Television Interview – 10 News First: Midday
NARELDA JACOBS, HOST: Millions of Australians might be breathing a sigh of relief following the Reserve Bank’s decision to hold official interest rates at 4.1%, but experts say the real cost of living pain hasn’t even hit yet. We’re joined by Prime Minister Anthony Albanese. Prime Minister, thanks for joining us on Midday. Now we know the full flow on effects of all twelve interest rate hikes hasn’t even hit yet. Is it a bit alarming when we have to wait for unemployment to rise before inflation can go down?
ANTHONY ALBANESE, PRIME MINISTER: Well you have two different signs. On the one hand, you have very positive figures on employment, 465,000 jobs created in our first year, you have lower inflation, you have a higher surplus. But at the same time, we know that so many families are doing it really tough out there as well. There is, of course, a lag from when interest rates increase to the impact and we certainly welcome the Reserve Bank’s decision yesterday to leave interest rates at 4.1 per cent because we know that there are signs of slowing in the economy. We want to make sure that we manage this in the best way, that is why my government will work each and every day to make a positive difference for Australians, providing that cost of living relief, whilst not putting pressure on inflation.
JACOBS: Doesn’t that then go to show you that inflation is being caused by non-traditional reasons, profits by corporates, record profits are being returned, so then to allow the RBA to increase the interest rates or give them the freedom to be able to do that and not tackle cost-of-living in other ways, doesn’t that then put the pressure on people who are already the most vulnerable?
PRIME MINISTER: Well the Reserve Bank, of course, is independent of the Government, they make those decisions very much at arm’s length. But we know that we have global inflation right throughout Western Europe, throughout the industrialised world, the United States, New Zealand across the ditch, all are going through these inflationary periods. This is a result of the pandemic and supply chain shortages that came from that but also the Russian invasion of Ukraine that saw that huge spike in global energy prices. So we are having to deal with it, we are dealing with it in a way that doesn’t put pressure on inflation. So for example, our Energy Price Relief Plan of $3 billion, we will put a three quarters of a percentage downward pressure on inflation, making a positive difference. Our cheaper child care plan, cheaper medicines, making it cheaper and free to see a doctor by tripling the bulk billing incentive, all of these measures are aimed at putting that downward pressure on cost of living whilst not putting pressure on inflation.
JACOBS: What about redirecting stage three tax cuts to those who really need it?
PRIME MINISTER: Well those are legislated and we have no plans to change our position. It hasn’t changed on them, and that is, of course, in a years’ time.
JACOBS: If we can move on very quickly to Joko Widodo’s visit. There was an agreement there to create EV batteries together but you stopped short of striking that landmark deal that President Widodo came for. Is it because you didn’t want to put your eggs into one basket being Indonesia?
PRIME MINISTER: No, we want to work very closely with Indonesia and we achieved exactly what both of us wanted to do with what was a very successful visit by my friend, President Widodo. Indonesia is going to grow to be the fourth largest economy in the world. India, of course, will be the third largest economy in the world and it’s no accident that the two visitors that I’ve welcomed in recent times here to Australia have been the leaders of those two nations. We need to make sure that we diversify our trading relationships. At the moment China is larger as a trading partner than the next three largest trading partners, Japan, Korea and the United States combined. So we need to make sure that we do more with them.
JACOBS: Linda Burney, the Minister for Indigenous Australians will give a major speech on the Voice and clarify the issues that she’ll be seeking advice on from the group. Will the public then better understand the role of the Voice once they hear that? Because at the moment people are having difficulty grasping the concept, are they not?
PRIME MINISTER: Well there is a lot of misinformation out there, but the truth is as you know, the gap which is there between Indigenous and non-Indigenous Australian. For 122 years we’ve done things for or to Indigenous Australia, with the best of intentions for most of the time, across the political spectrum but we need to do better. And that is why we need recognition in our constitution and a Voice. We need to listen to Indigenous Australians, we will get better outcomes when we listen to the people who are directly affected by decisions which are made. But we look at the circumstances at the moment of an eight year life expectancy gap, of a greater chance of a young Indigenous male going to jail than going to university, of a suicide rate that’s twice as high for Indigenous Australians as non-Indigenous Australians. And we know that we just need to do better, we need to do things differently and listening to people who are directly affected will always achieve better outcomes and that is what the referendum is about and that is why I sincerely hope that Australians vote yes in the last quarter of this year and vote yes to do things in a different way. We have everything to gain and nothing to lose from a yes vote in this referendum.
JACOBS: Just lastly Prime Minister, should English cricket fans suck it up?
PRIME MINISTER: I was taught when I played cricket in primary school as all Australians are, to stay in your crease and Jonny Bairstow should have learnt that. And I do think that the Australians have performed incredibly well. Both the Australian men’s and women’s team have won their first two games away from home, they’re under tough circumstances. I think the leadership of Patrick Cummins has been outstanding and I’ve very proud of our cricket team. The men’s team led by Patty Cummins and the women’s team led by Alyssa Healy are both performing incredibly well and we are very proud of them and look forward to further wins in the coming tests and matches that lay ahead.
JACOBS Alright thanks Prime Minister for your time on Midday.
PRIME MINISTER: Thanks very much. Courtney Burns