22 May 2023

Interview with Michael Rowland, News Breakfast, ABC

Note

Subjects: 'Buy Now, Pay Later' regulation, jobs and wages growth under Labor, Albanese government’s first 12 months in office, cost-of-living relief, housing, China trade sanctions, Stan Grant stepping down from Q+A

MICHAEL ROWLAND:

I’m joined now by the Treasurer, Jim Chalmers, from Parliament House. Treasurer, good morning.

JIM CHALMERS:

Good morning Michael.

ROWLAND:

Let's start with this move ‑ obviously, the government moving to stop more Australians being potentially ripped off by these schemes?

CHALMERS:

These schemes have become really popular. I think there are something like seven million accounts in Australia at the moment, and they've got a role to play but we need to make sure that we do manage the risks. And the best way to do that is to legislate, to regulate as a credit product, so that we can manage some of the risks around hardship and marketing, and in some of these areas. So, they've got a legitimate role to play, we think that they do have that role to play in the system. They are very popular but we need to make sure that we can manage them appropriately because the impacts of these, the harsher impacts of these fall disproportionately on some elements of our society, and we don't want that.

ROWLAND:

To mark the first anniversary of the government's election, you have Treasury analysis this morning of jobs figures over the last 12 months. What has that shown?

CHALMERS:

I think Australians can be really proud of what we've achieved together in the course of the first 12 months of this Albanese government. One of the things we are proudest of is these new figures which show this is the strongest first 12 months of a new government on record. Our jobs growth is outpacing all of the advanced major economies and we're also seeing the strongest wages growth for more than a decade. And this is really important because everything that we do in the economy is about making it easier for people to provide for their loved ones. We're pleased and proud that we've got wages moving again. We've got an incredibly strong labour market and that puts us in good stead for the global uncertainty that lies ahead.

ROWLAND:

At the same time, though ‑ it's great at the moment, as you say ‑ but your Budget forecasts unemployment will eventually rise to four and a half per cent within the next couple of years, so it won't be a pleasant experience for Australians who face the real prospect of losing their jobs in the years ahead?

CHALMERS:

Yeah, and we understand that, of course. And we saw a modest tick‑up in the unemployment rate last week as well, but we start from a position of genuine strength. We still expect unemployment to be at or near historic lows for a little while, and even unemployment with a four in front of it is historically quite a strong outcome. But our job is to make sure ‑ as the economy is creating these jobs and we're getting the welcome beginnings of this wages growth ‑ that more people can access the opportunities that the economy is providing. That's been a big theme of the first 12 months of the Albanese government. Whether it's skills and training, whether it's cheaper early childhood education, the extension of paid parental leave, the fact that we've got the Budget in much better nick so that we can afford to provide this cost‑of‑living relief and invest in the future really right across the board. Managing the economy more responsibly has been a hallmark of the first 12 months of this government. But we know we've got a lot more work to do.

ROWLAND:

Okay, parliament is back this week. Is the government going to have another go at getting its housing bill through the Senate?

CHALMERS:

No doubt there will be discussions about the Housing Australia Future Fund Bill. It beggars belief, frankly, that the Coalition and the Greens are saying that they don't support more social and affordable housing at a time where we desperately need more housing supply in our communities. So, we'll continue to engage with the other parties in the Senate to try and get that key piece of housing legislation passed so that we can build more social and affordable housing. It's an important part of our housing agenda but not he the only part. Also, the biggest increase in Commonwealth Rent Assistance for three decades, I think. Big changes when it comes to the tax arrangements for build‑to‑rent properties, so we can build more rental properties, as well as our Housing Accord. We've got a broad and ambitious housing agenda but a key part of it is the Housing Australia Future Fund. We want to see an end to the ambit claims and the political games that are being played in the Senate, so that we can get on with building more housing for people.

ROWLAND:

A couple of other questions before you go, Treasurer. The Prime Minister, over the weekend in Japan, confirmed he will at some stage this year take up that invitation to visit China. The Opposition saying that's all very well and good but the Prime Minister should not go to China until all those trade sanctions have been lifted. That's a fair point, isn't it?

CHALMERS:

Well, first of all, our political opponents were in office for almost a decade and that's when the trade restrictions were imposed ‑ that's just a factual point. What we've tried to do since we've come to office 12 months ago was to stabilise this really important and complex relationship with China. There is obviously big economic consequences for us in getting it right. We've got more to gain from the lifting of these trade restrictions. It's actually in the interests of both countries, in our view. We've made some progress, I pay tribute to Don Farrell and Penny Wong and the Prime Minister and others, for making that progress. We've always thought you're more likely to get these trade restrictions lifted if you engage and if you try and stabilise this complex relationship. We've made some progress there, and the Prime Minister's engagement and visit later in the year will be part of that.

ROWLAND:

Just before we go ‑ a week ago, you were sitting down in the Q+A studio with our colleague, Stan Grant. And as you know ‑ and as everybody knows ‑ he is going to take an indefinite break from the show after tonight's episode, as a result of the simply appalling, the unrelenting racist abuse he is copping. What do you think of Stan's situation?

CHALMERS:

I think it's a really sad situation. And I have come to know Stan a bit from being on his Q+A show and I respect him. And I think it's really sad and really unfortunate that the trolls and the keyboard warriors are silencing a really important voice in our community. And you don't have to agree with everything that Stan says but he is a voice of authority, he's someone who reflects on the long, historical sweep of our country, going back tens of thousands of years, and he's entitled to more respect than he's been shown.

ROWLAND:

Treasurer, appreciate your time this morning.