Ross Solly:
Well, let’s go to Andrew Leigh because we want to talk to him about the fuel situation et cetera. But a couple of people earlier on said, is there anything the Commonwealth can do to help us fast‑track a better stadium? And I know Andrew Leigh loves his sport. Andrew Leigh, good morning to you.
Andrew Leigh:
Good morning Ross, great to be with you.
Solly:
And you as well. I know we want to talk about fuel and budgets and stuff like that, but just on the stadium – you’ve been there a few times. It bubbled over again last night. The opposing coach broke his hand – broke his hand, cut his hand on a window. There are leaky change rooms. The tunnels are leaking everywhere. It is a bit of an embarrassment, isn’t it?
Leigh:
Well, the infrastructure spend from the Commonwealth government to the ACT is at record levels Ross. We have projects right across the ACT – a lot of cranes in the sky. You think about the National Security Precinct, the work going on with the War Memorial, the work going on with light rail. There are significant infrastructure projects and we’re always guided by the ACT government in terms of those priorities. So we’ll work with the ACT government.
Solly:
And has the stadium been put forward as a priority or not?
Leigh:
Look, I think there’s been a number of discussions over different models for the stadium. That’s an ongoing conversation. But in terms of the commitment from the federal government to ACT infrastructure, it is at record levels. Certainly very different from that Liberal period in which we were getting a fifth of our fair share of infrastructure spending. There is a lot of infrastructure spending going into the ACT. And we’ll work with the ACT government on all that full range of priorities.
Solly:
Let’s talk about petrol and the announcements yesterday with the new tsar being put in place and then there will be specially designated tsars or mini tsars, I guess, in every other state and territory. I don’t know who’s been given the job here in the ACT. You don’t have that information do you, Andrew Leigh? We’ll get one here in the ACT, will we?
Leigh:
I don’t have that specific for the ACT. I do know that there’s going to be heightened oversight of the fuel supply chain. We don’t have any situation where ships aren’t getting through to Australia. People should feel reassured that the ships are coming through with oil as usual. We have as much oil in Australia as we did before the spike in global oil prices and the closure of the Strait of Hormuz.
Solly:
Right.
Leigh:
But we have seen that big increase in global oil price up some 90 per cent since January. So, that’s obviously flowing through the prices at the bowser.
Solly:
Yeah. Well, yes but I mean, everybody saying, ‘Well, how’s that work out?’ Because a lot of the petrol – a lot of the prices went up in the days immediately after. The ACCC says that they will come down hard. Andrew Leigh, you’re the Assistant Minister for Competition. Will they come down hard and when will they come down hard? Because I think a lot of motorists, a lot of people out there would like to see them start to crack the whip around about now. Because if we are being ripped off by petrol and you know, people are texting this morning saying that’s costing them over 100 bucks to fill up their cars. When will they start cracking down?
Leigh:
Well yesterday Ross, they made a very unusual announcement that they’d begun an enforcement investigation. Normally the competition watchdog wouldn’t announce an enforcement investigation, but in this case they said they had. That’s into Ampol, BP, Mobil and Viva Energy and it’s concerning diesel availability to independent wholesalers and distributors serving regional and rural Australia. So, that I think demonstrates very clearly that we have a strong competition enforcer. We’ve obviously…
Solly:
Do we – I mean, it’s one thing to talk the talk, but what about walk the walk? Andrew Leigh, when are we going to see it?
Leigh:
Well, we increased the penalties for anti‑competitive conduct when we came to office, Ross. The maximum penalty used to be $10 million. We took it up to $50 million. Now we’ve announced we’re going to take it up to $100 million. So, that’ll be a tenfold increase in the maximum penalties for competition rip‑offs.
That’s because this government has a powerful competition agenda. We’ve done the biggest overhaul of merger laws in 50 years. Put national competition and policy back on track, working with the states and territories. We’ve been working to engage in improved supermarket competition by cracking down on price gouging and putting in place the mandatory Food and Grocery Code of Conduct.
Solly:
Do you agree Andrew Leigh, that since this broke out, it does seem that motorists have been ripped off a little bit? There has been some price gouging going on?
Leigh:
Look, I’m very concerned by the action that the ACCC has brought or the enforcement investigation. I think it’s concerning stuff, and if they’re found to have been doing the wrong thing, they should have the book thrown at them.
Solly:
All right. Let’s just talk about – there’s a story running in the ABC News this morning that there’s been discussions at a government level of introducing a windfall tax on gas companies because of all the extraordinary profits they’re making. Have you been part of that discussion? Can you confirm that that is on the table right now Andrew Leigh?
Leigh:
Look we’re in the budget season Ross, and so of course we’re in the budget speculation season.
Solly:
Does that make – does it make sense to you though? Does it make sense to you that if they’re raking in huge profits, what a great opportunity to tap into some of that?
Leigh:
Well, what we’ve done through the changes to the Petroleum Resource Rent Tax is ensure that the west coast gas projects pay petroleum rent tax this decade rather than next decade. Under the settings we had under the former Coalition governments, those west coast projects would not have been paying any PRRT until the 2030s. Under the changes that we have put in place, that makes a big difference and sees huge amounts flowing through to the Budget bottom line.
Solly:
But a windfall tax would be extra though, wouldn’t it? That would be an extra bonus?
Leigh:
There’s going to be a range of speculation across a whole host of things over the coming weeks Ross. The Budget isn’t until May and so we’ve still got the rest of March and all of April for the budget speculation process. I’m involved in a range of initiatives leading into the Budget as you’d expect with responsibilities for productivity and competition. All of that exciting news will be revealed by the Treasurer on Budget night.
Solly:
Alright. The Treasurer did have a speech yesterday where he did say that this was going to be an ambitious budget and he’s talking about a chance for fiscal reform. Can you give a guarantee this morning Andrew Leigh, to our listeners that public service jobs won’t be cut as part of that fiscal reform?
Leigh:
Look, what we’ve seen is significant insourcing of work that was sent out at a higher cost to consultants and contractors. That’s meant better public services for Australians, and it’s also meant that there are more jobs available.
Solly:
So you’re pretty certain there won’t be? That public service jobs won’t be in the firing line if we are tightening up the budget?
Leigh:
Look, I don’t think that’s the way in which this government operates Ross. The way in which we’ve operated has been engaging constructively and positively with public servants. The new stewardship value has been important.
I was at the APS Data Awards the other day for the data awards profession, which is a cross‑cutting profession bringing together data boffins across a whole host of agencies. There’s been a range of ways in which we have worked constructively with the public service in a way in which the former government never did. And don’t forget the last election was about whether 40 per cent of Canberra’s public servants would be fired under the Coalition’s policies.
Solly:
Alright. Andrew Leigh, I know you were hoping that the announcements yesterday would maybe have seen petrol stations maybe just winding back their price rises, but Helen’s just called in. Good morning, Helen.
Caller:
Good morning Ross, how are you doing?
Solly:
Yeah, good. What have you seen this morning?
Caller:
Good morning Assistant Minister. So I looked at the petrol prices about an hour ago before I left home and it was – I saw around about, there was a petrol station for $2.36 and I’ve just arrived at the petrol station and it’s $2.46.
Solly:
So it’s jacked up 10 cents in a couple…
Caller:
Yeah. So, there was a queue of cars at every single bowser. So, they’ve got double bowsers. And then there were at least 2 cars queuing at every single line.
Solly:
Right.
Caller:
And they’ve jacked. Well, I reckon they jacked the prices up because it got busy.
Solly:
Alright. Yeah okay, thanks. Thanks Helen. Andrew Leigh, I guess you didn’t want to hear that?
Leigh:
Yeah, we’ve certainly got that enforcement power in place from the competition watchdog, and we’re calling very strongly on fuel stations not to be taking advantage of motorists.
Solly:
I don’t think they’re listening to you Andrew. I hate to say this, but I don’t know that they’re listening?
Leigh:
Well, we have record penalties in place Ross. We have a strong competition enforcer, there are on the spot fines available and there is also significant work being done by the competition watchdog.
Solly:
All right, let’s see them do it and let’s see them trumpet some of those on the spot fines, because I reckon that might send a bit of a shot across the bow for some of these petrol stations. Maybe just follow up some of the words with some actions possibly. Andrew Leigh, we need to leave it there. Thanks for your time this morning.
Leigh:
Thanks Ross. And a final shout out if I may, for the Celebrate Gungahlin Festival in Gungahlin Town Square on Saturday. It’d be lovely to see Gungahlin and non‑Gungahlin residents alike joining in.
Solly:
All right. Good shout out Andrew Leigh. There you go. Andrew Leigh, the Member for Fenner and Assistant Minister for Competition.