How Josh Frydenberg rallied big business to ‘stick to the plan’ to exit Covid-19 lockdowns

Intervention from Treasurer Josh Frydenberg led to an unprecedented gathering of Australia’s biggest businesses, with a few glaring omissions.

Treasurer Josh Frydenberg has recruited Australia’s biggest businesses to hold state and territory governments to the national roadmap out of Covid-19 lockdowns. Picture: NCA NewsWire/Martin Ollman

As Treasurer Josh Frydenberg orchestrated support from 80 of Australia’s biggest businesses to back in national cabinet’s road map out of lockdowns, he was forced to hit the phones.

After the Business Council called on its members to sign an open letter published in this masthead and other newspapers calling for Australia’s reopening, a pocket of resistance emerged.

While most of Australia’s biggest businesses have been unified in their calls for reopening, they have been operating at different speeds. Fruit and vegetable cannery SPC took the bold step of becoming the first company in the country to mandate vaccinations for employees, weeks before a fresh Covid outbreak hit Shepparton where its factory is based.

Meanwhile, National Australia Bank chief executive Ross McEwan – who like the other big bank bosses signed the BCA’s letter – pencilled in Melbourne Cup day as Australia’s “freedom day”.

This was more optimistic than Blackmores chief executive Alastair Symington, who said borders were unlikely to re-open until after Christmas.

But Mr Frydenberg’s pitch was simple: “stick to the plan”, which involves ending lockdowns once vaccination rates reach 70 to 80 per cent.

“With more than eight out of 10 Australians employed in the private sector, business has an important and powerful voice,” Mr Frydenberg wrote in The Australian on Monday – a day before the Business Council rallied its members to sign the letter.

“The last 18 months have tested Australians like rarely before. Covid-19 is not over and there are challenges ahead. But the rapidly rising vaccination rate provides a way forward. This is why we must stick to the plan. The health of our economy, and the wellbeing of our community, depends on it.”

The Treasurer was heartened that 80 of the country’s biggest businesses including ANZ, BHP Telstra and Wesfarmers, signed the letter, saying it sent a message of hope. The businesses collectively employ a million workers.

But as one source told The Australian on Wednesday “look at the companies that aren’t on the list than those that are on it”.

Making up the glaring omissions were companies with high exposure in Covid-free Western Australia – the big miners.

BHP chief executive Mike Henry – who is considering banning non-vaccinated workers from sites anyway – and Dutch-based Shell’s local chair Tony Nunan, represented the only resources companies in the BCA letter.

Rio Tinto, Woodside Petroleum, Fortescue Metals and Hancock Prospecting – owned by the country’s richest person Gina Rinehart – were all missing in action. Or should that be too consumed in action?

WA Premier Mark McGowan is steadfastly refusing to open his state’s borders. Picture: Colin Murty

While Covid-19 has rocked the east coast of Australia, shutting down the two biggest states until at least October, if not until Christmas, resource companies have been able to steam ahead, pumping out the lion’s share of Australia’s exports.

With minerals and fuels accounting for $239.3bn of Australia’s exports, the last thing those companies need is a Covid outbreak across their sites in remote communities.

And not even direct appeals from Mr Frydenberg to support Australia’s reopening once most of the country is vaccinated could sway them from moving the dial on Covid’s new normal.

That normal is Western Australia keeping its borders firmly shut for the foreseeable future, frustrating an agreement struck at national cabinet to support Australia’s reopening when vaccination rates hit 70 to 80 per cent.

On the same day the Business Council published its letter, WA Premier Mark McGowan doubled down on his resistance to ease border restrictions, branding federal Attorney-General Michaelia Cash’s calls to reopen once vaccination rates hit 80 per cent as “incredible”.

“Why are they on this mission to bring Covid into Western Australia to infect our public, to ensure that we shut down parts of the economy, that we lose jobs, people get sick and some people die?” he asked

“Haven’t they seen what’s happening in NSW?”

The West Australian resistance prompted a rebuke from Business Council chief executive Jennifer Westacott, who demanded Mr McGowan show Australians his alternative plan.

“If he‘s not going to implement the plan that’s been agreed to by the national cabinet, then what is the plan? And how do we start giving people certainty? If it’s not 70 per cent, if it’s not 80 per cent, what is it? No country in the world has got to 90, 95 per cent,” Ms Westacott told Perth’s 6PR radio host Gareth Parker.

Business Council chief executive Jennifer Westacott. Picture: NCA NewsWire/Gary Ramage

“And what does that mean for Australia? What does it mean if we do that indefinitely? Business people can’t travel to Perth? Families can’t travel to Western Australia? Tourists can’t travel to Western Australia?

“We have quarantine for skilled workers coming in from overseas.

“That will eventually be a deterrent to an important workforce coming to Australia. How long can that go on for?”

But Mr Frydenberg said the businesses who signed the letter had sent a strong message.

“It was terrific to see Australia’s leading companies from a range of sectors publicly call on the federal, state and territory governments to stick to the plan agreed at national cabinet,” Mr Frydenberg said on Tuesday.

“As big employers and key players in our economy they have a lot at stake. Their message is one of hope and confidence. Stick to the plan and they will do their part, continuing to invest and create jobs.

“We need them to succeed for our economy to succeed and a strong economy is the foundation for so much more.”

CBA chief executive Matt Comyn, who didn’t hesitate to sign the BCA letter, said the banks had a big role to play in encouraging vaccinations across their workforce. This was the way forward to help drive recovery in the economy, Mr Comyn said.

“As an industry employing nearly 190,000 people, Australia’s banks know how important it is to provide certainty, confidence and something to look forward to. Above all, we remain very confident about Australia’s long-term prospects,” he said.