Prime Minister
LEILA MCKINNON: A short time ago, I spoke with the Prime Minister from Parliament House in Canberra.
Prime Minister, the message that we're getting today is to be calm, but seeing what we're seeing unfold around the world, I guess the anxiety is justified, isn't it?
PRIME MINISTER: Well, I understand the anxiety. I mean, this is a very serious global virus. It is extended to 75 countries or thereabouts around the world, and that has been increasing. But here in Australia, we moved very early. We got ahead of it early and we're staying ahead of it. And we're working together with state and territory governments, but also those in the private sector as well, the big companies to ensure that we can stay ahead of what's occurring here. But I understand why people might be anxious. But people should have a lot of confidence in the very strong health system we have in Australia. We've tested some 10,000 people around the country and there are currently 38 cases. But I stress 21 of those have already cleared the virus and have gone back about their lives. So we are managing this at present, but we're not complacent about it and we're working very hard to stay ahead of it.
MCKINNON: What's the advice you're getting? Are we heading into a pandemic?
PRIME MINISTER: Well, we're certainly preparing for that. Whether it eventuates in those sort of extreme terms, well, we'll have to wait and see. But we're certainly preparing, for example we've been working with aged care facilities in recent, in recent weeks to ensure that they're prepared. I mean, we are able to lock down aged care facilities if we need to, to protect the residents in those areas because they are some of the most vulnerable in the community. What we're also doing is ensuring that our hospitals have that surge capacity and that we have arrangements in place as to how people might present for medical attention outside hospitals or to have special clinics for that if that's needed. So there's a lot of preparatory work that's being done. But right now, people can just go about their business. They don't have to, not turn up to the footy, or go out for a Chinese meal or any of these things. The best thing we can do is just keep going on about our lives in the way we usually do. But just exercising common sense.
MCKINNON: You've shown yourself to be a pretty committed handshaker in the past, is, are you still shaking hands? Is that, or is that off the table?
PRIME MINISTER: No, no, I'm still shaking hands. And there are precautions people can take, which they normally do during a severe flu season. And that's really all I think we have to be mindful of. That's certainly the advice that we're getting. And it's important that people do go about their business. And I know parents would be very worried about young children. I mean, Jenny and I, we have two children, 10 and 12. And I can understand why people might be anxious. But the important thing is to go to the right source for information.
LEILA MCKINNON: There's also a lot of concern in the community that we might run out of household essentials. Toilet paper is flying off the shelves, hand sanitizer, those kind of things. What information do you have? Should we be stocking up on things?
PRIME MINISTER: Well, that's not the advice we're getting from the medical experts. And we've seen a bit of that in particular locations going back to about last Wednesday the big retailers tell me. I spoke to both Coles and Woolworths today, and they have arrangements in place to address some of that rather stocked up buying that we've seen. But it's good news that the, Kimberly-Clark, which manufactures toilet paper, for example, that's one of the key items along with hand sanitiser where there's been a real run on that. They're now opening up their manufacturing lines in South Australia to deal with that. And so what that says is when these challenges come up, or these issues arise, whether it's in the private sector, amongst companies or the government ourselves. We're all talking to each other and making sure those issues can be addressed in a convenient way.
MCKINNON: Now, we're already seeing the effects on the economy that, are we looking perhaps after having the drought, after having the fires, now we've got this health crisis. Is it inevitable that we're heading towards a recession?
PRIME MINISTER: I never make any statements about what's inevitable. What I do know, though, is the government will work together with everyone else to ensure we get people through this, and that includes economically. This isn't the global financial crisis. This is something very different. That was a big shock to the economy all those years ago. This will also have a significant impact on our economy, but it will be because of a virus, a health crisis. It's not a financial crisis. It's a health one, but it has very real economic impacts. And the government is pulling together a response to support, particularly small and medium-sized businesses, keeping them in business, keeping people employed, dealing with cash flow, supporting investment, because when the virus runs its course on the other side, there will be an up tick and we will bounce back. I'm planning to ensure that the Australian economy bounce back better. And that would include ultimately with the budget. But we will make those investments that we've committed to that the Reserve Bank today cut interest rates by 25 basis points and I put the banks on early notice, earlier today and I really want to thank them for responding to the call. All of the four major banks have passed on the full rate cuts of 25 basis points, that will support householders, those who are paying for mortgages. And that's a good thing. And I want to thank the banks for the way they've really enlisted here, working with everyone else to ensure that we put the best possible support into the economy at this time.
MCKINNON: What kind of relief or stimulus can businesses that will struggle with this, expect? I mean people like the travel industry or the seafood industry or I know construction's already suffering. Will there be some kind of tax relief or debt relief?
PRIME MINISTER: Well, I have more to say about that once those packages have been finalized Leila and I don't want to speculate on too many of those details now. What I want to be clear about, though, is we've been working closely with the Reserve Bank and with the, and with the Treasury to ensure that what we do was targeted, that it really addresses those issues being faced by particular parts of our economy, but also looks at the cash flow issues that small and medium sized businesses will be confronted with, and we’ve got to help businesses get through-
MCKINNON: Yeah well they’re having those issues now though, how quickly,
PRIME MINISTER: Of course they are.
MCKINNON: How quickly can we expect that relief or stimulus?
PRIME MINISTER: We're working on that right now Leila and we'll be making an announcement in the not too distant future, but it's important to get it right. Last time when the government ran out a whole big cash splash and they spent over $50 billion or thereabouts, we paid for it for a very long time and it wasn't very well-targeted. And it left the government's balance sheet in a terrible mess. And we also had a whole bunch of programs, you’ll remember the pink batts programs and the overpriced school halls and all of these things. And we're not going to go and repeat those mistakes. We're getting it right. We're being careful, but we're not delaying and we're moving quickly.
MCKINNON: Okay. Prime Minister, thank you.
PRIME MINISTER: Thanks very much, Leila