Emma Rebellato:
Look, there is a lot to get through, but I want to start first up with the flood emergency. You’re from Queensland. It must be pretty tough for a lot of people right now, and you would know, being from Queensland.
Jim Chalmers:
Hearts go out to the people in affected communities in a really wonderful part of Queensland and also in the Northern Territory. Minister McBain is on her way to the Northern Territory right now as I understand it to visit the affected areas in and around Katherine. We’ve activated support for 49 local government areas in Queensland and also in the Northern Territory as well.
In difficult times like this Queenslanders and people from the Northern Territory are typically there for each other and we want them to know that the federal government is there for them as well. We’ll continue to monitor the situation in the usual way and we hope and ask that people continue to follow the advice.
Rebellato:
Treasurer, people right across the country are really worried at the moment about what’s going on in the Middle East. We’re seeing panic buying of fuel, Australians are telling us they’re just pretty scared of what’s to come. If this war does drag on, what are we likely to see with the economy here in Australia? What should we be preparing for?
Chalmers:
Well, I understand that people are worried about this. I can assure people that we have enough fuel in total and where there are issues in particular regional areas or different pockets of Australia, we work closely with the industry and the ACCC to try and ensure supply to those areas.
We’ve seen some good developments on international markets, the International Energy Agency coordinating the release of millions of barrels of fuel and that’s a good development as well.
Yesterday, we made a number of announcements about doubling the penalties for petrol retailers who do the wrong thing, more surveillance on these price spikes, and also making sure that the ACCC and the industry can coordinate their efforts where there are these supply chain issues.
We’re taking a number of important steps which recognise that people are concerned about this, primarily about the impact on petrol prices at the bowser. We know that there’s broader concern as well, obviously we share that concern about developments in the Middle East flowing through to our own economy. We won’t be immune from these developments, but we are incredibly well‑placed as a country and as an economy to deal with the worst the world can throw at us.
Rebellato:
Are you reconsidering a cut to the fuel excise?
Chalmers:
It’s not something that we’ve been considering. Obviously, we have been working through a whole bunch of other options. We meet daily, and here I want to really commend the work of the PM, but also Minister Bowen and other Ministers, because we have been coordinating our efforts daily, that’s how we made those important announcements yesterday, working with the ACCC.
I spoke to the Chair of the ACCC Gina Cass‑Gottlieb before 6 o’clock this morning, we had a discussion about where things are up to. So, there’s a lot of work going on. Obviously, we think through all of the contingencies and all of the various scenarios but we haven’t been considering that change that you’ve asked me about.
Rebellato:
Okay, and those scenarios, do they include the possibility of interest rates going up next week, and of inflation possibly inching towards 5 per cent?
Chalmers:
Well, there are good reasons why Treasurers don’t predict or pre‑empt decisions taken independently by the Reserve Bank.
Rebellato:
Yes, but clearly, you’d be preparing for things, right? You have to prepare for different scenarios.
Chalmers:
Well, that’s not something that we talk about for good reason, as I said. But on the other part of your question about inflation, we acknowledge that we had an inflation challenge before the dramatic escalation of hostilities in the Middle East, but that escalation, that conflict, will put additional upward pressure on inflation; we’ve been very upfront about that, we’re already seeing that in petrol prices and we’ll see it in other parts of our economy as well, to be blunt about it.
And so, this conflict in the Middle East is already putting additional pressure on Australians, we understand that, that’s why we’re taking action in petrol markets, it’s why we’re cracking down on the petrol retailers, and it’s also why the cost‑of‑living help that we’re rolling out already is so important – whether it’s cheaper medicines or more bulk billing or student debt relief or the tax cuts already in the system with 2 more to come, getting wages growing again, all of those things are about recognising that people are under pressure. The conflict in the Middle East makes that worse rather than better, we understand that, and these will be some of the key considerations as we work towards the Budget in May.
Rebellato:
Treasurer, just before I let you go, former ASIO boss Dennis Richardson has quit from his role on the Royal Commission into Antisemitism and Social Cohesion. Why?
Chalmers:
I’ve seen those reports. I was really sad to learn of that development. I think the world of Dennis Richardson. He’s an absolutely outstanding Australian with a lot of knowledge and experience in this area and so I was sad to hear it to be honest.
Rebellato:
But do we know why? Have you heard a reason why he’s gone?
Chalmers:
I’ve only seen the reports so far, I haven’t had a chance to talk with Dennis. Ultimately, it’s a matter for him and for the Royal Commission. No doubt he’s already provided some important insights and they’ll be valuable as the Royal Commission does its work. But I’ve only seen the reports, I haven’t spoken to Dennis. From a personal point of view I was sad to hear it because he is a person of such immense experience and knowledge and hopefully we’ve been able to tap some of that before this development.
Rebellato:
Okay. Treasurer Jim Chalmers, thanks for your time this morning.
Chalmers:
Thanks very much, Emma.