KIERAN GILBERT:
Let’s bring in now the Assistant Minister for Competition, Charities and Treasury, Andrew Leigh live at federal parliament. Andrew, thanks for your time. Let’s start with the drama out of the United States, Donald Trump, Elon Musk, appointed to the Department of Efficiency along with Vivek Ramaswamy. It’s never a dull moment when it comes to Donald Trump and the incoming administration. But are you worried about the impact of tariffs in terms of competition, in terms of Australia’s exports?
ANDREW LEIGH:
Well, Kieran, US politics is the greatest show on earth and most of us in the federal parliament have our share of US political books on our shelves. We’re fascinated by the Caro Biography of LBJ and the tales of what’s going on there. And I’m sure this administration will trigger its fair share of books. We will continue to advocate for the Australian national interest, which lies in open markets and engagement with a wide range of trading partners. You see Don Farrell’s strong commitment to a rules based multilateral trading order. That served Australia very well and will continue to pursue those interests.
GILBERT:
Don Farrell’s been very effective when it comes to trade relationships. Like with China.
LEIGH:
Absolutely, yes.
GILBERT:
I wouldn’t be surprised if we see him heading to the United States sooner rather than later to build that personal rapport with the Trump administration it seems more important than ever to have those personal links. Would you agree with that?
LEIGH:
Absolutely. This is something that you noticed in the first Trump administration; I imagine will be true in this one as well. And we’ll seek to build on those personal ties. The ambassador has already been engaging extensively with a range of Republicans who are close to the incoming president. And I’m confident that the enduring relationship between Australia and the United States will stand as a strong ballast as we engage with the new administration.
GILBERT:
You’ve got bipartisan support and encouragement for Mr Rudd. That’s fine. But the problem is senior advisor to Mr Trump saying on Twitter, putting out an hourglass, basically that Kevin Rudd’s time was nearly up, essentially. So, it’s fine to have bipartisan support, but if it’s not in the national interest, the government’s got to be nimble on that, doesn’t it?
LEIGH:
I think Kevin Rudd is as nimble as they come when it comes to diplomacy and extraordinarily energetic to boost. He’s also somebody who understands the importance of relationships. You saw that during his time as Prime Minister and Foreign Minister. You can see that in the work that he’s done post politics. He has great networks across Washington, D.C. and he’ll continue to deploy those for Australia’s national interests.
GILBERT:
Ok, we’ll see if the Trump administration opened the door to him. Certainly, some questions on that. But I want to ask you about the Coles chairman. Were you surprised by him suggesting that Canberra’s been politicising the issue of cost of living, given how much Coles and Woolies have been under pressure, were you surprised by those comments from the chair?
LEIGH:
Not really. I mean, they have been under pressure. They had the wage underpayment scandal last year, then they had the dodgy discount claim that’s being brought against them by the ACCC, suggesting that on tens of millions of occasions, Australian customers were buying products which were inappropriately described as being discounted.
GILBERT:
Are they not recognising the gravity of what’s gone on here?
LEIGH:
It’s up to them to account for what they’re doing. But it’s very clear the chair of the Coles Board will be acting for the shareholders. My role is to make the strong case for families and for farmers, through our Mandatory Food and Grocery Code of Conduct, additional resources for the ACCC for its unit pricing review, the first in 16 years report on the supermarkets by the ACCC and the general work we’re doing on national competition policy and mergers‑
GILBERT:
And so, you’ll crack on regardless of the rhetoric from there?
LEIGH:
Absolutely cracking on with competition. Kieran, it’s really important because of the falling competitiveness across the Australian economy we’ve seen over the last couple of decades. And if we can get it right, as the Treasurer has said in his speech today, the Australian economy stands to benefit from somewhere between $2,500 and $7,500 for every Australian household.
GILBERT:
Speaking of a lack of competition, aviation’s a big one. We saw the ACCC this week report capital city airfares are up again due to the administration – Rex going into administration. Is this just the reality, given our population and the size of this continent, that capital city airfares are a problem and that we just don’t have enough competition, that they’re not viable to have more domestic airlines?
LEIGH:
Well, more competition is good for consumers, and I don’t think there’s any area where it’s truer than in aviation, the work the Competition Taskforce in Treasury did…
GILBERT:
Is the market there, though? That’s the question. Can it accommodate a third significant player?
LEIGH:
It has always been challenging for an additional player to enter that market, particularly given that the largest airline has a budget brand in Jetstar. But we’re working to create those opportunities through the work that Catherine King’s done on the Sydney Slot Review. The opening of Western Sydney International Airport; it’s going to make a difference there as well. And then you’ve got the work that Minister King is doing through the Aviation White Paper on a European style flyers’ bill of rights. There’s a range of important reforms going on to get flyers a better deal.
GILBERT:
Assistant Minister for Competition, Charities and Treasury, Andrew Leigh. Thanks. Appreciate it.
LEIGH:
Thanks, Kieran.