E&OE TRANSCRIPT
DOORSTOP INTERVIEW
CANBERRA
WEDNESDAY, 26 FEBRUARY 2020

SUBJECTS: Impact of Coronavirus on the economy; Surplus; Scott Morrison’s failure to provide economic leadership or a plan; Holden and manufacturing.

JIM CHALMERS, SHADOW TREASURER: Josh Frydenberg's interview on radio this morning had all the coherence of a Sydney baboon rampage. In challenging times like this you really have to wonder whether this Treasurer is actually up to it. We have said for weeks now that the impact of the Coronavirus on the economy will be substantial. Just how substantial it will be remains to be seen. The problem we have is that the economy in Australia on Josh Frydenberg and Scott Morrison's watch was already quite weak before the fires and before the Coronavirus. Josh Frydenberg likes to pretend that he had no warning that it was going to be a difficult summer but experts had been warning Frydenberg and Morrison that it was going to be a difficult summer with the fires and he shouldn't be pretending otherwise.

This country is crying out for economic leadership and for an economic plan and Scott Morrison is either unwilling or unable to provide either of those things. Morrison and Frydenberg had no plan before the Coronavirus, they have no plan now. That’s why we've had disappointing growth, stagnant wages, record household debt, more than doubled public debt, and extraordinarily weak productivity and business investment.

The Government needs to come up with a plan. They need to provide economic leadership which has been lacking for so long now. They shouldn't be pretending in their seventh year of Government that all of this economic weakness is somehow the product of Coronavirus which hit in recent weeks. The country is crying out for leadership and a plan and Scott Morrison is unwilling or unable to provide either.

JOURNALIST: Frydenberg this morning was asked if we rely too much on China. Do you think that's a fundamental problem with our economy?

CHALMERS: We've got a heavy reliance on that big Chinese market and we're seeing the consequences of when there are difficulties emanating out of China then clearly we pay a price for that in our economy. It's in Australia's interests to have the broadest possible set of arrangements with overseas markets. Scott Morrison yesterday said that because of the difficulties overseas we are going to have to rely more heavily on the domestic economy. He should concede that before the virus even hit the domestic economy was going backwards on his watch because he hasn't had a plan for the economy, or for all the weakness in growth, wages, productivity and business investment.

There's also a lot of commentary around about the Government's promised surplus. This is a test that the Government set for themselves. Scott Morrison and Josh Frydenberg begged to be judged by this standard alone. It remains to be seen whether they will pass the test that they set for themselves. The priority should be supporting bushfire affected communities. This is a Government which promised a surplus in its first year and every year after that. They have already handed down six deficits and now they're indicating that they are at risk of a seventh deficit. Time will tell. We won't know for sure until September. The Government no doubt will continue engage in this predictable, ham-fisted, clumsy expectation management over the Budget. The Government will continue to point the finger at Labor, try to shift the blame, and pretend that they had nothing to do with all of this longstanding economic weakness. The Australian people know better. That's why the Australian people are wondering why in its seventh year of Government and its third term, Morrison and Frydenberg don't have a plan to turn around the weakness in the economy which existed well before the fires and well before Coronavirus.

JOURNALIST: You said the weakness in the economy, isn't it a function of the fact that we don't manufacture anymore? That we just sell rocks and education? We rely on two major export items, but we don't actually build things?

CHALMERS: When it comes to the economy the broader the better. Clearly we can do better in manufacturing and we should do better in manufacturing. The announcement out of Holden in recent weeks was a real reminder that this Liberal National Government doesn't support the manufacturing industry. They goaded Holden into leaving and then Holden left. Now they cry these crocodile tears for Holden and for manufacturing in Australia.

This is a Government which has presided over the worst business investment figures since the early 90s recession. They wander around the country pretending that they're good at managing the economy at the same time as we have these challenges which are left unattended. Australians are hurting in the economy right now. Their wages are stagnant. They wonder why, no matter how hard they work, they just can't keep up with the rising costs of childcare, electricity and health costs. They look to this Prime Minister and Treasurer and they are so disappointed because they see a Prime Minister who is incapable of providing the economic leadership that the country needs.

JOURNALIST: What would Labor do to restructure the economy? That is, to bring in manufacturing and encourage [inaudible]?

CHALMERS: One of the most important things we can do is to provide an incentive for business to invest. That's what we took to the last election and that's what we've been calling on the Government to do. That's one thing that we can do. Another important thing is energy policy certainty. Businesses are reluctant to invest is because this Government has had 19 different energy policies in seven years. Business can't have confidence or certainty in the investment environment when the Government doesn't have a settled plan for energy. This Prime Minister spends all of his time attacking Labor and what we've said about net zero emissions and none of his time coming up with a settled energy policy. Net zero emissions by 2050 is about cheaper and cleaner energy which means stronger economic growth, more jobs and higher wages. Scott Morrison's inaction and ineptitude on climate change and on the economy means slower growth, more stagnant wages and fewer jobs. Thanks.

ENDS