Senator the Hon Katy Gallagher

CHARLES CROUCHER, HOST: Well, if you’re one of the millions of Australians sweating on mortgage rates or rental rates, crucial data on the economy will be released this morning and experts are forecasting a significant decline in headline inflation for the first time in two years. For more, we’re joined by the Finance Minister, Katy Gallagher, live in Parliament House in Canberra. Minister, good morning to you. The Consumer Price Index showed inflation at around 3.8 per cent. The experts are expecting a drop. Where would you like to see the figure today?

SENATOR THE HON KATY GALLAGHER, MINISTER FOR FINANCE: Morning, Charles, thanks for having me on. Well, obviously we would like to see inflation continue to moderate. That’s what we’ve been seeing over the last year or so and we want to see that continue, but these are the monthly figures, Charles, they do tend to jump around a little bit. But we’ll be looking closely at them and continuing to roll out our cost-of-living help because we know households are doing it so tough at the moment.

CROUCHER: We get that these are the monthly figures, but the RBA will meet before the next quarterly data comes out. So for those that are sitting at home wondering when that rate cut’s coming, what should they be looking for, what kind of number will show that things are going in the right direction?

GALLAGHER: Well, I think, again, we want to see that number continue to head back towards the band. So, you know, that’s what we’ve been seeing. You know, I see what some of the economists are saying about seeing it you know head down south from 3.8, and that would be a good outcome. But you know, our job is to focus on making sure that we’re providing cost-of-living help, not working against the Bank as it tries to tackle the inflation challenge. And that’s what we’ll continue to do. So, that’s why some of those energy rebates, the help for child care, the rent assistance, tax cuts have all been an important part of our economic plan.

CROUCHER: The Canadians, the Americans, the Poms, the Kiwis, they’re all looking at lower interest rates. Our Reserve Bank says not until 2025. That can’t really be so out of step with the rest of the world, can we?

GALLAGHER: Well, again, those are decisions for the Bank. And so, we don’t usually – you know, I don’t make a habit of commenting on what they should or shouldn’t do. Obviously, they look at the economic data. I would say that, you know, when you look at around the world, many of those countries, inflation peaked higher than it did here and earlier than it did here. So, there is some explanation for seeing what’s happening here and you know we’re all experiencing some of the same problems, where you see inflation moderate and then you know, it becomes a bit sticky. And then we can see it moderate again. And that’s you know what we’re seeing around the world, Australia is no different. But again, for people at home worrying about their household budgets and things like that, we’re hopeful that we’d see moderation in the inflation numbers today, because that’s going to help.

CROUCHER: That’s at 11.30. Yesterday, there were thousands, tens of thousands of construction workers out on the streets around the country. Sacked union leaders have vowed to campaign for the absolute destruction of the Labor party. They’re obviously angry. I want to focus on the Greens, though, because they were addressing that rally. Is that appropriate?

GALLAGHER: Well, I don’t think so. But they need to explain that for themselves. You know, why you would want to address a rally like that. I mean, obviously, everyone’s entitled to demonstrate and protest, but I think in Parliament, as leaders, the allegations that have been raised around intimidation, violence and particularly misogyny is really concerning. And why you would have a sitting MP want to associate with that is something that that MP’s going to have to explain.

CROUCHER: Your Senate colleague, Murray Watt, is dealing with the negotiations on some of the industrial relations disputes going on. How quickly can he resolve that and do you expect him to resolve that? Because the longer these people aren’t on building sites, the longer it takes to build houses and the more it costs for everyone else.

GALLAGHER: Yeah obviously, we want people at work and you know I think those workers will want to be at work, so I don’t think it’s a surprise perhaps that they’ve had a protest, but the administrator –

CROUCHER: The size was surprising, wasn’t it?

GALLAGHER: I think that union’s always been able to roll out a crowd. But, I don’t think it’s – you know, it doesn’t change, really, the steps that have been put in place. The administrator’s in charge. They’ll be making decisions about how that union operates and employers of those workers will be wanting them back at work. And I would imagine that that’s exactly where they’re going this morning.

CROUCHER: Looks like another beautiful morning in the capital, Katy, appreciate your time this morning.

GALLAGHER: It is. Thanks Charles.