Topics: Labor’s homegrown inflation crisis, Federal Budget

E&OE

LISA MILLAR:

The Shadow Treasurer Angus Taylor joins us now. Good morning. Welcome to News Breakfast.

ANGUS TAYLOR:

Good to be with you Lisa.

LISA MILLAR:

What's going to be the sense of this reply tonight from Peter Dutton?

ANGUS TAYLOR:

Well, Lisa the overwhelming focus will be on addressing the cost of living crisis that Australians are facing right now. The fact that Australians have got poor over the last two years, we've got to restore their standard of living, that means budget restraint, that does mean making sure we've got a budget that can put downward pressure on prices and give the Reserve Bank the room it needs to be able to reduce interest rates. Energy Policy, obviously is crucially important in this country, we've got to replace that 90% of baseload generators that will be leaving the market over the next 10 years. And we do have to make sure that our housing policy and immigration policy are aligned. It's a real struggle now for so many Australians to rent a house, to buy a house, and we've got to make sure that we've got our construction industry and the pace at which we're building houses in line with our immigration policy. So they'll all be important issues that that map a pathway for the country, both over the short term dealing with this cost of living crisis, but the longer term making sure we have the foundations for a prosperous, successful nation we all want to see.

LISA MILLAR:

Well let's talk about immigration, because Peter Dutton in question time yesterday, he chose that as the first issue for his first question, post budget. What would the Opposition do to cut immigration? Where are you going to cut it from if it's further than the number of international students?

ANGUS TAYLOR:

Well Lisa the starting point is just to make sure immigration rates which you know, we're supportive of a sensible immigration policy, we long have been. But to make sure it's in line with housing construction...

LISA MILLAR:

So you're not saying you'll actually cut the immigration numbers.

ANGUS TAYLOR:

Well, I'm not going to make the announcement now. I'll leave that to Peter Dutton tonight, the speech of course, and you can all watch tonight on the ABC TV, I'm sure it'll be there and those announcements, you'll see the details. But the important principle here is one that I think Australians understand, we have had a huge surge in immigration, 530,000 in a year, way above what we've ever seen before Lisa, and at the same time, we've seen housing construction going backwards. And that's a huge problem for the country. We've seen Labor's 1.2 million housing target, it's not going to be met, their own National Housing Supply Council has said it's going to be well under a million and many are saying it'll be short of that. So we've got a very, very real challenge. If young Australians are going to be able to buy a home, if we're able to make sure that those wanting to rent a home are able to rent it at an affordable rate. So this is a massive issue for Australia.

LISA MILLAR:

Are you still supportive of this Opposition idea of using super for young people to buy homes? Is that something you're going to continue pursuing, that they dip into their retirement funds?

ANGUS TAYLOR:

Well absolutely. But it's not, I wouldn't describe it as dipping into their retirement funds. I'd say it's using their retirement funds for a suitable purpose, which will deliver them a nest egg when they go into retirement. I mean, the crucial point here is that we know the single best indicator of someone getting a good retirement, one where they're able to make ends meet, is going into retirement owning a home. So that's why this is such an important policy for younger Australians. It's setting themselves up not only in a home, as so many want to do, but over the longer term, making sure they have a good retirement.

LISA MILLAR:

Can we just, now that the dust has settled a little bit on Jim Chalmers' speech, talk about the two key things. So the energy rebate, the $300 for residents, and slightly more for businesses. Are you backing it? Do you believe that that is the right way to go? Or are you going to force the government into some forms of mean testing?

ANGUS TAYLOR:

Yeah, both good questions Lisa, we have said we won't get in the way of energy relief given that the government has failed to deliver on its $275 electricity price reduction, which was promised and hasn't been delivered and clearly won't be delivered. I think there are very serious questions as to why this isn't means tested. Is it that the government is trying to manipulate the inflation figures so that's why they haven't means tested it? I don't know.

LISA MILLAR:

Are you gonna force the government to try and do it though. It's one thing to be critical of it. It's another thing to try and take action on it.

ANGUS TAYLOR:

Yeah, I understand that. But the point is that the government hasn't answered the most basic questions as to why they haven't means tested it.

LISA MILLAR:

The Treasurer has said it's because it's to move the money out the door quickly and efficiently. Like I think he's repeatedly answered...

ANGUS TAYLOR:

Well, I think he's going to have to do a bit better than that, Lisa. I mean, why is this an efficient way to move money out of the door? Why isn't there an alternative? I mean, he hasn't explained any of that. And is it true that they're attempting to manipulate the headline inflation figures? Of course, the Reserve Bank's going to see through all of that. But is this a clever trick from the Treasurer to try and manipulate those numbers? I think he needs to really explain the detail of why he's doing it the way he is. We understand that Australians are hurting, we understand that the government has failed to deliver its $275 reduction. This is a band aid on a bullet wound, frankly. But when you've got a band aid and you have a bullet wound that hasn't been treated properly, you put the band aid on and it's as simple as that.

LISA MILLAR:

Can I turn to the Future Made in Australia Act. Does the Opposition agree with the intent of trying to encourage greater innovation and research and development given that just half an hour ago, we had on the program Kylie Walker, who's the CEO of the Academy of Technological Sciences and Engineering, saying Australia is way behind other countries in this regard, and that you've got to have big business and people with money to be able to continue building on Australia's path forward.

ANGUS TAYLOR:

Well, a couple of points there. The first point I make is we very much support investment in R&D in this country and innovation. That's not what this is. This is a production tax credit much later in the cycle when you've got operating businesses that, you know, government playing an important role in R&D. Absolutely. And I've long been, personally a strong supporter of much of the work that CSIRO does in this area, and so many other great people and organisations right across the country, Lisa. In terms of the intent of making sure we've got a strong manufacturing and resources sector in this country, absolutely. This has been a big part of my career before politics, but I know and I learned that this is all about getting the fundamentals right, making sure that you get timely approvals. We've seen just overnight, Santos shedding jobs because approvals aren't coming through in a timely way.

LISA MILLAR:

So you're going to block the Future Made in Australia Act?

ANGUS TAYLOR:

Sorry Lisa, I missed that.

LISA MILLAR:

Is the Opposition going to block it?

ANGUS TAYLOR:

Well, we haven't seen the Act. So I can't comment on that. But we have said we don't think production tax credits is the right way to go in order to have a strong manufacturing sector. It's about getting those fundamentals right. Whether it be approvals, whether it be getting rid of red tape, whether it be making sure that construction costs are competitive with the rest of the world. I mean, this is a massive issue for Australia. Our costs of construction of anything from hydrogen electrolysers, right through to nickel processing, our costs of construction are way, way over our competitive countries. We've got to get productivity back into those sectors, making sure we've got sensible industrial relations that's good for employees and good for employers. All of these are the issues that you need to get right if you're to have a successful manufacturing and resources sector in this country.

LISA MILLAR:

Hey Angus Taylor, just a side note on a story that piqued our interest this morning. Apparently complaints about a arguably unflattering portrait of Gina Rinehart at the National Gallery that Gina Rinehart's supporters believe should be removed and should not be on display. What do you think about that. Artistic freedom isn't it, to have a portrait of any type up in a gallery?

ANGUS TAYLOR:

You know Lisa, this is the first time I think I've ever been asked for advice on art. My wife doesn't ever ask me for advice on art. It's not my area of expertise.

LISA MILLAR:

Artistic freedom, artistic freedom I'm asking you about.

ANGUS TAYLOR:

Look, I'm a big believer in freedom of speech and allowing people to have their say and I don't always agree, I often don't agree with some of the things that people say, but I am a believer in freedom of speech. But when it comes to critiquing art, I'm not the guy to go to, Lisa.

LISA MILLAR:

Angus Taylor, an honest answer there. Thank you.

ANGUS TAYLOR:

Good on you.

ENDS.