PETER STEFANOVIC:
Thanks so much for joining us.
JOSH FRYDENBERG:
Nice to be with you Pete.
PETER STEFANOVIC:
First of all, before we get to some money matters, I just want to talk about our top story this morning which is Beijing and the stoush that’s taking place at the moment. Beijing has accused the Prime Minister of blaming China to deflect domestic anger at home, it’s Chinese state media editor has also said overnight that Australia is gum stuck on the bottom of China’s shoe. I mean, what do you make of these comments?
JOSH FRYDENBERG:
Well they’re ludicrous claims. The reality is Australia thinks it’s prudent and sensible for there to be an independent and transparent investigation into the origins of this global pandemic that has killed thousands and thousands of people across the world. That’s the sensible course of action going forward. We won’t bow to economic coercion, we will continue to talk up in Australia’s national interest and we won’t trade off health outcomes for economic outcomes. This is a very serious global pandemic that has disrupted the economies around the world but also taken many, many lives and there does need to be that investigation as the Prime Minister has called for.
PETER STEFANOVIC:
How hard is that criticism to cop, you know, especially on a day when Deloitte forecasts that the economic hit to this economy will be $60 billion over the next four months?
JOSH FRYDENBERG:
Well there’s no doubt it’s a very significant hit to the Australian economy just as it is to the American economies, to the European economies, indeed to the Chinese economy which was down nearly 10 per cent in the March Quarter, the first negative such quarter that China has had on record. The reality is that our economic partnership with China is very important to both countries. Around 60 per cent of the iron ore that they import comes from Australia, last year alone that created enough steel to build 10,000 Sydney Harbour Bridges. They get 45 per cent of their LNG from us. Our agriculture is the freshest in the world. Our universities are among the best in the world. And so it is mutually beneficial for both countries to have this strong economic partnership. But when you get something such as the coronavirus and the global pandemic that has disrupted the globe as it has, there does need to be this independent, open and transparent investigation and that’s why we’ve called for it and we’ll continue to call for it and that’s why we’ll stand up for Australia’s national interest.
PETER STEFANOVIC:
You just mentioned education, I just want to ask you about schools, are you able to outline the $13 billion incentive for schools in order for them to restart face-to-face learning?
JOSH FRYDENBERG:
Well there’s been a request from the independent and catholic schools sector that we bring forward some of their funding, and that is what Dan Tehan, the Education Minister, has announced today. It’s equivalent to around 25 per cent of their Commonwealth funding and it will come in May and in June, and the idea is to get these schools back fully open as quickly as possible, obviously consistent with the health recommendations. And we think it’s really important that while the pandemic takes many things away from us, it doesn’t take our kids’ education away from us and that’s why we’ve moved as we have. Obviously the states are the main funders and controllers of Government schools. When it comes to the independent catholic school sector, the Federal Government plays a very significant role and that’s why we’ve responded the way we have.
PETER STEFANOVIC:
Does that set you on a collision course with the states?
JOSH FRYDENBERG:
I think it’s been a very cooperative relationship with the states through the National Cabinet. Now, as you know, Northern Territory, South Australia, kids are getting back to school and I think other states will follow suit. Some states have been slower than others and it’s up to those state governments to explain why. But the reality is getting kids back to school as quickly as possible is really important for those kids’ education and learning and wellbeing. As you saw yesterday, there were independent reports that were out that said kids, particularly those from disadvantaged backgrounds, face the real brunt of those schools being closed. It does affect their wellbeing, it does affect their literacy and their numeracy and we think it’s really important that kids get back to school as quickly as possible.
PETER STEFANOVIC:
Just in the inquiry yesterday Treasurer, it’s outlined 757,000 approvals so far, for early access to super. 540,000 applications for JobKeeper at the moment, yet you’ve been accused of a slow rollout by some. Is everything on track?
JOSH FRYDENBERG:
Accused by the Labor Party? I don’t take that very seriously. In fact, I think they’re on dangerous ground there attacking the role of Treasury and indeed contradicting the words of Treasury officials yesterday to the inquiry, who made it very clear this was a rapid rollout of Government funding. I mean, some $10 billion that’s gone out in a matter of weeks, both in terms of cash payments to households, the $750 cash payments that went to pensioners and to people on carer’s payments and those on family tax benefits and Commonwealth Senior Health Card and a whole range of other income support recipients receive those $750 cash payments. But also the cash flow boost to small businesses, helping hundreds of thousands of small businesses meet their immediate costs to continue to keep their doors open and to keep people employed. And as the Treasury Secretary made clear yesterday in his comments, that there was going to be three times that amount going to households over the course of the next month or so given that the JobKeeper payments will start in the first week of May.
PETER STEFANOVIC:
Alright. Treasurer, we’re out of time but thanks for your time this morning. Thanks for joining us.
JOSH FRYDENBERG:
Good to be with you.