KARL STEFANOVIC:
We’re joined now by Treasurer Josh Frydenberg. Josh, thank you for your time this morning.
JOSH FRYDENBERG:
Nice to be with you Karl, but I would like it to be in better circumstances, it’s a pretty tough day.
KARL STEFANOVIC:
Yeah, I know. Did you ever think, in your life, you would see your city like this? It’s incredibly sad and tough.
JOSH FRYDENBERG:
This is devastating. News last night that we are heading for the stage 4 restrictions, that there’s curfews imposed, that there’s more restrictions on the movement of people throughout the community, of course more school closures. Nobody wanted it to get to this. We feel we are very much in a war-like situation.
Every Victorian is on the front line. We can't afford any holes in our defence so everybody needs to follow these rules. There is only one way out and that’s to stem the tide of new cases.
KARL STEFANOVIC:
It must be very difficult if you are a small business. I mean, what small business will be open in the next six weeks? Already we have seen so many of them go to the wall. There has been so much carnage, a lot won't make it.
JOSH FRYDENBERG:
This is a big kick in the guts to thousands of small businesses right across the state. Already, Karl, about 975,000 Victorians are on the JobKeeper program and we expect that number to remain high, even beyond the September lockdown period. So these are really challenging times. Everyone has got to come together. People need to put aside their disappointment, their anger, their despair, their frustration, and they’ve got to follow the rules because we very much are all in this together and just a few people can endanger the many.
KARL STEFANOVIC:
Okay. What will this six weeks of stage 4 lockdown do to the economy? I mean six weeks was $3.3 billion. What’s the number, do you think, the cost to the national economy?
JOSH FRYDENBERG:
Well Treasury are working that through but obviously that $3.3 billion number was not based on stage 4 restrictions, nor was it based on restrictions being right across the state, the situation that we now find ourselves in. So I will make that number available when it comes to me, but clearly this is going to hit the Victorian economy which makes up around a quarter of the national economy, and this will obviously impact upon on consumer and business confidence more broadly.
KARL STEFANOVIC:
Back in March the Prime Minister said everyone who has a job in this economy is an essential worker. I guess that’s no longer the case for Melburnians.
JOSH FRYDENBERG:
Well we are going to wait and see what the Victorian Government announces in terms of the various businesses and industries and how they can operate in these conditions. But clearly some will not be able to operate. Some will, at a reduced capacity. It is important that obviously essential services, not just our health services but also our energy supplies and some of the other manufacturing continues, despite the broader COVID restrictions.
KARL STEFANOVIC:
So the Victorian Government hasn't told you yet what that looks like?
JOSH FRYDENBERG:
We’ve had some discussions with them but they are still working through those details and we understand that there will be an announcement from them shortly.
KARL STEFANOVIC:
Okay. What about a couple of these things that have been floated today, the idea of this pandemic pay? Also tax breaks for businesses who source local produce and shop locally?
JOSH FRYDENBERG:
Well, the first thing to say about paid pandemic leave is already some big businesses, for example Wesfarmers who have got Bunnings and Officeworks, K-Mart, Target, they have already announced 14 days of paid pandemic leave for their staff, and they have 30,000 staff in Victoria. The Victorian Government has also announced a $1,500 payment for those workers who can't access leave but have to isolate because they have got the coronavirus, or they have come into contact with someone who has. The Attorney General will work with stakeholders on this issue of paid pandemic leave, but clearly there is business that are making some moves and State Governments as well.
KARL STEFANOVIC:
Okay, Josh, just finally, do you think it’s time JobKeeper, JobSeeker, is it time that you gave some assurances out there that it’s probably good timing when people, it is so bleak out there, it is so dark, is it time for you to give them some assurances that none of them are going to fall through the cracks?
JOSH FRYDENBERG:
Well, let's make a very clear point here, Karl. That is, that the JobKeeper payment at that $1,500 payment supporting 975,000 Victorian workers will continue at that rate until the end of September. You’ve also got JobSeeker, which doesn't have any mandatory mutual obligation requirements on those people in Victoria. Now, we have announced that we’ll be extending JobKeeper for another six months. We are looking at the eligibility issues in light of the situation in Victoria, but the Morrison Government is already contributing around $14 billion into the Victorian economy through the JobKeeper payment, through the cashflow boost, and with JobKeeper going for those months ahead that’s an extra $3 billion a month going into the Victorian economy from Jobkeeper alone.
KARL STEFANOVIC:
Might need to go longer.
JOSH FRYDENBERG:
Well, another six months is an extended period, takes us to the end of March, and we are very hopeful that we’ll make real inroads into the coronavirus by then.
KARL STEFANOVIC:
Okay Josh thanks for your time, a lot on, appreciate it.