SABRA LANE:
Good morning, welcome to the program.
JOSH FRYDENBERG:
Nice to be with you, Sabra.
SABRA LANE:
By the end of today, will the state and federal governments have agreed on a list of three or four crucial projects that you can crack on with that will have real, practical benefit for Australians?
JOSH FRYDENBERG:
I think we will make very constructive progress today. Certainly, the dinner we had last night had a positive mood to it. Since the last time we met, we've had a federal election and a New South Wales election and there is an understanding that we need to put our political differences aside and to get on with the job of serving our constituents, namely the Australian people. So, there are important issues in relation to infrastructure, we will be discussing the NDIS, health reform, the population framework and a whole host of other areas.
SABRA LANE:
So on progress, but will you actually say 'these are the things that we can agree on, we'll fund these and we'll crack on and get on with it?'
JOSH FRYDENBERG:
Yes, we have identified those key areas in relation to heavy vehicle reform, which we need to progress. We're focused on other areas in relation to the NDIS, environmental approvals. We've identified skills and we're also looking at how to potentially bring forward infrastructure projects.
SABRA LANE:
On the infrastructure projects point, the Reserve Bank says that you can spend money now on infrastructure and get the economy revving up. You've got the firm EY recently pointed out that there are plenty of existing infrastructure projects around Australia that could be repaired right now that would boost productivity, create new jobs and benefit everybody. Is that an idea that you're going to adopt?
JOSH FRYDENBERG:
Well, certainly, there are possibilities to bring forward projects and we do need to agree with them and then, perhaps, not using the T1 and T2 contractors but using some of the smaller players because we are hitting capacity constraints, particularly in the big markets of Melbourne and Sydney. But you also have to acknowledge, Sabra, that we do have the biggest pipeline of infrastructure projects underway in Australia's history; $100 billion over ten years. After fifty years of indecision, we're now building a second airport in Sydney which will create some 28,000 jobs by the time it's fully rolled out and support them. We've got the Melbourne to Brisbane in-land railway, which is going to create 16,000 jobs. And, of course, building an airport rail link in Melbourne. So, there's a whole series of projects which are creating jobs, busting congestion that we are working – federal and state governments – closely on.
SABRA LANE:
What do you say to people who have moved to the city fringes? We heard earlier this week on AM, people in Tarneit in Melbourne, the promise of great housing, great transport links, but at the end of the day, there's this mad dash from the train station to get to your car so that you avoid a massive traffic jam. There are ghost bus stops where buses never stop. People feel dudded and they feel that – the words that were mentioned – that ghettoes were being built.
JOSH FRYDENBERG:
In Melbourne, you've seen the fastest growth in a city anywhere in the country. It's growing about 2.5 per cent per annum, more than 2,000 people per week. Obviously, that is putting great pressure on public infrastructure, like transport, but also schools and medical services. That's why we as a Government have committed more than $27 billion on infrastructure since we came to Government. But that's why also today we're seeking to align better federal and state responsibilities. The federal responsibilities are around population. State responsibilities are primarily around infrastructure, housing approvals. If we can better align those responsibilities, share more data, then I think we can get better outcomes.
SABRA LANE:
You say that and in ten years from now, our population is expected to be 30 million people within ten years. People look at our cities now, 25 million, we're absolutely struggling now with current demand.
JOSH FRYDENBERG:
Certainly, population growth has been much more than forecast. Interestingly they did an IGR, an Intergenerational Report, back in 2002 where they expected Australia to hit 25 million people by 2040. As you know, we met that number last year. There's no doubt that the population growth has focused on Melbourne, Sydney and South East Queensland. That's where about two thirds of the population growth has been. I think with better planning, better data sharing, we can get better outcomes.
SABRA LANE:
Alright, the Reserve Bank cut the official interest rates last week. The big banks thumbed their noses at it, they kept some of it to themselves. You've urged people to shop around. You're going to meet with the bank bosses in coming weeks. What are you going to be telling them?
JOSH FRYDENBERG:
I'm going to tell them to put their customers first and that it's not good enough not to pass on these rate cuts in full. Particularly as the Reserve Bank has pointed out that their cost of funding has come down substantially…
SABRA LANE:
You've told them that already. You've tried to carpet them. They are just ignoring you.
JOSH FRYDENBERG:
There are two points here. The first is we are empowering consumers to more easily move banks and we're doing that with the passage through the Parliament of the Consumer Data Right. But secondly, of the seventy-five basis point rate cuts that we've seen, we've seen the banks pass on fifty-seven basis points of that. So, that's not insignificant. For someone who has a mortgage of $400,000 on their home, that means a saving of more than $1,500 a year in lower interest payments. But we expect the banks to do more, that will be my message to them.
SABRA LANE:
Okay. The IMF overnight has said global warming is a clear and present threat and that there should perhaps be a global carbon tax to cut emissions, that it's more effective than Government interventions like direct action. Would Australia accept a global carbon tax?
JOSH FRYDENBERG:
No.
SABRA LANE:
Treasurer, thank you very much for joining the program.
JOSH FRYDENBERG:
Good to be with you.