Prime Minister
David Koch: Prime Minister, morning to you. Seems to be universally accepted. Are you happy with the reaction?
Prime Minister: Well what's important, David, is that we’re in the middle of a pandemic, we’re still in the middle of this pandemic. This is our second pandemic Budget and this Budget is all about securing that economic recovery from that pandemic. I mean, Europe’s going into a double-dip recession, there are 800,000 cases a day, and we need as a Government to keep leaning in to ensure that the Australian economy comes through, we keep people in jobs and we put more people in jobs, because the more people there are in jobs, the more we’re able to support the economy and the Budget which is guaranteeing those essential services, whether it’s aged care, mental health or so many other things that Australians rely on. We’ve done very well as a country. We’re backing Australians in to get those results that we’ve been able to achieve through the pandemic, but we’ve got a long way to go, and it can all be lost unless we continue to do what works and we go further.
Koch: And I know we need to create jobs, but you talk to a lot of businesses and they say we just can't find the people to hire. Job vacancy rates are at record highs. Where are all the workers going to come from?
Prime Minister: Well this is why there's so much investment in skills training and apprenticeships, additional places in university, all of this to ensure that we deal with those workforce challenges. You’re absolutely right, the three big challenges we’re facing in our economy is getting that workforce, embracing the digital economy, which is changing the world, having reliable, affordable energy there to support businesses, particularly in manufacturing. The economic plan that is in this Budget to secure that recovery is about supporting those businesses, supporting innovation. There’s a new patent box which is there for research and development to see new inventions come through our manufacturing sector. Critical supply chains in areas like medicines and so on, to ensure that in the future we can always produce what we need to produce here in this country to deal with any situation that arises. So it is a plan to secure this recovery. We can't take our recovery for granted. There are more people working today than there was than when the pandemic hit. There’s no other major advanced economy in the world today that can say that. Australians have achieved that and this plan is backing those Australians in by investing in them being in jobs, investing in them investing in their businesses, because that is the way you grow your economy to support the services that Australians rely on.
Koch: The opposition leader told us just before the 7 o'clock news that there’s $3.8 billion unaccounted for in this Budget that you've squirrelled away in what he calls slush funds, because this is an election Budget. Is he right?
Prime Minister: No. The only opposition I'm focused on at the moment is the pandemic, that's what I'm fighting. Because it’s the pandemic that threatens people's health and threatens people’s jobs. And that’s why this is a pandemic to combat that. I’ll let others focus on the politics. As Prime Minister, I have to lead the country through this pandemic, and that’s the opposition that can take away things from people in this country - their health, their jobs, their economic security. So this Budget is very focused on addressing that pandemic. That plan now is over $300 billion, keeping Australians in work, protecting lives and protecting livelihoods. We’ve done well up to this point as Australians, and with Government supporting Australians. We see Australians as the answer as to how we come through this pandemic and we’re backing them in with investment incentives, with lower taxes, with health services that support them get through this very difficult time. That’s the opposition, that's the challenge, that's who I’m fighting. I’ll let the Labor Party fight amongst themselves.
Koch: Okay, a couple of things to hone in on the child care initiative. Why is it only starting in July next year? Why not, why not July this year? Why wait a year?
Prime Minister: Because of the changes you need to make to the systems in order, to be able to make the payments to people. Now if that can be done sooner David, then we will certainly, we will certainly move on that. When I was previously the Minister for Social Services and we were responsible for those changes many years ago. The systems changes that are required are quite complex, so we're not going to overpromise and underdeliver here. If it's possible to do these things earlier then we will certainly look at that. But right now what I can tell you is we can start it on that day, that is the date when our department says that we can get those changes in place. If we could do it sooner, we would. But right now that is the advice we have, and we’ve been following that expert ...
Koch: Seems a long time, 15 months, to get systems up and going.
Prime Minister: Well I can tell you, these systems have, you're dealing with millions of, millions of people around the country that use these systems and operators. And as a result, you know, we will work night and day to ensure we can do this as soon as possible. But what I can tell Australians in this Budget is that when it can be delivered by, and if it can be done sooner than that, then we will.
Koch: Okay, we’ll keep following that up. One point, almost $2 billion in funding for the vaccine rollout. Is there any funding for, for more quarantine places that people can go to? More Howard Springs equivalent, or is it just all to get vaccine?
Prime Minister: Well as you know we’ve put a half a billion dollars into the resilience facility up there in Howard Springs, and that’s got a capacity of 2,000. We’ve just gone from 850 last month, and in this month we’ll get to 2,000. Now, there’s a very good proposal that has come forward from the Victorian Government and we’re looking at that very closely, and I thank them for what is a very comprehensive proposal. And in that proposal they make it very clear that the state would run these type, this facility because they have the workforce and they have the systems, as they do right across all states and territories. But I’ll keep working closely with all the states and territories on those issues, their state public health orders they’re enforcing there, but as we say, we've put the, we’ve put the half a billion dollars into that facility in Howard Springs. When it comes to the vaccine itself, that’s some $7 billion we’re investing in that rollout. So we’re sharing these costs, but when it comes to what the Commonwealth has done through the pandemic, add everything up, everything the states and territories have done, double it, go more, and that's what the Commonwealth has invested to get us where we are today. You know David, if we had the average fatality rate of the OECD countries in the world today, more than 30,000 Australians additionally would have perished as a result of this pandemic. That's what Australians have prevented from happening, and with more Australians in work today than before the pandemic, I’d rather be in this country than anywhere else in the world. I'm so proud of what Australians have achieved.
Koch: Yep, absolutely. I think we all are. Look, the other big criticism of the Budget is you’ve splashed the cash, you put it on the credit card, because Government debt is, on my calculations, going to rise by 50 per cent, mind you the interest payments will only rise 18 per cent. What do you say to people saying, `look, we’re just going into hock with all of this’?
Prime Minister: We’re in the middle of the worst pandemic we’ve seen in 100 years. The worst economic crisis we’ve seen around the world since the Great Depression, and we’re rebuilding the country through this pandemic and onto the other side of it. That’s what’s necessary in this environment. This is a, this is a pandemic Budget to address the times that we have, and it is true, as the Reserve Bank Governor and others have said, borrowing costs are low at the moment and so Australians need their Government to lean in at this time. Monetary policies basically spent. We don’t have population growth because we need to keep our borders closed to keep Australians safe. And as a result, it still remains the task of the Federal Government to be there. But we’re responsible about it. Just remember what we did with JobKeeper - we knew when to bring it in and we knew when to take it off. That was a responsible economic decision. Others wanted just to see it run on forever. We knew that wasn't the responsible thing to do. So we will do the things that are absolutely necessary to get Australians through this crisis, and the way we do that is with the plan that backs them in. This is a plan for economic recovery and it can all be lost unless we keep doing what is working and we keep our focus and determination to keep bringing Australians through what is the worst pandemic we’ve seen in a century.
Koch: Alright, Prime Minister, thanks for your time.
Prime Minister: Thanks a lot, David.