18 May 2023

Joint press conference, Curtin University, Perth

Note

Joint press conference with
Ms Zaneta Mascarenhas MP
Member for Swan

Subjects: May Budget, renewable energy, Hydrogen Headstart, critical minerals, economy, GST, jobs figures, interest rates, China trade restrictions, Chinese fishing boat search, Petroleum Resource Rent Tax, wages, coal mine projects

ZANETA MASCARENHAS:

My name is Zaneta Mascarenhas, I'm the Federal Member for Swan. It is such a special day for me today. 25 years ago, I started studying at Curtin University. I came here on an Equity Scholarship and studied Science and Engineering. I would not imagine that 25 years later, I would have the opportunity to introduce our Federal Treasurer, Jim Chalmers. Curtin University is a really important university that's at the forefront of looking at how we make tomorrow better. A part of that is decarbonisation, and the federal government announced that we're looking at hydrogen and we want to give hydrogen a headstart. Hydrogen is a little molecule with big ambitions. On that note, I'll introduce Treasurer, Jim Chalmers.

JIM CHALMERS:

Thanks very much to Zaneta. I'm really proud and really pleased I get to work with Zaneta in the national parliament, on behalf of this community and communities right around Australia. Thanks Harlene and your colleagues here at Curtin. What an absolutely magnificent university that you have here. There is so much about what this University is doing, which is consistent with and aligned with what the Albanese Labor government is trying to do, and what the Budget last week was trying to do.

The Budget, overwhelmingly, was handed down in the service of our immediate priorities, but also our intergenerational responsibilities. It was all about helping people through tough times now, at the same time as we lay the foundations for future growth in our economy. And nothing could be more important to the future growth prospects here in WA and around Australia, than in grabbing the vast industrial opportunities which come from cleaner and cheaper energy. And what we've seen here today, and what we saw in the Budget and what we've seen from the Albanese government and the McGowan government, is a real willingness to work together and collaborate and partner, so that we grab the opportunities of the net zero transformation rather than see them go begging. So that we create new industries and new export markets at the same time as we leverage traditional economic strengths in places like WA. So, I'm really proud that in the Budget there is a $2 billion Hydrogen Headstart program. I'm really pleased that Madeleine King has announced today, some grants for critical minerals. The intersection of critical minerals, new sources of energy, increasingly cleaner and cheaper, more reliable, and renewable energy ‑ the intersection with that, with people and skills, really does represent the biggest opportunity that we have to create a new generation of growth in this country.

I really want to recognise the immense contribution that WA makes to the national economy, as well as to the national budget. I've had the opportunity while I've been here, talking to people and industries and leaders and employers here in the great state of WA, to really convey the nation's gratitude for the way that WA has kept the wheels of the national economy turning for some time now and we want that to continue. When WA makes a big contribution to the national economy, the national economy goes better as a consequence. We can't be complacent about the future. We need to make sure that we're doing everything that we can to deliver that next generation of growth. A big part of that is decarbonisation. A big part of that is grabbing these industrial opportunities, making sure that our universities are working closely with industry and with government, so that the future that we create together is a really prosperous one that creates more opportunities for more people in every single corner of our country.

JOURNALIST:

Can I ask you about the perennial GST debate, can you promise that in your time as Treasurer, WA's GST will not go backwards?

CHALMERS:

I've made that really clear, including as recently as earlier today. The GST deal recognises the immense contribution that Western Australia makes to the national economy and the national budget. And the best way for us to recognise the immense contribution that WA makes to the national economy and the national budget is this GST floor ‑ that's why we've stuck to it. This GST deal has meant billions of extra dollars to fund services and projects here in WA, at the same time, as it's meant that other states haven't gone backwards. And that's really important as well. And so we're committed to the deal, we delivered it in the Budget last Tuesday night. And every time I'm asked when I'm here in WA, I see it as an important way to recognise WA in the national economy and its contribution in the national budget.

JOURNALIST:

You used the word 'try' this morning, and said 'I will always try to do what's right by WA' ‑ is that an ironclad guarantee?

CHALMERS:

I said two things. I said I always try and do the right thing by WA, and I will. And I said that here are all the reasons why we're sticking to the GST deal, I ran through those reasons. And chief among those reasons, is that WA makes an immense contribution to the national economy and the national budget, and that's why we stuck to the deal.

JOURNALIST:

Treasurer, the unemployment rate today, it's lifted to 3.7 per cent, 4,000 jobs lost in the month. Is it fair to say we're seeing a change now in the employment landscape and how do you plan to tackle that?

CHALMERS:

Well, a couple of things about that. We have expected for some time that the unemployment rate will tick up a bit, as a consequence of higher interest rates combined with some pretty serious global uncertainty. And that's what we're seeing in these unemployment numbers today. But it is still pretty remarkable that we enter this period of substantial global uncertainty, with unemployment with a three in front of it. We've got a lot coming at us from around the world, but we've got a lot going for us here at home as well ‑ low unemployment, the beginnings of decent wages growth and good prices for our exports on global markets. And all of that means that we enter this period of global uncertainty from a position of relative strength. And when it comes to the unemployment rate, we're still talking about something like 330,000 new jobs created in the life of this Albanese government, not yet one year old. And so this has been a source of considerable strength in our economy. We've expected the unemployment rate to tick up a little bit ‑ it has today ‑ but it's still remarkably low given what's coming at us from around the world.

JOURNALIST:

So another interest rate rise then?

CHALMERS:

I don't pre‑empt decisions taken independently by the Reserve Bank and its board. I cherish the independence of the Reserve Bank. They will no doubt weigh up the tick up in the unemployment rate, the soft retail figures, the global uncertainty and a whole range of other factors, when they come to their decision independently. I don't pre‑empt or second guessed those decisions, I've got my own job to do. And my job is to hand down the responsible Budget that we handed down last week, which is all about dealing with these inflationary pressures, which is still the defining challenge in our economy, at the same time as we lay the foundations for future growth in our industries. And that's what we're talking about today.

JOURNALIST:

Treasurer, can I get your reaction to China's announcement that it will resume importing Australian timber, how much of an economic boost is that?

CHALMERS:

Well, we've said for some time that we want to see these trade restrictions lifted. We consider it to be in the interest of both countries, for there to be more normal patterns of trade in some of these industries, which have been restricted, in recent times. Our objective all along has been to stabilise the economic relationship with China. We recognise the complexities in managing this relationship, we have so much to gain from a region which is stable and secure and peaceful and prosperous. And all of our efforts are directed towards that in one way or another. I pay tribute to Don Farrell, Penny Wong and the Prime Minister and others, who are doing what they can to destabilise this really important relationship. And we do that on behalf of the employers and the exporters of this country, who need access to big growing markets like China's. It's a crucially important market for us, we want to stabilise the relationship, and any progress in lifting these trade restrictions is welcome.

JOURNALIST:

Will Australia be sending any more assistance in the search for the Chinese fishing vessel that's capsized off the coast of WA?

CHALMERS:

If and when we've got more to say about that, we'll say that at a later point. I don't have any further information.

JOURNALIST:

On the PRRT, you this morning said it would be diabolical if the government has to negotiate with the crossbench and Greens. Does that mean, if the Coalition doesn't come to the party, you are prepared to go further and tax the WA gas industry more to achieve the Budget needs?

CHALMERS:

I don't see it in the way that you've described it. I think there's still an opportunity for the Coalition to do the right thing. And we are talking here about $2.4 billion over the forward estimates of the Budget, to help us fund the bulk billing incentive, or the cost‑of‑living package or other priorities. And so we want to see this legislated. This is $2.4 billion that the Australian people wouldn't see, were it not for the government's efforts. Now, the point that I made this morning, and the point that I'm prepared to make again, is that it's not in the interests of the industry for this to drag out in a long and complex political negotiation in the Senate. The industry has made that clear to us as well. No industry wants to pay more tax sooner. But what we've been able to do with the PRRT, is do it in a way that safeguards investment and supply and our trading relationships. And the best thing that we could do is to pass it through the Senate, the big party should pass it through the Senate. It is disappointing, but not especially surprising that Peter Dutton wants to say no to the Australian people getting more of the benefits from their resources sooner, to fund Medicare and other objectives. Now, I'd say this to Peter Dutton and to Angus Taylor, if you're going to unwind the PRRT changes, and you're going to unwind the superannuation changes, then they need to tell us how much bigger their deficits will be, or what cuts are they going to make to Medicare and in other areas, to fund the difference. This is an Opposition which is addicted to division, they say no to almost everything. They need to do the right and responsible thing here and I encourage, as I did this morning, the industries of this state to lobby the Coalition to do the right and responsible thing so we can bed this thing down and move on.

JOURNALIST:

Treasurer, the Fair Work Commission, President Adam Hatcher, has warned that too big a wage rise could lead to more interest rate hikes. Is Treasury concerned about this, and are you concerned about this?

CHALMERS:

I'm not, and let me tell you why ‑ when it comes to the cost‑of‑living pressures in our economy, decent wages growth is part of the solution, not part of the problem. We've got an inflation problem in our economy because Vladimir Putin invaded Ukraine, and we've got busted supply chains here at home ‑ overwhelmingly, that's why we've got inflation in our economy. We don't have inflation because the lowest paid Australians are earning too much. And our submission to the Fair Work Commission ‑ and we understand that they will test all of the available arguments, and that's a good thing ‑ but our submission to the Fair Work Commission recognises that we don't want to see people on the lowest pay falling further and further behind. We want them to get a decent pay rise. We think that's in the interests of the whole country. For too long in this country, wages have been stagnant, and they've been deliberately suppressed by the national government. We take a different view, we think that being able to go to work and work hard and provide for your loved ones, is an absolutely fundamental objective of our economic plan. We're pleased to see the beginnings of some decent wages growth in our economy. We want that to be broad based, and we want people on the lowest incomes to get the kind of increase that means they don't fall further and further behind.

JOURNALIST:

While we're on GST, does your commitment extend past 2026? And does it include the no worse‑off guarantee being extended?

CHALMERS:

Well, I think I've made it really clear when it comes to the GST floor, that I'm committed to it. I've made that clear, probably five or six times today, I'm grateful for the opportunity to make it clear once again. When it comes to the GST no worse off deal, there is a review in '26 ‑ '27. And I think that's an important feature of the agreement over the next couple of years, that as we do the right thing by WA, we make sure that the other states aren't worse off, and we're committed to that part of the deal as well. The review doesn't come in for a few years now, we'll obviously engage with it in the right way at the time. We recognise the pressure that other states are under as well. I work closely with all of the treasurer's from all the states and territories, not just Mark here in WA, also known as Buzz to my Woody, on the front of the West Australian today. We work closely with Mark but all the other treasurers as well. All of our Budgets are under pressure. We've all got to weigh up different considerations. We've been able to make the Federal Budget in much better nick than it was when we found it. But we've still got big structural pressures in the Budget and we'll weigh all of that up, as do the states and territories.

JOURNALIST:

Zaneta, can I ask about the Environment Minister's decision to approve a new coal mine in Queensland last week, what are your thoughts on that?

MASCARENHAS:

What I'd say is that the Federal Labor Party is supportive of sensible mining, and we want to make sure that we have clear signals about projects that can be successful and have a future in Australia.

JOURNALIST:

Are you supportive of new coal?

MASCARENHAS:

What I'd say is that I'm supportive of looking at future projects and I think that the resource industry has a really important role to play in decarbonisation, but as for individual mines, I won't comment on individual mines.

CHALMERS:

Thanks very much, everyone. Appreciate it.