ANDREW HADJIKAKOU:
Well Ladies and Gentlemen, welcome. Thank you for sharing in a very momentous occasion for PACCAR, celebrating our 50 years of manufacturing right here in Victoria. We’re tremendously proud of this achievement, we fly under the radar and we employ many thousands of people with what we think are the world’s best products. Thank you for coming along and being part of this occasion. I’d like to hand over now to the Federal Assistant Treasurer and the local member, Michael Sukkar. Also attending is the Federal Treasurer, Josh Frydenberg and the Federal Ministers, Scott Buchholz and Kevin Hogan. Thank you.
MICHEAL SUKKAR:
Well good afternoon. Thank you, Andrew and thank you to all the team here at PACCAR for allowing the Treasurer and myself and Assistant Ministers Buchholz and Hogan and indeed so many component manufacturers and dealers from our local area in sharing this wonderful occasion. Manufacturing in Australia, as we see here today at PACCAR, is thriving. Fifty years of building Kenworths right here in the Deakin electorate, in Bayswater. 75 years for Brown and Hurley, a wonderful dealer who has worked closely with Kenworth. One of the great pieces of feedback that we’ve received today from everybody here at PACCAR is how the measures put in place by the Morrison Government have assisted this business in selling and building more trucks, and that just means more jobs. 1,200 people on this site alone. Tens of thousands of people employed in the component manufacturers, who support this business. This is great news for Australia, it’s wonderful to be able to share this wonderful occasion with PACCAR and the Kenworth and DAF brands and it’s even better to have the Federal Treasurer here, who, through his leadership, has ensured that businesses – manufacturers just like this – not only could get through the pandemic but have a very bright future. Before we go to the Treasurer, I might hand over to Scott Buchholz who, as Assistant Minister, has done an outstanding job for this sector and the hundreds of employees here are very, very grateful. So over to you, Scotty.
SCOTT BUCCHOLZ:
Thanks Michael. On what is such a proud day for the Australian transport industry, such a proud day for Kenworth Australia. Regretfully, if we were to stand and do a straw poll in the malls of Brisbane, Sydney, Melbourne, Adelaide and ask everyday Australians ‘where do you think Kenworth trucks are manufactured?’, unfortunately not every one of them would unanimously say Australia. It is a beautiful secret and I want to acknowledge Kenworth for such a significant milestone - 50 years, 70,000 trucks, manufactured right here at Bayswater by proud Australians. I want to acknowledge the men and the women that work on the production lines, that work specifically in the engineering departments that design these trucks specifically for the Australian market. For the for the longevity of our transport networks, to make sure that they meet the extremities of the Australian conditions. When the rest of the world looks at trucks that are manufactured right here in Australia, they look at them and go if they can make it in Australia, well those trucks will be best designed for anywhere else in in the world. An amazing product, Kenworth being built right here in Australia. Can I acknowledge Josh Frydenberg, who I’m going to invite to this microphone, for the amazing work that he has done in listening to the industry some months out. From making sure that his ear was close to the ground, he designed some of these resilient packages, some of these stimulus packages, as a direct result of conversations with the Australian transport association and peak bodies and went back and manufactured stimulus packages that have paid dividends to this industry. Can I acknowledge the industry for what it did during the COVID process, where the transport industry was acknowledged as a critical service. When Australians were panic buying at shopping centres and retailers, the transport industry was equal to the task to make sure that logistically products got to where they needed to be done, in some adverse conditions as borders were shut. Thank you to the transport industry. Thank you to the workers that made that all possible. And without further ado, I'd like to introduce you to Josh Frydenberg, the nation's Treasurer. Josh.
JOSH FRYDENBERG:
Well, thanks Scotty. To you, to Michael, to Kevin and of course, Andrew, thank you for your hospitality today. Well, we were all just witness to a really impressive sight. A thousand Australian workers from the production line, suppliers and dealers in this facility, celebrating 50 years of manufacturing strength here in Australia. Producing today the 70,000th Kenworth truck, what an incredible achievement. An achievement and one which so many of those workers had participated in and were really, really proud of. It's all about jobs. It's all about jobs in every stage of the supply chain. There are 1300 jobs here at the facility in Bayswater. And we know that over the last year alone, 300 new jobs have been created, but also around 10,000 jobs in the 160 suppliers around the country who are making parts for these Kenworth trucks. It's not just trucks for Australian roads. It's also trucks that are also exported overseas to New Zealand to Papua New Guinea, helping to meet the logistic task in those countries. I want to pay credit to the trucking industry for the role that it's played in our COVID-19 economic recovery. When we were in lockdown, when we faced those health restrictions at their extreme point, it was the trucking industry that ensured that goods got from the manufacturing to the supermarket shelves, and were filling warehouses and shops right around the country and delivering the goods that people needed most at those trying times. The Morrison Government is absolutely committed to this sector, creating more jobs and we put in the Budget the immediate expensing provision, which allows businesses with a turnover of up to $5 billion year to write off in year one, the complete cost of their equipment machinery, including a truck. We know from Andrew, he's doubled production here. He's doubled production based on the increased demand that has been supported by the tax incentives that we put in place in last year's Budget. More than 100 trucks are rolling off the production line each week here in Bayswater. That is something that all Australians can be proud of. But of course, we're investing in apprentices. We're investing in infrastructure. We're investing in R&D, latest low emission technologies that PACCAR is participating in. So it's a really proud day to be here. This is all about jobs. This is all about Australia's economic recovery. It's all about the wonderful workers that we have available. Are there any questions?
JOURNALIST:
Could I ask you about JobKeeper? How much risk is there to the economy over the next few weeks with JobKeeper and JobSeeker falling back and other stimulus as well?
JOSH FRYDENBERG:
Well, JobKeeper has been a remarkably successful program. We know from Treasury and the Reserve Bank of Australia that it's helped save more than 700,000 jobs. But it was always a temporary program. It was always an emergency payment. Initially, it was for six months, we extended it to 12 months. We tapered it down for the second phase of that program. But just because JobKeeper ends, and that is the recommendation of Treasury to the government, that JobKeeper does come to an end. But just because JobKeeper ends, it doesn't mean our additional economic support ends too, it doesn't. We have put in place a series of targeted measures to support industries. Yesterday we announced $135 million for the arts and entertainment sectors to support the jobs of roadies or Front of House crew or the performers themselves. We announced recently a $1.2 billion aviation and tourism package to get more planes in the air, which means more tourists on the ground. The immediate expensing provisions and the loss carry back measures and the other tax incentives that we put in place continue to roll out and continue to support jobs here in Bayswater, but also right around the country. So you've heard from the Treasury Secretary earlier in the week to Parliament, that JobKeeper comes to an end, but other support measures continue. Even when JobKeeper comes to an end, the transition will be manageable, and that the unemployment rate will continue to trend down over time.
JOURNALIST:
You've said before that it could be bumpy though, what does that mean in practicality for workers and companies? It's not going to be exactly the same over the next few weeks as it has in the last few months.
JOSH FRYDENBERG:
Well, as we know the unemployment rate has fallen even further than we had expected, as recently as the mid-year economic and fiscal outlook last December, so the unemployment rate is at of 5.8 per cent. We saw in the month of February, at 88,700 new jobs created, all those jobs are full time, more than 80 per cent went to women, more than 40 per cent went to young people. We will just have to wait and see what those monthly figures produce. But what the treasury secretary said is, even when JobKeeper ends, the unemployment rate will continue to trend down over time. You see, we've taken a difficult decision to bring to an end a program which is an economy wide wage subsidy. Our political opponents have not. They'll always spend more. That's why they'll always tax more. That's the alternative that the Australian people had at the last election. That's the alternative the Australian people will have at the next election.
JOURNALIST:
There are still going to be job losses forecast in the hundreds of thousands though, do you still stand by that it's going to be bumpy? What's your kind of message to workers in companies who are possibly not going to experience a good time...
JOSH FRYDENBERG:
Well, my message to workers is that the Morrison Government was with them at the start of the crisis, the Morrison Government was with them in the middle of this crisis and the Morrison Government will be with them to the end of this crisis. We are just transitioning to a series of different economic support measures, tax cuts, infrastructure, skills, low cost loans that we announced, where the Government's taking the vast majority of the risk on but ensuring that businesses that back themselves get that support. There is a whole series of economic measures that are designed to get the economy to the other side of COVID-19.
JOURNALIST:
What do you make of Andrew Laming’s behaviour towards two female constituents? Is that becoming of an MP?
JOSH FRYDENBERG:
Completely unacceptable. Shocking. Andrew himself has very forcefully and fully apologised. As the Prime Minister has made clear, those comments were disgraceful which should never have been said.
JOURNALIST:
So are you happy with him sitting in the party room? Can he remain a liberal MP?
JOSH FRYDENBERG:
He can remain a Liberal MP. But he regrets those comments and he has apologised for those comments. But those comments were clearly unacceptable and should never have been said in the first place.
JOURNALIST:
It wasn't just his comments, it was behaviour. Are you happy with him in the Liberal party room with you?
JOSH FRYDENBERG:
He's elected by his constituents, as a Liberal, to represent his community. His position in Parliament will see him continue to do that.
JOURNALIST:
What's your stance on gender quotas for getting more women as representatives in the Liberal Party?
JOSH FRYDENBERG:
I've said that is a legitimate conversation to have. The Liberal Party put in place quotas when Sir Robert Menzies founded the party, in the organisational wing when it comes to a female vice president and a male Vice President, across the various branches and divisions. We should look at all options. Right now we have 26 per cent of our House of Representative members being female, that's too low, our target is 50 per cent. Ultimately, these will be decisions to be made by the individual divisions, the state divisions across the country. But the Prime Minister has raised a legitimate issue. It's a subject of a conversation now within the Liberal Party, there are some who are for, there are some who are against. What we all agree on, is we need to get more women into Parliament.
JOURNALIST:
What are you? Are you for quotas or are you against?
JOSH FRYDENBERG:
Again, it's a conversation that is ongoing, we should look at all particular options. I tell you what I’m for. I'm for more women in the Parliament. When I first became the deputy leader, in my opening comments to the party room I said that we needed to get more women to Parliament. Scott Morrison has appointed a record number of women to the Australian cabinet and as a party, we've been a party of firsts for women, whether it's our first Australian Defence Minister, the first Australian female Foreign Minister, whether it's Dame Enid Lyons, Margaret Guilfoyle, the first female to be in an Australian cabinet with a with a specific portfolio. These are all firsts that the Liberal Party and its predecessors has been involved in. Indeed the most successful, and the most high profile female politician in the country is a Liberal, Gladys Berejiklian. She's done a brilliant job through the pandemic.
JOURNALIST:
She's not in your federal government, though.
JOSH FRYDENBERG:
But she she's a Liberal and you asked me about the Liberal Party. What I can say is that we are absolutely committed to getting more women into the apartment. I'll just relay one story a colleague of mine told me just a couple of days ago. Angie Bell represents people in Queensland in the seat of Moncrieff. She led an effort to recruit, to train, to encourage more women to run for preselection. Now her seat is a relatively safe seat. There’s no such thing as a safe city anymore but hers is a relatively safe seat. She encouraged more women through an organisation she set up in a Liberal National Party in Queensland to do so. Out of the eight candidates in her seat, five were female and she was ultimately successful. So this is a positive sign about how we can get more women into Parliament and can I also point out that at the last election, when you look at the incoming Coalition Senators and Members in the House of Representatives for the Liberals, it was a 50-50 gender split
JOURNALIST:
You say quotas is a discussion that needs to be had, what's the timeline on that? Would you like to see that discussion finished and possible changes before the next election for example?
JOSH FRYDENBERG:
Again, these ultimately will be matters that are settled by divisions at the state division level. What the Prime Minister and myself as his Deputy and what Andrew Hirst as the Federal Director and John Olsen as the Federal President is, and these conversations are occurring. We can have these conversations and we can put in place concrete actions, which we're doing, to try to drive more female parliamentary participation.
JOURNALIST:
What do you make of reports that the neo-nazi group The Base has been actively recruiting Australian members? Should the Home Affairs Minister prescribe it as a terrorist organisation?
JOSH FRYDENBERG:
Well again that will be a matter that is subject to proper advice from the relevant authorities to the relevant Minister. There is a rise in right wing extremism. I know that's not a term that others will maybe use but I'm happy to use it. There is a concern out there that through international influences and the like that this level of extreme activity is rising and I have great confidence in our intelligence services, in our law enforcement services to be taking the necessary action to protect the Australian public because hatred and violence, whether it’s perpetrated by the extremes on the left or the right of that debate, have no place in Australia.
JOURNALIST:
Is it concerning though that they're targeting Australia?
JOSH FRYDENBERG:
It's very concerning that there is a rise in extremism in our country and I have great confidence in our law enforcement intelligence services to deal with that.
JOURNALIST:
Are you concerned by expectations that property prices are going to rise dramatically this year?
JOSH FRYDENBERG:
Well again, I don't know about you but for me my house is my single largest asset by far and it's a good thing that property prices have been rising and that means people have more confidence and more economic security and more wealth in their in their number one asset. That gives them the confidence to go out and consume. We obviously provided Michael Sukkar has done a fantastic job with the HomeBuilder program, we've provided significant Government incentives to drive more homeownership, first home ownership, and that has been a very successful program and more people are buying and building a home and of course we're living through a period of historically low interest rates. With employment coming back and the Government incentives in place and of course low interest rates, you're going to see more activity as we've seen in the housing market, that if people are feeling confident in the value of their home, not negative equity, but the property prices going up, that's a good thing.
JOURNALIST:
Is that just going to leave young people, harder for them to get into the housing market?
JOSH FRYDENBERG:
I want to add to this, but what he and I and Scott Morrison and the Government have sought to always do is to get more young people into the housing market because once people get a foothold in the housing market they tend to stay there for a while. We recently had a retirement incomes review and what it found is that if people own their own home, they're much more likely to be secure in retirement. If you own your own home and you're not a renter for life then that is going to be of significant benefit to you in retirement. Michael?
MICHAEL SUKKAR:
I’d just add that first home buyers are at their highest level for 12 years, so as a result of the HomeBuilder program, which supported a million jobs in the residential construction industry, with the first home loan deposit scheme, the Morrison Government has been very clear from the outset we're a Government for first time buyers. So in that respect to some surprise, we're at the highest levels for 12 years. If you look at latest lending data 73 percent of new loans are for owner occupiers, owner occupiers - people who are purchasing their first time or a home they’re living in, not investors, are dominating the market. That is a really big change from where we've been. So first home buyers at records for 12 years, owner occupiers dominating the market. I think it's a sign that the settings in place are getting people into their first homes and the Treasurer is right, low interest rates obviously played a big role in this. I'd end on this point, the HomeBuilder program, based on where it's tracking, will end up with over 100,000 projects. What that has meant is in the middle of a pandemic, when new residential construction was going to fall off a cliff, we've been able to ensure the supply of new housing, which in the end is the only thing that can make housing available for new home buyers. So at a time when constrained supply was a risk, the HomeBuilder program now means we have supply and again, I think that's a factor that has led to record highs for first home buyers in over a decade.
JOURNALIST:
One more on JobKeeper? What do you expect to happen with insolvencies next week once JobKeeper drops off?
JOSH FRYDENBERG:
Well, again, there will be some businesses that won't get through the end of this crisis. We've also put in place the most significant changes to insolvency laws in 30 years. In particular we've allowed businesses, their owners, their management teams, to stay in control of that business and to help trade out of their difficulties when their liabilities are less than $1 million. Rather than seeing whatever worth was still left in the business eaten away by accounting fees and lawyers fees. So we actually put in place significant changes to insolvency law. We brought in aspects of the US bankruptcy system that will help businesses get through these difficulties. But we've always said that there are going to be challenges in some sectors, in some regions, for some businesses through this crisis. I just want to end on this point. Australia’s economic recovery has outpaced the world. The International Monetary Fund and said last year that in Spain, their economy could contract by 11 per cent, in the United Kingdom by 10 per cent, in France and Italy by eight to nine per cent, in Canada, Germany and Japan by more than five per cent, in the United States by three per cent. Yet here in Australia the numbers are in. Our economy contracted by just two and a half percent. Treasury had said to me at the peak of this crisis that unemployment could reach possibly 15 per cent. You could see more than double digit falls in economic growth. We have avoided the worst economic consequences that we saw in other countries. The jobs are coming back. There is a light at the end of the tunnel. The challenges are not over. But the Morison Government is absolutely committed to giving every business and every worker their best chance of getting to the other side.