5 March 2020

Interview with Leon Byner, FIVEaa, Adelaide

Note

Subjects: National Accounts December quarter 2019; Economic impact of Coronavirus.

LEON BYNER:

Now what is interesting is that the Federal Government says, well they’re urging the State Governments and local industry, to bring forward projects to deal with this economic slowdown we’ve got, which is significant. And I asked Josh Frydenberg is that the case and can you please explain it?

JOSH FRYDENBERG:

Well that’s correct we have asked State and Territory Governments to provide the Federal Government with a list of the smaller type projects that could be undertaken immediately. That is important in terms of maintaining economic activity as we face the impact of the Coronavirus. Yesterday’s National Account numbers for the December quarter were a good set of numbers. They showed that the Australian economy was growing and that the growth had lifted from 1.8 per cent through the September quarter to 2.2 per cent through the year to the December Quarter. This [inaudible] some of those who seek to talk down the Australian economy and shows that we are entering this economic shock faced by the Coronavirus from a position of economic strength.

LEON BYNER:

So this economic stimulus package that the Prime Minister has talked about, tell me a little bit about this.

JOSH FRYDENBERG:

Well our focus is on keeping businesses in business and Australians in jobs, supporting cash flow, encouraging investment. A number of countries around the world have taken fiscal measures, not just monetary policy measures and movements by Reserve Banks, but also fiscal measures to support the economy. We will be making some announcements sooner than later. We’re working through those details now with Treasury but of course they will be a significant support for the economy at a difficult time.

LEON BYNER:

Treasurer, is it likely that we’ll bring forward any tax cuts at all?

JOSH FRYDENBERG:

Look, I’m not going to get into the rule in, rule out game, Leon, but what I would say is we have delivered, already, substantial tax relief – not just for small businesses with the extended instant asset write-off, as well as reducing the company tax rate down to 25 per cent for those with a turnover of under $50 million. But we’ve also legislated more than $300 billion of income tax cuts which will help ensure that Australians who earn between $45,000 and $200,000 pay a marginal rate of tax no more than 30 cents in the dollar.

LEON BYNER:

Just be clear on what it is you’d like South Australia to do, in terms of infrastructure projects, that could stimulate jobs and indeed economic growth in South Australia. What is it you’re looking for them to do?

JOSH FRYDENBERG:

Well no doubt they will have a list of projects that they would like to see develop and even indeed brought forward. They may be smaller infrastructure projects, they may be roadworks, they may be something else. But what we’ve asked them to do is to think through that, to send us their list but at the same time states have their own balance sheets and no doubt they’ll be dipping into their own pockets to ensure that they’re economy maintains its inherent strength.

LEON BYNER:

So there will be an economic statement before the May Budget?

JOSH FRYDENBERG:

That’s correct and it will be announced sooner than later.

LEON BYNER:

Alright, look one other point that has been mentioned a lot and that is that Scott Morrison was playing around with the idea that it might be a good thing to, if you’re going to deal with the Federal Government, and there’s a lot of work from the Federal Government with big companies, one of the criteria ought to be that you pay your bills on time within thirty days or less. Is that being actively considered?

JOSH FRYDENBERG:

Absolutely. We are a model payer when it comes to the Federal Government and what we want is other businesses to follow suit. So we’ve been working with the Business Council of Australia because they represent some of the bigger businesses and as you know, the bigger businesses have many sub-contractors or many smaller businesses that they interact with. So if they can also lead as the Federal Government has, then that is good news for many of the suppliers across the economy and as you know, cash flow is critical and the quicker you get paid the more you can invest back into your business.

LEON BYNER:

So we can expect some action on that front?

JOSH FRYDENBERG:

Well there already has been action, and we would actually like to reduce substantially further the period of time that it takes the Federal Government to pay its bills.

LEON BYNER:

Treasurer, what is your message to South Australia at a time when everybody is concerned about Coronavirus, people going to supermarkets and stockpiling toilet paper, what’s your message?

JOSH FRYDENBERG:

Well when you talk about the toilet paper stockpiles that people have been gathering, I was speaking to the head of Woolworths yesterday who told me that they had six weeks’ worth of stock that was sold out in four days. And as you know, in South Australia you have manufacturers of toilet paper so this is made in Australia, and I don’t know that people should be rushing to fill their trolleys with toilet paper. People don’t need to panic, what they do need to do is be confident that the Australian economy will bounce back, that we are well prepared for this, that we are taking the best possible medical advice, that we’ve been ahead of the rest of the world when it comes to the travel restrictions that we’ve put in place and

that to date, the spread of the Coronavirus within Australia has been much more limited than what we’ve seen in other parts of the world. We’re certainly focused on this as a Government and we’re applying all aspects of the Government to the response, from the economic side to the health side, to obviously the National Security Committee which is meeting today and on a regular basis.

LEON BYNER:

This is the committee that decides what we do with flights in and out of Australia from countries where Coronavirus has occurred?

JOSH FRYDENBERG:

Among many other things, that’s right.

LEON BYNER:

That’s Treasurer, Josh Frydenberg.