KARL STEFANOVIC:
How are you, Treasurer?
CHALMERS:
I'm okay, thanks Karl. How are you?
STEFANOVIC:
Pretty good. Will China lift tariffs by the time the PM goes there in October?
CHALMERS:
We've seen some good progress already on this front, I think, Karl, and I pay tribute to Don Farrell and Penny Wong and the PM. What we've said really for our whole 12 months in office is you've got a better chance of stabilising this relationship if you engage and we've got a lot to gain from a region which is peaceful and prosperous and stable and secure and that's why our efforts are directed at stabilising the relationship and engaging and trying to get these trade restrictions lifted in the interests of our employers and exporters.
STEFANOVIC:
At the same time as you've been greasing up to them from a diplomatic point of view, news today we'll be making our own long range missiles to oppose any Chinese threat. How do you think that'll go down in Beijing?
CHALMERS:
I think everybody understands that each country makes its own decisions about its own defence investments and in the last month or two, I think we've made it really clear that we do intend to invest in our defence, countries expect that of each other, and we're no different.
STEFANOVIC:
When will we start making them? And where?
CHALMERS:
I think there's a whole bunch of work to happen now that we've announced the response to the Defence Strategic Review, and obviously, the AUKUS arrangements as well. There's a heap of industrial considerations but we've said here are our priorities, here's how we're going to fund it and these are our objectives. I think that's important and a lot of work now happens.
STEFANOVIC:
Okay, you've had a year in office now to get inflation under control but in many sectors, it's not under control is it?
CHALMERS:
Oh look, it's higher than we'd like, it's unacceptably high - inflation - but it's moderating. We think it peaked around Christmas time. But it'll be higher than we'd like for longer than we like, that's why the Budget was about providing some cost‑of‑living relief for people at the same time as we don't add to this inflation challenge in our economy. There's no question people are under the pump, it's a big reason why we're pleased that we're getting wages moving again in our economy, we're proud that we're able to provide a bit of help in the Budget but we know that people are doing it tough because prices are higher than we'd like.
STEFANOVIC:
The Telegraph says this morning some basic goods - tuna, tomato, meat - have gone up between 30 and 40 per cent.
CHALMERS:
Yes, and that's a combination of a number of things. Partly our supply chains are not as robust and strong as they should be. We've had some big weather events, of course, over the course of the last year or so, we've got some of these international factors playing out too. But grocery prices, as well as energy, obviously rent, and some other areas are areas of concern to the government. That's why our agenda is so focused on getting wages going again, providing a bit of cost‑of‑living help, particularly when it comes to rent and energy prices.
STEFANOVIC:
Well, that's it, isn't it? The rental crisis isn't fixed either, interest rates haven't even really even stabilised at this point, so it doesn't bode well for the future and in your Budget you said that it would get inflation under control or at least head that way. I'm not sure we're seeing it on the ground yet.
CHALMERS:
Well, first of all, the Budget was handed down the week before last. But secondly, inflation is moderating but I don't want to pretend that it's moderating as quickly as your viewers would like to see or that I would like to see, frankly. We need to get inflation down, we need to get wages up so that people who work hard can provide -
STEFANOVIC:
Don't you play a significant role in that though with government spending?
CHALMERS:
It's one of the considerations, but it's not the only consideration and when the Reserve Bank sits down to work out interest rates, they factor in a whole bunch of things, including the global environment.
STEFANOVIC:
All right, long range missiles, any chance that they can be ready for Origin in a week and a half? New South Wales have a good side.
CHALMERS:
They do have a good side but they've typically had a good side since 1980, Karl, and it hasn't prevented us from getting over the top of them.
STEFANOVIC:
There you go - fighting words from the Treasurer. Appreciate your time today. Thank you.
CHALMERS:
Thanks Karl.