JASON DASEY:
We’re joined by Federal Treasurer Jim Chalmers, who’s also the Federal Member for Rankin. Happy New Year, Jim, and welcome to 4BC Summer Drive.
JIM CHALMERS:
And to you, Jason, and thanks for having me on your show. I appreciate it.
DASEY:
Now, we’ll talk about the economy shortly, but I want to get an update from Logan and Rankin – your seat of Rankin – when it comes to the recovery from the festive season weather event. How bad was it? How’s everyone coping down there?
CHALMERS:
Well, we certainly got some heavy weather and a lot of people on the western side of my electorate lost power for some time and particularly a bit further west and a bit further south as well. And so people were unfortunately put through a fair bit of hardship by that heavy weather that we got over Christmas. I think what we’re seeing now – we’re very fortunate for this, very grateful for it – we are seeing a lot of community spirit. But people have been through hard times because of that heavy weather, and unfortunately we’re expecting a bit more heavy weather this afternoon up and down the eastern seaboard of Australia as well. So this time of year is a trying time for a lot of people. And I really want to assure your listeners, Jason, that just as they are there for each other when times are tough, the Albanese Government and, indeed, the Miles government as well, will be there for people as they get through this difficult period and as we work together to rebuild communities.
DASEY:
You mentioned Steven Miles. He’s demanding transparency from supermarkets when it comes to prices. A lot of Aussies are doing it tough on many levels. What’s your take?
CHALMERS:
Well, I think there’s a big chance here for the supermarkets to do the right thing. When the price of meat and fruit and veggies comes down for supermarkets, it should come down for families as well. If the supermarkets are buying it cheaper from farmers they should be selling it cheaper as well – and so a big chance for the big supermarkets to do the right thing. As a government we’re also having a fresh look at the Grocery Code and our competition laws to make sure that they are as robust as they can be. I’m also in regular contact with the ACCC Chair to make sure that we are monitoring prices and if there’s anything more we can do we should be considering that as well. But this is a really important opportunity – a lot of people have been conveying their concern with the fact that they know that meat prices have come off a bit. They know that prices for some fruit and veggies have come off a bit as well. We want to see those savings passed on. People are doing it tough enough as a consequence of pressures, both global and domestic, so when the prices for these things come off for supermarkets to buy from farmers, we want to see the prices come off on the shelves as well.
DASEY:
Yeah, they’re doing it tough for sure, but I understand there won’t be any cash handouts for Aussies doing it tough in the next Federal Budget. Instead, the focus is on rebates easing the financial pain. So what’s your thinking there?
CHALMERS:
First of all, we budgeted for tens of billions of dollars in cost‑of‑living relief in the last budget. That is still rolling out right now. So the big focus is getting that into people’s pockets – whether that’s electricity rebates and the like. But we’ve said we are prepared to consider more cost‑of‑living relief in this year’s May Budget. We know that people are under substantial pressure. No doubt many of your listeners, Jason, are feeling the pressure of this inflation challenge that has been hanging around really for a couple of years now. And so we’ll roll out this cost‑of‑living relief that we’ve already budgeted for. The Prime Minister and I have made it clear that if there’s more that we can do in an affordable way and in a responsible way, we’re prepared to consider that. We’ve also been encouraged by the fact that the Bureau of Statistics has said that some of this cost‑of‑living relief that we’re already rolling out is taking some of the sting out of these price rises. We know that inflation is still too high and people are still under too much pressure, but inflation would be even higher were it not for this cost‑of‑living package that we’re rolling out right now.
DASEY:
We’re speaking to Federal Treasurer Jim Chalmers here on 4BC Summer Drive at 10 minutes to 4. Of course, Jim, we’re all looking ahead to the next meeting of the Reserve Bank in February. How do you expect interest rates to track in 2024?
CHALMERS:
Well, this is one of those situations, Jason, unfortunately, where the Treasurer of this country –
DASEY:
I think we may have lost the Treasurer just now. Oh, you’re back now.
CHALMERS:
Are you there Jason?
DASEY:
Yeah, I can hear you. Go ahead. Yes, so you were saying about the Reserve Bank decision.
CHALMERS:
Yes, I was saying that treasurers of both political persuasions, we don’t typically give predictions or forecasts about future movements in interest rates for good reason. Our job is to focus on where we can make a difference to inflation. That means getting the Budget in much better nick. We’ve already delivered a surplus, we’ve got another one in prospect. We’re all about rolling out that cost‑of‑living relief that you were talking about, also investing in housing and skills and energy and all of these sorts of things. That’s my job. I let the Reserve Bank get on with – get on with doing their job, and I don’t make predictions about future movements in interest rates.
DASEY:
But it is pretty scary, isn’t it, for people waiting for that next potential interest rate hike and having to sort of budget everything we’ve been talking about – you know, groceries and everything else. You know, it is getting more and more challenging for people out there – regular Aussies?
CHALMERS:
There’s no doubt that the interest rates rises which began before the election and continued afterwards, there’s no doubt that they have put a lot of pressure on people with a mortgage. There’s no question about that. At the same time as we’ve had this international uncertainty and we’ve got some domestic pressures as well, and that is making life harder for people. That’s why our biggest priority is rolling out this cost‑of‑living relief and getting on top of this inflation challenge in our economy. It’s still the biggest challenge we have in our economy is the fact that inflation, even though it’s been moderating, it’s been coming off, we want it to moderate further and faster. We’ll get some new numbers later in the week about inflation, which is really about the cost‑of‑living pressure that people are under. That will give us a bit of a sense of how things are tracking. Inflation has been coming off, but not fast enough for our liking, and that’s why it’s our primary focus – this cost‑of‑living help, getting the Budget in better nick and strengthening our economy by investing in things like skills and energy and housing.
DASEY:
Anything else in the Budget coming up in May that we should be looking towards?
CHALMERS:
Well, I think people know that our priority is strengthening the economy. So we do that by getting the energy transformation right, get better at adapting technology and making sure that we’re giving people the skills that they need to prosper in the economy as it evolves over time. So that will be a big focus, of course. Cost of living is always a focus for us. But also trying to get the Budget in as good a nick as we can, not for its own sake but so that we can make room for the things that people really need us to invest in – whether it’s helping people through tough times, whether it’s rebuilding after floods, whether it’s investing in the future of our economy and our people, getting the Budget in much better nick makes it stronger for us to do all of those sorts of things. So strong and responsible budget, an emphasis on people, but also making sure that we maximise the big chances that we have as a country in the years ahead.
DASEY:
And, finally, we are eight days into 2024, Jim. Do you have any New Year’s resolutions? Anything you’re aiming for, for 2024?
CHALMERS:
I think like a lot of people over the Christmas period you decide that you could probably eat a bit better and maybe exercise a bit more. I’d like to read to my kids a bit more – that’s one of my resolutions. But really to try and make the most of the family time when I can get it, but also try and do a really good job for your listeners and the Australian people more broadly.
DASEY:
Well, we really appreciate you finding the time – I know it’s a busy day for you. Federal Treasurer Jim Chalmers, Federal Member for Rankin, thank you so much for joining us and explaining what’s ahead here in 2024 on 4BC Summer Drive.
CHALMERS:
Much appreciated, Jason. All the best to you and all your listeners.
DASEY:
Thank you, Jim.