DAVID CAMPBELL:
Treasurer, great to have you on this morning.
JOSH FRYDENBERG:
Good morning.
DAVID CAMPBELL:
These are really dramatic claims about that cyber attack on our power infrastructure. Can you confirm, are they true?
JOSH FRYDENBERG:
Well, I’m not going to go into the details of specific allegations or stories such as those. But what I can say is that the cyber threat is very real. That’s why we’ve introduced legislation to protect our critical infrastructure from such attacks. That’s why we’ve better resourced our intelligence and security and law enforcement agencies. And that is why we’re working very closely with the private sector so that they can take their own measures to also enhance their own security. So the cyber space is fast evolving. Technology is obviously rapidly improving, and that is giving, whether they are countries or non-state actors, the ability to cause great harm and great damage.
SYLVIA JEFFREYS:
So on the winter games then, will we follow the lead of the Americans and impose a diplomatic boycott?
JOSH FRYDENBERG:
Well, Sylvia, we’ve noted what the United States have done. We’ve had some preliminary discussions internally about Australia’s attendance at those games, and we’ll have more to say about that in due course. And I’ll leave that to the Prime Minister. But what I can say is that we are working through it in a considered way, recognising that we do, you know, have some important interests at stake, that’s sport and politics, they are different realms as well, but we are looking closely at how we’re represented.
DAVID CAMPBELL:
Alright well let’s move on. You’re making some major announcements today, notably overhauls of Afterpay, digital payments, even our own central bank cryptocurrency. Treasurer, how would a national cryptocurrency work for the average people at home?
JOSH FRYDENBERG:
Well, we’re working through with the Reserve Bank the feasibility of having a central bank digital currency in Australia. That would be world leading and, of course, this is a fast-moving area. There’s a digital revolution going on in our financial sector. Cheques are nearly gone, cash is in decline, buy now pay later, digital wallets and digital currencies are fast becoming the new norm. In fact, every single day in Australia there are 55 million non-cash payments worth some $650 billion, and more than 800,000 Australians have actually had or owned cryptocurrency. So what we’re seeking to do is modernise the payment system to broaden out the types of services and products that are governed by regulation. With respect to cryptocurrency, we want to take it out from the shadows, bring it into a considered regulatory framework, we want buyers and sellers that are businesses of those cryptocurrencies to have a licence. That will give consumers a little bit more certainty and confidence about the parties that they’re dealing with. And then, of course, work with the Reserve Bank about the feasibility of a central digital currency.
SYLVIA JEFFREYS:
What is currently wrong with the digital wallets and the buy now pay later services such as Afterpay?
JOSH FRYDENBERG:
Well, there’s nothing wrong with them. In fact, they’re providing more consumer choice and easier forms of payment. But they’re not all regulated. And that means they may not have the appropriate transparency around fees, Sylvia, or there may not be a level playing field for new entrants coming into the market to compete. And more competition is better for the consumer, it enhances choice and obviously fosters more innovation. So they’re the sort of things that we’re working through, and this is a fast-moving area and we want Australia to be ahead of the pack.
DAVID CAMPBELL:
Well, we’re only a few days away now, five to be precise, of Queensland’s reopening. What impact is this going to have on the national economy and our recovery from the pandemic?
JOSH FRYDENBERG:
Well, this is a positive step forward, and we welcome Queensland’s announcement. Obviously the vaccination rates are getting to the point where there is great confidence that we have that defence against the virus and freedoms can be given back and borders can be opened and families can be reunited in time for Christmas. We saw in New South Wales and Victoria a big jump in retail spending and household consumption as a result of the freedom of movement that was otherwise not there. This will be good news for Queensland’s tourism industry, which employs hundreds of thousands of people directly and indirectly. And it will also be good news for families who want to get together ahead of Christmas or at Christmas. And so this is another positive step forward, and it shows how we can effectively live safely with the virus.
SYLVIA JEFFREYS:
Treasurer, I want to ask you about George Christensen and his appearance on a web series with far-right conspiracy theorist Alex Jones. Have you spoken to him directly about that appearance and the fact that he laughed along with jokes about Auschwitz?
JOSH FRYDENBERG:
I did, and obviously I told him very clearly how disappointed I was in that, and he did apologise to me. You know, we all have to understand that there are no appropriate analogies between the tragedy of the Holocaust and the response to COVID, whether it’s lockdowns, quarantine, mandatory vaccinations with respect to aged-care workers or disability workers. That is a far cry from the Holocaust where, you know, tragically one and a half million Jewish children lost their lives and homosexuals, people who were disabled, gypsies, many others, political prisoners, all lost their lives at the hands of the Nazi killing machine. It was an absolute tragedy, and there are no appropriate analogies, and any such analogies show a complete lack of sensitivity and understanding of the historical context.
SYLVIA JEFFREYS:
Finally before we let you go, Treasurer, I want to ask about Novak Djokovic. This is big news in Melbourne today, of course. There are reports that the world Number 1 could be given a special medical exemption to play at the Aus open despite refusing to reveal his vaccine status. I suspect this will upset a lot of people in Victoria who’ve made enormous sacrifices over the last two years in very long arduous lockdowns. What’s your reaction to this news?
JOSH FRYDENBERG:
Well, again, like you, I’ve just seen the reports. I haven’t heard from the medical experts or the tennis officials. And I know the Victorian government has been pretty firm on this, so we’ll look forward to hearing from them, no doubt, in due course. But the Australian Open more generally is a great celebration of Australian sport and puts Australian sport on the international stage. And I look forward to attending this year in Melbourne’s sunshine and looking to watch some pretty handy players on the court and hoping for an Ash Barty win, because it’s been a long time since we’ve held the cup here in Australia.
DAVID CAMPBELL:
Indeed we have. Alright, Treasurer, it’s great to have your insight this morning. We appreciate your time.