NEIL BREEN:
Federal Treasurer Josh Frydenberg joins me on the line. Good morning to you, Treasurer.
JOSH FRYDENBERG:
Good morning. Nice to be with you, Neil.
NEIL BREEN:
Yes, well, I suppose it’s the taxpayer that’s paying for a lot of this employment, the stimulation measures that you’ve put in place, the fiscal measures to keep the economy moving. But it has worked - 4.9 per cent. Geez, you’d have to be happy.
JOSH FRYDENBERG:
Well, these are remarkably strong numbers that we saw with the unemployment rate yesterday, as you say, falling for the eight-consecutive month to a 10-year low. And, importantly, youth unemployment is back to its lowest level since 2009. We saw more than 50,000 full-time jobs being created and, importantly, across the country, including in Queensland, we’re seeing strong jobs growth. Obviously, this latest data did not take into account the unemployment impacts that may come from the New South Wales lockdown, but it did take into account the Victorian lockdown that occurred just over a month ago.
NEIL BREEN:
Now, obviously these lockdowns, like, the federal budget that you handed down in May, you know, was hopeful, that budget was hopeful we wouldn’t have too many lockdowns going forward, but this Sydney one is looking like a bit of a doozie. Melbourne’s gone back into a lockdown and had another previous one. Even Brisbane had a mini one a couple of weeks ago. It’s not going to help the economy.
JOSH FRYDENBERG:
Well, they certainly don’t help the economy. Investment decisions get delayed or deferred. You see borders being closed and, therefore, preventing the people movement between states, and you also see supply chains being disrupted as well as people lose their jobs or certainly see a reduced number of hours worked. So, there are lots of consequences as a result of the lockdowns. But this is the world that we’re living in with the Delta variant. It’s a lot more contagious. It’s a lot more dangerous, and obviously health authorities are making recommendations for these strong, harsh lockdowns.
NEIL BREEN:
But one day - I know the Prime Minister after the last national cabinet meeting presented a pathway out for Australia, but every time - like, there’s a couple of cases, Victoria locks down; the Premier of West Australia puts police on the tarmac to stop planes that land because he shuts the border down mid-air after three cases in Victoria. We’re a long way from national harmony on a pathway out.
JOSH FRYDENBERG:
Well, certainly, you know, there are challenges, and no one’s denying that.
NEIL BREEN:
Well, the challenge is it’s political, Treasurer. And it’s in the popularity of the Premiers.
JOSH FRYDENBERG:
Well, you’ve seen…
NEIL BREEN:
Because they keep getting voted back in.
JOSH FRYDENBERG:
You’ve seen the election results in your own state and in Western Australia and, indeed, Tasmania since the pandemic began. As a result, I mean, they’ll make their own decisions at a state level. But what we’ve sought to do, Neil, through national cabinet is to bring the parties together. What we’ve sought to do at the federal level is lead from the front with an unprecedented amount of economic support. And the good news is that Australia is ahead of any advanced economy, ahead of the United Kingdom, ahead of the United States, ahead of Canada, Japan, Germany and France. We’ve seen more people now in work today in Australia than before the pandemic began. We now see our economy bigger today than before the pandemic began. And we’ve seen our AAA credit rating being reaffirmed as one of only nine countries in the world to have an AAA credit rating from the three leading credit rating agencies. So, on the economic front I think we’re well placed, although, you know, confidence does take a dent from these lockdowns. But we still have the task ahead of us to roll out the vaccine and I’d encourage all your listeners to get the jab if they’re eligible.
NEIL BREEN:
Absolutely. Just like I have. There’s this story in the papers today that Tabcorp says they could run it, and there’s calls for a national lottery to be rolled out. People can win millions of dollars if thney simply get the jab. It happened in the United States where they had a $5 million lottery and it sent vaccination rates soaring by 49 per cent. Does the federal government think the Australian people need to be stimulated for the jab in just the same way as the economy needed to be stimulated by the government?
JOSH FRYDENBERG:
Well, incentives certainly have a role to play, and they can be offered under existing law. And, indeed, when I met with General Frewen and the largest business representatives from around the country, like the head of Qantas or Virgin, Wesfarmers, Telstra, Coles and many others, they all did talk about the need at the right time to provide those incentives for people to get the jab. And so those incentives will be put on the table, like lotteries and I certainly won’t be discouraging it.
NEIL BREEN:
There’s reports today Chinese investments in Australia have plunged to a 14-year low. Look, we’ve all seen the behaviour from China over the past 18 months or so and their hating on Australia. But that’ll have on impact on our economy.
JOSH FRYDENBERG:
Well, in terms of China, they’re an important partner for us, Neil. I mean, they…
NEIL BREEN:
They don’t like us, Treasurer. They don’t like us at the moment. Every time they open their mouth, they’re having a crack at Australia.
JOSH FRYDENBERG:
And we certainly don’t see eye to eye on everything with China. And, as you know, we’ve taken very strong steps as a government to protect our national interest, whether that’s around telecommunications policy, our national security policy, whether that’s that Belt and Road initiative by China, whether that’s foreign investment decisions that I’m responsible for. We have taken some decisions that have been criticised in some quarters for being pretty tough. But at the same time, we make no apologies for protecting the national interest and, therefore, our national security and putting that ahead of sometimes our economic interests.
NEIL BREEN:
Last night your Coalition colleague Senator Matt Canavan from Queensland, he gave a speech and he said that China’s aggression posed a bigger threat to Australia than climate change. Do you agree with him?
JOSH FRYDENBERG:
Well, I don’t think they’re mutually exclusive. I think obviously they’re very different challenges that we face. As you know, we are seeking to reduce our carbon footprint but to do so in a way that doesn’t hinder or hurt the economy but, indeed, in a way that seeks to create jobs. And that’s why we’ve preferred technology over taxes. With respect to China, they’re definitely more assertive. I mean, I remember, Neil, back in 2003 when in consecutive days in the federal parliament you had the Chinese leader - President, and you also had the American President address our parliament. Gone are those days. I mean, the leadership of China that John Howard dealt with under Hu Jintao was very different to the leadership of China today under Xi Jinping that Scott Morrison is dealing with. And hence we’re responding accordingly.
NEIL BREEN:
They were in the days when they were trying to open up to the world and show how - what a good people they were and got the Beijing Olympics there and all that sort of stuff, but it all disappeared. Have a good day, Treasurer Josh Frydenberg. You would have enjoyed the tennis, being a budding tennis professional in your day. I need to ask you a question - yes or no - are you or are you not a Novak Djokovic person?
JOSH FRYDENBERG:
Well, I recognise his talents.
NEIL BREEN:
Good answer.
JOSH FRYDENBERG:
If you ask me, you know, who do I prefer to watch - Federer or Djokovic - it would probably be the Fed because, you know, I think he’s got a sublime talent, but Djokovic is incredibly mentally tough, brilliant shot-making and, you know, his record is unsurpassed. With respect to Ash Barty, what a wonderful win.
NEIL BREEN:
Yeah.
JOSH FRYDENBERG:
And the way she carried herself and it was an emotional ride and then to see her embrace her partner and her coach and everyone else afterwards in the private halls of the Wimbledon -
NEIL BREEN:
It was amazing.
JOSH FRYDENBERG:
Of Wimbledon, it was quite amazing. And all credit to her. I think she’s a great Australian and I think the whole country was with her and welcomed her win.
NEIL BREEN:
Yeah, good stuff. Thanks, Josh Frydenberg.
JOSH FRYDENBERG:
All the best.