JIM CHALMERS:
First of allI wanted to say a really big thank you to the emergency services, the Defence Force, the volunteers, the communities who are helping to clean up here in South East Queensland, also up in Far North Queensland, and everyone bracing for flooding in Victoria as well. Our advice to our Victorian friends is as it has always been, which is please follow the advice, please keep an ear out for the guidance as you brace for the consequences of heavy weather down south as well. We are really fortunate and we are really grateful for the community spirit that we see at times like these. In difficult times, Australians are there for each other and I assure people that the Albanese government is there for them as well. We are there with emergency payments right now and we will be there to help rebuild communities as well. I wanted to pay tribute to the Miles government, to Cameron Dick and Steven Miles, and the Miles Labor government here in Queensland, for the way that they have been working so hard to support local communities affected by heavy weather and flooding. I wanted to pay tribute to Murray Watt as well, our Minister, who has been working around the clock. I've been in regular contact with Murray – another long conversation this morning – to make sure that we are doing everything we can to support affected communities, and there'll be more about this during the week as well.
The human consequences of this heavy weather are what matter most, but there will be consequences for our economy and for our Budget as well. We will get a clearer picture of the economic and Budget consequences of these natural disasters in the coming months, but our primary focus is the human consequences of what we're seeing in these communities here in Queensland and potentially in the coming days in Victoria as well. Now, there's no shortage of challenges in our economy as we start 2024, but we are confident that we can overcome them as a country. Interest rates are slowing our economy, we are seeing global uncertainty and global conflict, we are seeing persistent inflation. We've had this heavy weather. All of this combined will weigh on our economy in the opening months of 2024 and in the year ahead.
We do enter this period of difficulty from a position of genuine economic strength. More than 700,000 jobs created under this Albanese Labor government. Two quarters of consecutive real wages growth. We've had a Budget surplus already delivered and another one in prospect in the months ahead. Our plan has three parts; cost‑of‑living relief, which takes some of the edge off inflation without adding to it, strengthening our economy by investing in housing and energy and skills, and thirdly, getting the Budget in better nick. And if there's more that we can responsibly do to help people deal with these cost‑of‑living pressures in the Budget, then we will obviously consider that between now and then.
The primary challenge in our economy is still inflation, and that's why it is still this government's primary focus. Later this week, we will get the monthly inflation numbers for November. Remember, the monthly read was 4.9 per cent up to October. It was 6.1 per cent at the election. It remains to be seen what it will be for that November outcome that we will get later in the week. A reminder that these monthly reads can be volatile, that's why we don't get carried away in either direction. We'll see on Wednesday what those numbers say – they will be a helpful indicator but they are notoriously volatile. What we already know is that inflation has come off substantially since its quarterly peak before the 2022 election and since its annual peak around this time last year. We have been making some welcome and encouraging progress overall, but that progress isn't always in a straight line. We saw in Europe in recent days, where inflation is actually accelerating in Europe's economy. We can see that even though inflation is moderating overall and over time, we can get these zigs and zags, as we saw in the global situation and in some of the data in recent days.
We already know that inflation would be higher were it not for our cost‑of‑living plan, which is taking some of the edge off these electricity prices and childcare and rent and in other ways as well. And that's why it beggars belief, frankly, that the Opposition voted against key elements of our cost‑of‑living help for people doing it tough.
There is no better way to help people make ends meet than to make sure that we've got wages growing again in our economy after a decade of wage stagnation. The new Treasury analysis which we are releasing today, shows wages are growing at their fastest pace in 15 years and lowest‑paid workers are getting the biggest boosts in pay. Wages growth overall in the period we've released the numbers about today was 4 per cent overall, but it was 6.7 per cent for the lowest paid and 5 per cent for the second lowest categories. And so what this shows is we're getting wages moving again overall in our economy, but we are prioritising people on the lowest pay who need the most help. We want people who work hard to be able to provide for their loved ones and get ahead and for too long in this country, that was too hard. Real wages were falling by something like 3.4 per cent at the election. We've seen a couple of quarters now of real wages growth – we want to see more of that. We've seen the fastest wages growth in 15 years. And what these new numbers show is that people on the lowest pay are getting the biggest percentage increases.
Wages growth is absolutely central to our cost‑of‑living plan, and these new numbers show that we're making welcome and encouraging progress. But we've got much more work to do throughout the course of 2024. We have seen some encouraging signs when it comes to the impact of our plans, whether it's the cost‑of‑living relief or getting wages moving again. But we are under no illusions about the persistence of our inflation challenge, or the impact of higher interest rates or the impact of global uncertainty or heavy weather in our economy. There is no shortage of challenges in our economy, but we are confident that we can overcome them together by showing the same kind of spirit that we're seeing in communities right around Australia, either dealing with or bracing for heavy weather.
JOURNALIST:
The PM said he had asked Treasury and Finance to come up with some of cost‑of‑living proposals that won't make inflation worse. Can you give any more information about what areas the government is considering – extra relief?
CHALMERS:
Well, as the Prime Minister has said, and as I've said I think on a number of occasions now, if there's more that we can responsibly do between now and in the May Budget, then obviously we will consider that. And what we've shown so far with a $23 billion cost‑of‑living relief plan is that there are ways to provide this cost‑of‑living help, which takes some of the edge off inflation rather than add to it. And we saw in the ABS figures that electricity prices would be much higher without our efforts, childcare fees would be much higher without our efforts, rent would be higher without our efforts as well. And so what we've shown is a willingness and a capacity to take some of the sting out of these cost‑of‑living pressures that we know people are feeling right around Australia. If there's more that we can do in a responsible and affordable way in the May Budget, then obviously we'll consider that
JOURNALIST:
Are you ruling anything out, like extending energy current energy bill relief or cutting the fuel excise?
CHALMERS:
Look, I think we've said on other occasions, when you see the volatility in the petrol price, for example, in the two dollar twenties in some parts of Australia towards the end of last year, I think today in Brisbane, closer to $1.75 – there's real volatility in the petrol price. And so what we've said on other occasions is that our focus has been in some of these other areas where we can help – our primary focus right now is rolling out this cost‑of‑living relief, which is still rolling out right now. The cost‑of‑living help that was in the Budget in May is still rolling out right now and taking some of the edge off some of these pressures – but we've shown where we can make a big difference. The ABS has said we've made a substantial difference in electricity, childcare and a difference in rent as well. Our focus here is to roll out cost‑of‑living relief in a way that takes some of the edge off inflation rather than add to it. We're not getting carried away about that because people are still under substantial pressure, but they'd be in even under even more pressure if the Liberals and Nationals had their way when they voted against our cost‑of‑living help.
JOURNALIST:
Do you support the government walking away from a republic referendum if Labor wins the next election?
CHALMERS:
Look, this hasn't been a focus of mine. Clearly, we are still going through the consequences of the referendum towards the end of last year, when the government is ready to make announcements about some of the other proposals for constitutional change, we will make them. But that's not my focus right now.
JOURNALIST:
If Labor won't commit to doing it in the next term, can you commit to doing it by the end of the decade?
CHALMERS:
Well, as I said a moment ago, this hasn't been a focus of mine. I don't have a commitment to make for people today. I am a very committed republican when it comes to constitutional change. I was very committed to the constitutional change proposed in the Voice referendum as well. When we've got more to say about these sorts of things, we'll say them.
JOURNALIST:
What do you think about the fact that Australia has a taxpayer‑funded Assistant Minister for a Republic if there aren't any plans for a republic referendum? Is it a waste of money?
CHALMERS
:I think he's a terrific Assistant Minister. He's got a range of portfolios. I think he's doing a great job. Australia should become a republic. We've got to work out how we sequence constitutional change in this country. We've got to work out what we have learned from the failure, disappointing failure, of the Voice referendum last year. But Australia, in my view, should have an Australian head of state. Of course it should. And it's entirely appropriate that Matt has the Ministerial Portfolios that he has.
JOURNALIST:
But if it's not a priority, isn't it just a waste of taxpayer money to be spending on an Assistant Minister if it's not a priority for the government?
CHALMERS:
I don't think so. No, I don't think so. I haven't said it's not a priority and I certainly don't think it's a waste of money. I think Matt Thistlethwaite is, like a number of us, very committed to constitutional change. The sequence of that, the form of that is for the government to consider in the aftermath of the Voice referendum.
JOURNALIST:
There's lots of families struggling to buy groceries at the moment while the supermarkets are making huge profits. Should the ACCC step in and investigate what's going on there?
CHALMERS:
Look, we are concerned that when the price for meat and fruit and vegetables at the farm gate goes down, we want to see the price of those goods go down on the supermarket shelves as well. We've said that for some time, when the price of meat and fruit and veggies comes down for supermarkets, it should come down for families as well. This is why we're having a fresh look at the grocery code. It's why we're having a fresh look at our competition laws, because we want to make sure that people who are already doing it tough enough get a fair go in the aisles of our supermarkets right around Australia. And we have said that before, if the supermarkets are buying it cheaper, they should be selling it cheaper, too. And this is of concern to us. I'm in regular contact with the ACCC Chair about these sorts of issues, and if further steps are necessary, we will obviously consider them. I think from memory, I'm speaking with her again this week and this is a fairly regular topic of conversation, how we make sure that we've got the monitoring arrangements right. The ACCC monitors prices right across the economy. We want to make sure that that monitoring is right so that people get a fair go. But when the price of meat and fruit and veggies goes down for the supermarkets to buy, it should go down for families and pensioners to buy as well.
JOURNALIST:
The State Treasurer has noted that the minimum estimate, I guess, for economic loss and the cost of the recovery of this flood here in Queensland is $2 billion, [inaudible] together. What about federally? What is the hit that we are estimated to take?
CHALMERS:
Yeah, I saw, obviously, the preliminary estimates from the state government. There's no question that these natural disasters cost a lot. They cost the economy a lot, they cost the Budget a lot when it comes to rebuilding. But it's the human consequences that matter the most. Not far from where I live, there are people who were without power for a long time, people who are hosing out houses, people who are throwing away a lifetime of valuables, and that's what matters most to us, the human consequences of this. But there will be a substantial bill to be paid by governments of all persuasions and at all levels. We are aware of that. The full costs and consequences of this flooding will become clearer in the coming months. I assure people, once again, just like we've been there with emergency payments in recent days, we will be there for people as they rebuild their communities as well. We will be willing partners with the Miles government and any other state governments where it's necessary to rebuild these communities. These are really wonderful local communities. Whether it's here in the South East of Queensland, whether it's Far North Queensland, wonderful industries and people and communities up there, we will be there for them. The full cost of that will become clear in the coming months.
JOURNALIST:
One of the costs‑of‑living pressures is the cost of going to see the doctor. We know that the cost is turning people off seeking medical help. There's fresh data out today that shows that only one in four GP clinics is offering bulk billing these days. It's an 11 per cent decline in just the last year. Is that acceptable? And what's your message to patients, but also your message to doctors?
CHALMERS:
Well, after a decade of neglect of Medicare, it's never been harder to see a GP. This is precisely why we tripled the bulk billing incentive. It's precisely why we set up 58 operational Medicare urgent care clinics around Australia. And that's because we created Medicare. We believe in it. We are investing billions of dollars in it to restore and strengthen it. After a decade of attacks, it is too hard to see a bulk billing doctor in our suburbs and towns and communities right around Australia. And that's why I made available, working closely with the PM and the Health Minister, billions of dollars in new investments to try and turn this around. After a decade of attacking Medicare, this will take some time to turn things around. We've already got those urgent care clinics up and running. We've already invested the billions of dollars and we'll see the benefits of that in the coming months and years. My message to patients is if you can get access to the urgent care clinics, then they are a really good alternative to paying to see a doctor urgently. What we want to do here is we want to take pressure off the emergency wards. We want to get people into these urgent care clinics where that's appropriate. We want to turn around bulk billing. That's what these billions of dollars in new investments are all about.
JOURNALIST:
You said you support Australia becoming a republic. Do you believe then the government should push ahead with its plans to hold the referendum in the next term of government?
CHALMERS:
I've answered three or four of your questions earlier on. I don't have anything to add to that.
JOURNALIST:
Just on another topic, what do you think of the Business Council of Australia's claim that many cases of wage underpayment occur because the system is too complex?
CHALMERS:
We want to make sure that the industrial relations system works for employees and employers alike, and we want to make sure that people are paid the wages that they're entitled to. We are, as we see in these new numbers today, we are seeing wages growing again in our economy after a decade of stagnation. And we want to make sure that people are getting paid what they're entitled to. We will continue to work closely with the business community, with the union movement and with others to make sure that we have the kind of industrial relations system which creates the kind of prosperity that people who work hard can share in. And we've had a couple of trenches now of industrial relations changes. They are about more productivity and better agreements so that people can prosper together and that will continue to be our guiding principle.
JOURNALIST:
Treasurer, are their concerns fair and valid?
CHALMERS:
We'll continue to work with the business community. I engage regularly, willingly, enthusiastically with the business community, whether it's on industrial relations or in all kinds of other areas. We have been working closely with them on skills, with the energy transformation, on technological change, and we'll continue to do that.
JOURNALIST:
Treasurer, consecutive and I guess continuing natural disasters in Queensland and in Australia. You mentioned there would be a substantial build from this disaster season already and it's only January. I guess, considering that the weather is set to become even more volatile over the next forever, are you concerned about the vulnerability to Australia's economy and to the Federal Budget moving forward?
CHALMERS:
Our economy and our Budget is increasingly vulnerable to more frequent natural disasters. That has been made very clear in recent years and indeed in recent days. And our primary thoughts are for the people in these communities. But there's no doubt that there's an impact on the economy and an impact on the Budget. There's no shortage of economic challenges and heavy weather in local communities is one of those challenges that we are dealing with. And that has become a more frequent occurrence, billions of dollars in recent years to rebuild communities after natural disasters. Obviously we anticipate some costs to rebuild these communities affected right now as well. That has been increasingly the case and this is one of the reasons why we need to make our communities more resilient. Again, I pay tribute to Murray Watt. The response is really crucial, how we respond to natural disasters is absolutely crucial, but we also need to make communities more resilient as well. That's been a big focus of Murray's and mine and the Cabinet’s and the Prime Minister's so that we can deal with – we can protect people from – or at least make communities more resilient to these disasters which are becoming more frequent. Might just take one more and then I’ve got to go.
JOURNALIST:
A question on the bulk billing, are the incentives a failure, is there anything else that can be done to stop the decline in bulk billing?
CHALMERS:
Our investment is rolling out right now and so it's too early to gauge the full impact of these billions of dollars that we committed in the last Budget. I think from memory it's the biggest single investment, new investment in Medicare since its inception. And so we are rolling that out when it comes to the bulk billing incentive. And we've just operationalised 58 Medicare urgent care clinics around Australia. So, when you're dealing with a challenge like this, it has never been harder to see a bulk billing GP. You've got a government which is prepared to invest billions in strengthening and restoring Medicare after a decade of attacks. The benefits of that will be seen in the months and years ahead. I don't think anybody anticipates, when you make a big investment like that or commit a big investment like that in a Budget, the full impact is not felt on day one, it's felt over time. But what we've shown particularly I think with the urgent care clinics is we are working as fast as we can with as many resources as we can to try and turn that situation around. Thanks very much.