MELINDA JAMES:

Local member of course, Member for Hume and now Shadow Treasurer as well after being appointed by Opposition Leader Peter Dutton, Angus Taylor joins me now. Good morning.

ANGUS TAYLOR:

Good morning Melinda. Thanks for having me.

MELINDA JAMES:

We had you on about your new appointment, but I should get you to respond to what Tony Wood just said at the end of that interview, which was that we hadn't had long-term policy on emissions reductions etc in place and now we find ourselves in this situation with the, with rising gas prices. You were the former Energy Minister. What would you be doing now if you were still the Energy Minister?

ANGUS TAYLOR:
Well, I don't agree with what Tony just said. I mean, net zero is an important policy and it is all about those longer term transitions, which includes dealing with gas and I agree with his point about needing technology to do that. But in the short term, you just need more supply. It's that simple. We've been on about that for a long time. I was on about that for a long time. It's critical. Gas is there right now for when renewables can't work, when your electricity system can't rely on renewables or in industry indeed. I mean, our food comes from fertiliser made from gas, so it is crucial to have enough supply. We've managed to keep the price well below the international price in the period prior to the election. We have now seen it escalate and the key is to work with the energy companies, as Tony rightly said, very closely to get more supply into our system as quickly as possible. That means working with them, letting them know that they are part of the answer here.

MELINDA JAMES:

Should there be an east coast domestic reserve as Andrew Liveris has said. 15 to 20 per cent as they have in WA?

ANGUS TAYLOR:
Well, there's already the Domestic Gas Security Mechanism, and that provides the government with a position from which they can negotiate with the companies to get more gas into the system. Now we did this in government and that was part of how we saw significant reductions in the price of both gas and electricity by working with the companies on the back of the Australian Domestic Gas Security Mechanism. And on the back of the gas companies knowing that we had a pathway through here that saw gas as part of the answer alongside renewables, allowing us to reduce emissions and at the same time have affordable energy and that's the pathway. You know, there's, it's pragmatic, it's real, and this is how you do it. And I'm confident it can be done.

MELINDA JAMES:
Except we're not in that situation now and Labor's only been in power for two weeks. They, you know, the responsibility can't fall at their feet for where we find ourselves. This was foreseeable, wasn't it?

ANGUS TAYLOR:
Well, you know, we managed to keep prices well below international prices in the lead up to the election. And, and we did that by working closely with the gas companies, them knowing that we were working with them to get more supply out and projects like Narrabri, we worked very closely with Santos. But at the same time, us setting a very clear expectation that we needed enough supply for the domestic market. Now that arrangement of course, has to be re-established with a new government and it's critical they re-established that as quickly as possible.

MELINDA JAMES:
Let's move on your new appointment as a Treasury Spokesman, a position that you were seeking?

ANGUS TAYLOR:
Well, look, I'm delighted to have that position. Obviously, you know, my background is in economics, both my academic background and much of the work I did in my career. So it's really … I’m very honoured and humbled to have this important position. My focus will be on the aspirations of hardworking Australian families and businesses. The Liberal Party needs to get back really sharply focused on aspirations. As our core value is something we really believe in lower taxes, better government, managing government spending, every dollar as though it's your own
and focusing on those businesses, particularly small businesses across regions, the suburbs and places like my electorate and the Illawarra where there are small businesses that are the real backbone of the economy in those regions. That's what we want to see. That that's the success that will make Australians successful and that's what I'm all about.

MELINDA JAMES:
Again, Labor finds themselves in a situation that is not of their making, having been in government for any two weeks that they can, I think legitimately claim that they inherited from the previous government, which is the rising interest rates, which is rising inflation, which is stagnant wages as well. What would you do about these growing problems financially that are really going to hurt those small businesses and people who, as you say, aspirational voters in the suburbs, outer suburbs and regions?

ANGUS TAYLOR:
Well, Labor is in government now, and it’s for them to deal with this, but, but of course, our view in the lead up to the election is the view I hold now, which is that you've got to manage government spending. Now the Reserve Bank will make a decision on interest rates tomorrow on the back of what we are seeing in terms of inflationary pressures. They are global pressures and we've got to recognise that, but government creates the context for that decision that the Reserve Bank makes and in particular managing government money and government spending is the key. We saw S&P just last week with real concerns about Australia's credit rating and in particular concerns about spending. $45 billion of off-budget funding, as well as over $18 billion of promised, extra spending over and above what we had committed. That spending fuels in inflation, and it fuels higher interest rates.

MELINDA JAMES:

So would you be tackling…

ANGUS TAYLOR:

That that has to be managed.

MELINDA JAMES:
Would you be tackling the deficit immediately in which case that you think that what a spending and by extension services need to be cut in order to bring the deficit under control faster?

ANGUS TAYLOR:
No, I mean, we have been very clear in the lead up to the election that the $18 billion of promised extra spending and $45 billion of off-budget spending which S&P questioned last week is only going to fuel inflation and fuel interest rates. You end up in a situation where the government is competing with households to borrow money. New homeowners are borrowing money competing …

[phone line cuts out]

MELINDA JAMES:
Oh, it looks like we've just lost Angus Taylor.

ANGUS TAYLOR:
Above budget funding is, is a real risk to inflation and interest rates and our position in the lead up the election on that was very clear and it remains clear.

MELINDA JAMES:
Angus Taylor. I beg your, pardon. We did actually lose you and you dropped out a little bit there, but I will … I will let you go and thank you so much for your time and congratulations on your appointment.

ANGUS TAYLOR:

Thanks, Melinda.