TRANSCRIPT: SKY NEWS AFTERNOON AGENDA INTERVIEW, 21 April 2020

E&OE

Subjects: Virgin Australia, coronavirus;

KIERAN GILBERT

Joining me live now is the Deputy Prime Minister and Transport Minister, Michael McCormack. Thanks so much for your time.

MICHAEL MCCORMACK

It's a pleasure, Kieran.

KIERAN GILBERT

The CEO, Paul Scurrah, I spoke to him, the airline CEO and he says that the Treasurer's characterisation that these shareholders have deep pockets is wrong because they're all airlines and they're all facing this crisis too. What do you say in response to him on that?

MICHAEL MCCORMACK

Yes, well I understand that certainly this COVID-19 pandemic is a global thing and the fact is Etihad and Richard Branson, Singapore Airlines and the Chinese consortium, they do have deep pockets and they haven't actually looked to bail out Virgin Australia. They could have, perhaps they should have and if they were committed to ensuring those 10,000 jobs they would have but they chose not to and I suppose Australian taxpayers are inclined to argue and think well why should we then also dip into our money and have the Government bailout Virgin?

I think there's a way clear and certainly the CEO of Virgin, Paul Scurrah feels the same way and I'm encouraged by what he said today. I'm encouraged by the fact that they've said in their own statement, talking about voluntary administration, that they can see a way clear, to refinance the business, to restructure the business and come out the other side of COVID-19 in a stronger position.

KIERAN GILBERT

Those major companies say they're not in a position now to bail out this airline. You don't buy that?

MICHAEL MCCORMACK

Well, Richard Branson lives on a Caribbean island. He's talked about mortgaging that and looking to help his UK arm, Virgin Atlantic. There's the possibility that he could do the same for Virgin Australia. You know and that would, I'm sure, be welcome. But as Paul Scurrah has said, as Deloitte have mentioned, that they've got confidence that there will be a market solution to this position that Virgin finds itself in. They chose to go into voluntary administration. It was, as Paul Scurrah said, a brave and courageous decision and we look forward to working with them through Nicholas Moore, through Deloitte and making sure that we all come out the other side with two commercially viable airlines.

KIERAN GILBERT

Paul Scurrah, as you heard earlier, he's optimistic they will come out leaner and stronger. Do you share his optimism that this airline will survive as it is?

MICHAEL MCCORMACK

Yes, I do. Yes, I do and I know that for the 10,000 employees, I saw some of the heartfelt emotion that they showed today in that press conference. I understand exactly where they're coming from. Having lost a job once, I know that your whole world falls in around you and you think how will I get through this? Yes, there is a light at the end of the tunnel and sometimes when these situations occur you think is that an oncoming train?

But the fact is that for Virgin, there is a way clear. They've made that decision today. I commend them for it and I think we can all work together to build a stronger airline and to come out the other side. Yes, it might be a little bit different than what it is now but they've taken the opportunity, they've taken the decision to recapitalise, refinance and restructure their business. I wish them well. We'll be working very closely with them through Nicholas Moore, through the arrangements that we've put in place. I know Deloitte will be going through their books and making sure that they can come out the other side stronger and as Reserve Bank Governor Philip Lowe has said today in his Sydney speech, there is very much a light at the end of the tunnel and we can get through this. We will get through this, we must get through this COVID-19 pandemic and yes, the economy might be a little bit different but with the arrangements that we've put in place already $320 billion, let me tell you, Kieran, more than $1 billion for the aviation industry and Virgin can partake and are partaking in many of the initiatives that we've put forward. We will be stronger, the whole lot of us, together, coming through this.

KIERAN GILBERT

Deloitte, the administrator, says there's been more than 10 organisations express interest in the airline. Have you been briefed on that and you know, do they stack up, these organisations, in your view?

MICHAEL MCCORMACK

Well look, let's see where that takes us. No, I haven't been briefed on it but let's see. Obviously, there's always interest when an organisation such as Virgin, which is a very proud organisation, which has fantastic employees and offers fantastic services. Let's see where that takes us. I'm encouraged by what Paul Scurrah says, I'm encouraged by what we've already heard out of Deloitte and out of others keen to see Virgin succeed. We all are. We want a competitive airline. We want a two commercially viable airline aviation sector coming out of that and I'm sure we can have that.

KIERAN GILBERT

And in terms of the broader approach of the Federal Government and the National Cabinet, the PM says you've got to look to Singapore and other countries that have relaxed restrictions when they've been doing well, only to see a spike. Has that experience of seeing what's happened in our region and other countries that have done well in the early stages, like we are right now, is that informing you and the other decision-makers right now as to not get ahead of ourselves as a country in terms of re-opening?

MICHAEL MCCORMACK

We're being informed by the best medical expert advice available. That's coming from Professor Brendan Murphy and his very dedicated colleagues at a State and Territory level. We will take their expert advice. Complacency could literally be a killer in this instance, Kieran and what we don't want to do is relax restrictions and then see an outbreak. Whether it's regional Australia, which might not have the ICU wards and might not have the frontline medical staff as a capital city would have, no matter where it is, we want to see us come out of this.

Out of this COVID-19 crisis, we've had 71 deaths. That's 71 families who have lost loved ones. We don't want any more. We will work very hard to make sure that, you know, we follow the best medical advice and coming out of this, we'll all be stronger and what we're seeing in overseas experiences is just dreadful and we don't want that here.

KIERAN GILBERT

And just finally, the Prime Minister's been talking a lot about economic sovereignty and now we're hearing, via my colleague Andrew Clennell, that the Government's looking to boost its strategic petroleum reserve given the collapse in oil prices. I guess there are opportunities at a time of crisis like we're seeing right now in that sense?

MICHAEL MCCORMACK

Well, there are and certainly by the ability to store even more petroleum, an oil at such a low price, of course unleaded is a different matter because you have to use it, but with oil being at such a low price, what I do want to see, initially, is that bowser price being passed on to regional motorists. So many regional motorists and George Christensen actually brought the point the other day that unleaded was being sold at well in excess of $1.50 a litre. Well, that's way too high. We want to see those prices passed on.

But, yes, there is the opportunity to see just how much we can store and at this very low price, to be able to relook and revisit what we're doing and how we're doing it, moving forward. Because if we want to build agriculture, if we want to build mining, we need to have those vital fuel reserves.

KIERAN GILBERT

Deputy Prime Minister Michael McCormack, as always, appreciate your time.

MICHAEL MCCORMACK

A pleasure. Thanks, Kieran.

Shane Manning