SARAH ABO:
Good morning, Treasurer. Good to see you.
JIM CHALMERS:
Hi Sarah.
ABO:
The economy looks like it's slowing, it's softening. How is that going to help Aussies facing this cost‑of‑living pressure at the moment?
CHALMERS:
We do think the economy slowed considerably towards the end of last year, and we'll learn more about that tomorrow when we get these national accounts released by the Bureau of Statistics. We know in that quarter that Japan and the UK went into recession; we know that there was an interest rate hike in the middle of that quarter, and we know that people were under these persistent cost‑of‑living pressures that you and I have talked about on a number of occasions before.
So we do expect the economy to have been quite weak to finish the year. We'll learn more about that tomorrow. What we're seeing in our economy more broadly is growth is slowing, but inflation is moderating in welcome and encouraging ways. We've got real wages growing again, our jobs market has been pretty resilient. So we go into this period from a position of relative economic strength, but there's enough around the world and there's enough around our own economy to make us expect that tomorrow's numbers will be quite weak.
ABO:
I mean when you look at those figures overseas – you mentioned there Japan and Britain – surely that enables you to kind of learn from them and prevent such an incident from happening here in Australia. You've got the Federal Budget coming up in a couple of months. Are you going to wait that long to provide the support that Aussies need now?
CHALMERS:
We're rolling out cost‑of‑living help already. We've got these electricity bill rebates, we've got cheaper medicine, we're helping people with rent assistance, and of course from 1st of July we've got those tax cuts flowing as well for every Australian taxpayer, but with a bigger emphasis on middle Australia. So we've got cost‑of‑living relief flowing at the same time as we're getting the budget in better nick, at the same time as we're investing in growing our economy. But we try to be pretty upfront with you and with your viewers that we expect the economy to slow pretty considerably. That's happening right around the world. You mentioned Japan and the UK are two good examples. But really in most places around the world, that combination of higher interest rates, inflation, which has hung around, combined with all of this global economic uncertainty, it is weighing on our own economy, and what we do in each budget is we weigh up the economic conditions that we confront, we make sure that our budget settings and our economic plan is carefully calibrated to that. We did that pretty well in the first two, and we'll try and do that again in the third.
ABO:
Yes, hopefully there's some relief ahead of July, Treasurer. All right. Let's turn now to the ASEAN Summit. The PM will today unveil a $2 billion investment that will help strengthen ties with our nearest neighbours. Is this all about outbidding China and minimising their influence in the region?
CHALMERS:
No, it's all about recognising that ASEAN is really the hope of the side. ASEAN is where the action is in our region, and we want to get a bigger slice of the action for our businesses and for our workers, and that's because we recognise that if our region is more secure and more prosperous, our people here in Australia are more secure and more prosperous as well.
And so the big focus today is on investment. We want to get those two‑way flows of investment as good as they can be, because if we get that engagement right in our region, the big winners will be our people here in Australia, and the people who employ them.
ABO:
Yes, we know trade is a big factor but it does feel a bit like a cash splatter. Malaysia's Prime Minister has hit out at pressure from the US and allies like us saying this so‑called China‑phobia that Malaysia is fiercely independent, and we don't want to be dictated to by any force. That's what he said in that press conference yesterday. Are you concerned about their loyalty to Australia?
CHALMERS:
I don't see it in those terms, and we're realistic about the challenges in the region. We know that this is an uncertain time in security terms, but also in economic terms, and we also know that our interests are best served by a region which is safe and secure and peaceful and prosperous. And one of the ways that we ensure that is by making sure the investment is flowing in both directions, making sure we've got that economic engagement, that we've got the trade and investment flowing appropriately, because if we do that we lift living standards in the region, and most importantly, for us here in Australia, we lift living standards here as well.
You know, we think about our economic plan really as the three Rs: relief from cost‑of‑living pressures, repair of the budget and reform of our economy. But there's a fourth R as well, and that's region: a big focus on the region that you'll see today, because if we get the regional relationships right, we strengthen our regional economy, we strengthen our economy here in Australia too.
ABO:
Well, in many ways the region is your biggest challenge. I mean we're talking about a power struggle against China, we've got an escalating espionage battle against them too, we don't know who the traitor was in Australian Parliament. There's a lot going on, Treasurer.
CHALMERS:
As I said, the region is uncertain; there's an element of uncertainty, there's an element of –
ABO:
But is the region listening to you, is the question?
CHALMERS:
– uncertainty in our global economy as well. I believe so. We have engaged methodically, respectfully, tirelessly, and I pay tribute here to the Prime Minister, the Foreign Minister, the Defence Minister and the Trade Minister. Really since we were elected, we've done everything we can to engage in a meaningful way with our region. And that's because we know our future lies in Asia. ASEAN is the hope of the side. We want to get a bigger slice of the action for our employers and our workers here in Australia, and that's what this engagement today, but more broadly, is all about.
ABO:
All right, Treasurer. Thanks for your time this morning.