Jim Chalmers:
We’ve seen very encouraging inflation numbers this week. They are a powerful demonstration of the progress that Australians are making together in our economy. We’ve got inflation down substantially, we’ve got real wages growing again, we’ve got the lowest average unemployment of any government in the last 50 years, we’ve got the debt down, we’ve got 2 interest rate cuts already this year providing welcome rate relief for millions of Australians with a mortgage but we know that there is more work to do. We know there’s still global economic uncertainty. Growth in our economy is soft, we’ve got persistent structural issues that we are working very hard to address, and we know that people are still under pressure. Even with this progress we’ve made together on inflation, Australians are still under pressure and that’s why the cost‑of‑living relief, which we are rolling out, which we are delivering from this month, is so important.
Helping people with cheaper medicines, increase to award wages, energy bill rebates, paid prac, student debt relief, these have been the big priorities of the first parliamentary fortnight because we know that even with this progress Australians have made on inflation, we know people are still under pressure, that’s why the cost‑of‑living help is so important. We also know that at a time of global economic uncertainty, at a time where we’ve had persistent structural issues in our economy, that that will increasingly be the focus.
And that’s what the Economic Reform Roundtable next month will be all about, making our economy more productive, more resilient, and our budget more sustainable. Those are the 3 priorities for the Economic Reform Roundtable. I’ve been absolutely delighted with the engagement so far. We are engaging every day in the lead up to this Economic Reform Roundtable. I’m very grateful to the hundreds of Australians who have made a submission for us to consider. We don’t expect there to be unanimous views at the Economic Reform Roundtable. It will be pointless if everyone’s view was already unanimous to bring people together. It’s all about trying to build consensus around the directions that we take together as Australians to try and deal with these big, persistent structural issues in our economy, to make it more productive and resilient and to make our budget more sustainable at the same time.
This is a government that works through issues in a considered and methodical and consultative way. And here the contrast couldn’t be clearer with our opponents. Our opponents are absolutely tearing themselves apart. They haven’t listened, they haven’t learned. Whether it’s net zero, cuts to housing, opposition to cost‑of‑living relief, they haven’t changed a bit, they haven’t listened to what Australians told them on the 3rd of May. They haven’t learned and they’re absolutely tearing themselves apart.
We won’t be distracted or deterred by an opposition which is engaged once again in another nuclear meltdown. We’re getting on with the job of delivering lower inflation, low unemployment, real wages growth and dealing with structural issues in our economy at the same time.
Journalist:
Treasurer, some breaking news. Canada has just said that come September it’s going to the direct [inaudible]. Is Australia going to move with like minded countries?
Chalmers:
I think Australian recognition of a state of Palestine is a matter of when, not if, and I personally welcome the momentum, the progress that’s being made in the international community towards the recognition of the State of Palestine.
This momentum, this progress is welcome, but it’s also conditional. We need to make sure that we overcome some of the obstacles and barriers to the recognition of a state of Palestine, whether it’s the release of the hostages, making sure that there is absolutely no role for Hamas in the future leadership of Palestine. Those are the issues that we are working through.
Journalist:
Are we looking like September that we will do the same?
Chalmers:
I’m not going to put a timeframe on it from an Australian point of view, and nor did the Prime Minister yesterday in his press conference about this. It’s a matter of when, not if Australia recognises the state of Palestine. That momentum, that progress in the international community is welcome but it’s conditional. We need to see the release of the hostages. We need to make sure that there’s no role for Hamas in the future leadership of Palestine.
Now the reason that statement that was released yesterday by the 15 countries was so important is because it did 3 things. First of all, it condemned the terrorist act of 7 October. Secondly, it demanded a ceasefire, the release of hostages and also access for humanitarian aid. And thirdly, it encouraged the international community to work through the issues that get us to recognition as part of a two-state solution.
The reason a two-state solution is so important is because every Israeli and Palestinian family on both sides of this conflict deserve to be able to raise their kids in peace, and that’s what we’re all about here.
Journalist:
Did the Canadian Prime Minister speak to anyone in the Australian Government overnight before announcing this decision?
Chalmers:
I’m not aware of that and obviously I haven’t spoken yet to the Foreign Minister for the Prime Minister about that. We engage with Canadian friends all of the time and those discussions, you’d have to ask the other colleagues about any of those sorts of discussions.
Journalist:
Just one on closing the gap. The statistics are going backwards in most categories and it’s looking particularly bad for kids in the Northern Territory. Should the federal government now consider intervening or cutting funding to the NT over their draconian justice measures?
Chalmers:
Well progress is being made in some areas but not enough. We need to acknowledge when we see these numbers that even with all of this goodwill, even with all of these resources we’re not making enough progress. We’re making some progress but not enough progress.
Malarndirri McCarthy has been out speaking about it or is about to be out speaking about these issues this morning and so I refer you to her comments. But from the government’s point of view, we can always do more, and we can always do better.
Journalist:
But should you intervene in the NT?
Chalmers:
Obviously that language there is very loaded in the context of the Northern Territory and the communities in the Northern Territory. Our role is to work through Malarndirri McCarthy, through the stakeholder groups and the communities to do what we can to turn things around.
Journalist:
Just on the economy and the productivity roundtable, in terms of the, there’s a push from businesses today, employers, to try to get workers to bargain away their penalty rates in exchange for work‑from‑home rights. Where does the government stand on potentially legislating to protect work‑from‑home rights?
Chalmers:
I’m a big supporter of work from home. I think it’s got an important role to play in our economy within reason. It doesn’t work for every industry. But it works for a lot of industries and most importantly it works for a lot of families. I see work from home broadly as a force for good. It’s not the first time that businesses have made that suggestion. Obviously there’s a range of views about work from home, but I see it as a force for good and I want to make it easier, not harder for people to work from home.
Journalist:
It is pertinent though because you have just protected penalty rates in law. Would you protect work‑from‑home rights in law?
Chalmers:
Well that would be a matter for consideration but it’s not something that we’re focussed on right now. Our job in the election campaign was to protect work from home. Our opponents at one stage wanted to work towards ending it. We have a position on work from home which is supportive. We know it doesn’t work in every industry. We know that you have to work through the industrial relations issues that come along with it but we want to make it easier for families to be great workers and that’s what this is about.
Journalist:
Just on the tariffs, when are you expecting that you’ll hear from the Trump administration and what the baseline tariff for Australia will be?
Chalmers:
Well our assumption and our understanding is that we’ve got the 10 per cent, which is the lowest in the world. Obviously we’re aware of comments that have been made about that by President Trump as well as comments made about tariffs on India and other developments this week. We’ll continue to work with the Americans to engage with them in our usual methodical, considered way to speak up for and stand up for Australian industries and Australian workers. That’s been our approach all along and that will continue to be our approach.
I better go. Thanks very much.