Peter Stefanovic:
Let’s go to Canberra for some local reaction. Joining us is the Treasurer, Jim Chalmers. Treasurer, thanks so much for your time this morning. So what is the impact for us going to be with the release of those oil reserves?
Jim Chalmers:
Good morning, Pete. This is a very welcome development. The release of an extra 400 million or so barrels into global markets is a very good thing from a global economy point of view and from an Australian point of view as well.
You’ve been tracking just how volatile the global oil price has been. Even in the last few days we’ve seen it as high as almost $120 a barrel and as low as in the low 80s. So this will help, this will be a very positive development and we welcome it.
Stefanovic:
How are you going to get more fuel and fertiliser into the regions, which are running out, or have run out in some cases, just as harvests begin?
Chalmers:
I spoke with the Chair of the ACCC, Gina Cass‑Gottlieb, about this before 6 o’clock this morning. We’re working very closely with the ACCC and the ministers are working very closely with the industry to make sure that where there are pressures in local areas, and especially in regional areas, that we coordinate our efforts to fill that supply. But overall, Australia has sufficient fuel and where we’re seeing these pressures in local communities, we’re working very hard with the ACCC and with the industry to address them.
Stefanovic:
So what does that mean, I mean in real terms. Are you getting fuel, are you getting fertiliser on more trucks and rushing them into the regions now?
Chalmers:
Well, one of the things we’ve been speaking with the ACCC about is making sure that there are no restrictions on the fuel companies working together to fill these gaps. Because of the competition laws, they need exemptions to be able to work together to fill and meet these challenges in the supply chain. So that work is happening.
But also, Minister Bowen and others and I commend them for the work that they’ve been doing, are working with the industry, including important discussions with the industry yesterday with the NFF. We know that whether it’s petrol, diesel or fertiliser, there are pressures on supply chains, not because the overall level of supply is deficient, but because there are pressures in very local areas. And so ministers in the government meet daily and confer regularly with the industry and the regulators to make sure we’re addressing these concerns.
Stefanovic:
Okay, but shouldn’t it be the case that there’s more fuel on trucks that are heading into the regions right now? I mean I recognise these are probably questions for Chris Bowen, but shouldn’t that be a matter of urgency?
Chalmers:
Obviously it’s a matter of some urgency where there have been shortages and again, overall, our fuel supplies are actually very robust. The ships are still arriving in Australia, we’ve got sufficient stockpiles of fuel, we’ve got certainly for some kinds of fertiliser, we’ve got enough to see us through the cropping season. But where there are shortages in local communities or specific shortages, of course the outcome of all of these efforts needs to be fuel trucks and fertiliser trucks heading to these local communities where there are localised pressures, and these are the things we’ve been discussing.
Stefanovic:
All right. So I know you’ve threatened bigger fines, but as far as you are aware, has the ACCC – and I know you’ve had phone calls – has the ACCC actually zeroing in on anyone at the moment, or has your letter been ignored?
Chalmers:
Of course it hasn’t been ignored, and in fact we have dramatically stepped up the ACCC’s powers. For example, to issue fines and bigger fines, we’ve empowered them even more yesterday with those important 3 announcements that we’ve doubled the penalties, we’ve increased surveillance of these suspicious price spikes, and we’ve also empowered them to work with industry to fill these local shortages that you and I have been talking about this morning, and so some important developments yesterday.
The ACCC is taking this incredibly seriously, as is the government. We know that there’s a lot of concern about this in the community, even though our overall reserves of fuel are sufficient. We know that people are concerned about the price, and in some communities about the availability. I can assure them there’s enough fuel overall, I can assure them that we’re working very hard to address those local challenges, but also very tenured to price. The discussions that I have with the Chair of the ACCC obviously go to all of those issues, but particularly these concerning price spikes that we’re seeing around the country.
Stefanovic:
Well, just on that, I mean are you convinced that there’s any price gouging going on at the moment, because we saw the prices take off 12 days or so ago now after the price of oil spiked to, as you point out, nearly $120 US a barrel, it’s now to about $90 US a barrel, but those prices at the bowser still haven’t come down. So do you have any questions over that?
Chalmers:
Of course I do, and we’ve been putting those questions to the ACCC. My personal view is that we’re seeing some very suspicious price spikes in markets around the country. That’s obviously not on. The message that the Albanese Labor government is sending with these bigger penalties and more powers for the ACCC to surveil these suspicious price spikes, our message to the retailers is don’t take motorists for a ride. Don’t take advantage of what’s happening in the Middle East, people are under pressure already, and we need them to do the right thing. From our point of view, we’re certainly prepared to see the ACCC crack down hard on any behaviour which is unwarranted.
Stefanovic:
Okay. We spoke about this last week, Treasurer, but it has gained some traction from economists this morning, are you considering at all a short‑term cut to the fuel excise?
Chalmers:
It’s not something that we’ve been considering. We have been working through a whole range of contingencies and scenarios obviously, when we’ve got this dramatic volatility in the global economy, and particularly the oil price. We’re in daily discussions about all of those various contingencies, but that’s not something that has been part of those discussions so far.
We are helping Australians with the cost of living in other ways, including another couple of tax cuts on the way, building on the one that’s already flowing, in addition to cheaper medicines, more bulk billing, student debt relief and the like.
Stefanovic:
Okay. I know you’ve got to go, Treasurer, just a quick one here elsewhere. Dennis Richardson quit the Royal Commission into Antisemitism. How much of a blow is this to the credibility of the inquiry?
Chalmers:
Well, from a personal point of view, I’m very sad to see this news. I’ve only seen the reports, I haven’t spoken to Dennis about it. I’m sure he has his reasons, but it’s a sad development because Dennis is an amazing Australian with a lot of experience to contribute. I hope and expect that he has already made an important contribution to the Royal Commission’s understanding of some of the issues where he’s got particular expertise. But I’m sad to see him go. Ultimately, it’s a matter for Dennis and for the Royal Commission, and hopefully we’ve been able to tap some of that considerable knowledge before this development today.
Stefanovic:
That’s the Treasurer, Jim Chalmers. Appreciate your time as always, Treasurer.