NEIL BREEN:
Treasurer Josh Frydenberg joins me on the line. Good morning to you, Treasurer.
JOSH FRYDENBERG:
Good morning. Nice to be with you and your listeners, Neil.
NEIL BREEN:
I can’t believe, like, 20‑odd months on we’re still back at this ground zero where the states agree to things then they don’t agree to things. It seems to be the Labor states versus the federal government and no‑one seems to be clear in this state of Queensland about where we’re going to be going forward.
JOSH FRYDENBERG:
Well, there’s one thing we should all be clear about – and that is that the country, including the states and the territories, need to stick to the plan agreed at national cabinet. And that is at 70 to 80 per cent vaccination rates we start to see a reopening of the economy. We’ve heard from the Doherty Institute – world‑leading medical experts – that zero COVID forever is unrealistic. And what that means, Neil, is we have to learn to live with the virus, as every other country is doing and, indeed, as Australia has done with respect to other diseases. I mean, take influenza – there are 200,000 cases every year across Australia and 600 deaths, yet we’ve learned to live with it. And when you get to that 70 and 80 per cent vaccination rate, the transmissibility of the virus reduces, the number of people who get seriously sick reduces and you can start to reopen in a COVID‑safe way. And that’s what we should be shooting for. We need to give, as you say, the small businesses across Australia and, indeed, across Queensland, hope. There are lots of tourism businesses, their owners, their staff, would be listening to your program this morning who have seen their customers dry up because of the lockdowns until other states and, indeed, because the borders have been closed. They have to think about their own futures, and we want them to understand that there is a future without lockdowns, and that’s with the higher vaccination rate.
NEIL BREEN:
I read your column in the News Corporation papers today, Treasurer, and it makes a really good point that I think is lost on the public. I think with the stimulus that the federal government provided, JobKeeper and all those things, has helped the economy. They look at the profits of the Commonwealth Bank – $6.6 billion – they look at the profits here, there and everywhere, but the federal bank, the Reserve Bank shows that the businesses under stress are small business.
JOSH FRYDENBERG:
Correct.
NEIL BREEN:
They’ve suffered the most right across Australia but particularly in Queensland.
JOSH FRYDENBERG:
Well, over the course of this pandemic it’s been the smaller businesses that have been twice as likely as the larger businesses to see their turnover fall by more than 50 per cent. And now you don’t necessarily have national operations. They don’t have strong balance sheets as larger businesses may do. And they didn’t go into business, Neil, in order to receive a cheque from the state or the federal government during lockdowns; they went into business to build something that’s bigger than themselves and to serve their community. And it’s not just the economic impact that the lockdowns are having on them; it’s also the mental health, the anguish, the anxiety for themselves and for their staff. Because so many of the small businesses treat their staff as their extended family. And they’ve put their life savings on the line in their small businesses, and in many cases they’ve put their homes, their houses, have been mortgaged and put on the line. And they need to know that there is a future without lockdowns. And we should not give them lockdowns for one day longer than they are absolutely necessary.
NEIL BREEN:
They’re running out of cash reserves, small businesses. There’s absolutely no doubt about it. You’ve got an announcement today about small business?
JOSH FRYDENBERG:
Yes, we do. And as you know, we entered into an agreement with the Queensland government to provide $600 million worth of grants to small and medium‑size businesses across the country. Now – and that was $600 within Queensland alone. On top of that we have a number of other programs that we’re putting in place. And one is loans for small and medium‑size businesses. Now, we’ve already had that program during COVID and more than 70,000 loans, including across Queensland, have been provided worth more than $6 billion. But in order to be eligible for those loans you had to be on JobKeeper in the March quarter. We’re now removing that requirement and we’re saying that if you’re a small business, you can get a loan of up to $5 million for up to 10 years with the first two years repayment free. And the commonwealth will guarantee 80 per cent of that loan with the bank or the other lender guaranteeing the other 20 per cent. This is going to be a really big boost to businesses whether in the hospitality, tourism, construction, arts and recreation sectors. And we’ve heard from COSBOA, which is the roof body for small businesses across the country, say this will really help with their members rebuilding and reopening.
NEIL BREEN:
Okay. Let’s hope, though, we go with the vaccination strategy, not the elimination strategy that some states want to do.
JOSH FRYDENBERG:
Absolutely.
NEIL BREEN:
Yeah, absolutely. We have to. Treasurer, I’ve got to ask you: Charlie Watts, the drummer from the Rolling Stones, died overnight. This is a bit left field, so you’ve got to tell us your favourite Stones song so I can play it.
JOSH FRYDENBERG:
Oh, well, we all want a bit of Satisfaction, that’s easy. A big fan of the Stones. Never saw them live, but they’re incredible stayers, aren’t they?
NEIL BREEN:
They sure are.
JOSH FRYDENBERG:
It’s sad news, but, you know, we want to get some satisfaction.
NEIL BREEN:
We’ll celebrate him. We’ll celebrate him. Are you getting any satisfaction out of Annastacia Palaszczuk?
JOSH FRYDENBERG:
Well, look, I would like to see Queensland obviously stick to the plan. You know, I’ve got a good working relationship with them. But, look, the bottom line is the people of Queensland deserve hope, and hope comes with the plan, and the only sustainable long‑term future for Australian families and for Australian businesses is to live safely with COVID. And that is why listening to the Doherty Institute, following the plan agreed at national cabinet is the way forward.
NEIL BREEN:
Okay, Treasurer. Here you go. Here’s what you want.
JOSH FRYDENBERG:
Thank you.