MICHAEL USHER:
We learned the Australian economy has bounced back from its COVID knock. There was a 3.4 per cent growth in the December quarter. It was driven by 6.3 per cent boost in household spending as Australians spent big during a window between the Delta and Omicron variant outbreaks. Recreation, clothing, footwear and hospitality had really big gains. Wage growth stayed flat though. The Federal Treasurer Josh Frydenberg joins me now. Good to have your company on The Latest tonight Treasurer.
JOSH FRYDENBERG:
Nice to be with you.
MICHAEL USHER:
Okay some good numbers for you good, starting from a low base but the GDP is looking good?
JOSH FRYDENBERG:
Well at 3.4 per cent for the December quarter, this is the strongest quarterly growth that we've seen in 46 years, the equal strongest quarterly growth in 46 years. And it's a testament to the resilience of our economy. It comes after restrictions were eased in NSW and Victoria that were hit by the Delta variant and it came at a time too that the unemployment rate continued to fall down to 4.2 per cent in December, which was the lowest unemployment rate in some 13 years. So the economy is in very strong shape. Omicron has not derailed our recovery. We've seen in spending data for just the first two months of this year, that it's actually up on the equivalent period the year prior. And also business conditions and business confidence has improved and job vacancies are higher. Australians can be confident despite those global headwinds and the crisis in the Ukraine, despite the terrible floods facing people in Queensland, and NSW, that our economy is very strong.
MICHAEL USHER:
All right, there's a substantial part of the Australian population right now in south‑east Queensland and northern NSW who couldn't care less about the budget at the moment or the GDP. They're dealing with the very real issue of having lost homes, having lost jobs, livelihoods, having lost loved ones and relatives. And having just returned from there today, I can tell you there's going to be anger there in the next few days. There is not enough getting to them, just physical support on the ground quickly enough, logistically, obviously, it is a nightmare but they need help immediately. They're not believing all the big promises from state and federal governments that it's on the way, they need to see it fast. What can be done for them?
JOSH FRYDENBERG:
Well firstly, Michael, this is a terrible situation and these devastating floods have obviously taken lives in both Queensland and NSW but also are taking livelihoods with massive property damage and damages to businesses, big and small. Now we have 900 ADF personnel who are helping with the flood response and that's critically important. But we've also started to pay out the disaster recovery payments, which are one‑off $1000 payments for people, it's non‑means tested, it's non‑taxable and there are some 145,000 requests that are now being processed. Now we've also have other disaster recovery allowances which are up to 13 weeks and can provide people with support if they can't get to work. There's also the partnership that we have with state governments and with local governments to help with the clean‑up and other significant payments. So we'll spend as required, just as we've done with previous disasters, whether they're flood, cyclones or fires.
MICHAEL USHER:
I guess it's not your portfolio but I know what they want to see very quickly, is they need drops of food, they need drops of fuel, petrol, they need drops of medicine, they need that very quickly by the ADF. The support payments are fantastic but their phones are dead, they can't get near a bank, they can't even get near their house so that sort of immediate money is not going the help them. They actually need resources fast. Is that going to be delivered quickly?
JOSH FRYDENBERG:
Well, we're going to work with state governments and local governments on getting the support that is needed to those communities and we've never left any stone unturned when it comes to helping people in crises such as these. And that will be the same effort that we will bring to this task. And we recognise that Australia gets more than its fair share of natural disasters and it takes a huge human and economic toll. And that's why we're responding in kind and that's why we'll partner with the state and territory, or local governments in this case, to get hem them that additional support.
MICHAEL USHER:
With the war in Ukraine, let me switch to that, are you concerned about the long‑term economic ramifications for that, let alone our political partnerships, but in my view it would seem to be this is not going to resolve quickly, it is going to last some time, that it is going to cause a lot of destabilisation. What's your view on the war in Ukraine?
JOSH FRYDENBERG:
Well clearly our thoughts and our prayers are with 44 million brave Ukrainians who are putting up, you know, steadfast opposition to the might of the Russian army and the Russians and their aggression is completely unacceptable, considering that Ukraine posed no threat to Russia, and Russia was not acting in self‑ defence. That's why we're providing both lethal and non‑lethal support and so, too, are so many other countries, like‑minded countries, around the world as well as putting the screws on Putin and his cronies and ensuring that Russia is excluded from the international financial system. Now that's taking an effect and that's having a real impact with the rouble falling, the Russian currency, more than a third and with their stock market being closed ‑
MICHAEL USHER:
Yeah on that so is this going the way Putin thought it was going to go, do you think?
JOSH FRYDENBERG:
I don't think it's going as cleanly and as quickly as he thought it would go but, clearly, they've got the weight of, you know, an enormous army and resource there. Now, the impact, globally, I think as you indicated, Michael, will be very severe and it will be long lasting. And what is at stake for so many countries like Australia is not just the sovereignty of one nation but the international rules‑based order that has helped underpin prosperity in Europe for more than 70 years. That's why you've seen such a turnaround in approach from countries such as Germany or Sweden, who are now providing that resource and support into the Ukrainian resistance. It is a very significant moment in world history right now and it's causing countries in Europe, who may have previously thought about the unthinkable, Russian, you know, Russian aggression such as this, now being on their very doorstep. Think about the Poles, for example, think about other NATO countries that now think that the Russians may start with Ukraine, but who is next? And that's why we have to resist this aggression. That's why we have to partner with like‑minded countries. That's why we have to revisit issues such as supply chain resilience because in this world of increased and heightened geopolitical risk, the cost of Russia's aggression, or dare I say it, China's aggression would be very, very severe.
MICHAEL USHER:
Treasurer Josh Frydenberg, thank you.
JOSH FRYDENBERG:
Thank you.