JIM CHALMERS MP
SHADOW TREASURER
MEMBER FOR RANKIN
 

E&OE TRANSCRIPT
TELEVISION INTERVIEW
ABC NEWS BREAKFAST
FRIDAY, 17 DECEMBER 2021

SUBJECTS: Devonport tragedy; More cuts to real wages, risk of more slush funds and rorts and waste and secret cuts to come after the election if the Morrison Government is re-elected; Coalition fallen short of 52 of their 55 wage growth forecasts; MYEFO says nothing about costs of living but doubles-down on rorts and waste.

MICHAEL ROWLAND, HOST: We're joined now by the Shadow Treasurer, Jim Chalmers, from Brisbane. Very good morning to you.

JIM CHALMERS, SHADOW TREASURER: Good morning, Michael.

ROWLAND: Jim Chalmers, I wanted to leave politics to one side for the moment. I know you're the father of young children. How are you dealing with his unimaginable tragedy in Devonport?

CHALMERS: Well, Michael, I don't think that there are words to describe what that community is going through and what those families are going through. There aren’t really words for it. I think every Australian heart goes out to those families, the friends of those kids, that community in Devonport. All of Tasmania, all of Australia, I think it's really rocked us. To thieve those kids on such a happy day, from such a beautiful community, I think just defies words and explanation.

ROWLAND: It does indeed. Okay, let's shift our focus to the Budget update now. A $7 billion better bottom line this financial year on the Budget deficit, surely that deserves a tick as the Government tries to wind-back the deficit?

CHALMERS: I think the mid-year Budget update showed really the risk of re-electing this Morrison Government - you've got real wages going backwards this year, you've got another $16 billion in secret slush funds with the potential to be rorted and wasted like we've seen for much of the last eight years, and the Government says that there'll be cuts to the Budget but they won't tell you what they are until after the election.

I think there’s red flashing lights going off in a lot of Australian homes as they hear the Government give themselves a big pat on the back for this mid-year update. If you look at it closely - more cuts to real wages, more slush funds and rorts and waste, and secret cuts to come after the election.

ROWLAND: Real wages will continue to fall - at least this financial year - but the update does say that from next financial year they'll start increasing. That's a good thing for Australian workers, isn't it?

CHALMERS: It would be if it eventuated, Michael. This Government's made 55 different forecasts about wages growth and on 52 different occasions they've fallen short of that. So they're notorious for overpromising and underdelivering on wages. Look at the best part of the decade that this Government's been in office - historically stagnant wages at the same time as the costs of living are skyrocketing. That's why families feel that no matter how hard they work, they just can't get ahead under this Government.

ROWLAND: Okay. You have often said Jim Chalmers that one of the key tests - if not the key test - for the Government as it deals economically with a pandemic is jobs, jobs, and more jobs. Well, we saw that latest jobless rate of just 4.6%. On that basis, at least, the Government is passing with flying colours, isn't it?

CHALMERS: We want that unemployment rate to be as low as possible. It's an important part of the story, but it's not the whole story. Even in those numbers yesterday that many people welcomed, we've still got 1.7 million Australians who are either unemployed or looking for more hours at the same time as we've got these skills shortages and labour shortages right around the country. The labour market can be much stronger than it is right now. One of the reasons why we've had stagnant wages for the best part of a decade under this Government is because of job insecurity and underemployment. If we don't deal with those aspects, then the labour market will be weaker than it needs to be.

The other point to make is that through the course of this year - this time last year, the Government was saying the economy's roaring back and everything's going to be fine, and instead we had one of the biggest downturns in our history in the September quarter. What that means, is we can't be complacent. The Government's forecasts rely on an assumption that they're going to get absolutely everything right when it comes to the management of this pandemic. We know from the last 12 to 24 months that they've got big things wrong in quarantine, and vaccines, and economic support, and all of the rest of it. We hope that the best version of the economy emerges in this recovery, the economy's recovering despite the Government not because of it, but we can't be complacent about it because we've seen how easily the economy can be knocked off course by the federal government's mistakes on pandemic management.

ROWLAND: Okay, just finally, you're very keen, should Labor win, on Budget repair and getting the house back in order. So that means one of two things - tax increases or spending cuts. Labor will have to be upfront with voters, won't they, before the next election as to just which option you'll be choosing?

CHALMERS: The difference between us and the Government Michael, is we've said that there will be a need to improve the Budget and that’s a combination of growing the economy the right way and getting maximum bang for buck for our investments; also dealing with the rorts and waste that has been a defining feature of this Government for the last eight year; and thirdly, there are opportunities in multinational taxes, to make sure that we are taking advantage of these important international developments on making multinationals pay their fair share. So there are some ways that we can get better value for money for people in the Budget.

The alternative is another three years of the Morrison way - which is a trillion dollars in debt with not enough to show for it because of all of this rorts and waste, and all these slush funds that they spray around for political purposes and not in the national economic interest.

ROWLAND: Okay, Jim Chalmers. Thank you. This is probably the last time we speak to on the show this year. Thank you for all of your appearances this year.

CHALMERS: Merry Christmas to you Michael, all of your viewers, and Lisa as well.

ENDS