KIERAN GILBERT:
With me, the Treasurer Josh Frydenberg. Treasurer, the Victorian Government wants additional financial support. Why haven’t you offered it already?
JOSH FRYDENBERG:
Well, I’ve yet to speak to the state Treasurer, Tim Pallas, but I will and the Prime Minister is scheduled to speak later today with the Acting Premier and we’ll hear what their ask is. But we took a position based on the first week of the lockdown, which is that the state had the capacity to respond to that particular lockdown and they announced $250 million of economic support.
KIERAN GILBERT:
It sounds like your open to it now, though?
JOSH FRYDENBERG:
Well, I want to have this conversation with Tim Pallas. I want our health officials to understand why they took the decision that they have, bearing in mind that states take the decisions to go into lockdown. They take the decisions whether school kids are in the classroom. They take the decisions whether a particular business or sector can operate. They take a decision as to whether regional areas are included in a state-wide lockdown or not. Those are decisions for the states.
KIERAN GILBERT:
But you’re not going to leaving your fellow Melbournians high and dry, are you? That’s not going to happen?
JOSH FRYDENBERG:
Well, Keiran, you know that our track record has been to offer unprecedented support to the people of Victoria. We’ve already delivered more than $45 billion of direct economic support. That’s around three times what the State Government has delivered. It’s more on a per capita basis than any other state. And when you look at the numbers for Victoria, the fact that their unemployment spiked to 7.4 per cent last year but was able to come down to 5.5 per cent in April, that was off the back of very strong Federal Government support and obviously also the easing of the restrictions and the confidence coming back. But I don’t want to pre-empt the discussion I’ll have with Tim Pallas.
KIERAN GILBERT:
Are you worried about providing an incentive to states for more lockdowns? Is that what you’re worried about? If you provide additional financial and economic support too quickly?
JOSH FRYDENBERG:
Well, the Budget, which was delivered just over two weeks ago anticipated that there would be further outbreaks like we’ve seen in Victoria, which will then require continued economic support through the economy. And that’s why we didn’t take the foot off the accelerator. That is why we committed an additional $41 billion in COVID-related economic support, whether that was tax relief, whether that was particular programs, whether it was the immediate expensing and the loss carry-back provisions which enabled businesses that actually end up making losses to the end of the financial year to get a rebate.
KIERAN GILBERT:
Sure, but would you rather Victoria’s approach resemble New South Wales, where they let the odd case go here and there, that they can manage cases but keep the economy going? Would you prefer to see that model happening in your home state?
JOSH FRYDENBERG:
Well, I’m interested in the outcome. And the outcome in New South Wales is that they have avoided the terrible lockdowns in Victoria. They’ve managed to keep their businesses in business much they’ve managed to keep their kids in school. They’ve managed to enable people to move more freely across the state. If you look at the period post the initial national lockdown last year, Victoria has been in lockdown, stage 3 and stage 4, for around 140 days. On average the other states and territories have been in lockdown for just six days. The students in New South Wales have been out of the classroom for around 30 days, yet the students in Victoria, some of them have been out of the classroom for some 21 weeks. I mean, the contrast between Victoria and New South Wales is as stark as you can get. It’s chalk and it’s cheese. And, unfortunately, my fellow Victorians have paid a very heavy price for the lockdowns that they’ve been enduring and continue to endure. But the Morrison Government has been there for the people of Victoria, as has been shown in the numbers.
KIERAN GILBERT:
Is the Budget and the Government paying the price for a slow vaccination rollout? You said today, and Steven Kennedy confirmed yesterday, there are assumptions in the Budget that there’ll be three lockdowns per quarter, so six before the end of the year, week-long lockdowns. Is this basically paying the price of a vaccination rollout that’s too slow?
JOSH FRYDENBERG:
Well, we’re trying to move the vaccine out and roll it out as quickly as possible. And you’ve actually seen a doubling of the speed of the vaccine rollout from late April to where we are today. And as you know, we’ve got more than 5000 contact points around the country, whether that’s GPs or whether that’s state and territory clinics. And there has been a spike, as you may have expected, in Victoria in the number of people who are getting the jab, including also around other states. So those numbers are increasing, as we expect them to do. There were initially some issues with the supply. There was obviously issues related to AstraZeneca as well for under 50s, and so we’re rolling out the vaccine as quickly as possible. But, to be honest, if you look at the numbers today in the national accounts, they do paint a very positive picture about the strong economic recovery we’ve seen nationally off the back of the successful suppression of the virus.
KIERAN GILBERT:
And much of that underpinned by resources to China. Anthony Albanese says there needs to be more strategy, less politics when it comes to China. That makes sense, doesn’t it?
JOSH FRYDENBERG:
Well, I think Anthony Albanese is trying to make politics out of what is a very sensitive situation. I mean, the reality is we’ve taken decisions, whether that’s around foreign investment, whether that’s around foreign interference, whether that’s around the Belt and Road policy or whether that’s around other national security issues in the telecommunication space. We’ve taken those decisions very much in the national interest. And we’ll continue to take those decisions. We will draw a very clear and consistent line when it comes to these issues. Now other countries may not always like what we do, but what we’re seeking to do always is to serve the Australian people, their long-term interests, their long-term national interests. And we have a very clear sense of that. But I just want to point out, today’s national accounts which saw Australia’s economy now bigger than it was going into the pandemic first among any major advanced economy in the world to see that happen. And the fact that in the March quarter, Keiran, you saw Japan, you saw the United Kingdom, you saw France and Germany all contract and Australia expand is a testament to our strong recovery.
KIERAN GILBERT:
Treasurer, we’ve got to go. Thanks for your time. Appreciate it.
JOSH FRYDENBERG:
All the best.