Topics: Reserve Bank decision; Labor’s homegrown inflation; student debt; Food and Grocery (Mandatory) Code of Conduct Bill; Labor’s cuts to critical Defence satellite program; flight upgrades; Melbourne Cup

 

E&OE   

 

STEPHEN CENATIEMPO

Let’s talk federal politics with the Shadow Treasurer and Member for Hume, Angus Taylor. Angus, good morning.

 

ANGUS TAYLOR

G’day. Stephen, good to be with you.

 

STEPHEN CENATIEMPO

Yeah, we're not expecting a rate cut today. I mean, obviously the headline inflation figure is looking better than it has, but the Reserve Bank, quite rightly, looks at that and says, well, hang on, there are still underlying inflationary pressures here that we need to get under control.

 

ANGUS TAYLOR

Well, let's be clear. They look straight through it, and the truth is that Australia's inflation has been the most persistent of any country in the developed world. We also know from the IMF, they expect that the inflation rate in Australia will be higher than every other advanced country in the world outside of Slovakia. So we're not in the position we want to be and you know, the real strategy of this government is to hope like hell. It's a bit like betting on the Melbourne Cup. That's about it. That's about the best they've got. They've had three failed budgets. Inflation isn't getting to where it needs to. They're trying to manipulate the numbers to get the outcome they want, but the Reserve Bank will look through it and Australians are continuing to pay for a government that has had those three failed budgets and where standard of living has absolutely collapsed, Stephen. I mean, this is, this kind of collapse in standard of living is unprecedented in this country, and it's why everywhere I go, everywhere I go, I speak to households and small businesses, Australians everywhere, and you see these pressures continuing to build and continuing to cause pain for Australians.

 

STEPHEN CENATIEMPO

The announcement of this HECS debt, $16 billion wipe out. I mean, there are so many problems with this policy it’s not funny. We spoke to Sarah Henderson yesterday, who pointed out the inequitable nature of this. But it just seems like a populist vote grab here. But I think really, we need to drill down and look at the broader problems with our university sector here, don't we?

 

ANGUS TAYLOR

Well, we do. But I mean, the starting point here is there's no such thing as a free lunch, Stephen. Someone has to pay for this. 16 billion bucks and we all pay for it. The average Australian household will pay 1,600 bucks for this, and the average Australian household doesn't have the HECS debt and let's be clear, the people who are going to benefit from this the most are lawyers, doctors, those with postgraduate business degrees. These are the highest earners in our economy, the highest earners in our economy. I mean, I just don't, I don't get what Labor has become. It's not even clear to me what they stand for anymore, except for throwing money around and the one thing you know about an inflation crisis, we learnt this last time we had one, is you make it worse when you start throwing money around and that's exactly what this government is doing. We pay that 1,600 bucks, all of us, not just through higher taxes in the future, but through the insidious tax that we face today, which is higher inflation.

 

STEPHEN CENATIEMPO

I want to talk Defence spending for a moment because I talk about this quite often on this program, the fact that we are underfunding Defence in this country. We've just seen the government announce that they're going to cut back the re-sign on bonus from $50,000 to $40,000 and expand it to more senior members. There's a couple of problems with this. Firstly, what we need to do is change the culture that people want to sign up again because our military personnel don't do it for the money. But we've also just announced, well, we're expecting an announcement that a $17 billion satellite program, which most experts say is absolutely necessary, is now going to be scrapped. I mean, this government's all over the place on Defence.

 

ANGUS TAYLOR

Well they absolutely are and it’s just another example of them promising one thing, saying one thing and doing another. They've constantly promised that they're going to get Defence to where it needs to be. Marles talks a big game. There's lots of talk but when you look at what they're actually doing, they're cancelling programs like this. I mean, this is the one area. This is one of the few areas where you just, you have to be so careful not to make unnecessary or get the budgeting of it wrong because if you do, these are long-term programs and they have a huge impact and you can see this government has absolutely got it wrong and that's why they're having to cut critical programs like this one.

 

STEPHEN CENATIEMPO

Angus, you've introduced a Bill to bring about divestiture powers for the major supermarkets and hardware retailers. Most other developed economies have similar powers in place and when I'm not talking to you on a Tuesday I'm talking to Andrew Leigh, the Competitions Minister, who just doesn't seem to see the value in this.

 

ANGUS TAYLOR

Well, he wouldn't, because he's been told he's not allowed to. It's our policy and Labor as always are just playing political games. Look, you go to the US, you go to the UK, there are divesture powers. They’re used sparingly, and they should be, but in appropriate circumstances work where a business has achieved a high level of market power and is using that or misusing that, abusing it, then it is right and appropriate that there are escalating penalties, and ultimately if it comes to that divesture may be necessary. Now, you know that might be a very local thing. It might be that there's acquired land in an area that prevents a competitor coming into that town, and it's absolutely appropriate. The ACCC should be able to say, well, hang on, you can't do that. We need competition in this town because people need a fair deal from the supermarket yet Labor's against it and I’ve got to say, this is a Labor Party that is not serious about taking on this cost of living crisis.

 

STEPHEN CENATIEMPO

I want to talk about these flight upgrades for a moment. There was an opportunity to question the Prime Minister about upgrades that he may or may not have received when he was Transport Minister in Question Time yesterday. That opportunity was foregone on a major scale. Is that because this is going to affect everybody. I mean, do your colleagues and I say this right across the Parliament, not just on your side or the other side, do parliamentarians not get what the issue is here? That there are MPs ringing Qantas and saying, can I please have thousands and thousands of dollars for free and thinking, that's okay?

 

ANGUS TAYLOR

Well, and in Albanese’s case, it's even worse than that, Stephen. This is the important point. The allegation here is that he did this when he was Transport Minister. Now that's the person who's got to oversee and regulate the airlines, and he was allegedly reaching out or his office was to get upgrades for personal use. I mean, that is completely unacceptable. Now that line of questioning does need to [inaudible] for various technical reasons. It can't during Question Time but it must continue and it's crucial that we see what really went on here. It is completely inappropriate that a Transport Minister be reaching out in this way for personal flight upgrades?

 

STEPHEN CENATIEMPO

But at a broader level, though, because we had Jason Clare, the Education Minister, come out and admit on Sky News the other day that he went on a family holiday to Singapore. He just had surgery done on his leg, so he rang up and requested a free upgrade to business or first class and we had Keith Pitt, one of yours, come out and say, no, well, I have sympathy for him. Well hang on, if I had a sore leg. Qantas aren't giving me an upgrade.

 

ANGUS TAYLOR

No they’re not and look. I understand the concerns about this. I can assure you, I don't reach out and ask to lobby for upgrades. I'm, I guess, a lucky Member of Parliament that I live an hour away from Canberra and I can drive in the car and I frankly much prefer that but look, I can absolutely understand the outrage and concern about this and particularly, you know, a Minister potentially abusing their position in this way. It's completely unacceptable.

 

STEPHEN CENATIEMPO

Some of the independents are calling for this to be banned altogether. MPs accepting these upgrades. Now they've been accused of grandstanding. That might be right, but it doesn't mean they're wrong at the same time.

 

ANGUS TAYLOR

Look and as I say, I mean this doesn't affect me in the same way it does many others. So I don't have a horse in this race, so to speak, the same way others do, but I can understand the outrage about it. I absolutely can, Stephen and it's why, you know … Albanese has not answered the most fundamental questions on this. Did his office ever reach out and ask for an upgrade at the time he was Transport Minister and until he's answered this question, frankly, he's still being evasive about the whole issue. 

 

STEPHEN CENATIEMPO

Speaking of horses in races, have you got a tip for the cup?

 

ANGUS TAYLOR

Oh look, I'm not one to ask for a tip for the cup. I see Buckaroo is pretty well, pretty well backed at the moment. But look, it just depends. It's got to be one of the hardest races on the calendar to pick and I'm not, I'm not good at picking any horse race, so I'm gonna, I'm gonna keep out of this one.

 

STEPHEN CENATIEMPO 

(Laughs) Good on you, Angus. We’ll catch up in a couple of weeks.

 

STEPHEN CENATIEMPO 

Good luck to everybody with their bets today.

 

ANGUS TAYLOR

All the best. Angus Taylor, the Shadow Treasurer.