MICHAEL ROWLAND:
Treasurer, a very good morning to you.
JOSH FRYDENBERG:
Nice to be with you, Michael.
MICHAEL ROWLAND:
Lots to talk about. Let’s start with the reopening overnight of the Queensland border. This is a massive step forward, isn’t it, in the reopening of the country?
JOSH FRYDENBERG:
Absolutely, Michael. This is a great Christmas present for thousands of Queensland tourism businesses. The tourism sector in Queensland employs more than 200,000 people, it’s worth more than $20 billion. And, of course, Queensland’s economic success is vital to Australia’s economic success. And we need to learn to live with COVID, as we’re doing in the locked down states of New South Wales and Victoria now that the re‑openings have begun. Businesses are starting to see a lot more customers and consumers are spending a lot more. And so, too, in Queensland. With those borders reopening people will be making their Christmas journey to Queensland and enjoying the great sunshine.
MICHAEL ROWLAND:
Are you absolutely confident, Treasurer, we have seen the last of border closures?
JOSH FRYDENBERG:
I certainly hope so, Michael. We do know that the Omicron variant is not the first or not the last variant that we will probably see with respect to COVID. We also know that it’s highly transmissible but perhaps not as severe as previous variants. We also know that the vaccine has proven to be a very effective defence against the virus with the number of hospitalisations and deaths coming down and restrictions being eased accordingly. I’m very hopeful that the state Premiers will stick to the plan, keep their borders open and allow Australians to be reunited at Christmas and allow businesses to flourish.
MICHAEL ROWLAND:
Just on Omicron, you have caught up with the news just in the last hour or so, Boris Johnson, the UK Prime Minister, made an address to the nation there. He’s declared a tidal wave of Omicron cases is about to hit the UK. He’s declared it a public health emergency and has declared that all British adults over the age of 16 can get a booster shot by the end of the year. Taking that into account, are we being a bit too sanguine about Omicron here in Australia?
JOSH FRYDENBERG:
We’re following the medical advice, and that saw us pause for two weeks the reopening of the borders to international students and to skilled workers. That was a sensible precautionary measure. But we’ll continue to listen and follow the health advice, and it has served us well to date. But at the same time we need to ensure that our economy keeps this momentum going. And we’ve seen a very strong rebound, Michael – we’ve seen 350,000 jobs example back since the start of September. We’ve seen businesses and consumer confidence lift. We’ve seen Australia maintain its AAA credit rating. We’ve seen a very strong pipeline of investment both in the housing market and in more generally across the economy. And things are looking up for Australia’s economy into next year with the growth forecasts upgraded and the Reserve Bank also saying that unemployment is going to continue to come down into the 4s, which would only be the second time in the last 50 years. So I think there’s a lot of positive economic data that shows that we are heading in the right direction. But there’s certainly no room for complacency, and we’re certainly not out of this pandemic just yet.
MICHAEL ROWLAND:
We talked at the top of the hour about the extension of this loan guarantee for small businesses, which undoubtedly will be welcomed by so many small and medium‑size enterprises, Treasurer. But also, is it a confirmation that so many of these businesses are still doing it very tough here in Australia despite the economic rebound you’re talking about?
JOSH FRYDENBERG:
It is. Absolutely it is. You know, a lot of these businesses because of the health restrictions saw their doors close for an extended period of time. Many of them successfully adjusted, moving their businesses where they could online, for example. But at the same time it has been a big economic hit to the economy – the biggest economic shock since the Great Depression. These loans which are available to businesses with a turnover of under $250 million for up to 10 years in duration, they can be either secured or unsecured, it can be used to refinance existing loans or to go and purchase new equipment or fit out a production line, have been very, very helpful to date with around 80,000 loans worth more than $7 billion already being delivered. Another six months will enable billions of dollars extra flow into the economy. It’s not free money, Michael; it’s actually allowing businesses to back themselves to grow, to hire, to innovate.
MICHAEL ROWLAND:
Okay. Now, we’ve got the mid‑year review later this week. We’ve got the budget in late March. Can we lock that in? Will you be delivering a budget in March?
JOSH FRYDENBERG:
Well, certainly that’s what I’m working towards, and that is the expectation – that the budget is set down for the end of March. It’s a bit earlier than would otherwise be the case, although last year we saw a budget a bit later – in October. That’s what this pandemic has brought. And obviously we’ve got an election next year as well. And the budget’s another good opportunity to announce a series of measures that will help lock in the recovery and rebuild for the future.
MICHAEL ROWLAND:
Okay. Well, speaking of the election, whenever it is, be it March or May, you are now facing, as we know, Monique Ryan in your seat of Kooyong. She’s a Royal Children’s Hospital doctor. But you’ve labelled people like Monique Ryan, independent candidates, as nothing more than a front for Labor and the Greens. What evidence do you have for that?
JOSH FRYDENBERG:
Well, at the last election I had an independent who said they were going to vote for Labor. That’s a pretty clear indication. We’ve also seen plenty of cases where they’ve just mirrored the policies of our political opponents.
MICHAEL ROWLAND:
But what evidence do we have this time?
JOSH FRYDENBERG:
This is a rinse and repeat, Michael. What we’ve seen, we’ve seen obviously a lot of funding going into these independents around the rest of the country. And it’s a democracy so people can put their hand up, but I remember being on your program many times in the lead‑up to the last election and you put to me effectively that, you know, I was heavily under challenge or people wrote me off or they wrote the government off. Look, that never deterred us. I’ve been very fortunate to be elected by the people of Kooyong four times, and I never take anything for granted. I work hard every day for my local community. It’s an area that I was brought up in. It’s an area I went to school in. It’s an area where I’m raising a family in with my wife Amie, and it’s an area I’m very proud to represent. And I’ll continue to put forward the policies that support not just my community but as the Treasurer of Australia that support that economic recovery. Because what really matters is that we have a strong economy, because only with a strong economy can you meet the costs of social services like disability support, aged care, health and hospitals, as well as schools and, of course, our increased defence spending which is so important in a very complex and changing strategic environment. That’s what matters to Australians. That’s what the Morrison government has delivered, and that’s what I’ll continue to work hard towards.
MICHAEL ROWLAND:
We’re out of time. And we’ll see what voters decide in May or March. Treasurer Josh Frydenberg, appreciate your time this morning.
JOSH FRYDENBERG:
Thank you.
MICHAEL ROWLAND:
Thank you.