NATALIE BARR:
Treasurer Josh Frydenberg joins me now. Morning to you, Treasurer.
JOSH FRYDENBERG:
Good morning.
NATALIE BARR:
How significant is today, not just for Victoria's economic recovery but for the nation’s?
JOSH FRYDENBERG:
Well, it's a very important milestone for the people of Victoria, indeed, for Australia's economic recovery, Nat, because Victoria is the second‑largest economy within our country. It's about a quarter of the national economy, and people are going to get those restrictions eased. As you say, whether it's hospitality, whether it's retail, whether it's going to the gym or going for a swim, not having to wear masks outdoors, and, of course, catching up with friends or family in the regions if you live in Melbourne. They are really practical, positive steps that we welcome to give Victorians their freedoms back. Because, as you know, Victorians have endured so much over the course of this pandemic and particularly those in Melbourne having had the longest lockdown anywhere in the world.
NATALIE BARR:
Yeah, they say 8 out of 10 Melburnians plan to hit the shops. Is that what you want to see, or do you want people to urge caution?
JOSH FRYDENBERG:
Yeah, go out and buy yourself a new pair of jeans. Go for a coffee with friends or, of course, take a drive down the Great Ocean Road, if you can, to visit a great place like Lorne. I mean, there are lots of options for the people of Victoria, just as there was for the people of New South Wales when their restrictions eased as they hit that 70 and then the 80 per cent double‑dose vaccination target.The Australian economy is showing enormous signs of resilience. As you know, Nat, this has been the biggest economic shock since the Great Depression. Back last year Treasury were telling me that the unemployment rate could reach as high as 15 per cent. Today it's 4.6 per cent, and we got some more positive economic news overnight with around an $8 billion improvement to the budget bottom line as a result of businesses reopening, as a result of people going back to work.
NATALIE BARR:
Yes, so in the middle of the year, people were talking recession. Are you surprised by these figures?
JOSH FRYDENBERG:
Well, they're certainly positive, they're welcome, they're consistent with what we saw last year as we came out of those restrictions that were lifted. But, of course, the Delta variant did hit us hard because both New South Wales and Victoria went into lockdown. The ACT, of course, as well. And so that had an impact on the economy. But I'm very confident about the recovery. I can see Australia's economic comeback now being really on. And I'm looking forward to a very good summer for our businesses and, of course, we're hoping for our tourism businesses, too, because they've done it particularly tough during the pandemic as people haven't been able to travel either interstate or, of course, welcome visitors from overseas.
NATALIE BARR:
Josh, I don't want to be Debbie Downer, but we've been excited before, and then we've had another mutant strain, like Delta came, and look what happened this year. What are you relying on to ensure that we don't go down that same road again?
JOSH FRYDENBERG:
Well, I think the key is the vaccines and the fact that we've now seen the states of Victoria and New South Wales hit that 80 per cent double‑dose vaccination rate, and the ACT single dose is at 99 per cent. And as you know, we've been very successful in vaccinating our most vulnerable populations – the over 70s, those who work in aged care and the like. So we have been focused on that vaccine rollout, which has really gained pace in recent weeks and months. So I think vaccines are our biggest defence against the virus. But also I think people are over lockdowns, and now we're starting to hear the state Premiers talking a similar language. Don't think anybody wants to look backwards; I think everyone wants to look forwards, and that means even with more cases – indeed, there will be hospitalisations, tragically, there will be people who die and who go into ICU, but at the same time we have to learn to live with the virus. We can't defeat the virus – we have to learn to live with it. And that means following the health restrictions that remain in place but getting on with our lives and enjoying our freedom.
NATALIE BARR:
International borders open on Monday. New South Wales and Victoria welcoming overseas travellers without quarantine. We've got one of our leading pandemic authorities saying that is mad.
JOSH FRYDENBERG:
Well, again, it's consistent with the health advice that the governments are receiving that we can welcome people who are double‑dosed vaccinated that have a negative test upon arriving in Australia. They can come and enjoy life here. And I think that is, again, another practical sign, Nat, that we're learning to live with the virus. If you're not vaccinated, then, of course, there are going to be other restrictions on your movement when you initially come to Australia. But for those who are double‑dosed vaccinated, then you should be able to go about your life in Australia and obviously catch up with family and friends.
NATALIE BARR:
Okay, Treasurer, thank you for your time this morning.
JOSH FRYDENBERG:
My pleasure.