Doorstop interview, Logan, Queensland

JIM CHALMERS:

Two things for you today - an update on the meeting of state and territory treasurers and responding to the Statement of Monetary Policy released just now by the Reserve Bank. The independent Reserve Bank has confirmed today that the Albanese Government's energy plan will moderate inflation in our economy. This is the most important conclusion from the statement released today by the independent Reserve Bank. This government's energy plan is all about taking some of the sting out of energy prices and taking some of the edge off inflation in our economy and the independent Reserve Bank says that they expect that it will. Our three point plan to tackle the inflation challenge in our economy is all about providing responsible cost of living relief, dealing with issues in the supply chains and making sure that we've got the most responsible Budget that we can. 

Inflation is the biggest challenge in our economy, and it's the biggest focus of the Albanese Government. We are not surprised but we are very pleased to see that the independent Reserve Bank has said today that our energy plan will have exactly the consequences and the impact that we want it to in taking the edge off some of this inflation in our economy. Our energy plan is all about making life a bit easier for families and pensioners and small businesses and the independent Reserve Bank has said today that they believe that it will.

It beggars belief that the Opposition in Canberra has voted against our energy plan. Peter Dutton and Angus Taylor have voted for higher inflation and higher energy bills. They see this inflation challenge in our economy - fed in large part by higher energy prices - and they think the government should do absolutely nothing about it. We take a different view. We are acting decisively to take some of the sting out of these high energy prices to deal with this inflation challenge in our economy and we're pleased to see the independent Reserve Bank expects and forecasts that it will make a meaningful difference.

The second set of issues is around the meeting of state and territory treasurers today along with Minister Katy Gallagher, along with Sam Mostyn, chair of an important taskforce on women's economic participation, as well as the Australian Local Government Association. We made really important progress today on energy, on housing, on population, on women's economic participation and on a whole range of other areas as well. There is much more that we agree on at the local government, state government and Commonwealth government level than we disagree on. I thank my colleagues for the opportunity to engage in detail on a number of really important economic issues. Every state and territory treasurer was participating in the call. There is more that we agree on than disagree on. We've got a lot of work to do and we cracked on with a lot of it this morning. Over to you.

JOURNALIST:

Anthony Albanese promised to finalise the rollout of the energy relief plan by March/April. Today suggests it's not going to be done by May. Why is it taking so long?

CHALMERS:

We've been saying for some time in response to issues raised by the states themselves that this relief is expected to flow closer to the middle of the year. I've been saying for some time that this will be a centrepiece of the Budget that I hand down in May. This is absolutely crucial cost of living relief and we want to see it flowing as soon as possible. We've responded to issues raised by the states and territories about needing to take the time to sort out the implementation issues to make sure that we get all of that sorted so that we can get relief into people's hands as soon as possible. The conversation today was about a number of those implementation issues. There are still some issues to be ironed out but we've responded to concerns raised by the states really since Christmas that the best time for this to roll out will be closer to the middle of the year - that's been their view and it is our view as well and we're working on that timeframe as I've been saying for some time.

JOURNALIST:

What do you make of Matt Kean's stance that the Commonwealth should deliver its share of energy rebates immediately?

CHALMERS:

Matt Kean is trying to hold the Commonwealth to a standard that he is either unwilling or unable to adhere to himself. Matt Kean's own policy kicks in in July of this year. And so I think we all know what this is about. Matt Kean is part of a government that's been there for 12 years, asking for 16. They're trying to distract from what I think is a genuine mood for change in New South Wales. It's not unusual or unprecedented for state governments to have a crack at the Commonwealth at election time. And that's really all this is. I'm relaxed, I'm untroubled by what Matt has been saying publicly. His own policy kicks in in July, the states and territories asked for a bit more time to implement this policy and so I think we should just see it for what it is. This is Matt Kean playing politics in the lead up to a state election, he obviously feels under a bit of pressure, I understand that and inevitably around this time of the electoral cycle, state governments in the position that Matt's is in will take shots at the Commonwealth.

My job and my focus is to work closely with states and territories of both political persuasions to try and come together to deliver this energy bill relief in ways that help the people that we represent. We've got an opportunity to do that, I still think we agree on more of this than there is disagreement, there are still a few issues to be ironed out but I think the timing point that Matt has been making doesn't stack up when you consider the timing of his own policy and you consider it was the states and territories that asked for a bit more time to deliver it. We will deliver this relief, it will make a meaningful difference and I think that's what the independent Reserve Bank is reflecting today.

JOURNALIST:

He would argue that that July 1 deadline is for a completely different plan so it's not related to the deal with the Commonwealth.

CHALMERS:

He said that he'll provide energy bill relief in July and that's the view of the states and the Commonwealth when it comes to the plan that I'm working closely with them on. I'm not interested, frankly in a kind of a desperate war of words about a state election outcome. I'm not interested in that. I'm interested in getting the right outcome, the right way, working collaboratively with state and territory governments - Labor and Liberal. Matt will have political points to make, I'm genuinely relaxed and untroubled by that. You can set your watch by it when you get closer to a state election, you'll hear this kind of stuff and there'll be more of it. But when it comes to the timing of the policy - the timing of our policy reflects the timing of his policy. He's trying to hold us to a standard that he's not adhering to himself. I'm not interested in a kind of a war of words, I'm interested in the right outcome here.

JOURNALIST:

You say the middle of the year for households expecting to receive energy cost relief, can you give us an exact month though?

CHALMERS:

We're working with the states and territories on the timeframe but we've all said in different ways, privately and publicly, that we expect that to be closer to the middle of the year. It's possible, conceivable that this is something that we agree over the course of the coming weeks, I put it in our Budget in May and it flows sometime not too long after that, but this is part of the discussion that we're having with the states. There's a handful of outstanding issues - we expected that, we're relaxed about that, we'll work through them in a spirit of collaboration. There will be an element of political argy‑bargy for the one state that's facing an election in the coming weeks. We're relaxed about that as well.

JOURNALIST:

If you're serious about easing pressure on households in the cost of living crisis, wouldn't it make sense to deliver those energy rebates immediately?

CHALMERS:

As I've been explaining to you, and as we've been discussing in the meeting itself, there are a range of implementation issues here. We're talking about states delivering to Commonwealth payment recipients, for example, every state is in a different position. We're doing a series of deals bilaterally, not one big national deal. And so inevitably there are issues that come from that - different states are putting in different amounts of existing effort. We're asking for some additional effort and we're working through that. There are issues around implementation and timing. All of that is inevitable I think when you're delivering one and a half billion dollars of federal assistance to take some of the sting out of electricity bills in ways that will help families with the rising costs of living and we shouldn't lose sight of the main objective here. What this energy plan is all about is making life a bit easier for families and pensioners and small businesses. It will make a meaningful difference when it's delivered. We're working closely with colleagues and counterparts to make sure it can be delivered the right way, as soon as possible.

JOURNALIST:

Once enacted, how soon will Australians start to see the results?

CHALMERS:

Already we're seeing some really positive indications when it comes to the cap on gas prices and when it comes to forecast prices in the electricity market, we're seeing some really welcome developments there. When it comes to the household assistance, obviously people will benefit from that when it begins to flow as soon as possible around the middle of the year. It's important that we see this - not in isolation - this is a government which is providing responsible cost of living relief in ways that doesn't add to inflation. A key part of our economic plan is cost of living relief when it comes to medicine, when it comes to early childhood education, when it comes to getting wages moving again, and when it comes to electricity bills. These are all part of our plan. One of the really heartening things is that the independent Reserve Bank has confirmed today that our energy plan will take some of the sting out of this inflation in our economy. That's what it's designed to do and that's what it will do.

JOURNALIST:

Can you give an indication just how much support you will provide to households in dollar terms?

CHALMERS:

We'll provide one and a half billion dollars’ worth of resources to this cost of living relief. And we're working with the states and territories because every state and territory has a different view about how much they're prepared to kick in. This is something that we're working collaboratively with the states on. There is a Commonwealth element, there's a state element. And so the Commonwealth levels of support is determined in part - not wholly but in part - by how much the states are kicking in as well. And so we'll finalise those amounts. We've been discussing that with the states as you'd expect, and that relief will flow towards the middle of the year and when it does it will make a meaningful difference.

JOURNALIST:

Is the rejection of Clive Palmer's coal mine in Queensland proof that Labor doesn't support the resources sector?

CHALMERS:

Of course it isn't. Minister Plibersek makes these decisions on their merits. And as a Queenslander and somebody who believes in the incredible economic power of our regions, I think we need to recognise as well that the Reef generates a lot of jobs and economic activity and investment as well. So Minister Plibersek, in her characteristically considered way, works through these applications when they are on her desk, in her in‑tray. She considers each case on its merits. We are big supporters of the resources industry. There's no net zero without the resources sector. The resources sector creates jobs and opportunities for Australians right around the country and especially here in Queensland. We support the industry, we make these decisions on their merits and we weigh up all of the relevant considerations including the future of the Reef.

JOURNALIST:

Will Labor be running a candidate in the seat of Aston following Alan Tudge's resignation?

CHALMERS:

I haven't given that a moment's thought. It'll be a matter for the party organisation and to some extent, the Prime Minister. Alan Tudge only just resigned yesterday. We'll go through the usual processes and put the usual thought into it, and make an announcement in due course. It hasn't been a big focus of mine. By‑elections are always tough for governments. They're always tough, particularly when this has been a Liberal seat, I think for something like a third of a century continuously. And so no doubt the party organisation and others will weigh all of that up. That's not something that I'll focus on. That's been a tough area for Labor for most of my life. And so no doubt we'll weigh that up.

JOURNALIST:

[INAUDIBLE].

CHALMERS:

Not necessarily. In these meetings, we have discussions about a whole range of policy issues. And I can think you can tell from the way that Matt has conducted himself today that he's looking for headlines here, and I'm looking for outcomes. He's looking for a headline in the lead‑up to a state election. I'm looking for the right outcome for the people in New South Wales and the people of Australia dealing with the high cost of living. And as I said before, and I'm happy to say again and again if you keep asking me, I'm relaxed about it, I'm untroubled by it, I expected it. He's part of a government that has been there for a really long time and is showing all of the signs of that, asking for four more years. I think there is an appetite in New South Wales for a fresh start. I think there is a mood for change, and Matt is just trying to distract from that. I'll just keep trying to get the right outcome. I will work with whoever the people of New South Wales elect and whoever the Premier of New South Wales appoints as treasurer. There is a lot that we agree on. Occasionally, someone like Matt will play these kinds of political games because the election is around the corner.

JOURNALIST:

[INAUDIBLE].

CHALMERS:

We provide Treasury forecasts on an annual basis, and we did that in October and we'll update those forecasts in May as well. I think the Reserve Bank has made a big contribution to our understanding of how they see the economy today. Detailed forecasts from the Reserve Bank today are very important and I think among the most important conclusions that they've reached today is when we've got this inflation challenge in our economy, that's the primary challenge in our economy, it's the government's primary focus. One of the most important things that we're doing to moderate that inflation, take some of the sting out of it, is putting in place this energy plan. I'm heartened by their view that it will make a meaningful difference to inflation. But inflation will be higher than we'd like for longer than we'd like - we've said that for some time. We expected it peaked at the end of last year, but time will tell. The Reserve Bank's put out some detailed forecasts today. What we want to see in this economy is we want to see that we get on top of this inflation challenge. The Reserve Bank's got a job to do in that regard. I've got a job to do in that regard and I'm doing it.

JOURNALIST:

Do you think Australia's donation rules need to be reformed following revelations by the ABC about donations being made by third parties?

CHALMERS:

I think obviously we're always looking for ways to make sure that the donation regime is as good as it can be. I'll leave that to Minister Farrell, who deals with these issues on behalf of the government.  I think the most important thing is transparency - that donations are declared.

JOURNALIST:

Following on from COVID and inflated student accommodation prices, will the government ever consider subsidising student accommodation?

CHALMERS:

We need to build more housing. I think particularly more affordable housing and particularly for younger people and older people at the same time. Student accommodation is an important part of the mix. We want to make sure there's enough supply. One of the reasons why I engage with the building industry, with the state and local governments and with the superannuation sector and other investors is because we want to find a way for investors to get interested in student housing and affordable housing more broadly. This was a big part of the discussion today with the state and territory treasurers - how we build more houses, how we get investors interested, how we work together to make sure that we can house our people. Vacancy rates are very low. Rents are quite high at the moment. The answer to both of those things is to build more supply and that's why it's such a high priority of my colleague, Julie Collins, and the Albanese Government more broadly. Thanks very much.