LEON BYNER:
Josh, welcome to our city.
JOSH FRYDENBERG:
Great to be here, Leon, and nice to be with your listeners too.
LEON BYNER:
What's been the most asked question so far?
JOSH FRYDENBERG:
Well, people are obviously pretty pleased with a number of the measures in the Budget. This morning, I addressed over 200 people at the town hall and that was an event organised by Business SA and they were ready to take advantage of the expanded instant asset write‑off measures that we announced in the Budget. Obviously, the tax cuts, they're going to support more than 10 million Australians, as well as there are a number of people from the not‑for‑profit sector, as well, at the breakfast including in the aged care sector who are going to benefit from the initiatives in the Budget too. It was a positive reception. I got asked about international borders. I got asked about inflation. I got asked about China. So, I got some interesting questions along the way there too.
LEON BYNER:
Okay. Let's unpack a little bit of this. First of all, how long do you think our borders are going to be somewhat restricted?
JOSH FRYDENBERG:
Well, we discussed this morning about international students coming here, starting with smaller cohorts and then expanding it over time. And Steven Marshall, the Premier, has been speaking to the Prime Minister about how South Australia could start to bring in international students over and above their existing cap with measures that were approved by the Chief Medical Officer. So, I'm hopeful that that can happen relatively soon. With respect to our international borders, there's an assumption in the Budget ‑ it's not a policy decision, it's a working assumption ‑ that the borders will gradually open from mid next year, and obviously that will be subject to the medical advice at the time. But that is what we had in the Budget.
LEON BYNER:
Treasurer, what's your understanding of the sorts of businesses that are most suffering under the current circumstances we have?
JOSH FRYDENBERG:
Well, currently, the economy is coming back very strongly. We've seen that in the labour market, with the unemployment rate down to 5.6 per cent and about half a million jobs created since last year's Budget in October. We've also seen consumer confidence pick up to an 11‑year high and business conditions among the highest on record, as well as increase in job vacancies. That being said, there are some sectors across the economy that continue to do it tough. Tourism, for those operators that are relying on international tourists, are still doing it tough. International education because the international students haven't been able to come in the normal numbers, they continue to do it tough. Some of our CBDs around the country have not seen the foot traffic that they saw pre‑COVID and, as confidence builds and health restrictions ease, I think that will happen over time as well. In the agricultural sector, you hear stories about businesses that are unable to get fruit pickers and others to conduct their work, and also in the building industry which is starting to really pick‑up in economic activity and the need for extra workers.
LEON BYNER:
I was going to ask you what are your thoughts about willing workers to do some of these jobs? Are you considering anything that would be out of the ordinary in terms of policy?
JOSH FRYDENBERG:
Well, our focus has been on training people up to take those jobs. So we announced in the Budget an extension of the JobTrainer program, 450,000 training places; whether it's in the care workforce, whether it's telecommunications and information and technology, IT skills, or whether it's in the trades with the apprenticeship program that we announced too in the Budget, they're all designed to skill Australians to get into work.
LEON BYNER:
When do you think there'll be an opportunity for those who've been vaccinated to be able to travel both for business ‑ which for many is terribly important ‑ or, indeed, for other reasons? Overseas we're talking, of course.
JOSH FRYDENBERG:
Well, again, it will be based on the medical advice at the time. I think it's important, Leon, to underline how fluid and uncertain the global situation is with respect to the virus.
LEON BYNER:
Yes.
JOSH FRYDENBERG:
We're seeing more than 800,000 new cases a day. We've all seen the terrible images that have been coming out of India, and there are new variants of the virus. That being said, the vaccine rollout continues. More than 400,000 people got a dose last week. More than 10 per cent of the population has been vaccinated. More than 30 per cent of the population aged over 70, more supply is coming online. And we have now 5,000 contact points around the country, whether it's GPs or state and territory clinics that are designed to get the vaccine out to as many people as possible as quickly as possible.
LEON BYNER:
Okay. So, once we get to a certain point or a critical mass of vaccinations, does that necessarily mean ‑ you've obviously had discussions with your health officers not only nationally but state‑wise ‑ does it mean that people will have a little bit more freedom to do what they want to do in terms of travel?
JOSH FRYDENBERG:
Well, again, that will be subject to the medical advice at the time with respect to the borders. We will move cautiously and we'll do so based on the medical advice. It has served us well to date, Leon. You remember when the Prime Minister closed the borders with China?
LEON BYNER:
Yes.
JOSH FRYDENBERG:
He was criticised at the time but it turned out to be a very fortuitous decision and is one that has helped keep Australians safe. People say that Australia has been successful in suppressing the virus because we're an island. Well, the United Kingdom is an island too and they haven't been nearly as successful as us because they didn't close their borders quickly enough. And you have to understand that the medical advice has served us well and we'll continue to take that advice with respect to people's travel and international borders.
LEON BYNER:
Okay. You were attending a breakfast this morning in SA, what was the first wish you picked up from those who spoke to you when there was questions available?
JOSH FRYDENBERG:
Well, I think people were very pleased to know that they're living in Australia right now.
LEON BYNER:
Yes.
JOSH FRYDENBERG:
People appreciated their circumstances in which we are getting back to life in a COVID‑safe way here in Australia. But they obviously want to see the momentum of the recovery continue. Here in South Australia, unemployment peaked at 8.8 per cent last June. It's come down to 6.3 per cent, and obviously, we want to see it come down lower because right now it's a bit above the national average.
LEON BYNER:
Sure, and why do you think that is?
JOSH FRYDENBERG:
Well, again, I think it's an economy in transition. Some of the sectors that are important here, like international tourism, have been hit hard by the virus. But you have been successful in suppressing it. And Steven Marshall is doing absolutely the right thing in investing in areas like infrastructure and space technology, cyber and some of these real growth areas. So, I'm confident and optimistic about the South Australian economy.
LEON BYNER:
Before I let you go, I need to tell you that from where I sit on the fence watching and listening to people, your stocks have never been higher.
JOSH FRYDENBERG:
Well, it's not about me…
LEON BYNER:
I know it's not but, still, you've got a hell of a responsibility to make the right decision, and it appears that you've got most of the population working with you and agreeing with you.
JOSH FRYDENBERG:
Well, from the very start of this crisis, our goal has been to prevent a generation of Australians becoming long‑term unemployed, and as you and I speak this morning, Leon, that has been the case.
LEON BYNER:
Yes.
JOSH FRYDENBERG:
In the 1990s recession, it took 10 years to get the unemployment rate back to where it was pre‑recession. We're on track to get our unemployment rate back to where it was pre‑recession in about two years. So, five times faster than the 1990s experience. We have led the global pack both on the health and the economic front. It's been a team effort, a ‘Team Australia’ moment. Whether it's been the government led by Scott Morrison ‑ I also want to pay credit to my South Australian colleague, Simon Birmingham as Finance Minister and Anne Ruston and many other South Australian colleagues. But we have been able to get economic support out to people who need it. We've been able to get the health measures in place, and through the hard work of 25 million Australians, there's no other country you'd rather be in.
LEON BYNER:
Josh, thank you for coming on this morning and thank you for joining us this morning.