Topics: Labor’s homegrown inflation crisis, Federal Budget

E&OE

MARK RILEY:

Angus Taylor, thanks for joining us.

ANGUS TAYLOR:

Good to be with you, Mark.

MARK RILEY:

Do you support the energy relief in this budget?

ANGUS TAYLOR:

Look, it's a sign of failure by the government that they have to do this. They promised a $275 reduction in our electricity bills. That hasn't been delivered and it's clear that won't be delivered. They've had to put a band aid on a bullet wound. When it is a bullet wound that hasn't been treated the right way, and you've got a band aid, you put it on. So, we're not going to get in the way of it. But frankly, Labor has absolutely failed in delivering the electricity price relief that they should have and that's why we're in this situation.

MARK RILEY:

An essential objective of this, coupled with the rent relief, to drive down inflation below 3% before the end of the year. You believe that?

ANGUS TAYLOR:

Well, absolutely not in the way the government has done it. I mean, this is a con job and the Reserve Bank won't believe it. They look at the underlying inflation rate, not playing around, tweaking numbers, which is what the Treasurer has done in a tricky way here. But the broader point here is that Australians have become poorer under this Labor government. This budget is not going to fix that situation. It's not addressing that underlying loss of standard of living, that huge reduction in Australians' disposable income, 7.5%. And Australians are feeling it every single day. This budget, for Middle Australia, is not going to provide a solution to that problem.

MARK RILEY:

The Budget does say that inflation could get below 3% by the end of the year. Where do you say it'll be?

ANGUS TAYLOR:

I'll leave it to the experts to forecast on that. But I will make the comment that the Reserve Bank has said it will be substantially higher than that.

MARK RILEY:

And you defer to the Reserve Bank?

ANGUS TAYLOR:

The Reserve Bank are the ones that have to fight inflation through interest rates. They're left with no other weapon than interest rates because the government hasn't done its job.

MARK RILEY:

The other big part of this is the over $13 billion in production tax credits. What do you think of those?

ANGUS TAYLOR:

We want to see a successful manufacturing and resource sector in this country. Absolutely. I worked in those sectors before I went into politics. I'm deeply committed to their success, but you don't make them successful through handouts. Billions in handouts to billionaires is not the answer.

MARK RILEY:

So, you'll stand in the way of these? You'll vote against these production tax credits? Billions of dollars for Twiggy Forrest, Gina Rinehart?

ANGUS TAYLOR:

We are absolutely opposed to that. That is not the way to get these sectors going. Billions in handouts to billionaires? No way.

MARK RILEY:

What sort of alternative do you think we will see from Peter Dutton in a couple of days?

ANGUS TAYLOR:

We'll, as always, focus on the fundamentals. Drive down the cost of energy by getting more supply into the market, make sure businesses aren't wrapped in red tape and that small businesses, for instance, have strong incentives to make investments. Productive investments that create opportunity and jobs, and take risks that are crucial for the future of this country. They're the sorts of measures that we think will deliver the strong economy, lower inflation, and that's what Australians desperately need right now. We've seen a smashing of their standard of living. Disposable incomes are being absolutely gutted by this government and this budget is not restoring them. We've got to get back to basics, Mark.

MARK RILEY:

Angus Taylor, thanks for your time.

ANGUS TAYLOR:

Great to be with you.

ENDS.