RICCARDO SCHIRRU:
Mr Sukkar, the government resisted before implementing the last round of the stimulus package, the $1,500 per fortnight for workers who lost their job, due to the Coronavirus. So, is the economic stimulus measures that now amount to $194 billion, will it be enough to save the Australian economy?
SUKKAR:
Well look as we've all seen, the economic impacts of the coronavirus have deteriorated quickly. So, the announcement this week of $130 billion JobKeeper policy of $1,500 a fortnight came after two other announcements. A $66 billion package, which sought to provide more support for small and medium businesses with grants of up to $100,000 and that came on top of an announcement that we made some weeks ago to improve the safety net to double, effectively double the JobSeeker payments. So what we've done as this economic crisis stemming from COVID-19 has deteriorated, we have increased the measures bit by bit. Now we're very hopeful, to answer your question, that it will - to the greatest extent possible - keep as many people connected to their employers, keep as many businesses in business, over this very tough period, so they're in as good a position as possible on the other side of the coronavirus, to go forward with their employees and rebuild their businesses because the last thing we want is for those businesses to go under during this period. So it's about keeping them alive, keeping the businesses going, keeping them connected to their employees. We're very hopeful that it will be enough to do the job.
SCHIRRU:
No one talks anymore about the budget surplus, obviously.
SUKKAR:
No, we've obviously got a very strong view that, you know, we want to encourage, to the greatest extent possible, people to take the risks that are required to get into business. And I don't need to tell you and your station, with the Italian Australians being some of the most entrepreneurial people in our country that we want to, absolutely encourage people to take the risks of going into business and that includes lower taxes. I think now is the worst possible time for anyone to be talking about taking less money out of people's pockets. So, no, we are committed to our tax cuts. You're right. As far as budget surpluses go, that's not our focus. Our focus is keeping businesses in business, keeping people employed. But thankfully we did get the budget back to balance. We have been very strict on our budgets and that has meant that when the rainy day comes, as it is now, we've got the fire-power that we'd need to throw at the problem. If we hadn't have, got the budget into a good position, then we wouldn't have the ability that we've now got to do that.
SCHIRRU:
Now, the extra payment will start, I think, in May, is that right?
SUKKAR:
So, the actual cash payments will start in May, but they are backdated to the 30th of March. So from the date of the announcement of Jobkeeper, the payments are referable to that day. So whilst the cash will start flowing in May, it will be backdated to the 30th of March. So, for people who are employed, who are eligible for JobKeeper, they will be paid from the date of the 30th of March.
SCHIRRU:
Virgin Australia has asked the Government for a loan of $1.4 billion to survive and the airline doesn't know if it will be able to repay. What is the future of Virgin and could the Government become part-owner the company?
SUKKAR:
Well, look, I don't want to speculate. Obviously it's very important from an Australian Government perspective that we have a competitive economy coming out of this crisis. And, we all understand what competition requires. Competition requires a number of players in the market. From an airline industry perspective, of course, competition's enhanced having Virgin as an airline, but in the end they are a private business and they need to look at themselves and their own shareholders for how they can get through this tough time. But there's no doubt we're happy to consider and to see ways in which the Government can help important businesses remain afloat and of course that includes airlines who perform such an important service for the economy, not just for people who are using it for leisure and for the holiday market but it is a crucial part of business life in Australia being able to have a competitive and well-functioning aviation industry.
SCHIRRU:
Overnight there was the G20 meeting of finance ministers. Josh Frydenberg attended. Do we know what happened? Do you know what happened?
SUKKAR:
Well, I am aware that there was a lot of discussion about the various economic responses in each of the jurisdictions. And one of the topics that came up was a number of finance ministers asking Australia about our concept of business hibernation, how we are trying to get businesses through the other side by removing to the greatest extent possible, as many of their fixed costs as possible. Whether that's repayments on loans, whether it's rent, whether it's tax obligations which we're deferring, whether it's the cash flow boost that we're providing or the JobKeeper policy. A lot of jurisdictions were asking Australia more information about what we're doing to help those businesses hibernate because I think a number of those countries are looking at us as a bit of a model of how we can do that. So, you know, the meeting I think emphasized that governments around the world are acting quite decisively on this. But it also became very clear, to go back to our earlier point, that Australia with a relatively low level of death, is in a much stronger position to be able to throw the firepower we need at this, which again goes back to the point that, you know, the reason why our focus on budget discipline over so many years is important is that we now have that ability to really come up with policies like the JobKeeper policy and the many others which we can only do because we've got the finances in order.
SCHIRRU:
Amongst the measures that the Government took recently is a package of $170 million in support of freight exporters. They basically will fly out of Australia with seafood and fly back with medical equipment.
SUKKAR:
That's right. I mean, one of the big problems with essentially the grounding of the aviation industry is, you know, when you've got hundreds of planes coming in and out of Australia, there's obviously lots of opportunities for our exporters to get their products onto planes, into their markets. When those planes stop, the opportunities to get your product out, particularly product that needs to move quickly, like seafood, is limited. So, we've got huge industries that export fresh or live seafood or fresh produce, and it makes sense to make the investment to get them access into those markets again because the consumption of those products is there, the customers are there. It's just about 'how do we help them get their product to their customers' given that there's been essentially a grounding of most aircraft. So, a worthy investment we think.
SCHIRRU:
And given that our biggest market for seafood is China, it means that China is actually starting back?
SUKKAR:
I think that's right and look, the anecdotal evidence that I'm seeing out of China and conversations I'm having with counterparts is, they are, their economy is certainly getting back to some level of normality. That means, you're right, that there consumption is getting back to some level of normality. I saw a report today about our live seafood industry having about $800 million of product that they are going to be able to sell to China if they can get the product there so, from our perspective, it makes complete sense to help them get their product into the market like China and if China's back operating a little more normally as an economy, then it makes sense for us to engage with them again.
SCHIRRU:
And while China is getting back to normality, we are in self-isolation and out listeners since we started our period of self-isolation, noticed great price increases in supermarkets. Why is that?
SUKKAR:
Well there's no doubt that there's been some products that, due to the shortages and the overbuying and overstocking of them, that that has pushed up prices. But I can tell you the Australian Competition and Consumer Commission has got very clear instructions. There's to be no price gouging going on. They are monitoring these things. There are huge fines for retailers who try to take this opportunity to make super profits. Now no doubt where you've got a situation, for example, like toilet paper that has been previously bought off the shelves faster than they can put it on there, that some of the costs have gone up as those producers have had to flex up their workforces to get more product out. But I can assure you the Government is strictly enforcing the no price gouging rules that the Australian Competition and Consumer Commission has. They literally send out staff to supermarkets and to other stores to make sure that price gouging is not happening and I'd encourage anyone that sees examples of where prices have jumped dramatically and there's not some obvious reason why, that they should report it to the Australian Competition and Consumer Commission.
SCHIRRU:
And finally, Minister, the Australian travellers on cruises in South America and the working holiday visa holder's here in Australia. What is happening to them?
SUKKAR:
Well as far as those who are in Australia, we're looking at various ways that we can support them and Alan Tudge, who is a fellow Victorian minister, is working on ways that we can assist them both from a practical perspective and through the visa system but also through the social security system as well. As for Australians overseas, obviously our consular services, the Department of Foreign Affairs and Trade are working with them to try and assist. Of course, first and foremost from our perspective is protecting the health and welfare of all Australians, including those overseas. But importantly those in Australia as well, who we don't want to unnecessarily expose to coronavirus risk and you know, the reality is there are some people who quite recently got on planes to go overseas even after the Government asked them not to. Now we're still absolutely doing everything we can to support those people but it was probably not particularly prudent after the Government asked people not to leave Australia, for people to continue on with their holiday plans and now they find themselves in difficult circumstances.
SCHIRRU:
You're referring to people that went to Aspen, Colorado?
SUKKAR:
I'm not saying individual cases. I'm sure your listeners know that there are a number of cases where people did continue with their holiday plans. It wasn't essential travel. They were holiday plans. After coronavirus was completely understood to be a global problem and after the Government had asked Australians not to leave Australia for non-essential purposes. Having said that, we of course are offering those people every assistance because at the end of the day, if you're an Australian, you get that assistance from your Government.
SCHIRRU:
Mr Sukkar, thank you for your time and I hope we can talk again in better circumstances.
SUKKAR:
I would really enjoy that. Thanks so much for your time.