Sabra Lane:
For more on that issue and the prospect that the federal government might buy the troubled regional airlines Rex if no one else buys it, I was joined a short time ago by the federal Treasurer.
Dr Chalmers, welcome. The government’s got a blizzard of announcements today; it’s like we’re almost into an election campaign. First up though, the government might buy Rex Airlines if no buyer can be found. That could end up costing taxpayers a lot of money; the airline’s got a lot of debts and at least, well, $500 million, and the government’s already offered them some money, and it’s got a very old fleet.
Jim Chalmers:
Our preference here is for a private sale. We’ve indicated to the bidders in the sale process that we are prepared to negotiate with them packages of support subject to strict conditions.
We have already, as you point out, Sabra, in your question, we helped out with some of the debt and in other ways as well, and that’s because we really want to see these flights continuing into regional Australia. The people and communities and small businesses of these regional cities and towns around Australia need and deserve access to these flights, and that’s why we’ve made it such a high priority.
Lane:
But if you end up buying it, that could cost taxpayers a lot of money. You must have a rough idea as to how much.
Chalmers:
I think it’s the only responsible course of action to take, is to consider all of the contingencies, and what we’ve said is that we are prepared to play a supportive role with the bidders in the private sale. If, for whatever reason, a private sale doesn’t go ahead, then we have considered and are considering other contingencies; we’d work with state governments and other stakeholders to see what might be the most responsible course of action in the event of a private sale not going ahead.
Lane:
Is this good business or good politics, to keep the bush side as the election’s almost here?
Chalmers:
We support regional Australia, and you think about the announcement I made yesterday to keep bank branches opened in regional Australia, you think about this announcement today to secure the future of regional flights, and what it shows is, you know, from the terminal to the teller we support regional Australia. We’re going into bat for people in the bush, and that’s what these 2 announcements over 2 days shows.
Lane:
Now you’ve also written to the banks and their regulators asking them to clarify the rules over home lending to people with HELP debts, they’re loans taken out to gain a tertiary education, how many people right now aren’t getting a home loan because they have a HELP debt?
Chalmers:
Of course – I’ve done more than write to the regulators, for some months now I’ve been meeting personally with the regulators. I convened the CEOs of the banks here in Canberra yesterday, and that’s because we’re coming at this housing challenge from every angle. We’ve asked the regulators and the banks to take a more reasonable approach to student debt. They will have the numbers that you’re seeking, they will know the amount –
Lane:
You must have an idea.
Chalmers:
They will know the amount of people that have been knocked back because of a stricter interpretation of student loans.
What we’ve asked them to do is to take a more reasonable approach to student debt. It is a different kind of debt. You pay back that loan in an income contingent way, and so it’s less risky than other types of debt.
This is just a set of common sense changes to get more people into a home – it’s why I’ve taken the lead on this, speaking to the regulators, speaking to the banks to see if we can make a meaningful difference for people who might have otherwise been excluded because of their student debt.
Lane:
President Trump’s new tariffs on steel and aluminium imports start in exactly a month’s time. That means you have a very short time to put Australia’s case. But Mr Trump’s claimed that Australian companies abused previous exemptions. Is there evidence of that, and if he still applies these tariffs will it be on those companies themselves?
Chalmers:
First of all, I think some of those reports today, which I’ve obviously read, they’re about issues from almost a decade ago, and we’re focused on what’s in front of us, and that’s why the –
Lane:
Still, but we know that Mr Trump sometimes seeks to take revenge on what he sees are perceived wrongdoings.
Chalmers:
I wouldn’t necessarily describe it that way. The point that I’m making, Sabra, is the conversation between the PM and the President was yesterday. It was very productive; it was very positive. The President said that he would consider an exemption, and both sides have acknowledged how important this economic relationship is to both countries. The President himself pointed to the fact that the Americans run a trade surplus with us, that makes us different –
Lane:
Sure.
Chalmers:
– to some of the other countries which have been his focus in recent days.
Lane:
The point of this claim though that previous exemptions have been abused, have we asked for evidence of that; have we gone back to the White House and said, ‘please explain?’
Chalmers:
No doubt colleagues will try and get to the bottom of what’s being said here, but again, to remind your listeners, we’re talking about something from almost a decade ago under a previous Coalition government. It may be that our predecessors can clear this up or provide some more context and commentary around it.
But we’re not focused on what happened almost a decade ago, we’re focused on what’s in front of us, we’re focused on the significant announcements coming out of DC, and we’re focused on this productive and positive conversation that Prime Minister Albanese had with President Trump as part of our efforts to stand up for a really important industry in this country.
Lane:
Dr Chalmers, thanks for talking to AM.
Chalmers:
Thanks so much, Sabra.
Lane:
That’s the federal Treasurer, Jim Chalmers.