Stephanie Borys:
Now, the biggest policy news of the day was that the federal government’s subsidy for electricity bills will not be extended into the new year. The subsidy began in 2023 and was twice extended amid cost‑of‑living pressures. Treasurer Jim Chalmers made the announcement while previewing the mid‑year budget update expected later this month.
[Excerpt]
Treasurer Chalmers:
The Commonwealth has spent almost $7 billion on these 3 rounds of energy bill rebates. The states and territories have kicked in another one and a half billion or so. These were a really important way that we provide help with the cost of living, but they’re not the only way that we’re providing that cost of living relief for people who are still doing it tough.
[Excerpt ends]
Borys:
Andrew Leigh is the Assistant Productivity Minister and joins me now. Thanks for coming into the studio.
Andrew Leigh:
Pleasure Stephanie.
Borys:
Now, the government’s made this announcement today. Why? Why can’t it go on any longer?
Leigh:
These were temporary measures, as the Treasurer has said, put in place at a time when inflation was around 8 per cent and before we’d announced our rejigging of the stage 3 tax cuts and the additional 2 tax cuts we’ve delivered to households. We’ve always said they were going to be temporary assistance. As the Treasurer has said, it’s been quite substantial – some $7 billion. But these have always been a temporary measure and we’ve decided, given the fiscal circumstances, it’s appropriate to bring them to an end.
Borys:
While understanding that, what do you say to families that may struggle with their next bill coming through? I appreciate the government’s got energy policies. It’s working to ensure that energy prices come down. But in the short‑term, what do those families do?
Leigh:
We’re always focused on cost‑of‑living relief, and the work we’re doing in the competition space is about that. The work we’re doing around expanding bulk billing, the work we’re doing on cheaper medicines and cheaper childcare, as well as the 20 per cent reduction in student debt. All of that is aimed at taking pressure off Australians at a time when people are indeed feeling the pinch.
Borys:
Now, when could we see power prices come down though? I know Energy Minister Chris Bowen has indicated maybe next year. Like, is that a hopeful or a manageable goal?
Leigh:
Well, we’ve seen the wholesale prices coming down. The challenge is to get that to flow through to consumers. The Solar Sharer Scheme, which will apply to people on the default market offer will see 3 hours of free power in the middle of the day. Really useful for people who are able to time when to put on the dishwasher, charge the car, run a load of laundry. So, all of that is about reducing energy prices. We know that the wind and sun don’t send a bill. So ultimately, that shift towards renewables firmed by batteries will bring those costs down.
Borys:
Now, MYEFO which is the mid‑year economic update for those that don’t follow budgets as closely as you and I do. Expecting it next week, the Treasurer has flagged more difficult decisions in what spaces, what areas?
Leigh:
We know a range of pressures are hitting the budget Stephanie. We know the challenges around the amount we’re spending on veterans and the National Disability Insurance Scheme have been ongoing challenges. We’ve made some big decisions over the course of our last few budgets that have seen 2 budget surpluses and reduced total debt by around $200 billion. There’s a lot of work that we need to do and the fundamentals of the economy are stronger than most other countries around the world. Still, unemployment below 4.5 per cent, still maintaining growth in real wages.
That is to the credit of the Australian people but the budget faces some pressures and the Treasurer has been upfront with the Australian people about that.
Borys:
So keeping in mind those budget pressures, what about travel entitlements for politicians? Anika Wells, we’ve seen a lot of her travel in the media in the past few days. Putting her story specifically aside, what about the general policy? Do you think it passes the pub test that you, as politicians, are entitled to get your kids to travel, your spouse can have business class tickets within Australia. Like we’re in a cost‑of‑living crisis, are they really fair for politicians to have when other people don’t get that opportunity?
Leigh:
Well, Stephanie my perspective on this is as somebody who represents a seat in the Australian Capital Territory. So I have those family reunion entitlements, but I haven’t used them for years. I have the fortune of being able to drive home to my 3 wonderful kids and my wife at the end of the day, but many of my colleagues don’t. And this is a job that is pretty tough on families. You’re seeing increasing attacks on politicians, including death threats. And we see that pressure on families, which is going to drive talented people away from choosing politics if they feel they have to choose between career and family. One of the things the family reunion trips do is try and take off some of that pressure, and that’s why they are a part of the system. If people believe that the rules have been broken, then let’s go to that. If people want to change the system, well be aware that making it less family‑friendly is going to affect who goes into politics and will probably mean fewer talented women choose politics.
Borys:
But there are a lot of private businesses that don’t offer family reunification. Like, there’s a lot of businesses that couldn’t afford this. And I would argue that there are talented, capable women in those roles as well too.
Leigh:
This is a FIFO job, and we know that FIFO jobs put a lot of pressure onto families. Again, it is a much easier job for me representing the ACT, the best city in Australia, than it is for an MP who is representing a regional electorate or Western Australia. I’ve seen the pressures firsthand that that puts on friends and colleagues in the parliament on both sides. The work that’s required on nights and weekends, and what that does to relationships. So, I think we do need to think about systems that ensure that people are able to have careers that bring parents into the parliament. That’s a healthy thing for our decision‑making process. We want our decisions to be made by people with young families, as well as those without children and those with grown‑up children. We want the parliament to represent Australia, and a family‑friendly system is one that encourages that.
Borys:
While Anika Wells’ travel entitlements have fallen within the rules. Do you think that they meet community expectations though?
Leigh:
Look, the Minister has fully transparently reported on this. She has been very clear about the compliance with the rules and I think if people want to change the rules, then let’s have that conversation. But let’s also recognise that there’s been a range of ways in which parliament has become more family‑friendly. We have better sitting hours thanks to Tony Burke. No divisions after 6:30. We have rules which allow people who have young children to breastfeed and to have that taken into account when it comes to divisions. We’ve had a set of rules that have brought more parents with young kids into the parliament. Stepping away from that gives us a less representative parliament and potentially decisions that aren’t as good for the parliament, which now has so many parents of young kids – a really healthy development, as I know many workplaces are finding. Many workplaces are shifting towards greater workplace flexibility because they realise it makes them more productive and it makes their work more in touch with those they seek to serve.
Borys:
Another big story today. There’s quite a lot around being so close to Christmas, the fact that Barnaby Joyce has announced what we’re all sort of expecting – the fact that he would move to One Nation. Do you think that we will see Coalition voters move their vote and move their support to Barnaby Joyce at the next election because of his popularity, because he is well known? Would people tick him instead of someone maybe less known?
Leigh:
Well, Barnaby is the canary in the coal mine. Not just because he squawks a lot but also because he’s indicating the challenges the Coalition is facing right now. The fact is that down in the coal mine, things are indeed dark for the Coalition. They’re down to 43 members and they seem to think that the way of winning more seats is by going further and further to the right. That is marked by Barnaby Joyce going to One Nation. But it’s marked too by the division and dysfunction within the Coalition, including walking away from Scott Morrison’s position on climate change announced in October 2021 where Scott Morrison announced he would support net zero. Now, the Coalition doesn’t back that. So they are in a problematic place and Barnaby Joyce is just another indication of that.
Borys:
One more topic before I let you go. There’s a lot, as I said happening today. The National Reconstruction Fund Corporation today has announced that it’s made a $45 million investment in the Australian biscuit manufacturer, the Arnott’s Group. Why?
Leigh:
The details of that will be up to the Minister. But I know the rules around the National Reconstruction Fund are quite rigorous. They’re focused on improving Australian jobs and productivity. It’s one of the ways we’ve sought to turbocharge productivity after that languishing decade that we inherited from the Coalition.
Borys:
Andrew Leigh, thank you so much for coming in and joining Afternoon Briefing.