TRANSCRIPT: NINE NEWS INTERVIEW, 10 April 2020

E&OE

Subjects: Coronavirus;

KERRIE YAXLEY:

Mr McCormack, what's the message from regional Australia to anyone who, this weekend, thinks that they might like to get out of the city into the countryside?

MICHAEL MCCORMACK:

Well, the message is quite clear: stay at home. And Dr Brendan Murphy, the Chief Medical Officer, has enunciated that now for weeks, but it's so important this weekend when people normally either go on a camping trip or go to the beach, get out of the city and go to regional Australia, but can't this weekend. And we don't want people out. Health systems, they're geared up to look after our own residents. We don't want another outbreak or any outbreak to occur in regional Australia because our number of ICU beds are not what they are in the city.

We've got doctors, we've got health professionals, of course equal as any in the nation, but we don't need any outbreaks and we're going to say that because people in the capital cities, they're going to stay home. They're going to do what they're told and we thank them for that because most people have done the right thing and that's why we've been able to contain and minimise COVID-19. A comparison from Australia, of Australia, to other countries is pretty good but we can't get complacent. We can't just think, "Oh, I'll do it, everybody else is doing the right thing, I'll just sneak away for that weekend, get away." Uh-uh, can't do it. Stay at home, please.

KERRIE YAXLEY:

I want to ask you about supply chains. We've seen States close their borders. How is this affecting the movement of freight around the country? Is there any practical problems that have arisen and what are you doing about it?

MICHAEL MCCORMACK:

Well, no, there's not and in part because the Ministers, the six Ministers and two Territorian Ministers – so we've got State and Territories sitting with a meeting on a teleconference twice a week with me every week. We've been talking daily every day about harmonising, as best we can, that free flow of freight. And so the hold-up at the Queensland border is only about four minutes for trucks. And even for those people who might be truck drivers or freight operators who go via a light vehicle, they've got the necessary paperwork, we've been able to, as best we can, harmonise that to ensure that we've got free-flowing freight of medical supplies, of supermarket supplies, everything that's needed is still operating as normal.

When I drove to Canberra just the other day for Parliament, I passed 24 trucks in a row. There's very few cars on the road. There's a lot of trucks and they're getting all the goods to where they need to be in almost record time because there's no cars on the road, or hardly any cars on the road, or there shouldn't be unless people are travelling to and from work and doing essential things. And that's been one of the good aspects of this virus crisis, is that we have been able to meet as Ministers, State and Territorian Ministers and myself. And that's been happening at the National Cabinet level too, Premiers, Chief Ministers working with the Prime Minister. That's been one of the good outcomes, that there has been this outbreak of bipartisanship and we're getting things done at a national level and it's been really good.

KERRIE YAXLEY:

But what about the tougher restrictions that the Queensland Government has just announced. Do you expect that that will cause delays? Surely it will?

MICHAEL MCCORMACK:

Well, I've been speaking to Mark Bailey, the Minister there, on a daily basis and I know they're trying to protect their State as best they can. You would expect that. Everybody wants to have this COVID virus contained and minimised as best we can to protect livelihoods and to save lives. And I know Mark is, like any other politician at the moment, he's working hard to achieve that. Yes, some States have tougher rules than others but they're all necessary and they're all trying to just save people's jobs and save people's lives.

KERRIE YAXLEY:

With fewer flights to haul cargo around, is this putting more pressure on truck drivers? We're hearing things like truck stops where a truckie might stop to get a bite to eat, they're closed because of coronavirus. What do you say to that?

MICHAEL MCCORMACK:

Well, when we – when the shops were first just made to be takeaway, there was a lot of truck rest stops which were closed. They were necessarily by their very nature and by their very location, connected to toilets and shower facilities and all the like and many of them did close. What we've been able to do, as the Ministers from around the country, we've been able to get together to be able to ensure that they were staying open so that we gave them exemptions, so that truck drivers could manage their fatigue in such a way that they could have those rest stops, have those truck ramps to stop at and largely we've been able to fix that problem.

And it was a problem. It was a problem for a few days and I know it was raised by the Australian Trucking Association through Ben Maguire and Geoff Crouch. I know it was raised by the National Farmers Federation through Fiona Simson because it was an issue. We addressed that issue and we've solved it.

KERRIE YAXLEY:

Rex Airlines has been cancelling more flights. Are they trying to force your hand to give them more money to keep them afloat?

MICHAEL MCCORMACK:

Rex Airlines have been one of the big beneficiaries, or will be one of the big beneficiaries of our more than a billion dollars of assistance. So on March 18 we announced the first lot of assistance and that was waiving fuel excise, waiving security screening fees, waiving Air Services Australia charges, backdating it to February 1. So that put $159 million of the $715 million package straight into the bottom lines of airlines such as Rex. And then, of course, 10 days later I announced the regional package for companies just like Rex to be able to continue to fly as part of $198 million to those – or for Rex it's 54 destinations, for overall it's 138 destinations in regional Australia – to allow those airlines to continue to fly in there. And then, of course, $100 million of underwriting for regional airline companies.

So I've been in constant talks with Lim Kim Hai, the owner of Rex, with John Sharp, the chairman, and others to make sure that Rex could be in the best position that it's in. I'm pleased that Western Australia and Queensland have announced packages at a State level for – specifically for Rex and I'm sure that other States are in discussions too and look to see what they can do as well.

KERRIE YAXLEY:

So, would you be prepared to give Rex more money to keep them going, to keep them flying to all the places that they were flying to pre-COVID or do you draw a line under the amount of money that the Federal Government can give them? And how do you weigh that up with the devastation that would be caused to parts of regional Australia if those flights continue to stop?

MICHAEL MCCORMACK:

Well, no one knows the benefits of aviation more – than somebody who lives in the regions. And Wagga Wagga, my home town, is the home of Rex. It evolved out of a company called Kendell Airlines. And we know that in 2001 when Ansett collapsed and took with it Kendell and other little companies, it was very, very tough for Wagga Wagga, for the Riverina, for regional Australia in particular. And I'm glad that Rex is such a good company. I'm glad that they've won awards, international awards, for their level of service and their level of commitment to regional Australia and that will continue. And Rex is very pleased with the assistance that we've provided so far.

They have called on the States to do a bit more. I welcome the States actually negotiating with Rex to see what else they can do. As I say, I've been in constant talks with Kim Hai, with John Sharp and others in the Rex company. They're happy with the assistance they've got. We'll continue to talk with them and to see what more we can – we can possibly do. We don't know whether COVID-19 is going to – how long it's going to take to get through the other side, but with the JobKeeper package through the Parliament that is also going to help Regional Express because the number of employees they've got, that now gives them $1,500 a fortnight for those workers and for Rex and for other companies as well, that's going to be a big boost for them.

KERRIE YAXLEY:

And what about international travel? When do you expect that we would see a resumption?

MICHAEL MCCORMACK:

Well, when the COVID crisis is over and the last thing we need to do is being importing COVID cases into Australia from – from foreign tourists. Yes, tourism is vital to this nation. No one knows that better than Simon Birmingham who is the Minister responsible. He knows also that trade is important. But I've been working very hard with Marise Payne to get Australians home. They were told by the Prime Minister, "Please come home". Many of them are in overseas locations and are looking to come home. We've been able to facilitate, myself with Marise, flights home. We'll continue to monitor that situation. We'll continue to be able to try to get as many Australians home as possible.

But, as far as tourists coming, you know, we've got to get through this crisis first and Australians would expect the government to have that position too because whilst tourism is very, very important, so too is getting through this health crisis. And it is first and foremost a health crisis. It's also an economic crisis, but we've been able to manage the situation as a government with $320 billion of investment to make sure that we've got the right economy through this, but also addressing the health issues and they're very real health issues and we can't get complacent and Australians wouldn't want us to.

KERRIE YAXLEY:

What about Qantas, is it inevitable that it will be nationalised?

MICHAEL MCCORMACK:

Qantas is doing very, very well and Qantas will come through this. I hope Virgin will too. I hope we, at the end of this we have a two-airline sector. It's so important for Australia for competition and both airlines. I've been in constant contact with them. They're very pleased with the more than a billion dollars of assistance that we've put down so far. They're very – they're very pleased with the assistance we've also provided for their tens of thousands of employees with the JobKeeper announcement. So we'll continue to look at the aviation sector. It's been smashed.

Let's make no mistake: it has been absolutely smashed by this crisis. But it's not just Australia. It's a problem the world over and it's a problem that the world will, hopefully, get through because, you know, we need a strong aviation sector because it's a very small world, as we've found out with the spread of this virus and it's a very small world when people want to travel to overseas destinations and we need a strong aviation sector to be able to, of course, do that.

KERRIE YAXLEY:

What about the construction industry, what are you doing to keep that afloat, to stop coronavirus affecting building around the country?

MICHAEL MCCORMACK:

Well, so far we've – we've done very well and there's probably as many cranes over capital cities and elsewhere as there is in the United States. Construction goes on. The only – the only shake-down, I suppose, with that is the continuity of workforce, but the construction industry has so far been okay, you know, managing that. Also, the suppliers, some of the suppliers for concrete and other things have been either slowed up or stalled because of, obviously, the airlines and shipping being, you know, affected by COVID-19.

But let me tell you, local councils, State governments, I've asked them to bring forward their projects, whether it's a maintenance project, whether it's a large roads project and we've done reasonably well, being able to address that. We've got a $100 billion infrastructure roll-out over the next 10 years. And for those States and for those local councils – and there are 537 of them – more than half have responded to the call that I made to bring forward their projects and I'm sure that others are writing their submissions as I speak, to be able to get that in.

So, where we can and when we can, we'll be able to address that and have workers on the ground, because there's one thing I want to see: that is, high-vis workers and excavators pushing dirt around; whether it's Western Sydney, Nancy-Bird International Airport – Nancy-Bird Walton goes on regardless. Inland Rail does. Bruce Highway does. Midland and Bass Highways in Tasmania – I could name any number of projects – the wheatbelt projects, road projects in Western Australia, they are all continuing and that's fantastic.

KERRIE YAXLEY:

Do you have confidence in the CFMEU to help manage potential outbreaks of COVID-19 on building sites?

MICHAEL MCCORMACK:

Well, I do, and I know that –

KERRIE YAXLEY:

Did you ever expect to say that?

MICHAEL MCCORMACK:

Well, I think the union movement serves its purpose and I know that Sally McManus and Christian Porter, the ACTU chief and our Attorney-General respectively are, as he says, new BFFs. And I'm not quite sure best friends forever will be continuing – but, hey, they're talking and they're talking in a conciliatory and collaborative way. You know, we need cooperation at this level during this crisis to get through it. And you know, I commend Sally McManus and what she's done so far. And I commend the relationship that both her and Christian have had, to make sure that we can firstly get the JobKeeper through the – as a temporary measure – through the Parliament and let's see what happens when the COVID crisis passes, which it will, because we need a spirit of bipartisanship across the board. We need unions to be their best selves. We need them to be their best selves on work sites to be able to continue the $100 billion of infrastructure that we're – that we're out – that we're rolling out.

KERRIE YAXLEY:

Understandably, the Government is still very focused on the crisis that's currently unfolding but you would have one eye on the future. Do you think there needs to be, after this, an economy-wide audit looking at what industries we need to have here in Australia on home soil to make sure that we are secure going forward against any future crises?

MICHAEL MCCORMACK:

We're smart people. We're innovative people. We're very agile people. I know we've got a very good person doing COVID talks at the moment with business, with government, with all stakeholders in Neville Power. He's doing a great job and I know that the job that he will continue to do, talking with Ministers, talking with the Prime Minister, I know it's going to make such a difference to get us through the other side.

Yes, we're cushioning the blows at the moment to help as many businesses stay in business and as many workers stay in a job as we can. Yes, you're right: out the other side, manufacturing, we want it to continue. We want it to be even strengthened. And I know Karen Andrews, the Industry Minister, I know the Resources Minister, Keith Pitt, are working very hard at plans to see what we can do through this crisis and indeed, out the other side.

KERRIE YAXLEY:

Have we allowed ourselves to be too reliant on other countries?

MICHAEL MCCORMACK:

No, I don't think so. Trade is very important and we've been able to, you know, through the various measures in agriculture and through our – through our trade arrangements just in the last six years be able to trade with the world. And trade equals jobs, more trade equals more jobs and I know the great job that Senator Birmingham has done. Through that, I know David Littleproud, the Agriculture Minister is focused on making sure that we even build on the $60 billion agriculture sector making it $100 billion and making sure that the food that we grow to feed 75 million people, it is enhanced as well. We'll continue to do that and I know that, you know, everyone has a role to play in this.

I know that businesses such as the oil refinery that Tim Rose has at Gladstone and Wagga Wagga, they have a big part to play, not just in environmental aspects but actually turning sump oil and used oil into reusable oil and turning leaf trash and garbage matter into usable biofuels. That's the way of the future. They're doing it at Northern Oil Refinery, they're doing it at Southern Oil Refinery. I commend people like that. They're doing, you know – and having the capacity and the risk-taking to do just that.

KERRIE YAXLEY:

Michael McCormack, thank you very much for your time.

MICHAEL MCCORMACK:

Thanks so much.

Shane Manning