PETER STEFANOVIC:
Joining us live now is the Treasurer Josh Frydenberg. Treasurer, good to see you. Thanks for your time this morning. So New South Wales is off and running. Has it passed the point of no return now?
JOSH FRYDENBERG:
Well let's open up safely and let's not look back, and today's changes in New South Wales is a product of a record number of people in that state getting the jab. I mean 90 per cent of people have had a first dose. That's a remarkable effort and the people of New South Wales should be congratulated. It's a big day for New South Wales but it's also a big day for Australia as they show us how to live with the virus and New South Wales' success will be Australia's success. I've thought for quite a while now, Pete, that these lockdowns and their effectiveness is diminishing by the day and that's why we need to learn to live with the virus. We can't eliminate it. The COVID genie is out of the bottle and that's particularly so with Delta.
PETER STEFANOVIC:
Yep.
JOSH FRYDENBERG:
Which is a new strain.
PETER STEFANOVIC:
New South Wales of course being 25 per cent of the national economy as well. What was the cost in the end, Treasurer?
JOSH FRYDENBERG:
Many, many billions of dollars. We've put around $7 billion out in terms of COVID disaster payments and a lot more in terms of business support as well. So I'm expecting about a $20 billion price tag for the Delta variant in terms of what it's cost us in terms of direct fiscal support. Then you layer upon that what the cost to the overall economy is in terms of reduced economic activity. We think that every week that New South Wales and Victoria have been in lockdown has cost the national economy about $2 billion. So that's a pretty high price tag and it is a reason why we need to open up when it's obviously safe to do so.
PETER STEFANOVIC:
I've spoken to a few business owners in my community just over the past couple of days, Treasurer, and quite a few of them have said that they are struggling to get staff. This was shown in payroll figures last week as well. Some casuals are choosing to work at Woollies, which is fine, but rather than restaurants because the work is steady. So does there now need to be a greater urgency on boosting perhaps migration, which of course has flat‑lined?
JOSH FRYDENBERG:
Well there's certainly a transition as the restrictions ease and the economy opens gradually. What we did see prior to Delta was actually labour force shortages as well and one of the functions for that, as you rightly point out, is the closed borders. We do want to open those borders as quickly as we can and obviously in a COVID‑safe way. The Prime Minister's already indicated that he's having those discussions with New South Wales as they reach that double dose target of 80 per cent and they fast track their home quarantine, and that's a real possibility now for those international borders to open into New South Wales in November. And that will mean not just Australians moving more freely but also international students and those skilled workers. So we're very mindful of the fact that skilled workers do contribute to our overall economic strength, but that it was the right decision, Pete, back in March of last year to close those international borders because it's one of the reasons why we haven't had the tragic death toll that's been seen in so many other countries. The other point to mention here is that our COVID disaster payment, which is up to $750 a week for people who have lost hours of work, that tapers off and comes to an end once we reach those vaccination targets of 80 per cent. I think that will have an impact too on the labour force as people no longer receive that payment and obviously go and take those jobs when they're available.
PETER STEFANOVIC:
With New South Wales pushing ahead what does this mean or what should this mean for Victoria in your opinion? It's got record numbers at the moment that are only heading further north, but what changes would you like to see if any?
JOSH FRYDENBERG:
Well the first thing to say is the people of Victoria have done it so tough, Pete. We've had the longest lockdown anywhere in the world. That's, you know, quite a remarkable statistic in Melbourne. I would like to see the people of Victoria get the same freedoms as the people of New South Wales on the same timetable as the people of New South Wales, because Victorians have given up so much. You know, our schools are still largely closed. Obviously businesses are also closed and there's still a curfew here in Victoria. So it's very much a tale of two cities. While people in New South Wales are rightly celebrating today and enjoying the freedoms that have come back with those higher vaccination rates, the people of Melbourne and Victoria are still suffering under these very stringent restrictions. So I think there is a good case here to open it up in a COVID‑safe way. Let's get our kids back to school. That's got to be a priority. Let's get our kids back to school.
PETER STEFANOVIC:
End the curfew.
JOSH FRYDENBERG:
And end the curfew.
PETER STEFANOVIC:
So you want that ended immediately?
JOSH FRYDENBERG:
Well again, I think, you know, you've got to follow the medical advice, but at the same time we've heard a lot from the Victorian Government that they're going to now take some of those decisions and with the vaccination rates rising in Victoria I hope that they would act on it and act on it as soon as possible.
PETER STEFANOVIC:
Okay, I asked you this last week about Annastacia Palaszczuk wanting more money for hospitals, but Daniel Andrews wants more money for hospitals as well. Is he likely to get it?
JOSH FRYDENBERG:
Well the same answer applies in Victoria as it does in Queensland. The Federal Government has increased funding for hospitals more than the State Government and that's a fact. And during this COVID pandemic we've done the bulk of the heavy lifting when it comes to economic support, and when it comes to health support we've provided billions of dollars for telehealth, we've purchased the vaccines.
PETER STEFANOVIC:
That's a no then?
JOSH FRYDENBERG:
We've got ADF personnel in Victoria driving ambulances, Pete. We've also got ADF personnel knocking on people's doors as part of the contact testing and tracing and overall logistical efforts. The Federal Government has always been there supporting the people of Victoria through this crisis and will continue to do so and I'm just, you know, very hopeful that the people of Victoria will get to enjoy the same freedoms as the people of New South Wales have once we reach those 70 and 80 per cent vaccination targets.
PETER STEFANOVIC:
Okay, that's a no then. No more money for Victoria?
JOSH FRYDENBERG:
Well they should have no expectation that the Federal Government will continue to be their ATM.
PETER STEFANOVIC:
Treasurer Josh Frydenberg, appreciate your time as always. Thanks for joining us, and be sure to call Karl Peter again, that'd be great. It's good for my ego.
JOSH FRYDENBERG:
Look forward to it. You got me.