STEPHEN JONES:
Look, today is Valentine's Day and we want to ensure that it really is a day for lovers and not a payday for the scammers out there who are taking advantage of vulnerable people. In the last twelve months $40 million was lost to romance scams, 8 per cent increase over the course of the year. We want today to be a day about chocolates and roses and true love, not a day when romance scammers are out there taking advantage of the vulnerable people, robbing them of their money. A few things to look out for if you're meeting up on a dating app or a social media app, somebody's refusing to meet in face but they're after a loan of some money or access to your personal details, that's a red flag, beware. Let's make this a great day, not a great day for the scammers.
JOURNALIST:
Is there any Treasury investigation currently underway into the skyrocketing cost of roses on one day of the year?
JONES:
Well, laws of supply and demand are working today and I think we've all been hit with, all of us romantics have been hit with the abnormal price of roses and chocolates on the two days before Valentine's Day.
JOURNALIST:
It's a new analysis in Nine newspapers this morning from KPMG which puts a figure on fixed rate mortgage of $600,000 coming off what that person will pay in the first twelve months after. Do you think the Reserve Bank Governor is doing a good job as Assistant Treasurer?
JONES:
Reserve Bank Governor's got a tough job, but then so have all of the businesses and households who are trying to make ends meet. We know there's about 800,000 households who haven't cycled off their fixed rate mortgages, a big hit coming in June. For the government's part, we're doing our bit with restraint, repair and targeted relief to households. We think we're doing our bit which is putting downward pressure on interest rates and we also think there's plenty of evidence that the stuff that's already in the system, the interest rate rises that are already in the system are pulling money out of the economy and dampening down on demand. And we are concerned that further increases are going to put pressure on households and businesses that are already doing it tough.
JOURNALIST:
You talk about money coming out of the economy, that analysis suggests about $20 billion, I think, of consumer spending will come out over the course of this year as a result of these rate rises. Has the Reserve Bank done its job? Have the Australian public headed that message, feeling that impact, is that a desirable outcome?
JONES:
Look, I'm not going to get involved in a public commentary on the performance of the Reserve Bank. They got a tough job to solve households. And one thing we can be very, very clear of, there's one thing Australians can be very, very clear of, we're on the side of households, we're on the side of small businesses and we don't want them having to pay any more in their mortgage repayments than is absolutely necessary. We think there is plenty of pressure in the system which is already pulling money out of the economy and dampening down on demand. And we're on the side of the households who are already doing it tough and are very, very concerned about further interest rate increases.
JOURNALIST:
Last one for me. Would you be concerned about the amount of money that's coming out, that there might be an overcorrection from households, that reduction in spending might enhance the chances of a recession or might harm businesses that are still recovering from COVID for example?
JONES:
The consequences of getting it wrong for the economy at large and not pulling inflation out of the system are dire because inflation is a tax on households. But the consequence of getting it wrong for those mortgage holders and small businesses who've got loans is also dire. And every increase in interest rate is a big hit to their bottom line when they're already struggling with cost-of-living increases. So, it's incumbent on all of us to ensure that we get this right, which is why our Budget strategy is around restraint, repair and targeted relief for those households who are doing it tough.
JOURNALIST:
Is a quick dip into recession better than having inflation becoming entrenched?
JONES:
We think we can avoid recession. We think we are on the narrow path to avoiding recession. We'll be one of the few advanced economies that does avoid recession if we do stick to that path. That's why our strategy is about complementing monetary policy, not aggravating it. The risk of getting it wrong is very high, and the consequences of getting it wrong are very high. We are unequivocally on the side of households and on the side of small businesses who are already doing it tough.