NATALIE BARR:
To the economy now where Treasurer Jim Chalmers is being forced to fend off accusations of a rift between the government and the Reserve Bank after his public comments in which he stated interest rate rises have been smashing Australia’s economy. The comments have been seized on by the Opposition, who claim Mr Chalmers is attempting to lay blame on the RBA rather than himself. It comes as new data out tomorrow is set to reveal the worst economic performance since the depths of the COVID shutdowns.
For more, Treasurer Jim Chalmers joins us in Perth. Good morning. We know tomorrow’s numbers are going to be bad. Is this an attempt for you to shift the spotlight?
JIM CHALMERS:
Of course not, Nat. We’ve been making a similar point for some time now about the pressures on the economy. I think it’s self‑evident that the interest rates – interest rate rises which are in the system are slowing our economy. I’ve been making that point for some months. And I think it would be strange, frankly, if the Treasurer of Australia couldn’t say in anticipating some numbers this week – which will be soft and subdued – if the Treasurer of Australia couldn’t explain to people why that’s the case. I think a lot of your viewers understand the pressure that comes from higher interest rates, and that’s what I’m acknowledging.
BARR:
It seems like a bit of a shift in your government, though. This morning we’ve got Assistant Immigration Minister Matt Thistlethwaite saying ‘We don’t want to see the Reserve Bank go too far.’ Is this a change in tack? We’ve got government ministers basically giving commentary on the RBA now, haven’t we?
CHALMERS:
I’m sorry, Nat. I missed some of your question, but I caught the end of it. I think it’s the job partly of the Treasurer to work closely with the Reserve Bank to make sure that we’re getting on top of this inflation challenge in our economy, and that’s what we’re doing. We’re getting the budget in better nick, we’re rolling out cost‑of‑living help in the most responsible way. And together, because of the combined efforts of the Reserve Bank and the government, we’re making progress in the fight against inflation.
And as we make that progress I think it’s incumbent on me to speak plainly with people on the pressures in our economy – not just to acknowledge them but to act on them. And that’s why the cost‑of‑living relief is so important.
But I want to assure your viewers that we work closely with the Reserve Bank. We’ve got different responsibilities, but we’ve got the same objective, and our objective is to get on top of inflation in our economy. We’ve made some progress, but we’ve got further to go. We need to do that in a way that doesn’t put additional pressure on people or smash an economy, which we expect is already quite weak.
BARR:
Dutton’s getting closer in the polls. Cost of living is the number one issue in this country. Isn’t this switch in the way you guys are talking this week because you don’t want Australians to think it’s your fault?
CHALMERS:
No, I’ve been pretty clear for some time, including yesterday here in WA on a building site towards Fremantle, that I take responsibility for our part of the fight against inflation. I take responsibility for those surpluses that we’ve delivered, the cost‑of‑living relief we’re rolling out. We anticipated a weaker economy in the Budget, and we’re dealing with that now. And so I take responsibility for my part of this –
BARR:
So which part do you think you could have done better then if you take responsibility?
CHALMERS:
I think we’re making good progress. And I’ve acknowledged that already. I think we are making good progress as a country, but people are still doing it tough –
BARR:
But which part do you think you could have done better?
CHALMERS:
Well, I think when people are doing it tough, as they are now, the job of the government, the responsibility that I take is to try and do what we can to make things easier. We’re doing that, but I understand that people are still under pressure. I speak to people right around Australia. I know that they’re under the pump, and that’s why our tax cuts, our energy bill relief, cheaper medicines, cheaper early childhood education – all of these cost‑of‑living measures are so important. But most of the feedback I get, Nat, consistent with your question, is that cost of living is the number one issue. Our government, the Albanese Labor government, is focused primarily on the cost of living. Our opponents are focused on dividing people.
BARR:
Okay. Treasurer, thank you very much, and have a great time in WA.
CHALMERS:
Thanks very much, Nat.