SUBJECTS: Barnaby Joyce, Home Insulation Program, Stern Hu case, interest rates.
MARIUS BENSON:
Chris Bowen, there have been a few topics in Parliament this week: emissions trading and yesterday the shortcomings of the Government's home insulation program, but I suppose it's obvious the Government's topic – your preferred topic – is economic management. You particularly like talking about Barnaby Joyce.
CHRIS BOWEN:
Well, Barnaby Joyce is a significant risk for the Australian economy and that is a very appropriate subject for both Parliament and national discussion. This is now a daily event. It's not a weekly event; an erratic or dangerous statement from Barnaby Joyce is now a daily event. It's not good enough for the Liberal Party to send Joe Hockey out to clean up the mess on each occasion.
This is the second most senior economic spokesperson in the Government, and when he makes dangerous and erratic comments – whether it be about breaking up banks, whether it be about anti-foreign investment, whether it be about Australia defaulting on its debt – it does two things. It shows a fundamental lack of basic understanding of economics and it shows what a bad Finance Minister he would be, how dangerous and erratic he would be.
These sorts of risks to Australia's reputation are manageable while he's Shadow Finance Minister but if he made those sorts of comments when he was Finance Minister, the Australian financial markets would have gone into meltdown and the Australian economy could have been very severely affected.
BENSON:
Okay, look, Barnaby Joyce is the Government's favourite topic. Probably the least favourite today is home insulation because the Government now has to spend $50 million or so to ensure the safety of about nearly 50,000 houses. In fact, those numbers seem to be flying around in some confusion. Is the Government spending $50 million, as some reports say, or $19 million as others say?
BOWEN:
Well, of course our first priority here is safety. The Minister has acted very quickly on advice to deal with the safety issues and the costings, as I understand it, the cost of this program will be met under the total envelope of the insulation program. I'm not aware of the detailed costings of this. Our priority has been in relation to safety and the Minister has acted on this occasion, as he has throughout the entire process, swiftly on the basis of expert advice.
BENSON:
But you say he acted immediately. He got advice but there are reports again today that say the advice went to him in April that this method of installation carried the risk of fires.
BOWEN:
Well, the important point is that this method of insulation – foil insulation, its method of installation – met both the Australian Standard and the Building Code. Now, for the Minister to intervene to overturn, if you like, the Australian Standard, to go higher than the Australian Standard, would only be appropriate on expert advice. He sought and has received that expert advice.
Now, this is my challenge for Greg Hunt and the Opposition: can they say objectively and honestly, with the information before Peter Garrett at any point in the process, can they honestly say, without the benefit of hindsight, that they would have made any different decisions? If they are being fair dinkum, I don't believe they can say that.
BENSON:
But can't the general point be made that this is what happens when you throw the $42 billion at the economy without enough consideration. You just turn, in this case, the insulation industry into a honey pot for every shonk and carpetbagger in the country.
BOWEN:
Well, there's been a million homes insulated across Australia under this program. That's done two things: it's significantly stimulated that sector of the economy; it's also resulted in significant energy savings for many hundreds of thousands of Australians.
BENSON:
Chris Bowen, can I ask you about two other issues that are in the news this morning? Stern Hu, the Australian businessman who's been jailed in China, has now been formally charged. Will the Australian Government be offering assistance to him in the legal proceedings ahead?
BOWEN:
I understand he does have legal assistance in the proceedings. He has legal representation and I understand embassy officials have been in contact with those legal officials. Of course, we would hope that this matter gets resolved as quickly as possible, as we have said all the way through.
BENSON:
Does the Australian Government have faith in China's legal system?
BOWEN:
Well, of course, China is a sovereign nation. They have their own legal system. We'll be working within that legal system with his representatives to ensure he gets whatever assistance is necessary and appropriate from the Government.
BENSON:
And finally, can I ask you – the Commonwealth Bank has indicated that interest rates may have to go up above the official rate increases that lie ahead, or are expected to lie ahead. Do you believe the market forces on money supply now justify banks putting their rates up above any official rate rises?
BOWEN:
No, I don't, and that's not the Government's position. We've made that crystal clear, publicly and privately, to the banks. We expect the banks to pass on the Reserve Bank decisions but no more, and indeed, we think the banks need to take a very good look at their pricing practices and ensure that their customers are getting a fair go.
BENSON:
Chris Bowen, thanks very much.
BOWEN:
Great pleasure, Marius.