Topics: Coalition immigration policy, persistent inflation, AUKUS review, defence spending

 

E&OE

SHARRI MARKSON:

Welcome back. Well, Opposition Leader Sussan Ley is expected to announce her migration policy next week, and I can tell you exclusively that I understand a values test will be a central part of it. Well, joining me now is Shadow Defence Minister Angus Taylor. Angus, good to see you. Now, don't mean to put you on the spot with a policy that hasn't been announced yet, but generally speaking, do you think there should be a values test for new migrants, and how do you verify people's values? Because don't people just give the right answers to officials? They know the answers that the immigration officials want to hear.

ANGUS TAYLOR:

Well, Sharri, thanks for having me and I do think it's important that if people are to come to this country, that they adopt our core values and in fact, in our citizenship ceremonies, we ask them to make an affirmation or an oath to recite those core values, a focus on democracy, on the rule of law, on our basic freedoms and I think it is appropriate that if you don't believe in those things, then you don't pass a values test. Now there's lots of ways for our intelligence organisations to work out if someone is a religious or ideological extremist and doesn't believe in those core values and I think this is a reasonable thing to ask of people.

SHARRI MARKSON:

So, I mean, so how would a values test work? Would it be done in an interview, or would it involve as you just hinted there a more active role from intelligence agencies or Home Affairs officials, perhaps checking people's social media accounts or even interviewing their friends and relatives.

ANGUS TAYLOR:

Well, Sharri, I'm not going to front run the policy announcement, obviously, but what I would say is that our intelligence agencies, well and truly have the capacity to assess whether or not someone has shown some real evidence that they are not in sync with those core values. I mean, if you don't believe in democracy, really, is it appropriate that you come to the country? If you don't believe in the rule of law, is it appropriate that you become an Australian citizen? And I think they are very, very reasonable questions. I think we are more than able to assess whether or not someone has demonstrated in their past life that they are not in sync with those values, and I think most Australians would expect that we apply a test like that.

SHARRI MARKSON:

Yeah, absolutely. I think a values test is a terrific idea. So, it sounds like we're going to be hearing more about that from Sussan Ley and the Coalition next week. Angus Taylor, in your previous role, you were Shadow Treasurer, I'm keen to ask you about the economy, because yesterday we heard the RBA Governor Michele Bullock warn that rates may have to rise next year. What do you think is to blame for this persistent inflation?

ANGUS TAYLOR:

Well, Sharri, you're absolutely right. The Reserve Bank is now showing deep concern about the state of the economy and the risk that inflation will continue to be above the target range and of course, they have already highlighted that the balance between supply and demand is not where it needs to be if we're going to see a reduction in interest rates, and we may well, as a result, see an increase. In fact, that's what the markets think. I mean, if you look at what's going on, that's resulting in that imbalance between supply and demand, we've got government spending running away, absolutely running away right now. We're about to see MYEFO, which will tell us something about the budget situation, but it doesn't appear it's going to be a pretty picture and we've got Deloitte telling us that we've got well over $40 billion of deficits each year for the coming years and on top of that, we've got an economy where productivity has essentially hit the wall, the supply side of our economy, our ability to build things, to make things, has fallen away, and the result is inflation is heading in the wrong direction.

SHARRI MARKSON:

Look, it'll be an absolute devastating set of circumstances if Australian families who are already struggling with the cost of living, are dealing with rate rises next year, especially after the three cuts this year and it would be damning for the RBA as well. They'd be having to answer questions that they've got their strategy wrong this year, most likely,

ANGUS TAYLOR:

That's exactly right, Sharri, in fact, the market is already starting to price this in so to a significant degree, people are going to be starting to pay for interest rate increases already. That's how interest rate markets work. So, we should be deeply concerned about this. People with a mortgage will pay a price for a government that hasn't got its fiscal policy right, its spending policies right and we know from history, if a government can't control its budgets, then we all pay for that, not just with future taxes, but with more immediate inflation and that's a tax on absolutely everybody.

SHARRI MARKSON:

It is indeed. The Defence Minister Richard Marles has refused to release any details of the Pentagon report that's just been completed into AUKUS. Have a look at him responding to questions today.

[RICHARD MARLES CLIP] Firstly, the review is very much, as I said, in the context of full steam ahead on AUKUS and how important AUKUS is, the review is their review. So I'm seeking to respect that. But you know, we're really clear about what America is asking of us, and what we're asking of America, and what both of us are asking of the United Kingdom.

SHARRI MARKSON:

Really clear. Well, he refused 12 times to answer the questions. Why do you think he's being so secretive about this? And also, his AUSMIN meetings?

ANGUS TAYLOR:

Well Sharri, I think it's very clear that the Americans think that we are not spending what we need to on our defence force. We're underfunding our defence force if we're going to have AUKUS and everything else we need. They have highlighted concerns about this, not just with Australia, but with a whole range of allies, and they've laid that out just recently in the National Security Plan and I think there's no doubt that those discussions have been happening. I think that concern is clear. It's been made explicit, indeed, we are underfunding our defence force, and the result of it, Sharri is not only are we at risk of not properly funding AUKUS, but many other initiatives, like the drone and counter drone technology we need, but also maintenance of our existing equipment, where we've got ships and planes that are not getting into the air and onto the ocean, as much as the government indeed has planned because we simply don't have the people and the funding.

SHARRI MARKSON:

Just very quickly, because I've got to go, but at the start of that answer there, you said that you expect that the Trump Administration is still raising the issue of defence spending with Richard Marles. I know you were in Washington last month meeting with Trump Administration defence officials. Was this raised with you that they still wanted Australia to spend more on defence?

ANGUS TAYLOR:

Well, Sharri, it's absolutely no secret that the US administration is concerned about the funding of defence of its allies, including Australia. They've made that very clear and very apparent, and that puts AUKUS at risk, but more generally, our capability at risk and our ability to work...

SHARRI MARKSON:

Was it raised with you?

ANGUS TAYLOR:

Well, yeah, it's part of the conversations in Washington. There's no question about that.

SHARRI MARKSON:

Alright, Angus Taylor, really appreciate your time. Thank you so much.

ENDS.