Natalie Barr:
The Treasurer Jim Chalmers joins us now live in Canberra. Good morning to you, Treasurer.
Jim Chalmers:
Morning Nat.
Barr:
Do you support a cut to the fuel excise?
Chalmers:
Well, the government’s focus has been more on securing supply, getting distribution to the regions, cracking down on rip‑offs, and also helping with the cost of living in other ways including a couple of tax cuts on the way. But there are always contingencies, we keep them under more or less constant review. As a government we are always trying to do what we responsibly can to alleviate some of the pressures on people which have been intensified by this war in the Middle East.
Barr:
So it sounds like a cut to the fuel excise is now on the table.
Chalmers:
We haven’t taken any decisions on that front, Nat. As I said, we’ve been focused on supply, distribution, cracking down on rip‑offs, providing cost‑of‑living relief –
Barr:
Yes, so you said.
Chalmers:
– in other ways, but always governments like ours, we work through all of the scenarios, all of the contingencies, we keep that under more or less constant review, and we help where we responsibly can.
Barr:
So you’ve been modelling a cut to the fuel excise?
Chalmers:
No, I wouldn’t say that, Nat. I mean obviously it’s been a feature in the public debate about the best, most responsible responses to this quite serious pressure that people are under. We have a whole range of contingencies, we work through them in a responsible way, but for us, the focus is on supply, distribution, rip‑offs, and also we’re providing cost‑of‑living relief in a number of other ways including another tax cut in July and one next year as well.
Barr:
So would you rule out a cut to the fuel excise?
Chalmers:
Oh look Nat, we try not to rule things in or out. As I said, we’ve got a long list of contingencies, a long list of fallbacks. Really for the last 3 and a half years or so, 4 years, this is a government which has always tried to do the best it can by people in the most responsible way that we can.
Barr:
Yep.
Chalmers:
We haven’t taken a decision on the fuel excise, we’ve got a whole bunch of other ways that we are helping, because the emphasis here is on supply, the emphasis here is on working with the states and territories. The best way to get through this is to work together in a cooperative, constructive, ideally consistent way right around the federation, and that’s what today’s meeting’s all about.
Barr:
Yeah, ‘cause you can’t do much about price, it sounds like that’s staying high. So let’s talk about how we can monitor supply in this country. Would you consider work from home, fuel rationing, purchase limits?
Chalmers:
Well, our goal here in the discussions with the states and territories is to keep the country moving, to keep people moving, to keep farmers farming, the trucks on the road, to make sure that we can try and avoid those heavier‑handed, COVID‑style measures, and our ability to avoid those harsher measures really depends on how we can make sure we secure the supply, which is our big focus, but also to make sure that people aren’t buying more fuel than they need. The better that we do now, the more likely we are to avoid some of the heavier‑handed, harsher measures down the track.
Barr:
But Treasurer, you’ve been telling people for weeks not to hoard and panic buy and people have ‘cause they’re worried. So now that that’s not working, what do you do now?
Chalmers:
First of all, we understand that people are worried. This is a very substantial economic shock which is coming to us from the war in the Middle East, and people are paying a hefty price for that in Australia at the petrol bowser, we understand that, but the shipments continue to arrive, the refineries here in Australia are working very hard to manufacturing fuel as well, and people should only buy what they need, and if we continue to work hard to secure that supply, if we continue to do the right thing, if people only buy the fuel that they need, I think we can keep the country moving –
Barr:
Yeah, but they’re not.
Chalmers:
– and we can make sure that we avoid some of those harsher measures down the track.
Barr:
Yep. Okay. So, look, they’re not, are they, despite all the warnings, and you know, feeling sorry for people is one thing –
Chalmers:
Well, I think, Nat, that the majority of people are doing the right thing. I think the vast majority of people are doing the right thing.
Barr:
So if they are, why are the service stations running out of fuel? If the majority of people in this country are only buying what they were 2 months ago, why the shortages?
Chalmers:
Because it’s not always the case. We have seen some panic buying, that’s just the reality.
Barr:
So just those few people are tipping it that much?
Chalmers:
Well Nat, what I’m trying to say is that overwhelmingly Australians understand this very serious economic event that we’re going through, and typically in my experience, Australians will try and do the right thing, but that’s not always universal. And so we encourage people to only buy the fuel that they need. From a government point of view, not just the federal government, states and territories, everybody needs to do their bit, and if we do our bit and we continue to source this supply, and Australians just buy what they need to at the bowser, then we can try and avoid some of those harsher measures.
Our objective here is to keep the country moving. We don’t want to see the heaviest handed, harshest arrangements put in place. Our ability to avoid those kinds of arrangements really depends on everybody doing their bit and that’s what we’re all about.
Barr:
Okay. Well, good luck in the National Cabinet meeting today. Treasurer, thank you for your time.
Chalmers:
Thanks, Nat.