MICHAEL HEALY:
Good morning everybody. I just firstly want to acknowledge the Federal Treasurer, Jim Chalmers, who I'm very, very pleased to be standing with here today. Before I start making any comments about the investment, I do want to register in the strongest possible terms, how important it is and this is a tangible example of good evidence of what happens when two governments work very well together. The benefits in this case is our city of Cairns and our region - $180 million investment, both federal and state - will continue to see ongoing growth in what is a vitally important industry, our maritime industry. We know that we're seeing strong demand in this area. We as a state continue to invest, we've announced previously $16 million going into the expansion of our marine college. It's well used and that expansion is much needed. But we know this is an opportunity for jobs, for sustainable jobs and for long‑term careers. This keeps our kids here, as opposed to them going south. This $180 million is an investment in what is a growing and vitally important industry. We see not only from the grey boats - the naval investment - but also tourism boats are getting serviced here. We're also seeing leisure boats, and as I said, the ongoing investment from military and defence which is absolutely essential. The number of people that will get jobs out of this, we're looking at over 460 people. We have fundamentally been a region in a city that has been very reliant on tourism. These investments and this ongoing collaborative approach by both the federal and the state government ensure that we diversify our economy and this is something that we've needed to do. So these investments are going to ensure that we have strong sustainable growth into the future. They're essential and fundamental to the development of our economy and to the strong development of our community. I'll now ask the Treasurer to say a few words. Thank you.
JIM CHALMERS:
Well, it's a real buzz to be here with Michael Healy. He is a champion for this city and for this region. And as he said, this is what we can achieve if state and federal governments work together. And so today, what we are talking about is a big investment in this region and in this city, from the Palaszczuk Labor government and the Albanese Labor government. We believe in this region and we're backing that belief with real money. This is a show of faith and a vote of confidence in the local economy of Cairns and the region beyond. $180 million from the Feds, $180 million from the state government - investing in this 5000 tonne ship lift, which will help these amazing employers do what they do best here in such a wonderful part of Australia. These employers who have welcomed us here today, are all about ensuring that this vital industry has a big future in this part of Australia. We know that if we want the national economy to perform strongly then we need regional economies like this one to be a much bigger part of the story, and that's what this big investment is all about. We want to see work start on this ship lift by the end of the year, weather permitting, circumstances permitting. Our objective here is to get the work started before the end of the year so that we can get this investment flowing. As Michael said, we're talking about something like 460 jobs just in the construction. But what we see represented here is an industry which is employing something like ten times that amount of local workers. We want there to be a future for workers in this city and in this region, and what we're doing today will help ensure that's the case.
We want this local economy to be broader and deeper and more sustainable. And that's what motivates and inspires the Albanese government's investment, whether it's in defence, local infrastructure, or here - particularly today in this Marine Precinct. So it's a really proud day. It's great to spend time here with the companies and with Michael, talking about a key investment. And this is an indication of the willingness of the Albanese Labor government and every member of the Cabinet - not just the Queenslanders like me - to invest in this part of Australia, as part of investing in a stronger economy. At the same time as we're investing in the industrial base, we're focused on rolling out cost‑of‑living help for people who are doing it tough in this community, at the same time as we get the budget in much better nick. So getting the budget in better nick means that we can make these key investments in local economies, it means that we can provide that cost‑of‑living help for people who are doing it tough. Inflation is coming off and that's a good thing but we've got a distance to travel yet. Inflation is still too high and so it's really important that we invest in the supply side of our economy, which is what we're talking about today, but also roll out that cost‑of‑living relief at the same time as we get the budget in much better nick, so that we can make it more sustainable into the future as well. Happy to take your questions.
JOURNALIST:
Cairns Regional Council has entered an agreement with Papua New Guinea for education [inaudible]. What other opportunities does Cairns have in terms of becoming a major economic hub in the region, and what needs to happen to get us to that position?
CHALMERS:
One of the things that we have shown - and I pay tribute here to Penny Wong and Pat Conroy and the Prime Minister - is we want to be much more deeply engaged in the neighbourhood, particularly in the Pacific neighbourhood. And it makes a lot of sense for a lot of that work to come out of here - from Tropical Far North Queensland - from Cairns, in particular. And what we see here and what we're hearing about here, is a lot of the economic benefits of that closer engagement. So you can expect to see more of that rather than less, the Pacific is a very high foreign policy priority of the government and that brings economic benefits for places like Cairns.
JOURNALIST:
Were you aware the ATO had signed a settlement with PwC, before the full extent of the damage was known?
CHALMERS:
I wasn't aware of the details of that settlement. But the ATO has made, as I understand it, has made some comments about that. What happened with PwC is an absolute disgrace. And governments should be able to consult with the private sector about changes that impact them. And what this episode has done, is it has made it harder for governments to consult in good faith - and so we have acted decisively across a range of fronts. The Treasury has referred it to the AFP. Katy Gallagher, my colleague, is tightening the procurement processes, and I'm tightening the Tax Practitioners Board and other consultative processes that we have as well. So we're doing a lot on this front, the specifics of that arrangement that you referenced wasn't part of our consideration - obviously, it is now and we'll talk to the ATO about it.
JOURNALIST:
And how do you feel about the timing of that settlement?
CHALMERS:
Well, I don't have much to add beyond what I've said. The issue itself, is something that I think Australians have every right to be absolutely filthy about. The government certainly shares their concerns and that's why we're acting on a range of fronts. We will get briefed in the usual way, by the ATO and others, about some of these other developments.
JOURNALIST:
And what was PwC's involvement in the Cairns Marine Precinct?
CHALMERS:
I'm not aware of the involvement there but I think it's self‑evident that for a long time now, the federal government has been, we think, too reliant on contractors and consultants and labour hire. And that's why Katy Gallagher, with the support of myself and the Cabinet, is trying to rebalance away from that over‑reliance. There's a role always for expert external advice but the balance has gotten way out of whack over the course of the last decade or so - we want to rebalance that. PwC and other consultants have been involved in government work over the years, there will be a role for that in the future but we want to rebalance it and we want to tighten it up.
JOURNALIST:
Recent figures show services in Australia are leading the inflation figures, are you [inaudible] the pressure in these industries sometime soon?
CHALMERS:
Certainly the composition of our inflation challenge is changing, and we saw that in yesterday's figures. Overall, we saw a very welcome moderation in inflation. The quarterly number was 0.8 per cent compared to 2.1 per cent under the Liberals in March 2022. It's good to see that moderating, even though we recognise people are still under the pump. But the composition of that challenge is changing. And clearly, there are elements of yesterday's data which concern us, including in that category that you mentioned. Obviously, the pressure on renters is quite substantial and that's why we're providing cost‑of‑living relief in the form of the biggest increased Commonwealth Rent Assistance in 30 years. It's why we're trying to build more houses and increase supply of affordable housing in our country. And so the composition is changing, the government is very firmly focused on providing this cost‑of‑living relief, building more affordable homes so we can get on top of some of these pressures that you mentioned.
JOURNALIST:
The rising insurance premiums can be especially felt by those living in the region. Is the government planning to do anything [inaudible]?
CHALMERS:
We're working on three fronts. We're implementing our predecessor’s reinsurance pool and trying to make sure that we can bed that down effectively. That has an element of complexity and we want to get that right. Secondly, we're investing in the resilience of communities, we're trying to get the investment right, so we're getting in ahead of natural disasters and not just responding - as important as responding is. And then thirdly, an extra $20 million for household resilience, to help people strap down their rooves and do some of those sorts of things, which are really important here. We're in the middle of a weather event right now, and so we understand that people are particularly vulnerable in places like Cairns and the surrounding region - and so very focused on delivering those three things. We know insurance is a big part of cost‑of‑living pressures. I've had meetings as recently as yesterday, with the insurance companies about this challenge. It's not easily fixed but we're operating on those three fronts.
JOURNALIST:
Energy prices are still up by almost a third. What's the government doing to ease pain? And will there be any more relief for people struggling to pay their power bills?
CHALMERS:
Well, this is exactly why a central feature of our cost‑of‑living relief is electricity bill help, combined with price caps. And the increases that we're seeing - electricity prices are putting pressure on people - but they would be much worse were it not for the policies that we put in place. Electricity and energy more broadly, is central to our cost‑of‑living relief plan in the Budget - that's rolling out as we speak and that will help take some of the sting out of those price pressures.
JOURNALIST:
You said that construction is expected to start at the end of this year, weather permitting obviously. When do you expect the whole completion of the project?
CHALMERS:
We're nailing down the final details with the state government and with other interested parties, including the local employers - we'll nail down that detail. But we hope to get cracking before long, hopefully by the end of the year, weather and other circumstances permitting. But I might take that opportunity just to say how much we appreciate the way that the companies here work together. And this will be a common‑use facility with a common benefit of the employers here who are doing such a great job for the local economy and for local workers in particular. So we appreciate that. Thanks for having us here today, and we might leave it at that. Thanks very much.