PETER STEFANOVIC:
Live to Canberra now, big story happening today and that's the RBA Governor facing the music. And joining us live is the Assistant Treasurer and Financial Services Minister Stephen Jones. Minister, good to see you. So as I mentioned there Philip Lowe to be grilled today in Canberra. What do you want to hear from him?
STEPHEN JONES:
Oh look, this is an important opportunity for the Reserve Bank and its governor to explain monetary policy settings and its outlook for the economy over the course of the year. Households are doing it tough, businesses are doing it tough. They want to know that the pain that we're going through at the moment is going to have an end to it, that things are going to turn round. We all agree that fighting inflation is a core objective of the bank and the government. It's a tax on households, cost of living going up and up and up if inflation goes up and up and up. The government's doing its bit and we need to have monetary policy and fiscal policy in alignment. I'm sure the Reserve Bank Governor will face lots of questions and will answer them ably.
STEFANOVIC:
What would you like to ask him?
JONES:
Look, it's not for me to be in a situation where I'm ‑ I'm not a senator to start with so it's not my job to be publicly asking ‑
STEFANOVIC:
Sure but I'm just curious.
JONES:
‑ the Reserve Bank Governor these sorts of questions. It's my job to state clearly what the government's policy is and how we are approaching the challenge of inflation through fiscal restraint, ensuring that we are repairing supply chains that were so critically damaged during the pandemic and the inaction of the former government. They are putting, and the damage in supply chains is putting upward pressure on inflation so addressing those issues is absolutely critical.
STEFANOVIC:
Okay.
JONES:
And ensuring that we can provide targeted relief to households. The opposition, they complain about energy prices, but they vote against the relief for energy prices. It's our job to explain our fiscal policy and we're doing that.
STEFANOVIC:
Okay.
JONES:
And we need to ensure the fiscal and monetary policy is in alignment.
STEFANOVIC:
Critics say though there is no one else as qualified as Philip Lowe. Is he the best man for the job?
JONES:
Oh look, Phil Lowe has had a really tough job to do through some of our most challenging circumstances; the pandemic, the recovery. It's not my job and I don't intend to be taking, providing assessments of the Reserve Bank Governor, its Board. It's my job to work with the Treasurer and the team to manage fiscal policy, to ensure that we're doing our bit to drive down inflation.
STEFANOVIC:
Do you support him staying on in the role?
JONES:
Again, I'm not going to get drawn into those sort of comments, Pete. He's got a tough job to do. The Treasurer and the Prime Minister will make a decision on the future of that position. There's a review on at the moment. Let's see the outcomes of that review before we start getting into this sort of public speculation. I just don't think it's helpful.
STEFANOVIC:
Philip Lowe has, you know, he's got his critics out there, he's made a lot of very public errors but can it be argued that he was simply responding to government policy that was supported by the opposition at the time to inject huge amounts of stimulus into the economy?
JONES:
Again, I'm not going to pass judgment or do a reverse review analysis of decisions that were made in terms of monetary policy throughout the pandemic, an incredibly difficult period of time. We're looking forward, not backwards, Pete. We're looking at the challenges ahead of us and not decisions that were made by the independent Reserve Bank in the past, been very critical of decisions that the government made, its wasteful spending and the trillion dollars worth of debt that they've left us has made the inflation problem worse and managing fiscal policy and budget stresses even worse. Our job to focus on fiscal policy and explain to the Australian people that the steps that we are taking should make it easier for the Reserve Bank to see ahead and see that for our part we're not adding to the inflation dragon.
STEFANOVIC:
The opposition has accused you of undermining the independent RBA by offering advice. Are you undermining the RBA?
JONES:
Oh my God. Look, absolutely not. If you're referring to comments yesterday I'll repeat them today. I'm unequivocally on the side of households who are doing it tough and on the side of small businesses who are doing it tough. No household, no small business wants to see their mortgage payments or their loan repayments go up because of interest rate rises. They expect the government to do its bit to put downward pressure on interest rates through our fiscal policy and we're doing it. But I'm unequivocally on their side, as is every member of the government. The question for Simon Birmingham, who's side is he on? Is he barracking for further interest rate increases? Is the Coalition seriously barracking for further interest rate increases? Is that the side they're on? Because I can tell you every single member of the Albanese Labor government is doing its bit to ensure we manage the economy and fiscal policy. And we're on the side of households and small businesses. We're not on the side of those who are barracking for further interest rate rises.
STEFANOVIC:
I'm sure your comments are supported by a lot of homeowners out there but when you say policy, your policies are doing the job and that you "hope you don't see further interest rate rises". Is that sending a message to the RBA?
JONES:
Is there anybody in this Parliament who is seriously saying, Pete, "I hope we see more interest rate increases"? I mean that's the counterfactual, mate, and if Simon Birmingham or Stuart Robert or Angus Taylor or Peter Dutton, indeed any of the Coalition are saying they're on the other side, let them make that case. Let them the case that they think interest rates should go up and they're on that side. We are on the side of responsible fiscal policy: restraint, relief, repairing the mess that we inherited from the other side. Of course we want to ensure that we're doing everything we can as a responsible government and responsible economic management to ensure we make the Reserve Bank Governor's job easier in terms of monetary policy and interest rate policy. We're on the side of restraint. We're on the side of ensuring that we have lower interest rates, not higher interest rates. What side is Peter Dutton on?
STEFANOVIC:
Just a final one here, Stephen, before we go. I just want to get your thoughts on the Greens threatening to blow up your safeguard policy mechanism. Are you going to have to make concessions here to get the Greens on board; and, if so, what are they?
JONES:
Look, we've put together a package which we think gets the balance right. And I've got to say I come from a manufacturing and mining district. I understand the challenges and the transitions that are going on. I'd simply say this to the Greens: we want to work with you and everybody else in the Parliament to ensure we can meet those climate reduction ‑ carbon reduction goals that we've set ourselves. What we don't want to see is a return to 2009 where the Greens ganged up with the then Coalition parties to scuttle the carbon pollution reduction scheme and put climate policy back a decade. We don't want to see a return to that. We want to work cooperatively with the Greens, with the crossbench, with the government. Making demands that can't be met simply is not going to help anybody who is committed to reducing carbon pollution in this country and it is certainly not going to help people who represent electorates like mine, where we're working with our manufacturing industry to make that transition. We need to work together on this, not be making demands that can't be met.
STEFANOVIC:
Stephen Jones, thanks for your time as always.