NATALIE BARR:
Morning to you.
JOSH FRYDENBERG:
Good morning.
NATALIE BARR:
Do you think Australians feel confident to go overseas yet, how is the Government actually ensuring this travel bubble is safe?
JOSH FRYDENBERG:
Well obviously we will continue to monitor the virus in both New Zealand, obviously, and here in Australia, but this is certainly good news, because the trans-Tasman route has been our most busiest and with around seven million people using it every year pre-COVID, this will give an opportunity for our tourist sectors, both here and New Zealand, to get a much-needed boost at a time when they need it most. So this will help billions of dollars flow into our two economies, and what we have shown in the past is that these bubbles can work, and this is a very positive step forward.
NATALIE BARR:
So how far away are we from bubbles with other countries, seeing as this is being set up now?
JOSH FRYDENBERG:
Well the Prime Minister was asked this question yesterday, and we can't give firm commitments about opening other country bubbles right at this point, but we are thinking about those options, and obviously will depend on how the vaccine is rolled out across the world, and also here in Australia and how the virus continues to be suppressed. But this does look a very positive way forward.
NATALIE BARR:
Yes, we know we’ve got a lot of New Zealanders who want to go back, and likewise, in Australia, so which other countries, I know you’ve talked briefly about Singapore, because people are really itching to get out and travel. Which countries would they be first?
JOSH FRYDENBERG:
Well the Prime Minister yesterday mentioned Japan, Singapore, also I think Korea. And so obviously there are countries that we've been thinking about, but what we have to do now is obviously roll out the vaccine, more than 850,000 Australians have now received the jab, we have the domestic sovereign manufactory capability with CSL, so that’s going to allow us to boost the supply. And we’re seeing our economy come back strongly, and we’ve also provided those additional half price airfares, which have gone off like hot cakes, with over 300,000 already being snapped up by wannabe travellers, and that's a good thing for our tourist industry here in Australia.
NATALIE BARR:
Yes, we know you have a good economic story to tell Treasurer, good news on the economy this morning obviously. The International Monetary Fund has upgraded our economic outlook…
JOSH FRYDENBERG:
They have.
NATALIE BARR:
…forecasting growth of 4.5 per cent this year. GDP projected to reach pre-pandemic levels for the March quarter. Were you surprised by that?
JOSH FRYDENBERG:
Well this is another proof point of Australia's strong economic recovery and what this report confirms is that we've outperformed all major advanced economies over the last year. There’s still a long way to go, but Australians can see the light at the end of the tunnel, consumer and business confidence is back to its pre- pandemic levels, business investment is up off the back of Government incentives, we've seen dwelling investment in the housing market being strong, we've seen a AAA credit rating being maintained, and most importantly of all, we’ve seen the jobs come back. We saw 88,700 full-time jobs being created in the month of February alone. Over 80 per cent of which went to women, 40 per cent went to young people. So we’re seeing in our labour market, we’re seeing in confidence, we’re seeing in our credit ratings, some very positive signs across the economy, and this does augur well for the future.
NATALIE BARR:
Yes, on the house prices, we’re seeing a rise, I think, of more than it’s been in 30 years. That, of course is great if you've got a house, not so much if you haven't. How concerned are you about the runaway house prices in just about every capital city in this country?
JOSH FRYDENBERG:
Well we’ve stayed in contact with the Reserve Bank, and the prudential regulator known as APRA, who are keeping a close eye on the increase in house prices. But for most people, I don’t know about you Nat, but for me, it's my number one asset is my own home, and when its value goes up, that gives me more confidence in the economy, more confidence to spend, and we've also seen a big jump in the number of first homebuyers coming into the market. The numbers are now at a 12 year high. We’re also seeing owner occupier loans, predominantly be the ones that are being offered by the banks now. So we do monitor it very closely, but the fact that interest rates are historically low, has meant that this is a global phenomenon, not just one here in Australia, where rising house prices are giving an opportunity for first homebuyers to come into the market.
NATALIE BARR:
Okay. Treasurer, we appreciate your time this morning. Thank you.
JOSH FRYDENBERG:
Always a pleasure.