Senator the Hon Katy Gallagher

PATRICIA KARVELAS, HOST:Minister, welcome to the program.

SENATOR THE HON KATY GALLAGHER, MINISTER FOR FINANCE:Thanks for having me on, Patricia.

KARVELAS: Minister, quarterly inflation came in at its lowest rate in 3 years, below 3 per cent, which is in the Reserve Bank’s target range. But of course, there are other measures, it’s a bit more complicated – and on those measures, this is clearly not in the range. Can we expect an interest rate cut now, or do you expect it to take longer?

GALLAGHER: Well, PK, we’ve had this discussion a lot of times on your show. We really leave decisions about when interest rate cuts will be made to the Bank. Obviously, our job is to make decisions and do what we can to ease the inflation challenge, to not make the Bank’s job harder. And these results are really welcome. They show that we’re continuing to see inflation moderate – not just headline but underlying – the monthly inflation has come down considerably and from its peak of what we inherited, at 6.1 per cent, to see it come down to 2.8 per cent is really, really welcome. But there’s more to be done and we know people are still really feeling those cost-of-living pressures, so we can’t take our eye off the ball of how we address those pressures going forward.

KARVELAS: A recent forecast from the IMF predicted that Australia’s inflation return to 3.6 per cent by the end of next year – again, outside the RBA’s target range. What new measures will you roll out to help prevent this from happening?

GALLAGHER:Well, we’ll update the Treasury forecasts in the usual way – so, around MYEFO. So, people will be able to see what the Treasury forecasts are, and the Bank does the same around the same time. But you know, cost-of-living relief and looking at how we can provide that whilst getting the Budget in better shape and running surplus budgets – as we have, the last 2 – you know, is key to our economic plan. So, we’ll continue to look at ways we can make a difference for people when they’re sitting around their household tables trying to make their budgets work, but at the same time we’ve got to make sure we’re being fiscally responsible as well and making sure that we’re doing what we can to make sure we’re easing inflation. And you can see that in some of the data in this report – so, our energy bill rebates and the rent assistance that we’ve provided have certainly helped in those areas, but more to be done.

KARVELAS:I’ve spoken to a Labor MP who says to me that the government’s political fortunes are essentially in Michele Bullock’s hands. Is that right?

GALLAGHER: Look, I don’t see it in those terms. I think our job is to make sure our economic plan is the right one for the country and you know, against these inflation numbers – and I know when we talk a lot of numbers on your show it doesn’t necessarily translate into what people are seeing around their tables, so, some of the things we’ve been focused on is that cost-of-living relief. But it’s broader than just the inflation challenge. It’s the fact we haven’t had a negative quarter of growth, really quite remarkable when we see comparable countries have. Created a million jobs, the most that have been created in the first term of any government. We’ve got a stronger budget position – so, those surplus budgets – we’ve rolled out tax cuts, and we’ve got wages growth happening. And we’re looking after particularly minimum wage workers and childcare workers, aged care workers. So, you know, I think all of our decisions have been about the right economic plan for the right time for the country. Obviously, the RBA will make the decisions they need to make against their mandate as well. Our job is to make the right decisions that we can, where we have control and responsibility over them.

KARVELAS:Just want to change the topic if I can, Minister, to talk about this ongoing – a story that’s of course still playing out. Why has it taken so many days for the Prime Minister to issue this statement that he didn’t contact Alan Joyce?

GALLAGHER: Look, I think the PM has been answering questions for the last few days, it seems. This is a story I think that came up with the publication of a book. The reason we’re talking about it is because these flights were declared under the rules, in the normal way that people – that members of parliament – are required to do. There’s been subsequent questions and a lot of focus on this. The PM has answered all of those questions. I mean I can’t answer –

KARVELAS: But wouldn’t it have been better if he’d just come out and said this earlier?

GALLAGHER: Well, I think the PM answered the questions he was being asked about. He’s provided further information with further questions. And also gone back to check details. I don’t think, because of the focus on this issue – I mean, the PM’s job every day is about focusing on cost-of-living. I work with him very closely, as you know. That’s the job that he’s focused on. He’s now answered some further questions about arrangements, flights that occurred, sometimes up to over a decade ago. But all of those – you have to abide by the rules. The rules are in place. If you receive an upgrade or a gift or something, we have the Register of Interests, you put that on your register and it’s there for everyone to see and go on the internet and have a look and see what people have on their Register of Interests. And the PM’s done exactly what every other MP and Senator should be doing.

KARVELAS: And there has been confusion in some reporting I’d love to get some clarity from you on, that it was just that he didn’t call Alan Joyce – and we know what a call is, you call and you’re actually speaking in person, versus a text or an email. Can you clarify that?

GALLAGHER: Well, my understanding is there was no contact with Alan Joyce on these matters that have been raised. And the PM has answered questions about his conversations with Alan Joyce in other press interviews. So, that is – you know, they are the details, and I would say, hopefully the fascination on this subject will move on. Because the real issues facing everybody in Australia is around cost-of-living and that’s what the PM is working on.

KARVELAS:Will the PM launch a broad inquiry into all politicians’ travel and whether benefits such as lounge memberships or flight upgrades should be received?

GALLAGHER: Look, I haven’t had that discussion with the PM –

KARVELAS: Sounds like a good idea, though, doesn’t it? Given there are others being –

GALLAGHER:It’s a matter for the parliament. The parliament sets the rules around – these are matters that are really the responsibility of the parliament. The parliament has a Register of Interest arrangements. If you receive any gift or hospitality or, in this instance, an upgrade, you must report that and record it on your Register of Interests. Similarly, if you donate money to businesses or causes or something like that, you must also declare it. So, it goes both ways. That’s what the Register of Interests is there for. It’s about accountability and transparency, so that people can – you know, if they are interested – can follow your declarations.

KARVELAS:So, do you think a broad inquiry might have merit?

GALLAGHER:I think the – no, well, I just think the arrangements that are in place are there. The rules are there –

KARVELAS:But maybe they’re not good enough? Maybe they’re not good enough.

GALLAGHER:Well, you know, if the parliament thinks they’re not good enough, the parliament can have a discussion about that.

KARVELAS: But the Labor party’s part of the parliament, and so you could lead it.

GALLAGHER: Sure. And these issues arise from time to time, and I think the focus has always been on declaring those issues – gift, hospitality, otherwise. Where the parliament has landed is these things need to be recorded and reported.

KARVELAS: Minister, thank you for joining us.

GALLAGHER:Thanks very much, PK.