JIM CHALMERS MP
SHADOW TREASURER
MEMBER FOR RANKIN


E&OE TRANSCRIPT
TELEVISION INTERVIEW
SKY NEWS AM AGENDA
WEDNESDAY, 3 FEBRUARY 2021

SUBJECTS: Patchy economic recovery leaving workers and sectors behind; JobKeeper being withdrawn from communities and sectors still struggling; Government’s failure to deliver on economic announcements; Secure jobs; Cuts to pay and superannuation; Election date speculation.

LAURA JAYES, HOST: Let’s go live back to Canberra and the Shadow Treasurer Jim Chalmers. The RBA predicting, Jim Chalmers, that we will be at pre-pandemic levels by the middle of this year. That’s good news. Do you credit the government’s stimulus for that?

JIM CHALMERS, SHADOW TREASURER: Obviously, we want the economy to recover strongly if it creates good jobs and opportunities for more people. I think the recovery that the Governor of the Reserve Bank is speaking about today is in some ways inevitable, when some of the State restrictions lift and also when we're coming from the worst recession we've had in Australia for almost a century. So the recovery’s welcome, but it's inevitable in lots of ways. The credit for it goes to the Australians who’ve largely done the right thing to limit the spread of the virus. There’s been an important role for the government to play as well, that's why we proposed wage subsidies like JobKeeper that has done some important work in the economy, which we've acknowledged all along. But we also need to acknowledge that the design of that programme hasn't been perfect. Money is more likely to go to executive bonuses for example than to support struggling workers and small businesses in places like Cairns after March. So there are still some issues there, which the government needs to address, which you identify, rightly I think, in your introduction.

JAYES: JobKeeper ends in March, we've heard there will be targeted assistance. In what form should that come and do you accept that we no longer need that economy, sector-wide JobKeeper payment?

CHALMERS: First of all, and the government doesn't seem to understand this, but we've said all along that we know that at some point JobKeeper will end. Nobody’s arguing for it to be a permanent feature of the budget or the economy. We need to tailor JobKeeper to make sure it's responsive to what's actually happening in the economy. I've spent a lot of time speaking with small businesses and peak organisations in places like Cairns, which is still hurt by the closure of the international border, and what we've said is the government should be considering extending JobKeeper in places like Cairns.

JAYES: Can I just ask you about that, just specifically on that point, I don't think anyone's arguing with that targeted assistance to sectors like the tourism industry in Cairns in particular, but it can't be JobKeeper per se can it because the way it's disseminated and why the Commonwealth and States interact, JobKeeper is sector wide. So how would you, I guess, limit it to geographical areas or sectors that still need that support? Doesn't it have to be replaced with something like a grant?

CHALMERS: Not necessarily, Laura. I think it shouldn't be beyond the government, which has already developed all kinds of tests for JobKeeper throughout the duration of the programme, to be able to recognise that many small businesses are still struggling, that has implications for the jobs market in particular, and so they should be able to design a test which picks up these businesses which have been hurt, and continue to struggle. I mean what's happening here…

JAYES: What are your ideas there? What are your ideas there? Would you make it geographical, would you change the income test thresholds? How would you actually do it?

CHALMERS: Well, there are already tests for JobKeeper as you know, Laura. And many of these businesses which will be cut off from JobKeeper in March would continue to pass those tests. And so we're not asking for some dramatic rewriting of JobKeeper. If you speak to the businesses up there – and I saw the interview the other day and I thank you for that, giving Cairns tourism operators a voice in this important conversation – all that they're asking for is some kind of way to recognise that they would still pass a lot of the tests for JobKeeper, and that will be case for some time now with the international borders closed. The pandemic, and its ongoing economic consequences, won't just disappear in March, like the government wants us to believe. Even with the recovery there is still something like 2 million Australians who can't find a job or enough work to support their loved ones, millions more are dealing with stagnant wages, so no matter how hard they work I just can't get ahead. All of these issues are really important. The government is in too much of a rush to withdraw support from the economy and the Reserve Bank and others have said that that will have consequences for the recovery.

JAYES: OK, we've seen an experience in New South Wales where grants have actually been disseminated to businesses that need it, particularly small businesses, in quite a speedy way. Is that something that you might support as a replacement? Of course, we haven't seen the detail, that hasn't even been proposed, but there is a New South Wales experience?

CHALMERS: A couple of things about that. I mean, clearly, our inclination throughout has been to support any initiatives which give a helping hand to struggling small businesses and their employees. That’s been a guiding principle for us throughout and that would guide us if the government came forward with a different programme. But there is no real substitute for JobKeeper and the good that it is doing in places like Cairns. And there's also a lot of scepticism amongst the business community, because this government, they make big announcements about grants or support programmes, but they have a lot of difficulty delivering that support on the ground. So if you speak to those businesses and you speak to those workers around Australia, a lot of them think that even if the government came forward with yet another announcement they are sceptical, understandably sceptical, that they would actually get a slice of that assistance and that's because the government has form in announcing support but not delivering it.

JAYES: Okay, we saw a reshuffle earlier, last week now, Richard Marles is now the Shadow Minister for Coronavirus Recovery. How are you disseminating those roles? What will you do? Are you overlapping there?

CHALMERS: Well my role hasn't changed, as you know, and nor has my focus, which is on secure jobs in the recovery and making sure the economy can be stronger after COVID than it was before. And I look forward to working with Richard, and the entire team, who shares that focus. And I think that the Shadow Ministry that Anthony announced not that long ago is a demonstration of our focus on the recovery, on jobs in particular, on secure work, on the fact that stagnant wages are holding the country back and preventing people from getting ahead. These are the sorts of issues that we are all focused on. I think the Shadow Ministry reflects that.

JAYES: Just finally Craig Kelly is certainly a gift to Labor at the moment, politically, but beyond that, it strikes me that Labor is struggling to, I guess, countenance a Prime Minister who's trying to move more and more to the centre. Is that a fair assessment?

CHALMERS: I don't think so, Laura I don't see him as some kind of middle of the road figure, when you look at what he's doing in industrial relations, using a pandemic to go after people's wages, and job security, and superannuation. Those are not the actions of some kind of unifying figure, those are the actions of an ideologue, which will do a lot of damage to working people in this country.

JAYES: But you don’t seem to be landing a lot of blows?

CHALMERS: I don’t necessarily share that assessment, Laura, but that's for you to make, and for the political commentators to make. Our focus is on people's work, being on the side of people who want to work hard and get ahead. We're conscious that a lot of people are at risk of being left behind. These are the things that we care about. Whether or not we're landing political punches is for the political commentators to assess and conclude. Our focus won't change. And I'm confident that we can win this next election, because we are on the side of people who work hard and want to get ahead. The government is on the side of people who want to cut pay and come after job security and superannuation - that's the contest. That matters more than the political commentary, what it actually means for real people in real communities. I don't think the government has people in mind when they come after their pay, like they are.

JAYES: And you’ll win it with Albanese at the helm?

CHALMERS: Yes, we will.

JAYES: Jim Chalmers, thanks for your time.

CHALMERS: Thanks, Laura.

ENDS