BENSON:
David Bradbury, there is a universal expectation that the Reserve Bank will drop interest rates today. The question mark is how much will be passed on by the banks. Obviously you want to see one hundred per cent passed on.
BRADBURY:
Well look, that is certainly the position that our Government has had and I think if you look at the various data that is available, whether it be information that has been provided by the Reserve Bank itself or indeed some of the recent profit figures, no doubt there will be more profit figures being released in the next couple of days. We can see that there is a very strong case for the banks to be passing through the full extent of any movements in the cash rate. But of course we don't prejudge decisions of the reserve bank that's been very standard rock solid policy of this government, obviously there is a lot of interest and focus on the reserve banks activity that they need today.
BENSON:
You don't prejudge the Reserve Bank but you do lean on the commercial banks and they have been ignoring that pressure to an increasing extent recently and taking their own line regardless of what the Reserve Bank has done, the Opposition's been critical of the Government for not carrying enough clout with the banks.
BRADBURY:
Well look, we have always taken, I think, a very balanced position on this and that is we acknowledge that there have, since the Global Financial Crisis, been increases to the funding costs that banks face. But it's one thing to acknowledge an increase in funding costs, it is another thing to give a permanent and automatic green light to the private banks to simply pocket some of those cuts in the cash rate. What we have always said is that it is most important that we continue to hold the banks to account, particularly where there is evidence, there is evidence in the form of statements from the Reserve Bank and indeed the analysis positions of the banks to indicate that the funding costs situation has started to improve particularly this year and in that context we are looking to impose a considerable scrutiny if you like on the decisions that banks take in relation to their own interest rates.
BENSON:
Can I move onto the Budget because that is only a week away today and there was an additional impost on the Budget announced by the Prime Minister yesterday with the accelerated introduction of the National Disability Insurance Scheme, a very expensive scheme, a very worthwhile scheme in the eyes of many, how much are you going to have to set aside in this Budget for that scheme?
BRADBURY:
Well look I'm not going to get into the detail of how much money is to be made in specific allocations under this Budget, but rest assured that the commitments that have been announced will be revealed as part of the Budget process. But certainly our commitment to a National Disability Insurance Scheme in the context of a difficult Budget, a Budget where we are returning to surplus really does illustrate that, emphasises the focus of the philosophy that has underpinned our approach to this Budget. We understand that there are some tough decisions that are required and you don't bring the Budget to surplus in the current circumstances without taking some tough decisions. But this will be a Labor Budget, it will be a Budget that will be focused on delivering support for those who need it most, about ensuring that we provide opportunities for all Australians that is very much in keeping our traditional Labor values.
BENSON:
There are hopes being expressed in Labour circles that the Budget will provide some sort of bounce in public opinion for the Labour Party, for the Government and certainly seems like you need one, your standing in the Newspoll released today put you in record lows of just 27 per cent your primary vote compared to 51 per cent for the Coalition a record high. Do those numbers surprise you?
BRADBURY:
Look, I think that we have had to stand up to the mark and take some difficult decisions. They aren't always popular but they are the right decisions and we will keep living down the path of implementing them, where many other Governments around the world are failing to take those decisions that are needed to secure the economy for the future.
BENSON:
David Bradbury, thank you very much.
BRADBURY:
Good to talk to you.