KARL STEFANOVIC:
Treasurer, good morning to you.
JIM CHALMERS:
Good morning, Karl.
STEFANOVIC:
Your government said it wanted to protect Qantas from competitive forces. How's that going for you now?
CHALMERS:
I'm not sure we put it like that, Karl. But clearly, what we need to do is make sure that we've got a strong aviation sector and that it's as competitive as it can be and that's really the major focus of the work that Catherine King and the Cabinet more broadly is doing. We've got an Aviation Green Paper and White Paper coming out before long. And our focus there is to make sure that the sector can be as strong as it can be so that it delivers good services and good prices for customers.
STEFANOVIC:
Why did Labor and the Greens vote against the Senate inquiry into the Qatar decision last night? Were they running for cover?
CHALMERS:
No, because the decision taken by the Transport Minister in this case is exactly like decisions taken by transport ministers in previous governments of both political persuasions. It's not particularly unusual for ministers to take these kinds of decisions in the national interest. But the important thing to remember, Karl, is that the international aviation sector is actually expanding. There are more opportunities and more flights and more routes and more capacity – and that's a good thing. Decisions are taken by ministers from time to time about particular deals between countries. They judge the national interest, that's what's happened here and that's what's happened before under governments of other political persuasions.
STEFANOVIC:
Why did it take the PM a week to declare he didn't know about the Qatar decision by his own minister? I mean, he'd only been asked 500 times, that's a bit weird, isn't it?
CHALMERS:
I'm obviously not going to go back through that, it's a matter for the PM, obviously. My job is to make sure, as broadly as possible, that we've got an economy which is as competitive as possible –
STEFANOVIC:
I'll get to that in a second. But he had to get pulled kicking and screaming into revealing the fact that he had a chat with the Virgin boss. Wayne Swan says the decision should be reversed. Labor is a dog's breakfast on this.
CHALMERS:
Obviously, I don't agree with you Karl – that won't shock you. I think this decision was taken in the usual way, in the national interest by the Minister. It's happened before under our predecessors, it's happened on this occasion. My job and the government's job is to make sure that the aviation sector is as strong as competitive as it can be, and that's our focus.
STEFANOVIC:
So it was a 'captain's call' on Qatar by the Transport Minister?
CHALMERS:
Well, they are the usual arrangements, Karl –
STEFANOVIC:
No-one else in government knew?
CHALMERS:
I wasn't aware of it until afterwards, Karl and that's how it usually happens –
STEFANOVIC:
But anyone else in government aware of that decision?
CHALMERS:
Well, how would I know that Karl? You'd have to ask other people. But the point I'm making is, this is the usual arrangement, and people can pretend that somehow it's unusual for transport ministers to take these decisions. Michael McCormack did that in the previous Liberal-National government, Catherine King on this occasion. It's decisions that are taken in the national interest between governments, at the same time as our international travel is actually expanding. There is more capacity and more routes, and that's a good thing.
STEFANOVIC:
Well, the decision was bad, or it was negligent. Is the Transport Minister safe?
CHALMERS:
Of course, transport ministers take these decisions from time to time, and they weigh up all of the various considerations. It's not particularly unusual –
STEFANOVIC:
Do you concede it was a bad decision?
CHALMERS:
No I don't, Karl. I think it's important that ministers are empowered to make these kinds of decisions as we have here, not inconsistent with decisions taken in the past, at the same time as we work more broadly – as Catherine King is, as I am – to make sure that important parts of our economy like the aviation sector, are as strong as they can be, that they deliver for customers, and that's our focus when it comes to the Aviation Green Paper.
STEFANOVIC:
It's turned out to be an horrendous decision. I mean, at the end of the day, your government now has a transparency problem, a significant one.
CHALMERS:
I don't accept that, Karl. This is a decision taken in the usual way, consistent with our decisions –
STEFANOVIC:
I'm sorry, I'm sorry to keep arguing and it's not your portfolio, but she made a decision based on protecting Qantas in a competitive way, while as Joe Aston points out before – everyday Aussies, hardworking Aussies are getting shafted by the company.
CHALMERS:
Well, a couple of things about that. Catherine King has made it clear – in the same way that Michael McCormack and others before her have – she's asked to make these sorts of decisions in the national interest and that's what she's done. When it comes to Qantas more specifically, I think that they do have a lot of work to do to regain and maintain the trust of their customers in particular, and the Australian people more broadly. And I think the new CEO, Vanessa Hudson, has acknowledged that – that they have a lot of work to do. People are filthy at Qantas right now and that's for a range of reasons and the main job for Vanessa Hudson and for the Board and for the company, is to regain and maintain that trust. I also want to say, the point that Sarah made a moment ago is so important. And that is, it's really, really important that people don't take this out on the staff. There are wonderful people who work for Qantas right around the country and indeed, around the world. They are not the problem here and we need to make sure that people don't take their frustrations out on them. I thought that was a point that Sarah made really well.
STEFANOVIC:
Well, they've been let down so badly. Today we'll see new GDP data. Are we expecting those figures to show any dramatic slowdown? I mean, the only good news for yesterday was rates stayed?
CHALMERS:
It was good news that rates for the third month in a row were on hold but we know that people are still under pressure. That's why our highest priority is rolling out this cost-of-living help and that's what we're focused on. The economy is being buffeted by two things – by the slowdown in China as part of broader global economic uncertainty and also the impact of these interest rate rises, which are already in the system. So we'll see what those growth figures say at 11.30 this morning but what we already know is that people are under pressure. We've seen that in their spending patterns and in some of the data that we've got already, and also the Chinese economy is slowing really quite considerably as well and we won't be immune from that.
STEFANOVIC:
Hard to stay on your portfolio when all this other stuff is going around. Thank you so much for being with us, Jim. Always appreciate it.
CHALMERS:
Appreciate the chat, Karl. Thank you.