JIM CHALMERS MP
SHADOW TREASURER
MEMBER FOR RANKIN

E&OE TRANSCRIPT
RADIO INTERVIEW
4CA CAIRNS
TUESDAY, 9 MARCH 2021

SUBJECTS: Anxiety about the Morrison Government’s JobKeeper cuts; Local anger at the Treasurer’s empty-handed visit to Cairns

MURRAY JONES, HOST: Yesterday, we had the Treasurer, and of course the Shadow Treasurer, both in town. Purely by coincidence, I can only, conclude there, but certainly in the Cairns Post this morning there's a bit of a focus on the lift for aviation. But obviously even the discussion that was had with Josh Frydenberg on the John MacKenzie Show yesterday, I guess really shed no further light on the biggest concern for a lot of local employers, and that is JobKeeper, and what's going to happen at the end of March. We're going to be facing a whole heap of redundancies, and I guess crucifixion, really, for of our tourism industry.

I think there's certainly something that, you know, is important, is aviation. And I know speaking to Tanya Plibersek in the past, that she's certainly been a strong supporter of aviation here in Tropical North Queensland, but I guess that focus more on training, not just keeping those numbers rolling through the airport. But some further comments, just on that visit to Cairns yesterday, Shadow Treasurer Jim Chalmers joins me this morning. Good morning, Jim. Thanks for your time. I understand you're at the airport right now, so we'll keep it short, sharp and sweet, but I do want to ask you, how did you guys manage to coordinate this visit to Cairns at exactly the same time?

JIM CHALMERS, SHADOW TREASURER: I'm not sure how that happened, Murray, to be honest, but I'm there quite a bit. I've been there five times since the election, so you'll probably see me knocking around there a fair bit. The Treasurer hasn't been there for a while and I think the reason why a lot of the business groups, employer groups, and workers there in Cairns are so disappointed, is because when he finally did come, he came empty-handed. They were looking for some ideas, and some policies, and some investment in the local economy which desperately needs it, as you know, and they didn't get it. So I think in lots of ways he kind of left them in the lurch, and by leaving them in the lurch, I think it risks leaving Cairns and the surrounding areas behind as we recover from this recession.

JONES: As I understand it, he did promise that he would certainly consider a lot of the things that he's seen on the ground here. And after I think what's been a fairly, you know, powerful conversation, with quite a few of the business leaders. But at the end of the day, you know, it seems like there's nothing solid about JobKeeper for the end of March?

CHALMERS: A lot of those same business leaders have said publicly and privately that they were disappointed - if not angry - that the Treasurer went there empty-handed. We think the best thing that he could have done was to have a responsible, and temporary, and targeted extension of that JobKeeper payment. We need to recognise that there are parts of Australia doing it tougher than others. Cairns, as you know, is so heavily reliant on those 3,500 international visitors that you'd be getting about now each day, and the $5 million that they'd be pumping into the local economy. So, we need to recognise that.

Nobody's saying JobKeeper should go forever, but it should be tailored to what's actually going on in local economies like in Tropical Far North Queensland. And when those JobKeeper wage subsidies are cut at the end of the month by the Treasurer, that means the 8,096 workers and the 2,631 small businesses who are relying on that are in for a very uncertain period. We don't want to see those jobs lost, we don't want to see small businesses hit the fence, and that means the federal government needs to step in and help.

JONES: Do you accept, you know, with the shortfall obviously in international visitors - and that's likely to be the case for quite a while - focusing on aviation and getting those numbers through Cairns Airport does make a lot of sense though?

CHALMERS: Absolutely. And we've been saying for some time, I think as you alluded to in your introduction a moment ago, that there does need to be a plan for aviation. Ideally a national plan which takes into account the fact that places like Cairns are heavily reliant on international visitors and the federal government - for right and responsible reasons - has closed the international border.

So, the tourism operators I spoke to yesterday with my colleague Senator Nita Green, who's based in your neck of the woods, were saying that somewhere between 70% and 90% of their business comes from overseas. So we need an aviation plan, but that's no substitute for extending JobKeeper and doing whatever else is necessary to make sure we don't lose those jobs, and opportunities, and skills, and experience from industry. Because if we hollow out the industries in Far North Queensland, it will make it that much harder for it to recover when the international borders do reopen.

JONES: Now, just a few weeks ago, there was talk about the federal government providing some form of subsidies, with respect to a tax break for tourism businesses, particularly in this part of the world. What would be your response to such a proposal?

CHALMERS: We'd have a really good look at it, Murray. I mean, one of the approaches that we've tried to take throughout this pandemic and throughout this recession is to be as constructive as we can when the government comes forward with ideas. We will obviously welcome any support for local industries and local small businesses, and workers.

But again, I think we come back to the point that whatever else might be offered by the Treasurer when he finally gets around to announcing some additional assistance, it wouldn't be a substitute for that JobKeeper payment, which is playing such an important role in the local economy there and which will be so devastating when the government cuts it at the end of this month.

JONES: I guess when it comes to tax concessions, they are dependent on having turnover and as we will know, there's quite a few tourism businesses here in Tropical North Queensland that are really struggling, as you know, with turnover as a result of what's occurred in the last little while. That sounds like it could be your final boarding call! So, look, Jim, great to talk to you this morning. Thanks for coming in and spending some time with us yesterday on your visit to Cairns, and we'll look forward to seeing you here again in the not too distant future.

CHALMERS: Thanks for the opportunity, Murray. I look forward to seeing you again soon.

JONES: Cheers. Shadow Treasurer, Jim Chalmers, joining us this morning as we head towards the news.

ENDS