Category: Asia Pacific

Source: Australian Treasurer

Natarsha Belling:

Good afternoon, Treasurer. Thanks for joining us this afternoon.

Jim Chalmers:

Thanks very much, Natarsha.

Belling:

Surely you are hoping for a rate cut tomorrow.

Chalmers:

Because I respect the independence of the Reserve Bank, its governor, and its board, I try not to make predictions or pre‑empt the discussions that are going on right now in Sydney about future movements in interest rates. I know that the independent Reserve Bank has a job to do and some issues to consider. I’m focused on my job. And because we’ve been working so hard on the cost of living and fighting inflation, what we’ve been able to do in Australia is get inflation down and wages up and keep unemployment low. That’s my job and I’m focused on that.

Belling:

Inflation is down now, but it certainly hasn’t been. And wages may be increasing, but the cost of living is hurting millions of Australians. Surely you have to admit that.

Chalmers:

I do, Australians are under pressure. That is still the case. Even though we have made very substantial progress together on inflation and now sustained progress on inflation, we know that Australians are still doing it tough and that’s why the cost of living is the Albanese government’s primary focus. But when it comes to inflation, even just last week a couple of the major bank economists released new forecasts for inflation. They lowered them substantially. So, we have made that very significant progress together as Australians when it comes to inflation. We have been delivering lower inflation, higher wages and low unemployment. But we know that the job’s not done and people are still under the pump.

Belling:

So, in regards to inflation at the moment, if inflation is coming under control and if there is a cut to the official rate tomorrow, we know that is going to take a long time to actually really dent into those family budgets. If people do have a mortgage, it will take many months to take effect and they’re still dealing with skyrocketing costs.

Chalmers:

First of all, again, I don’t want to engage in a hypothetical. We’ll know tomorrow afternoon whether the independent Reserve Bank’s decided to cut interest rates or not. But I do accept your broader point and that is that these cost‑of‑living pressures are pretty widespread and that’s why we’ve got the tax cuts rolling out, the energy bill relief, cheaper medicines, cheaper early childhood education, it’s why we’re getting wages moving again, more rent assistance, fee‑free TAFE – all of these things are about recognising that people are under substantial pressure. The government’s got a role to play in easing that pressure wherever it responsibly can. And that’s what we’ve been doing, really, over the course of the 2 and a half years, almost 3 years that we’ve been in office. The cost of living has been the number one focus of this government. And that will continue to be the case no matter what the Reserve Bank decides independently tomorrow.

Belling:

Now, the cost‑of‑living crisis is number one at the top of the agenda with how Australians will vote on the upcoming federal election. Do you concede that they won’t vote you in because they are having to deal with this cost‑of‑living crisis?

Chalmers:

Look, I don’t obsess over the polls, and that’s because my job is to – my job is to focus on a different set of numbers in the economy. And to the extent they’re related, I think it just reflects the fact, as you and I have been talking about today, that people are under pressure and they express that sometimes in the political system. But my focus as the Treasurer, our focus as the government, is on a different set of numbers in the economy: inflation, unemployment, wages, all of the things that you and I have been talking about today.

Belling:

Ok, Treasurer, there is speculation that you have been privately telling MPs not to speculate on what the Reserve Bank may do. Is that true?

Chalmers:

I say the same thing to my colleagues behind closed doors that I say publicly, and that is not to take any outcome from the Reserve Bank for granted, and I mean that. I have so much respect for the Reserve Bank, its governor and its board, that I don’t engage in a running commentary on what they might decide. I don’t predict or pre‑empt those discussions that are underway right now, I say that to my colleagues as well. They will announce their decision in due course. Our job as the Cabinet in the Albanese Labor government is to alleviate the cost‑of‑living pressures wherever we responsibly can, to work around the clock as we have been, on getting inflation down at the same time as we get wages up and keep unemployment low. And we have made some really good progress there, but we don’t pretend that there isn’t more work to do.

Belling:

Treasurer, a Budget is scheduled for March, but can you commit to that at this stage? Surely you’ll then have some more sweeteners and then go into a May election. So, can you say that Budget is locked and loaded for March?

Chalmers:

That’s what we’re working towards. The final decision on the timing of the election will be up to the Prime Minister, as is always the case. But Katy Gallagher and I are working very hard with the Expenditure Review Committee to put together that Budget for March. And what people can expect in our fourth Budget is what they saw in the first 3. We will continue to take the right economic decisions for the right reasons. We’ll continue to prioritise getting on top of inflation without ignoring the risks to growth in our economy. It’s been that combination, that balance that we’ve struck in the first 3 Budgets that has helped us get inflation down and wages up and keep unemployment low. And that’s the approach that we’ll continue to take in the fourth Budget.

Belling:

Treasurer, if Labor does lose the federal election, will you be the next Labor leader?

Chalmers:

I’m not even thinking about that – 100 per cent of my time is spent putting together the Budget, putting together our economic policies with our colleagues, working around the clock not just to see the return of the Albanese Labor government, but also to make sure that we can continue to make progress in the economy. The alternative to that, the big risk posed to progress in the economy, would be a change of government. We know that Australians would already be thousands of dollars worse off if Peter Dutton had his way, worse off still if he wins the election. And so my job is to work as hard as I can as Anthony Albanese’s Treasurer in this Labor government to keep making the right economic decisions to win the next election so we can continue to deliver for the Australian people, particularly when it comes to the cost of living.

Belling:

Jim Chalmers, thank you for joining us this afternoon.

MIL OSI News –