But today's announcement is great news for the 3.5 million small businesses. We're giving them access to more money at lower rates and for longer periods. By extending the loan tenure from three to five years, by extending and expanding it from loans up to $250,000 to now loans up to $1 million and we'll be partnering with the banks. It is a 50-50 guarantee scheme with the Commonwealth Government and with the banks and this has already been taken up, Karl by 15,500 businesses with more than $1.5 billion in loans already made available.

KARL STEFANOVIC:

Couple of really quick ones if you can, you've also announced more funding for the support of aged- care workers. We know it has been terrible amongst the aged-care facilities in Victoria. Are the changes going to make it safer?

JOSH FRYDENBERG:

Well we're obviously working with all the aged-care facilities right around the country to ensure that those most vulnerable Australians who are in their later years of life and are therefore more susceptible to the coronavirus and its devastating consequences, that they're getting all the support that they need and that all the support that they need and all the medical advice is being adhered to.

KARL STEFANOVIC:

Okay, have you got more masks on the way? I don't know why they aren't mandatory in all hotspots everywhere around the country and anywhere where you can't socially distance, including planes. Is it time for a mandatory ruling?

JOSH FRYDENBERG:

Well it is certainly the right thing to do here in Victoria with the mandatory use of masks because we're seeing widespread community transmission and in all circumstances you can't effectively socially distance and in those cases wearing those masks can be very effective. As for other states, they will be decisions that their Chief Medical Officers and those State Government and Territory Governments decide.

KARL STEFANOVIC:

Okay finally and really quickly, Kanye. Despite Ally, well she was sceptical, he's launched his bid to become President of the United States. Is the Australian Government prepared to work hand in hand with Kanye? Why are you laughing?

JOSH FRYDENBERG:

There is a duet on the way, I can see it. Well because I think his chances will not be as great as some of the other candidates in the race. But let me just say this, matters for the American election are matters for the American people and I'll leave it at that.

KARL STEFANOVIC:

That's a yes, you'll work with Kanye. Beautiful stuff, Josh. Thank you.

JOSH FRYDENBERG:

We'll continue to partner with the United States.

KARL STEFANOVIC:

No matter what!