TRANSCRIPT: ABC NEWS BREAKFAST INTERVIEW, 18 March 2020
E&OE
Subjects: Aviation Relief Package, Coronavirus;
MICHAEL MCCORMACK
What the Australian aviation industry can expect is assistance by way of fuel excise charges being waived. What they can expect is Air Services Australia fees being waived as well as security screening fees, those imposts being waived. So we’re backdating it to February 1, so that going forward, over the eight-month period, it could be up to $715 million for the airline companies and that’s not just Qantas and Virgin, that’s also, as you mentioned at the top of the program Regional Airlines, REX. But also for general aviation. I’m here at Wagga Wagga Air Centre where Chris Cabot runs a good little charter service and it’s also going to be beneficial for them.
MICHAEL ROWLAND
Okay, would that be enough, though? Would the airlines at some stage need direct cash payments?
MICHAEL MCCORMACK
Well, I’ll continue to talk with the likes of Alan Joyce from Qantas and Paul Scurrah from Virgin as well as John Sharp from REX. I’ll continue to talk with general aviation to see what we can do. Of course, this coronavirus situation gets worse by the day. As a Federal Government, we’re meeting every day, Cabinet is meeting, the Expenditure Review Committee is meeting, the National Security Council is meeting. So we will be talking, as we have been, every day and addressing the issue as it unfolds.
MICHAEL ROWLAND
Many people in the industry agree that what is facing the airlines now is much tougher than what they faced after 9/11. So on that front, have both Qantas and Virgin given you direct assurances about ongoing financial viability?
MICHAEL MCCORMACK
Yes, they have and this package of measures that we’re announcing today, I asked them what in fact they needed, they told me that this is what they required and so we’ve delivered for them. And yes, I will continue to talk with them. Yes, they have assured me that at the moment trading – they’re going okay, but of course is this an unfolding situation and we know that the airline industry, the aviation sector, contributes $45.9 billion to the Australian economy. It supports 250,000 jobs and we want to keep as many of those people in those jobs as possible. Of course, it’s very tough, you know, and we’re aware that Qantas have shelved up to 90% their international routes and 60% of domestic travel. So that’s tough on the industry, let alone Virgin, let alone REX, let alone these little charter companies. So we’re in there supporting them and helping them today with this package and I will continue to talk with the executives to see what we can do in the future.
MICHAEL ROWLAND
And speaking of trouble, some strong action taken by the Government in urging all Australians overseas to get on a plane as quickly as possible and come home. What is driving that?
MICHAEL MCCORMACK
Well, that’s the advice and of course Australia’s health system is probably far better than some of the countries in which those people are at the moment either visiting or perhaps for whatever reason they’re abroad and we’re urging and encourage them, we’re following the strong Department of Foreign Affairs and Trade advice and telling people to come home. That’s the advice. We see the world is almost going into lockdown and we want Australians to be home where they’re safest.
MICHAEL ROWLAND
Okay, the Government Cabinet has agreed on tough new measures on crowds, urging people to stay away from crowds of more than 100. This will have a huge impact on the hospitality industry. Do you see a stage, Mr McCormack, as this virus sadly continues to spread, of Australia following other countries and going into a full-scale lockdown?
MICHAEL MCCORMACK
We need businesses to keep operating and that’s why our stimulus package announced last week, $17.6 billion, was there to have cash flow for businesses. It was there to keep as many Australians in their jobs as possible. Now we’ll keep addressing the issues as they unfold. We need business to keep operating. One of the real hero sectors at the moment is our trucking industry which is providing fuel, much needed fuel and, of course, food right across Australia, particularly regional Australia, and so I pay tribute today to those truckies who are keeping the country running.
But we need our businesses to keep running and there’s one thing that we are very safe and secure on and that is food security. We do have food security, but I would urge Australians to exercise calm, think of others when they’re at supermarkets. We don’t need to hoard food, we don’t need to stock supplies for months on end. Think of others. We’ll get through this, we always do, we’re Australians, we’re fighters and we’ll make sure that throughout the other end we’ll be a lot better for it.
MICHAEL ROWLAND
I hear you but just on that point, we got in touch with so many viewers who say they simply can’t, despite you and the Prime Minister, citing the Australian spirit and urging people to stay calm, people aren’t staying calm and people aren’t getting the food products, aside from toilet paper, we’ve gone far beyond that. What can the Government do to ensure the big suppliers, the big supermarket chains to fix this situation?
MICHAEL MCCORMACK
That’s why we’re looking at curfews and relaxing some of those at a local council and State Government level and we’re working with our transport sector to make sure that more deliveries can get to supermarkets sooner. We’re making sure that, you know, if there are those vital industries, food, manufacturing that we’re providing assistance to those businesses to be able to have the sort of support they need to keep people in jobs, to keep processing food, to keep Australia going.
And, of course, we need our farmers to keep producing the food. They’re probably number one at the moment because we do have food security in this nation, we need to make sure that we can get that food to the supermarkets so that we can feed the nation. But I say to Australians again, there’s no need to hoard food. Everything will be okay, we need to think of others. The Prime Minister is right in saying that and so is the Chief Medical Officer. We need people to be their best selves in these difficult times.
MICHAEL ROWLAND
Just very quickly before the propeller completely overwhelms you there in the background. Can you see a situation, and I will just ask that question again, where Australia has to go into a full-scale lockdown, basically everything’s shut, to help stop the spread of the virus?
MICHAEL MCCORMACK
Well, let’s hope it doesn’t get to that crisis point. We need businesses to stay open. Of course, we need people to be operating and running our hospitals, we need people to be operating our doctor’s surgeries. We need people to be producing food and providing fuel and all those vital things that keep Australia running. Our energy sector, we need our utilities to be able to operate. We can’t go into full lockdown because we need Australia to keep running, it will. Australians are pretty clever, they’re pretty innovative, we’ll get through this.
MICHAEL ROWLAND
And it’s good to see behind you at least one REX plane still operating. Michael McCormack, thank you so much for your time.
MICHAEL MCCORMACK
Indeed. It’s a great company. Thank you very much.