TRANSCRIPT: ABC NEWS BREAKFAST INTERVIEW, 17 April 2020
E&OE
Subjects: Coronavirus, Government Support for Australia’s Domestic Aviation Network;
MICHAEL ROWLAND
Elsewhere, the National Cabinet has cautiously started to pave the way for a gradual lifting of restrictions and has laid out a three-point plan that Australia will need to implement before it can consider relaxing those tough social distancing rules. Let's bring in now the Deputy Prime Minister and Transport Minister, Michael McCormack. Mr McCormack, good morning to you.
MICHAEL MCCORMACK
Good morning, Michael.
MICHAEL ROWLAND
Let's go to Qantas and Virgin. So how many flights are we talking about now?
MICHAEL MCCORMACK
Well, we're talking 220 flights a week, every week for eight weeks, on 60 routes and so that’s going to provide that essential travel for those people who have arrived back in Australia; who have done their quarantine period for 14 days and need to get home because some people, of course, Michael, have arrived in Sydney, they live in Perth. It's a long drive in a hire car over the Nullarbor and, of course, this is on top of what we're doing and have announced regionally with the $298 million that we've put to both services and underwriting airlines as well as, of course, the international mercy flights that we're doing so far to seven destinations. So we're covering regional, we're covering domestic and now we're covering certainly, of course, the international commitments that both Qantas and Virgin need, of course, to help their cash flow as well.
MICHAEL ROWLAND
Speaking of cash flow, will this money enable either carrier to make a profit or is it simply just to get those planes back in the air?
MICHAEL MCCORMACK
Well, it's to get their planes in the air. Of course, it's a $165 million investment by the Federal Government. We want our aviation industry to be as good as it can through this COVID-19 and, of course, coming out the other side with two viable airlines.
MICHAEL ROWLAND
Okay and with the limited time, two months or so, as we all know, Michael McCormack, this pandemic sadly will continue for much more than that. Would the Government be prepared to roll over this assistance at the expiration of it, if it needed to?
MICHAEL MCCORMACK
As we've done the whole way through, Michael, we've kept reviewing and we've kept investing and of course, after the eight-week period we'll see how it's been, we'll see the demand. Of course, we'll continue the negotiations with both Qantas and Virgin, as I've done on not just a daily but almost an hourly basis, to make sure that we provide that service. It's also, of course, to ferry important equipment around the nation, particularly medical equipment and medicine, but also to ferry defence personnel, medical personnel – key medical people who need to get around the country. This service is going to provide just that provision.
MICHAEL ROWLAND
Lots of concerns still around Virgin's future viability. Reports in the Financial Review this morning that it could be the subject of one, if not a couple of private takeover bids.
MICHAEL MCCORMACK
Encouraging reports.
MICHAEL ROWLAND
Encouraging? Why encouraging?
MICHAEL MCCORMACK
Encouraging, of course, because there's a lot of concern about Virgin. They've expressed that concern themselves. We want to see a market resolution for this. If Virgin can't raise the capital through its shareholders and they've tried, then let's see what happens. We need Virgin to be continuing to fly. That's why we're providing this service as well. We want to make sure that our airlines can be the best they can be. Virgin, of course, can take part in those regional routes, $198 million on the table on March 28. They can take part in this $165 million initiative that we're announcing today and pleasingly, those flights are being advertised as we speak.
MICHAEL ROWLAND
The other option, of course, is extending a Government loan to Virgin, similar to what the New Zealand Government has done for Air New Zealand. We're talking about a loan of close to $900 million, rather. Would the Government consider a Government loan to Virgin?
MICHAEL MCCORMACK
I keep talking to Paul Scurrah, as I said the other day, on a daily basis, Michael and we talked about this the other day. I would like to see, of course, a market resolution to this and I think there can be one.
MICHAEL ROWLAND
Okay, so no Government loan?
MICHAEL MCCORMACK
Well, I continue to talk to Paul Scurrah every day. We want to see two airlines out the back of COVID-19. I think we can and we will.
MICHAEL ROWLAND
The Prime Minister last night was raising the option of superannuation funds in the transport sector, stumping up cash to try to help save Virgin. Do you think it's sensible for the personal, private super accounts of people who work in the aviation sector, the broader transport sector, to go into this, to make this risky investment?
MICHAEL MCCORMACK
Well, I think it's an option and I think the Prime Minister chose his words very carefully. I think people who have tipped a lot of money into industry funds, if they want to have a stake in that and their industry super funds can be used towards that, then I think that's also on the table. Everything's on the table at the moment.
MICHAEL ROWLAND
It's pretty risky – it's a very risky investment, though, as you'd acknowledge.
MICHAEL MCCORMACK
Well, we want two airlines at the end of this, Michael, and I think there can be a market solution for this. I'm confident there can be. We will, of course, continue to discuss these things with the key people but the important thing is, today people can fly. The important thing is, today we've got that minimal essential network up and off the ground and that's going to make such a difference for our airlines and for the people who need to get from point A to B across the country, capital city to capital city and also with those key regional centres.
MICHAEL ROWLAND
And everything, I guess, is possible in what is a, as you would acknowledge, a fast-moving situation. Is voluntary administration for Virgin politically feasible for the Morrison Government?
MICHAEL MCCORMACK
Well, we don't want to talk about voluntary administration. We want there to be a market resolution.
MICHAEL ROWLAND
But if it were to happen and nothing can be ruled out. Is that something your Government would allow to happen?
MICHAEL MCCORMACK
Well, it is hypothetical, as you say, so we'll cross that bridge when we come to it.
MICHAEL ROWLAND
Just before you – you served under Malcolm Turnbull, as his deputy for a brief amount of time. What do you make of his book coming out?
MICHAEL MCCORMACK
I'm just concentrating on making sure we get the right outcomes for COVID. That's my entire focus my every waking minute of every waking day. That's what I'm concentrating on and that's all I need to be focused on at the moment.
MICHAEL ROWLAND
You worked very closely with him and he has declared -
MICHAEL MCCORMACK
I did.
MICHAEL ROWLAND
- that the Morrison Government did not deserve to be re-elected in 2019. What do you make of that claim?
MICHAEL MCCORMACK
Well, the important thing is we were re-elected and the important thing is we're now doing a very good job to save lives and to protect livelihoods during this pandemic and I think most Australians are focused on that.
MICHAEL ROWLAND
Okay. Deputy Prime Minister Michael McCormack, thank you for joining News Breakfast.
MICHAEL MCCORMACK
Any time at all, Michael.