SAMANTHA ARMYTAGE:
We're joined now by the Treasurer Josh Frydenberg from Canberra. Treasurer, good morning to you.
JOSH FRYDENBERG:
Good morning Sam.
SAMANTHA ARMYTAGE:
A lot of focus in the media on how many decades this debt will take to pay off. But really, I mean you'd be criticised more for not spending this money. The government really had to spend money to try and get us through this situation.
JOSH FRYDENBERG:
Well, this is a massive economic shock to the Australian economy, the biggest in over 100 years. So, it required a massive economic response and that’s what we’ve done Sam, with $289 billion of economic support which has helped save 700,000 jobs. But what’s important is that the spending, 99% of which will be over just two years. So, we haven't undermined the structural integrity of the Budget, and we have given every business and every Australian the best possible chance to get to the other side of the Coronavirus. But we’re very conscious that there are very tough days ahead, and in Victoria particularly, more than 5 million people are in lockdown with very uncertain times.
SAM ARMYTAGE:
Yes, now, you have said we’re doing well as a country in terms of managing the virus and the financial impact, and we are when you look around the world at other countries. But, what do you say to the people that, by Christmas, will be out of a job? One in ten. I think the unofficial unemployment rate at the moment is 11%, so God knows by Christmas what that will be. What about them, what does the Government plan to do going forward for those workers?
JOSH FRYDENBERG:
As you know, just a couple of days ago, we announced the extension of the JobKeeper program which, right now, is supporting some 3.5 million workers, or around 30% of the pre-COVID private sector workforce. We also have our JobMaker plan, which is more than $2 billion investing in skills and training, 340,000 new places. As well as providing a wage subsidy for 180,000 apprentices. We’re bringing forward infrastructure projects, around $4 billion of which can be shovel ready and work can get underway. We’re cutting red tape so businesses can spend less time filling in forms and more time investing and growing and hiring for their business. What we are doing is a full-court press to try to give every Australian the best possible chance to either stay in their job or to find a job.
SAM ARMYTAGE:
Okay, I noticed that Treasury is not forecasting anything beyond next June. Probably fair enough, as every week seems to change here. I mean, there is no point, we just sort of go along with this and react to it as it happens, this virus?
JOSH FRYDENBERG:
Well Sam, the reason why the budget was deferred to October 6, normally it’s delivered in May, was because of the uncertainty around the economic environment, a comment that the Governor of the Reserve Bank has made just days ago. In the statement in the Budget, we will provide longer term projections around the economy, but of course, it’s very, very difficult and the effectiveness of our response on the health side and in containing new cases, will very much determine the speed and the trajectory of our national economic recovery.
SAM ARMYTAGE:
Treasurer, can we really get the true recovery phase as a country underway until Victoria gets its crisis under control?
JOSH FRYDENBERG:
Well we’re seeing the economy open up outside of Victoria, with the restrictions being eased in accordance with the decision that was taken at National Cabinet back on May 8. If you look at the most recent job numbers from the ABS for the month of June, 210,000 people got a job. Now, that was more than double what the market was expecting, 60% of those were female and 50% of those jobs went to young people. So that’s a positive sign that outside of Victoria, things are starting to improve.
SAM ARMYTAGE:
Okay that is good news. Treasurer Josh Frydenberg thanks for your time, we really appreciate it.
JOSH FRYDENBERG:
Nice to be with you, Sam.