MICHAEL ROLWAND:
Treasurer, good morning to you.
JOSH FRYDENBERG:
Morning Michael.
MICHAEL ROLWAND:
So this is good news for Australia, does it increase the scope for the Government to extend JobKeeper and JobSeeker payments after September?
JOSH FRYDENBERG:
Well, we're undertaking a review of the JobKeeper program and I'll have more to say on the 23rd July when I provide an economic update. What we do know is that the JobKeeper program is supporting some 3.5 million workers with a flat $1,500 a fortnight payment. It has been an important economic lifeline for the country and of course, it complements the JobSeeker program where we have seen an effective doubling of the safety net with that $550 coronavirus supplement. Michael, this statement overnight by Moody’s is a real vote of confidence in the Australian economy. We're one of only 10 nations to have a AAA credit rating from those three leading credit rating agencies and what Moody's said in their statement is there has been effective and proactive policy making by the Government and relevant agencies and of course, that the Australian economy remains remarkably resilient. So this is really good news and it does affect the cost of borrowing, not just for the Federal Government but for state governments and for private lenders like banks.
MICHAEL ROLWAND:
So many sectors crying out for help including the arts industry, we understand they are about to receive a new Federal Government assistance package within days, what can the arts industry expect?
JOSH FRYDENBERG:
They can expect continued support from the Federal Government on top of the earlier announcement of $27 million for Indigenous arts organisations, regional arts organisations and a group called Support Act, providing financial assistance to those artists in need. We also know that the JobKeeper program Michael, is supporting many in the arts sector, whether it’s the Melbourne Theatre Company, the Queensland Ballet, Opera Australia, the Sydney Symphony Orchestra, are all utilising the JobKeeper program. We have been working on a set of measures and supports for that sector recognising that the social distancing requirements that are in place have made it very hard for those events in that sector to continue as they did pre-COVID.
MICHAEL ROLWAND:
It makes it very hard indeed. How concerned are you about the prospect of Melbourne going into yet another hard lockdown and the potential impact that would have on the national economy?
JOSH FRYDENBERG:
Well I'm very concerned firstly, about the health impacts of the spike in cases in Victoria and it just underlines how significant the threat is from COVID and we are not out of it yet, even though we have been ahead of the rest of the world in flattening the curve. People need to follow the quarantine requirements. Obviously there needs to be continued tracing and testing and the Victorian and Federal authorities are obviously stepping that up. This is a real challenge to ensure that we stem that curve in terms of the increase in cases, but the impact of flattening the curve is that we can actually get people back to work so it has a big economic impact as well.
MICHAEL ROLWAND:
And finally, your former boss, the former Prime Minister, Malcolm Turnbull, is not happy at all about the plan to double the cost of arts degrees and describes it as baffling, has he got a point?
JOSH FRYDENBERG:
Well as you know, we are significantly reducing the cost of degrees for teaching, for languages, for mathematics, for nurses and what we want to do is get more people into those courses where the jobs are going to be. And so, of course, I'm always encouraging people to do law and economics and indeed, I'm a product of that. And like my…
MICHAEL ROLWAND:
Is it fair though to pretty much double the cost of arts degrees?
JOSH FRYDENBERG:
Well, what we're trying to do is get the balance here right and to ensure that as an economy, we have the jobs in the areas that we need and the skills in the areas that we need. Don't forget we're also ensuring that by the end of the decade there is another 100,000 places in our institutions. That's a good thing. This is a significant package and it is designed to support those STEM subjects. Of course, the more teachers we have, the more nurses, the more people who are proficient in languages, the better off we will be.
MICHAEL ROLWAND:
We're out of time. We love teachers and nurses of course. Thank you Treasurer for joining us on News Breakfast.
JOSH FRYDENBERG:
Thank you.