LEON BYNER:
Josh Frydenberg, good morning thanks for your time.
JOSH FRYDENBERG:
Nice to be with you Leon.
LEON BYNER:
The Dow Jones has just recorded the largest drop in history of 4.4 per cent, what do you think about that?
JOSH FRYDENBERG:
Well, these are significantly challenging times for the global economy. Obviously the Coronavirus is spreading well beyond China and that's having an impact, not just the United States, but here in Australia, but we are well prepared. It's primarily a health crisis that is obviously having a significant impact on the economy.
LEON BYNER:
The dollar is tanking as well and that can't be good for anything that we buy, which we buy a lot of because we don't make much here. Comment on that?
JOSH FRYDENBERG:
Well, the dollar does move up and it does move down and obviously at times like this, people will go to safe havens like gold. I'm sure the price of gold is continuing to rise but I don't really comment on the day to day movements in the market or the dollar.
LEON BYNER:
Nevertheless though, we need to, we need to make sure that we are as best protected we can be. Obviously the surplus is now going to be in question, and you've already admitted that, but where do we stand economically on this Coronavirus? How much is it digging into our Budget, to our economic way of doing things in Australia?
JOSH FRYDENBERG:
Well, the Treasury is yet to finalise their numbers for me but that will obviously be done shortly. The virus continues to evolve and therefore the impact on the economy continues to escalate, particularly as the travel restrictions remain in place and obviously it's not just the international students who can't get to Australia affecting that sector but also, the tourism sector. China is the number one source of international students as well as number one source of international tourists to Australia but we're also now seeing disruptions to the supply chains with a lot of factories in China being closed and therefore product that they would otherwise sell to Australia which goes into our manufacturing or into our mines or to other, you know, plant and equipment is not coming to Australia as previously planned.
LEON BYNER:
The Prime Minister has intimated that there might be some assistance for certain industries doing it tough. Has there been any development on that?
JOSH FRYDENBERG:
Well we're working through the options. As you know, in relation to the bushfires, we announced a very significant package of measures but that was a different type of economic impact to the virus. We did announce in relation to the bushfires $76 million for international tourism, both domestic and international, in terms of spreading the message that Australia is open for business and the opportunities here and for Australians to travel within Australia as well, and the great opportunities there. So those campaigns will no doubt also help our domestic industries but it's a watching brief that we're maintaining as well as looking at the various options.
LEON BYNER:
And the latest comment you’d make to people where Cabinet has said look, we want to be on the front foot on this, we want to be ready for a pandemic if there is one, and I think it seems as if we think inevitably there will be, so what are people to make of what they're being told?
JOSH FRYDENBERG:
Well Scott Morrison and his Government, of course of which I am part, have moved very quickly to put in place travel restrictions ahead of many other countries. Here in Australia, we've had 23 cases of Coronavirus, 15 of those have been cleared, and the eight are those that are remaining from the people who were on the Diamond Princess. So we are doing everything we can based on the best possible medical advice to protect the Australian community. People should not panic, people should know that their Government is well prepared and no country in the world would be as well prepared as we are, both economically but also medically for the challenges that we face.
LEON BYNER:
That's Josh Frydenberg the Federal Treasurer on the effect overnight.