BROOKE BONEY:
Acting Prime Minister and Treasurer Jim Chalmers joins us now in Byron Bay. Treasurer, good morning to you. Aussies spent big over Christmas, but it means interest rates are likely to go up again. Will you put pressure on the RBA to slow this down?
JIM CHALMERS:
Good morning and to all your viewers. No, that’s not really the role of the Treasurer to second‑guess or pre‑empt the decisions that the independent Reserve Bank may take into the future. My job is to do what I can to provide cost‑of‑living relief in a responsible way that doesn’t add to this inflation problem that we’ve got in the economy. So, that’s my focus. The Reserve Bank will do their thing. Obviously, Australians are under a lot of pressure for a range of reasons. The war in Ukraine has been pushing up energy prices. Natural disasters have had an impact on the cost of groceries as well and so the Government is focused on those things. The independent Reserve Bank will do its job separate to us.
ALEX CULLEN:
Let’s talk about those natural disasters, Jim. Last year the floods cost the economy $5 billion, that’s billion with a ‘b’. The rebuild cost towns like Lismore - just terrible - people still homeless in Lismore and surrounds. What is the Government’s position on putting an end to building on floodplains?
CHALMERS:
We will be spending some time with Murray Watt, the relevant minister, and people and communities in and around Lismore and northern New South Wales today to check in on the rebuild and some of these sorts of issues, but one of the things that we are prepared to do – we’ve said so already – is we will work with the New South Wales Government. When it comes to people rebuilding their houses, if they don’t want to rebuild in some of these particularly flood‑prone areas, then we will come to the party and help out there – so there’s a fund for that purpose.
But really more broadly that cost you mentioned to the economy is important, but it doesn’t fully capture the full impact on communities impacted by these natural disasters. One of the stunning things that we’ve discovered is something like seven in every ten Australians lived in a natural disaster‑declared area in 2022. Our friends in WA and South Australia are going through it right now. So, these natural disasters are becoming more frequent. We’re focused on the human cost and the cost to communities, but there’s a big cost to the economy and the budget as well.
CULLEN:
Jim, can you give us some positive news, please. It’s the start of 2023. Interest rates are going to go up again. What are you doing to help? What are you doing to make it affordable for families as 2023 begins?
CHALMERS:
What we’ve said already is that we will have some energy bill relief coming in, working closely with the states. I’ve been working on that over the course of the last couple of weeks. So, there will be cost‑of‑living relief when it comes to energy bills. We’ll have our cheaper childcare coming in July. We’ll have a pay rise for aged‑care workers coming in this year as well, but more broadly, one of the reasons why I’m optimistic about the future of our economy and the future of our country is that we do have a lot going for us. We’ve got low unemployment. We’re seeing the beginnings of wages growth. We’re getting good prices for what we sell the world. But we need to make sure that while we’re optimistic about our own prospects and about the future, we need to be realistic about what’s happening in the global economy as well. We won’t be completely immune from that in 2023 but we’ve got a lot of advantages.
BONEY:
Treasurer, I wanted to get your take on one of the stories we’ve been following this morning about the Nazi scandal facing the New South Wales Premier. He’s fessed up to wearing a Nazi costume 20 years ago. You’ve been in politics a long time. How do you feel about leaks from within the same party, obviously designed to undermine the leader?
CHALMERS:
Obviously, the New South Wales Liberal Party is deeply divided. The fact that this has come from Premier Perrottet’s own ranks I think is a bit of a signal and a bit of a symbol that the Liberals in New South Wales have been in government for a really long time now and it’s time for a change, and Chris Minns would make a remarkable Premier of this great State. And so, obviously, that is one of the conclusions to draw from this. But more broadly we want New South Wales and Australia to be more inclusive and more tolerant – not less. The people of New South Wales will have an opportunity to express their view on this in March in the same way the people of Australia had an opportunity last May.
CULLEN:
Treasurer, many would say this happened 20 years ago; we all make mistakes as 21‑year‑olds. What do you say to that? What do you say to those people?
CHALMERS:
It’s up to the Premier to explain the circumstances around this. My focus is on the impact on communities, whether it be the Jewish community, returned services people, but people more broadly who genuinely want to see, as I do, communities and states and a country like ours to be more tolerant and more inclusive – not less. I think in that regard this is a real shocker and the people of New South Wales can express their view.
CULLEN:
Will he step down, do you think?
CHALMERS:
That’s a matter for him. But again, the New South Wales election is not far away. It’s a matter of weeks away in March, so there will be an important opportunity there. What we saw in May at the national level is people do genuinely want their communities to be more tolerant and more inclusive, not less, and I think this revelation yesterday cuts across that. I think people will take a dim view of it, but it’s a matter for the people of New South Wales to determine their governments. They will determine who is the Premier after March. My preference is obviously clear. I’ve known Chris Minns for a long time and I think he’d make a remarkable Premier of this great State.
BONEY:
Okay, let’s talk about Papua New Guinea now. The Prime Minister making ground there, vowing to sign a security deal by 2023. How do we balance securing those ties without angering China?
CHALMERS:
We’ve got a really big opportunity here to build an even more respectful and meaningful relationship with the people of Papua New Guinea and the neighbourhood beyond that. The Prime Minister’s visit to Papua New Guinea, my discussions with my counterpart last week in Brisbane – this is all about trying to deepen and broaden what is a really important relationship to us. It’s a chance to listen to the Prime Minister of Papua New Guinea, the government and the people about how we can play a role in Papua New Guinea being a more successful, more prosperous country and part of a more peaceful region. We’ve made it really clear since we came to government there’s work to do in the neighbourhood and we’re doing that work and that’s what these discussions are all about.
CULLEN:
All right, Jim, are you going to get a chance to jump in that beach this afternoon any time soon?
BONEY:
It looks lovely, doesn’t it?
CHALMERS:
Not for a while. Maybe later today. Maybe a late arvo swim somewhere along the New South Wales north coast.
CULLEN:
Good on you.
BONEY:
All right. Thanks for being with us, Treasurer.