MATT BURNELL:
My name is Matt Burnell, I'm the Federal Member for Spence, and it's great to be here today alongside the Premier Peter Malinauskas and the Federal Treasurer, Jim Chalmers. This facility is a massive employer within the electorate, and congratulations to Coles on providing fulfilling jobs here and allowing us to come through and have a tour of your facility. Last week, we handed down a fantastic Budget for the people of Spence and the people across Australia. Going to the heart of it, delivering cost‑of‑living relief and cheaper child care, making it more accessible for people to re‑enter the workforce, delivering on energy relief for households, and small and medium enterprises. And importantly, delivering an additional 300,000 fee‑free TAFE roles for people to upskill and get higher paying, more fulfilling work across the country. On that note, I'm going to hand over to Jim Chalmers, the Treasurer, to say a few more words.
JIM CHALMERS:
Thanks very much, Matt, for having us in your community, I acknowledge Premier Malinauskas as well. Thanks, Kevin, and your team here at Coles – not just for showing us around today but for the jobs and opportunities that you're creating here in South Australia – we appreciate that a great deal. In this Budget, Australian workers were front and centre. This was a Budget for the working people of this country. It was a Budget for the people of South Australia as well.
When it comes to the cost‑of‑living pressures that people are under, we see decent wages growth as part of the solution, not part of the problem. People right around Australia are under the pump. And one of the reasons for that is because for the best part of a decade now, wages have been stagnant and wages have been deliberately suppressed by our predecessors at the national level. And we take a different approach when it comes to workers and when it comes to wages. We welcome the 0.8 per cent increase in the Wage Price Index today, 3.7 per cent through the year. We want wages growth to be strong and sustainable. We want our employers to be productive and job‑creating and opportunity‑creating right around Australia. We want good, secure, well‑paid jobs for more of our people. And the progress that we've been able to make on wages in the 12 months that we've been in office has been deliberate. We have seen a welcome pickup in wages, not right across the board, but in aggregate. And that is a good thing. From time to time, you'll hear people say that our inflation problem in our economy is the workers’ fault. We don't have that view at all. When it comes to inflation in our economy, it's sent to us from a war in Ukraine and from busted supply chains and not because workers are being paid too much. When it comes to cost of living, good wages are part of the solution not part of the problem. And when it comes to our Budget, what we've tried to do is provide responsible cost‑of‑living relief to take some of the pressures off the cost of living without adding to the inflation challenge in our economy. And that's run through some of those elements ‑ cheaper early childhood education, energy bill relief plus the caps on inputs into energy, the biggest increase in Commonwealth Rent Assistance in three decades, bulk billing ‑ making it easier to find a bulk billing doctor here in South Australia and around Australia as well. So really right across the board, our priority in this Budget is working families. That's why we're so pleased to be here today and why we're so pleased to see another welcome pick up in the Wage Price Index from the numbers released a bit earlier. I'll hand you over to the Premier then happy to take your questions.
PETER MALINAUSKAS:
Thanks so much, Matt, and Jim. It's great to have you here in Adelaide. I know you've had an incredibly busy couple of weeks and no doubt months preparing a high‑quality Budget for the people of our country. And that's true here in South Australia, especially. We've got a very tight labour market in our state at the moment, we've got the lowest unemployment rate in the history of our state. So to be able to see wages growth on the back of that speaks to an economy that is performing exceedingly well, particularly in comparison to times past. But we want to see that economy become structurally stronger into the future, and there were elements of this year's Federal Budget that really underpin that for the state of South Australia ‑ not least of which is the commitment from the Federal Government around AUKUS. We know that this is a massive undertaking, not just for South Australia, but really the whole country. But for our state to be the epicentre of that effort is something that we're incredibly excited about and we're actively preparing for. What we're seeing develop is more partnerships between the Federal Government and the South Australian State Government around addressing workforce and skills. And we certainly saw those commitments in the Federal Budget being a welcome step in the right direction, in that regard.
But the other thing that was in the Federal Budget, that here at home probably hasn't got as much attention, in comparison to the AUKUS announcements and commitments, is the Federal Government's commitment to the hydrogen industry. That $2 billion Hydrogen Headstart program is something that will really underpin the expansion of this industry in our state, and it's something we're very excited to work together on. There was more than one of us, Jim, that was absolutely elated when you mentioned Whyalla in the Budget night address last Tuesday, because Whyalla really does present a massive opportunity for a reindustrialisation of the upper Spencer Gulf that can deliver an economic dividend to our community more broadly, to actually improve the standard of living of working men and women in our state for generations to come. It takes forward thinking though, it takes a government that is willing to take courageous and bold steps to back in an industry of the future. But it's one we know that is critical to our nation's economy, particularly here in South Australia, but also critical to the world's decarbonisation efforts. It ticks more than one box and it's one that we're really excited to partner with on.
And then finally, of course, was the Federal Government working closely with the state government to deliver the biggest energy concession relief in the history of our state. Over 400,000 households getting $500 worth of relief, 80,000 small businesses getting $650 worth of relief. This is a big deal, and only can be achieved through the partnership between this state government and the Federal Government. And I want to thank the Prime Minister and Jim, and Matt, for all their efforts. Final thing I'd say is, it's great to be here at Coles EP. I learnt so much over many, many years, having the really important role of representing the hundreds of hard‑working men and women that work at a site like this. It’s not easy work. It's hard yards, in fact, and what we've seen here at EP is a co‑contribution effort between technological advancement, but also driving better productivity, which has resulted in higher wages for people working at this site. And it speaks to what genuine collaboration can look like to deliver better outcomes for both business, but also working people. And I learnt so much about the economy at this site alone. And it's great to be able to catch up with a few old friends here on the walk around this morning, and I just want to thank you, Kevin, for the opportunity to be able to do that. I already want to thank you for it, I appreciate it.
JOURNALIST:
The 3.7 per cent wage increase. That's effectively though, that's a three per cent reduction in real terms, isn't it? The average Australian is still going backwards, still losing disposable income?
CHALMERS:
When the government changed hands in May last year, real wages were going backwards. And one of our big priorities has been to get wages growing again, and to see inflation moderate in our economy. And when those two things happen, we'll get real wages growth again in our economy. The Budget that I handed down last Tuesday night changed the forecast for real wages growth from the middle of next year to the beginning of next year. That's welcome progress. But real wages growth is a key objective of our economic plan. It's why our Budget's focused on addressing inflation. That's why our economic plan is all about getting wages moving again. And when both of those things happen together, we'll get the real wages growth that working families in this country need and deserve.
JOURNALIST:
Would you support a seven per cent increase to the minimum wage in line with inflation?
CHALMERS:
We made our own submission to the deliberations of the Fair Work Commission when it comes to the minimum wage. And what we said this time round is consistent with what we said last time, and it's that we don't want people on the lowest incomes to be going backwards. And that's what our submission was all about. Again, we don't think that inflation is a consequence of people on the lowest incomes getting paid too much. We think that people need and deserve a decent minimum wage increase, and our submission to the Fair Work Commission reflected that.
JOURNALIST:
There have been a lot of complaints from people about your Budget, that it didn't cater for middle income earners. What do you say to those South Australians who are struggling, who will miss out on the energy concessions?
CHALMERS:
The Budget had a number of measures for middle Australia, for the working people of this country, whether it is record investments in bulk billing, and strengthening Medicare –
JOURNALIST:
[inaudible]
CHALMERS:
It applies to kids under 16, in all of the suburbs and towns and cities of this country. And so bulk billing incentives, particularly for kids, but more broadly, billions of dollars to strengthen Medicare are key initiatives in training, the cheaper early childhood education that Matt was referring to a moment ago ‑ some of you over time have said that that's been too generous to middle Australia ‑ we've taken a different view. The energy price caps feeding through into a moderation in these energy price increases. The Budget was squarely about the legitimate aspirations that working people have in middle Australia, at the same time as we're able to provide help for the most vulnerable. And so that criticism that you hear from the Liberals and Nationals from time to time, doesn't bear scrutiny. And the other piece of evidence that the Government is governing for working people and for middle Australia, is that after a decade of wage stagnation, we are finally seeing the beginnings of welcome wages growth, so that people can go to work, get a decent wage in a nice secure job and provide for the people they love.
JOURNALIST:
Treasurer, can I ask you about hydrogen. Obviously, we know that the Premier's quite bullish about [inaudible] prospect in that industry, do you share his optimism?
CHALMERS:
Absolutely, and we work closely with Peter's Government, as we calibrate and design these incentives. We think that South Australia is going to have a big slice of the action when it comes to the vast industrial and economic opportunities that come from cleaner and cheaper energy. And Whyalla was a key part of our consideration in designing the Hydrogen Headstart, and the work that we do with the state government here is a really important part of all of that. When the rest of the world is investing heavily in new sources of cleaner, cheaper, more reliable, increasingly renewable energy, then our job is to make sure that Australians are beneficiaries, not victims of that. That requires us to work out what is our slice of the action here, hydrogen will be a big part of the story. And South Australia will be a big part of the story too.
JOURNALIST:
How much of that $2 billion fund will go to South Australia?
CHALMERS:
Well, it's a competitive process that companies bid into. And we will design that in collaboration with state governments and with the industry itself. But it's a competitive process to bid for this production credit. And the most promising proposals will get the assistance, the co‑investment from the Federal Government, which will see hydrogen become a more and more important part of our energy mix.
JOURNALIST:
Do you hear the fears from some employers that if there is a seven per cent wage rise, that could result in higher prices and job losses?
CHALMERS:
Well, again, this inflation challenge that we do have in our economy is not a consequence of people on the minimum wage getting paid too much. I think that's abundantly clear. You do hear from time to time people make the case that you have just summarised but it doesn't stack up, and the pressures on small business, which we are obviously very cognisant of, come from busted supply chains and from pressure in the energy market brought about by war in Ukraine and a bunch of other issues. We think it's in everybody's interest for the working people of this country to get paid fairly in good, secure jobs so they can provide for their loved ones. I spent a lot of time with the small business community, I listen to them about the pressures that they are under. And the Budget tries to do what it can, whether it's energy bill relief, whether it's investment in energy efficiency, whether it's dealing with busted supply chains through the National Reconstruction Fund, and in other ways, we are very focused on the pressures that small and medium businesses are under in particular. But we can do that at the same time as we recognise that people on the lowest wages in this country deserve a decent pay rise.
JOURNALIST:
About the protests, do you have any comments about what the penalties should be [inaudible]?
CHALMERS:
I'm broadly aware of some protests this morning, but I haven't got a full sense of them. And, in this country, you should be able to protest peacefully, in a way that is consistent with our laws. And if laws have been broken, then the people involved should be subject to the usual processes. But I haven't seen the footage or got a proper understanding of that protest today. I understand that it was full on. But in the absence of any more information, beyond saying everybody should be subject to the law, protests should be peaceful and consistent with the law. Beyond that, I don't have much to add.
JOURNALIST:
Premier, do you have something to add on that very topic? The Extinction Rebellion protests, both today and then over the course of the past few years? Are they too excessive? Are they really not thinking about people who they are having an impact on?
MALINAUSKAS:
In South Australia, we're a state that's lead the country and lead the world when it comes to decarbonisation. And we've done that thoughtfully and productively. And, I sympathise with the cause of those who care about climate change. But I don't know who Extinction Rebellion is persuading when they pull stunts, like the one they have this morning. I mean, whose hearts and minds are they winning through this sort of action? I don't think many at all. In fact, I think they actually do the cause they seek to represent, harm. And I find that frustrating.
JOURNALIST:
Does there need to be measures to perhaps limit the amount of disruption that is caused generally? Because it does appear to be a common theme?
MALINAUSKAS:
No, not really. The South Australian legislative regime ensures that we allow for freedom of association, peaceful protests, as is appropriate. And when people abuse those rights and privileges, then they will be held account before the law as is necessary. My simple message is – South Australia is leading the world in clean energy and decarbonisation – that's worthy of celebration, that's worthy of acknowledgement. And I just don't know who Extinction Rebellion persuades to the cause of decarbonisation with the sort of actions that we saw this morning.
JOURNALIST:
Premier, can I ask you, on another matter, the relocation of the police barracks ‑ you've had that proposal with the Commissioner for a number of weeks now, how much longer will we have to wait [inaudible]?
MALINAUSKAS:
As long as it takes, I mean, we have got the South Australian police advice about their preferred site. We do need to relocate Mounted Operations, amongst other things from the Thebarton Barrack's location, so we can get on with building a brand‑new women's and kids’ hospital. We want to find the best site possible. We take the police advice seriously. There are serious operational considerations [inaudible]. But we'll assess all the options before the final decision is made.
JOURNALIST:
Are you moving away from a Parklands site?
MALINAUSKAS:
We’re looking at all options.
JOURNALIST:
Is there political risk though, are you concerned about the implications?
MALINAUSKAS:
What I'm concerned about is doing the right thing. Doing the right thing by ensuring that we stick to our timeline in building a brand‑new women's and children's hospital that has been long overdue, that we're now doing right first time around, rather than building something that's going to be too small the day it's open. We're actually thinking about the long term which is what we promised to do. And in terms of where the Thebarton Barracks is relocated, particularly the Mounted Operations Unit, we want to assess all our options before a final decision is made. And if we can find a solution that meets the police's needs, that doesn't disrupt the Parklands, then we will try and do that. But ultimately, in government, you've got to make decisions. We've got a very firm policy view about the future of the women's and kids’ hospital and we're doing everything we can to make sure that's realised.
JOURNALIST:
Just confirming, is the Parklands still being considered as an option?
MALINAUSKAS:
Yes, of course, we’ve got SAPOL advice, where they would like to go in that Parklands location. We're going to assess all our options, though, before we make a final decision.
JOURNALIST:
What other options are on the table?
MALINAUSKAS:
Well, there are limitations to where it goes because of operational considerations. So something that police have made pretty clear is that it's their preference to be within a certain vicinity of the CBD, which I think has some merit to it. So that dramatically limits what those options are, but we're assessing all of them.
JOURNALIST:
[inaudible] you want to get cracking?
MALINAUSKAS:
Absolutely, to the extent there's a time consideration, it's the fact that we want to get on with what we need to achieve by certain dates to build a new women's and children's hospital, which, of course, is a very long project in its nature. It's going to take years to build. So the sooner we can make this decision, the sooner we can get on with that task. We're still within the timeframes that we set ourselves. But we wouldn't want to be in a situation where we're still wanting to make a decision on this by the end of the year. So I'd prefer to make these decisions sooner rather than later. But I want to make the right one, first and foremost.