LEON BYNER:
I caught up with Josh Frydenberg only a few minutes ago to ask him what we're going to do for them.
JOSH FRYDENBERG:
Nice to be with you.
LEON BYNER:
Before I get to what's already been announced in terms of how the banks are going to cooperate with the Government, I want to get to a very important issue and that is that you've got stand downs of huge numbers of airline personnel that are not going to be able to earn any money because it's leave without pay, and then you've got a stack of other people who work in casual positions connected with hospitality, who may find themselves out of work shortly. What are we going to do for them?
JOSH FRYDENBERG:
Well, obviously we have a welfare system which is the safety net that we have, but, of course, we're trying to work with businesses to see if they can take on some of these employees who may have been stood down or lost their jobs. For example, I spoke to a big employer last night who has reached out to Qantas and Virgin about taking on perhaps up to 500 extra staff to deal with some of the challenges that that other business is facing. So we are obviously working with the business groups, we're working with individual companies, we're talking to the banks. Today they will have a significant announcement about some of the relief they're providing to their customers and just yesterday, Leon, over $100 billion was injected into the financial system by both the Government and the Reserve Bank, which is designed to lower the cost of credit to small or medium sized businesses across the country.
LEON BYNER:
But in terms of the immediate need of people who have been stood down without pay, they're going to need money just to put food on the table to pay their bills. What is going to happen for them?
JOSH FRYDENBERG:
Well, this is a very challenging time for all those people and obviously if they haven't got their leave entitlements and access to them or they've used them all, then obviously there will be that safety net through the welfare system…
LEON BYNER:
So you're saying you will have to go to Centrelink and then they will look and see if you've got any money that's going to tide you over. Is that the best we can do in a situation like this?
JOSH FRYDENBERG:
Well, Leon, there's a lot of things we are doing, including the first stimulus package which was designed to provide wage subsidies for 117,000 apprentices and that's helping to keep them in a job. There was the up to $25,000 cash payments to hundreds of thousands of small businesses, which is linked to the size of their wages bill, which is designed to help those businesses keep on their employees, and there are new measures that we are going to announce in our second package, which is designed to cushion the blow for the very people you've talked about, the very people, who through no fault of their own, have ended up losing their job.
LEON BYNER:
So, again, I know you will wait until you make the announcement, but I just want to give some sort of assurance to those people, because there are thousands of them.
JOSH FRYDENBERG:
And you can give them the assurance that the Government is working on measures to support them.
LEON BYNER:
Now, when will that be announced?
JOSH FRYDENBERG:
In coming days.
LEON BYNER:
So it won't be over the weekend, it will be next week? When?
JOSH FRYDENBERG:
Again, I'm not going to announce either the measures or the exact timing on this show.
LEON BYNER:
Alright. But in terms of those people who are casuals, this is going to do an enormous hit to the economy, the airlines have copped it really hard and, of course, all of tourism. So, by the way, the first package has still got to get through the Parliament, doesn't it? You've got to get it voted through.
JOSH FRYDENBERG:
Correct, and I expect that the Labor Party and the minor parties will be very cooperative at this very time. I mean this is a point in time where the country needs to come together, put aside any political differences and put the interests of all Australians first.
LEON BYNER:
So what kind of money? I mean there's $105 billion that you guys have just put in via the banks, which is going to be loans. Are we likely to have a loan holiday for people who have got mortgages and through all sorts of circumstances they just can't make them?
JOSH FRYDENBERG:
Well, the first point I'd say is whether it's the banks or the energy companies, or indeed, landlords, they've all put in place already hardship provisions where businesses or individuals that are doing it tough can work with that institution or business to get through this challenge. But on top of that, the banks are going to announce today further relief to their customers because, Leon, there's an alignment of interest here between the banks and their customers. Both want to get to the other side and we do know this coronavirus and its spread and its economic impact is temporary. It may, as the Prime Minister said, last for six months or more. But we know there is going to be the other side and that's why we're talking about, and the RBA is talking about, a bridge to the recovery. We need to get there and we need to take Australian jobs and businesses with us.
LEON BYNER:
Yes, because my great interest here, of course, is employment for our State and our country.
JOSH FRYDENBERG:
Of course.
LEON BYNER:
And what we don't want is for people who have been stood down to be told, well, just go to Centrelink and work through the system and you will be fine, which is not going to put food on the table.
JOSH FRYDENBERG:
What I would say to the people who are in employment right now, and feeling insecure about their jobs, is that the Government is doing everything, using all available means, to support businesses keep those people on. That's the first point. The second, when it comes to those people who have tragically lost their job, the Government is working on additional measures to support them, and I do want to make a shout out to Steven Marshall, as the Premier of your State, as a key person on the National Cabinet, who has done an outstanding job in trying to keep people calm, in leading from the front, in providing his own stimulus package and I want to acknowledge that and Rob Lucas.
LEON BYNER:
That's the Treasurer, Josh Frydenberg.