PETER STEFANOVIC:
Joining me live now is the Treasurer, Josh Frydenberg. Treasurer, good to see you. Thanks for your time, as always. So, code red for humanity. That’s the screaming headline that’s come out of it this morning. What’s your response, or the Government’s response to that IPCC report?
JOSH FRYDENBERG:
Well, the report makes clear that the collective action of governments is required to reduce the global carbon footprint, and that’s why we as a Government are moving ahead with meeting and beating our 2030 targets, just as we beat our 2020 targets. With respect to net zero by 2050, we want to reach that target, you know, as soon as possible, preferably by 2050, but with respect to the actions this government is taking, it’s very significant. We’ve seen the highest per capita uptake of solar energy in the world with people having solar panels on their rooves right around the country. We’re investing in our technology investment road map which will help drive around $80 billion of investment. And even if you look at our performance over the last three years we’ve taken the equivalent of 15 million cars off the road. So we are taking action, but it is a global collective effort, and Australia is determined to meet and beat its 2030 Paris targets.
PETER STEFANOVIC:
You say it’s still preferable, though, but will Australia commit to net zero by 2050?
JOSH FRYDENBERG:
Well, we’re determined to do as best as we can to drive down carbon emissions across the economy. But we want to do so in a way that’s not punitive. We want to do so in a way that takes the Australian people with us, and the focus is on technology, not taxes. The actions that we’re taking with our investment road map, whether it’s with carbon sequestration, whether it’s Snowy Hydro 2.0 and that major pumped hydro facility, whether it’s with what we’re doing with other technologies like hydrogen and the impacts that we’re making with those investments, the partnerships with countries like Germany and Singapore and others are all designed to help reduce our carbon footprint but to do so in a way that’s prudent and responsible.
PETER STEFANOVIC:
A few more things before I move on: but do you believe that now is the time to be able to step up plans potentially for nuclear or is another option to perhaps cut subsidies for fossil fuels here, which is what the report is asking for?
JOSH FRYDENBERG:
Well, I think we’ve got the balance right with our policies. And none of our policies are set and forget; we’re continuing to upgrade them and update them and work with the experts. But the technology investment road map is a long‑term plan that says us invest in those new technologies. And that is why we’re partnering with other countries so no‑one’s re‑inventing the wheel so to speak, that we’re sharing expertise and experiences, and that’s going to be very important going forward. But you have to look at our track record: we beat our 2020 targets; we’re on track to meet and beat our 2030 targets; and with respect to net zero, we’d like to do it as quickly as possible, but preferably by 2050.
PETER STEFANOVIC:
New figures out this morning, Treasurer, show that the lockdown is significant but not as severe. What do you expect the unemployment rate to blow out to?
JOSH FRYDENBERG:
Well, again, we’ll wait for that ABS data to the come out. What we do know is the up employment rate fell to 4.9 per cent in the most recent economic data, the lowest in more than a decade, and that the common refrain from employers around the country was that they needed more workers, not less and that there were, in fact, workforce shortages. What we do know is that the impact of the lockdowns in our bigger states – New South Wales and Victoria – is very significant. It’s obviously having a significant human toll as well. But we also need to understand that the whole country is not in lockdown and that the economy has shown remarkable resilience. And the median market expectation is for the economy to contract by about 1.5 per cent in the September quarter. To put that in context for you, Pete, the economy contracted by 7 per cent in the June quarter last year during the height of the pandemic. And bank data is showing that consumer spending is 30 per cent higher today than it was in March and April last year. And we also know that confidence today, consumer confidence, is around 50 per cent higher than it was in March and April last year. So, yes, it’s difficult. They’re trying times, but there is a light at the end of the tunnel, and the economy is extremely resilient and will bounce back as it has done in the past.
PETER STEFANOVIC:
Okay, Treasurer, we’ll have to leave it there. Appreciate your time, though. We’ll talk to you soon.