Interview with Oliver Peterson, 6PR
8 October 2020
Oliver Peterson: Scott Morrison, welcome back to Perth Live.
Prime Minister: G’day, Oly.
Peterson: The state budget has been handed down this afternoon with a one and a half billion dollar surplus. The WA government is, of course, taking credit. But is that fair or is that due to high iron ore prices and federal government stimulus?
Prime Minister: Well, I'd add to that, the GST arrangements that I was able to introduce when I was Treasurer, which finally gave Western Australia the fair deal that it deserved. So whether it's the GST deal for Western Australia the federal government delivered or there are other elements impacting on the Budget, as you rightly say, iron ore prices in particular. But look, we work well with the Western Australian government, to deliver so many projects. I mean, particularly in the area of infrastructure, we've always had a very solid programme there, NorthLink WA, which is already completed. We're working with them on METRONET. That's underway. And there's new money in this Budget, over a billion dollars for 29 new projects, including on the Reid Highway and the Roe Highway. So we'll keep working with them. But all state governments at the moment, whether in Western Australia or anywhere else around the country, they've got an important role to play in getting Australia through this and out of this COVID-19 recession. I mean, we've invested a significant amount, hundreds of billions of dollars to get Australians, whether it's through JobKeeper or JobSeeker or the cash flow allowance. And now the job hiring credit in the Budget, the bringing forward of tax cuts they all benefit everybody in Western Australia. And the federal government is pouring significant resources to support Western Australia through this great crisis. And it's important that the state governments do the same thing. And that's why the Reserve Bank governor was calling on the state governments to put an extra $40 billion dollars into things like social housing developments, local governments and so on. And so it really is a matter for the WA government, how they achieve that, but they have a very important role to play. It's just not the federal government that has to get the nation through this crisis.
Peterson: Is it the Commonwealth Treasury's view that WA’s borders being closed is having an effect on the state's economy because the state government is saying it is providing economically beneficial outcomes?
Prime Minister: Well, I have always agreed that the situation in Western Australia is just geographically and economically quite different to the rest of the country. I mean, I'll give you a good example. I mean, we don't have the same sort of border town issues that we have on the, in the eastern states I mean along the Queensland border, the Victorian border, the South Australian border and so on. There's a lot of movement of people just in their ordinary daily lives between quite large population areas. I mean, take Albury-Wodonga, for example, and it's one town effectively on either side of a river, which is the border between two states. So the way that the borders work on the eastern states is very different. So you get a border on the eastern states and it has a very big disruption of people. Take Queensland. I mean, so much of their economy depends on people coming from New South Wales and Victoria on holidays. And that's why Queensland is doing it really tough at the moment. They're shut off from both states and that really affects their tourism industry. Now, in Western Australia, we've worked very well with the Premier to remove any sort of impediments around freight moving across that border. But there's no doubting the fact that Australia is better off as a whole when it's open and every state is better off as a whole, ultimately, when it's open. But that's a matter for the W.A. government. We supported them in the decisions that they've made. But it can only be on health grounds. The only reason to have a border is on health grounds. And even with COVID-19, the protection against COVID-19 can't be a border. It has to be your public health response capability because COVID-19 could come in. New Zealand tried this. New Zealand thought it could go for eradication and just hide behind borders. But there are cases in New Zealand and if there are cases that come in Western Australia, it will be contact tracing, it will be testing capabilities, it will be ability to outbreak contain and all of this. That's the protection that needs to be there. So, look, you know, that's why we've had people federally over there looking at their quarantine arrangements, looking at their tracing capabilities, and we'll work with them to improve them. We've got over 200 ADF personnel in Western Australia right now supporting particularly things like quarantine.
Peterson: The Premier, Mark McGowan, is listening to us right now. What would your message be to him about that hard border?
Prime Minister: Well, we'll just continue to work together to manage it. I mean, when the health conditions are such that it can be lifted. Well, obviously, we would welcome that, as is the case as we've seen in Tasmania. They've announced a time for opening up the border. We've seen South Australia do that. I was in South Australia last - the weekend before last I think, as soon as they opened their border and they are going to be better by about $800 million dollars as a result of reopening their border. I've always acknowledged that Western Australia is a bit different from the rest of the country for its size and scale, the way it operates its mining industry. But, you know, these things can be done for a period of time, but there- they will have to end it sometime. And they should end when the health situation no longer warrants it. And states like South Australia are doing incredibly well, as are territories like the Northern Territory. New South Wales is doing tremendously well. I mean, New South Wales has had to face so many different challenges, but it's been able to keep its border open and at the same time suppress the number of cases very effectively. And they'll be welcoming Kiwi tourists very soon.
Peterson: Why does your Budget predict all state borders will come down by the end of the year. But WA April 2021?
Prime Minister: Because that's what, that's what I anticipate the movement from the Western Australian government will be. I'm just sort of being honest. I hope it's earlier than that, I really do. What if that happens, then great. But I'm just being honest with people. I've seen no indications that the Premier would be looking to pull that down before the state election.
Peterson: Telethon is on in two weeks. I think that was the last time you were here in Western Australia. So it's almost a year. Will you be coming over this year?
Prime Minister: Well, I can’t. The borders are closed, I’m not allowed.
Peterson: On your Budget, is the incentive to subsidise young people's wages under 35? Is it going to cost other already employed people to lose their jobs? In other words,
Prime Minister: No.
Peterson: May an employer look to say a 40 or 50 or 60 year old and think I can hire somebody in their 20s and the government will put 200 bucks towards their wages?
Prime Minister: No, the way this works is that it's got to be additional jobs, additional jobs. And so if you're already working for a place, they can't reduce your hours or get rid of you to appoint someone else, they wouldn't get the subsidy under that arrangement.
Peterson: What if you're a 23 year old already employed? Will your boss be able to apply for the wage subsidy for you?
Prime Minister: No, it's for new jobs. It's for additional jobs,
Peterson: So could there be unintended consequences say that 23 year old will lose their job and somebody else is hired under the wage subsidy scheme?
Prime Minister: No, that doesn't work either. You can't let someone go on, then employ someone else in their place and get the subsidy. This is for additional jobs. So it's going to be above your existing number of people working there. And the hours that have been worked there. And that is necessary to qualify for this arrangement because it's about getting more people into jobs. We've been supporting the people you've been talking about through the JobKeeper programme. It's kept them attached to their employers. Now, in Western Australia, I mean, we've seen a lot of jobs come back in Western Australia. That's fantastic. We welcome that, but young people, though, they have been even more hard hit. I know there have been people who lost their jobs right across all age groups, but our youth unemployment rate is twice what it is for the economy as a whole. And the loss of hours and the loss of jobs for those aged under 35 is three and four times that what has been for other workers? And, you know, Oly, we can't have people, young people start their working life on the dole. That's just no way to start your working life. You've got to get people in jobs because, you know, you don't want that to become something that keeps them in the trap of welfare. For those of us who are well over the age of 35 and have had many jobs, we know the value of that work. We know that, how a job gives you choices and focus and the ability to move forward in your life. But if you start off your working life on the dole and don't get a job and you're out of work for some time, well, that can create a habit and that can keep you out of work. We know this from experience. We know through the work that has been done. I know it as a former Social Services Minister. They'll stay on the dole. And I don't want Australians being a lost generation because of this COVID crisis.
Peterson: One of our listeners, Pat, who is on the pension, she said she would love to be able to go pick some fruit to top up her income. Would you consider that, Prime Minister?
Prime Minister: Well, she can.
Peterson: She wouldn't lose any pension if she took a job in the regions?
Prime Minister: I welcome her doing it, there are issues that relate to how the pension works, but we've already on, for those who are on JobSeeker, for example, the last change we made to JobSeeker as we're transitioning past the pandemic phase, what we have done is meant you could earn up to 300 bucks a fortnight and that wouldn't affect your JobSeeker payments. And we're looking across all the ways that we get people back into work, particularly in the sorts of things that you're talking about in terms of getting the harvest in, amongst all the horror and the terrible businesses as occurred with the COVID pandemic and people losing jobs. The one bright spot is that in rural Australia, from- a lot of rural Australia, especially, I'd say particularly on the east coast, where there has been the drought running for a really long time, particularly up in Queensland. There's been a lot more rain. And whether it's in the eastern states or the Western- or in the West, we need to get that harvest in. So we're keen to get all hands on deck.
Peterson: Will there be another WA Federal member in your Cabinet to replace Mathias Cormann?
Prime Minister: Well, we've made the announcement today we're backing Mathias Cormann in for the role of the Secretary-General of the OECD. It's a very important international organisation. I can't think of anyone better than Mathias that we can get behind and nominate for that position, I'll be making announcements later in the year on what we'll be doing when it comes to the Ministry, we've got a Budget to now take through the Parliament, Mathias will be doing that till the end of this, end of this month. But I would stress that as a share of our team, the Western Australian contingent makes up a disproportionate amount of our Cabinet, our Ministry, and that has been the case. And we've just appointed Michaelia Cash. Senator Cash to be Deputy Leader of the Senate. And she's going to do a great job, but Oly the bells are ringing, which means I've got to get into the chamber to vote, so I'm going to have to leave it there. So I apologise, but it's been great to talk to you and I wish everyone there all the best. And I hope I can come to WA soon.
Peterson: Prime Minister, appreciate your time. Thank you.
Prime Minister: Cheers.
