Topics: RBA decision, jobs summit, fuel excise, nuclear energy, climate legislation

E&OE

PETER STEFANOVIC:

The Reserve Bank of Australia has lifted interest rates for an historic fourth month in a row, bringing the cash rate to its highest level in six years. Let’s go back to Canberra now and joining us live is Shadow Treasurer Angus Taylor. Angus, thanks for your time this morning. Would the cash rate be the same as it is now if you were in Government?

ANGUS TAYLOR:

Look, I'm not going to speculate. There's no doubt these are global pressures that are being faced. But the real question is how the Government responds to it, Pete. That's the key and what we want to see is a proactive response, a strong response, a coherent response and we’re certainly not seeing that from the Treasurer. He gave a Ministerial Statement last week and all we heard from him was commentary and forecasting, not leadership, or the plans of a Treasurer. It is crucial that we see action. This is this is causing real pain for Australians. The typical mortgage is obviously now … a mortgage holder is paying a lot more than they were, over $500 a month more than they would have been paying back before May so we really do need to see a coherent plan that's going to put downward pressure on inflation and interest rates. The less the Government acts, the more the Reserve Bank has to act. It will have to go harder and faster in the absence of a coherent plan for from the Government.

PETER STEFANOVIC:

Well the Government argues that it is acting. It's got a jobs summit around the corner. It's got an increase to the minimum wage already and its energy plans are about to pass. Do you not agree that that's progress?

ANGUS TAYLOR:

Well, the first one is a gab fest. The second one, if not carefully managed is the makings of a …

PETER STEFANOVIC:

But you want to be there.

ANGUS TAYLOR:

Well look Pete, at the end of the day, a gab fest is not going to solve this problem. That's not what's going to solve this problem. Now good things could well come out of that jobs summit and I strongly encourage that, because we do need to see some real reform in that area. But the truth of the matter is that there's nothing that's going to come out of that that's going to make an iota of difference for Australians struggling with repaying their mortgages. And we've made a number of suggestions about the sort of things that they couldn't do. They could provide more incentive for pensioners to get back to work or to increase the amount of work they're doing and we've put a very substantial policy on the table that could be adopted tomorrow.

PETER STEFANOVIC:

And that will come up at the jobs summit.

ANGUS TAYLOR:

Well, you know, when the pandemic arrived, if we'd said, “Don't worry, we're going to have a gab fest later this year.” You as commentators, and the Opposition at the time would have rightly said that's not good enough. And it wouldn't have been good enough. But that's exactly what we're seeing from Labor. “Don't worry about it. We're going to have a budget later in the year. We're going get everyone around a table later in the year. But right now, you're just going to have to wear it, and the Reserve Bank is going to have to do all the heavy lifting.” That's simply not good enough, Pete. We need to see a proactive, coherent response from the Government. All we're getting from the Treasurer is commentary and forecasting.

PETER STEFANOVIC:

Should the fuel excise cut be extended?

ANGUS TAYLOR:

Well, what we need from the Government is a plan. Now …

PETER STEFANOVIC:

That's not answering the question.

ANGUS TAYLOR:

Well, I’m not in Government. This is a question for the Treasurer. But what I will say is this – pain is being felt in many different places. People are feeling pain at the bowser, but they're also feeling pain at the grocery checkout. They're feeling the sting of higher costs of renovating a house or building a house, buying furniture. Across the board we've seen very sharp price increases and not just for households also for small businesses in the cost of doing business, Pete. That's why we need to have a coherent plan. We are, I think, rightly asking questions about what that plan might look like because we just can't see any signs of it.

PETER STEFANOVIC:

Well, Peter Dutton says the fuel excise … just on the fuel excise, Peter Dutton says the fuel excise cut should be extended. Do you agree with him?

ANGUS TAYLOR:

Well, Peter Dutton is asking Labor what they're going to do. That's essentially what he has said and he wants them to explain what they're doing.

PETER STEFANOVIC:

Well he says it should be extended.

ANGUS TAYLOR:

Well, he has said, Pete, he has said very clearly he wants them to explain what they're doing and why they are doing what they're doing. Now at the moment, they're not doing anything so he wants an explanation.

PETER STEFANOVIC:

But you're the Shadow Treasurer. You're the Shadow Treasurer. Should it be extended or not? What's your official position on that?

ANGUS TAYLOR:

There should be a plan. I tell you, the policies we have announced, that have gone through our processes that they could adopt tomorrow, providing incentives for pensioners to get into work. Adopting the budget position we took to the last election. $45 billion of extra off budget spending from Labor that is unnecessary.

PETER STEFANOVIC:

But you can’t give me an answer.

ANGUS TAYLOR:

Not abolishing ABCC, Pete, I mean, that's another action.

PETER STEFANOVIC:

Sure, I see that but on the fuel excise it seems like you’re not giving me a response on this one. I am because it was raised in Parliament the other day and I thought it was interesting because it seemed like a policy change from the Government seeing as you're the one who extended or put in place the fuel excise relief and now it's going to be extended. That was surprising.

ANGUS TAYLOR:

He asked a question, Pete and I'm going to ask the same question 100 times between now and when we get a plan out of the Government. He asked a question and he was right to ask a question, because we're not getting any answers. We’re not getting any answers.

PETER STEFANOVIC:

But is it yes or no on this one?

ANGUS TAYLOR:

Well, at the end of the day, we're not in Government, Pete and we can't find any semblance of a plan from the Government. Now, if they're not going to give us a plan, we're going to keep asking questions about what that plan is. There is pain at the bowser, there's no question about that but there's pain in many other areas and this is a Government that talked a big game about responding to the challenges in front of them. Taking responsibility. How many times did we hear that in the election campaign, Pete? And yet we see no signs of them taking in any response.

PETER STEFANOVIC:

Speaking of the bowser at the moment, you'll notice that driving around at the moment prices are dropping, cash rates, as you know, are rising, which means our debt is harder to pay off and becoming more expensive to pay off. Is it responsible economic management to extend the fuel excise cuts?

ANGUS TAYLOR:

(Laughs) You won't give up, Pete, you can keep trying as long as you like. I'm going to give you the same answer. Look, we need a coherent plan across the board. I've made a number of very practical suggestions which the Labor Party is not even showing any sign of adopting. They don't seem interested. They spend all their time looking for excuses and commentating on what the future might look like but they're taking no actions and as I say, if we'd have done that in Government, you rightly would have said it's not good enough. There needs to be proactive response. You know, you can't sit there, we couldn't sit there during the pandemic and forecast the whole time what the virus was going to do without taking action. You need to see coherent action and we're not seeing anything.

PETER STEFANOVIC:

Okay. Onto energy. Why is nuclear now on the table when it wasn't while you're in Government?

ANGUS TAYLOR:

Well we were having discussions about nuclear. Ted O’Brien, who is going to lead this review, led a Parliamentary, a Parliamentary Committee Inquiry on exactly this topic. It is an important topic. We've always had a principled approach to this, which is technology neutrality. We want every horse in the race, every technology that can make a difference should be considered and this is one of those technologies. Now I think the timing is right. We've made an announcement about AUKUS, about nuclear submarines. There's clearly been a discussion that's now begun about the role of nuclear in this country and it's right and proper that we then lead a review within the Coalition led by Ted O'Brien, of course, to consider how this might be part of the energy mix. Now it's early days. We have to do the work. We're not going to get into the detail of what the policy might ultimately be until we've done that work, but it is right to consider all these technologies and in contrast to Labor that loves to pick technologies and say they like this one and not like this one. There's not enough horses in this race right now. We need to have every possible technology that can make a difference if we are to deliver the affordable, reliable energy we need alongside the reduction in emissions.

PETER STEFANOVIC:

Okay, just a final one here. Peter Dutton has already mentioned that you won’t support the Government's climate bill. It's now looking at potentially refining or changing its targets leading up to the next election. I know that's a way off but what number would you like to settle on?

ANGUS TAYLOR:

(Laughs) Look, we're in Opposition. We will do that work and, you know, we'll announce it ahead of the next election and we'll have strong policies on reducing emissions, but I tell you, we'll also have strong policies on affordable, reliable energy and you know, getting that balance right, which is enormously important. Look, we are facing the prospect in the coming years with some of the policies Labor's putting in place like the tightening of the Safeguard Mechanism, of losing our energy intensive manufacturing in this country. We need to make sure we get that balance right. We'll do the work in the lead up to the next election and we'll make the announcement in good time. I'm certainly not going to make it here today.

PETER STEFANOVIC:

Okay, no problem. Angus Taylor, the Shadow Treasurer. Thanks for your time, as always, talk to you soon.