THE HON JIM CHALMERS MP
TREASURER
MEMBER FOR RANKIN
E&OE TRANSCRIPT
TELEVISION INTERVIEW
THE PROJECT
TUESDAY, 7 JUNE 2022
SUBJECTS: Interest Rates; Costs Of Living.
HAMISH MACDONALD, HOST: Treasurer Jim Chalmers joins us now. Jim, half a percent is the biggest rate rise since February 2000. It's obviously a huge hit for a lot of families watching tonight. I know you're going to say you didn't cause this, but it is your job to fix it. What are you going to do?
JIM CHALMERS, TREASURER: Well, it is a difficult day, Hamish. You're right about that. A lot of people are already facing skyrocketing costs of living pressures, and this will add to the pain. And so even though an interest rate rise today was expected, it doesn't make it any easier. So our responsibility as the new government is to make sure that we've got a plan to grow the economy without adding to these inflationary pressures, to get real wages moving again, and to make sure that the budget recognises these pressures that are on inflation at the moment, so that all of our investments are about getting an economic dividend. Those are our responsibilities. But first and foremost, to acknowledge and be upfront with people this inflation problem that we've inherited is a really serious one, and today's interest rate decision reflects that.
GEORGIE TUNNY, HOST: But, Treasurer, just how much of an impact can you have? What levers are at your disposal realistically?
CHALMERS: Well, a couple of things that we are doing. You'll see the October budget that I hand down with Katy Gallagher is all about investing wisely in growing the economy. So it's got more capacity to grow without adding to inflation. So that's why investments in skills, child care, advanced manufacturing and the NBN those kinds of investments are really important, but also making sure we get wages growing sustainably so people can keep up with the cost of living without adding to that inflation. We've also got a trillion dollars of debt in the budget that we've inherited. So we've got to make sure that we've got something to show for all of that. Those are our responsibilities to deal with those three challenges. That's what our economic plan is all about. You'll see that implemented in October.
MACDONALD: Jim, I'm just wondering what your message actually is to people watching at home tonight that are not worried about six months, twelve months, 18 months time, but actually worried about next month. Are you saying to them, hold out just weather this storm it’s going to be okay?
CHALMERS: Well, Hamish, I'm just trying to be upfront with your viewers that we understand and acknowledge that this is a really difficult time. You've got spiking energy price and grocery prices are through the roof as well. We've got high and rising inflation. There's some cost of living relief already in the budget around petrol prices, which we supported in the last budget of the last government. Our responsibility is to make sure that when that support runs out, that there's responsible and sustainable cost of living relief that comes in after that in areas like childcare and medicines, power bills over time, getting real wages growing. That's why those are central elements of our economic plan, and that's why they will be central elements of the budget that I hand out.
MACDONALD: Sorry to interrupt you, Jim, but all the stuff you're talking about, whether it's settling inflation, settling the interest rates, getting things feeling a little more steady, that's quite long term. There will be people watching this tonight that are genuinely quite scared or worried about when they come off their fixed rate, they're going to be able to refinance. I think something like half of mortgage holders are going to be under mortgage stress quite soon, according to the forecast. Are you saying to those people, hold your nerve because we will turn this around? Is that actually your message?
CHALMERS: We will get to the other side of these really extreme prices pressures in the economy, Hamish, I do believe that. But I also respect the Australian public enough to be upfront with them and say that this inflation problem in the economy is going to get more difficult before it gets easier again. Today's decision by the Reserve Bank is really recognition and a reflection of that. There's no use tiptoeing around these challenges or mincing words or trying to pretend them away. A lot of these challenges in our economy have been building for the best part of a decade. It will take more than two and a half weeks of a new government to address. We need to be upfront about that. If we could just flick a switch and make inflation disappear or make a trillion dollars of debt disappear, we would have already done it. We want to be honest with people and take them on a journey, engage them on a big national conversation about these economic challenges. We will get to the other side of this. You're right that a lot of people are feeling very anxious about this interest rate rise. Not everybody has a buffer in their home loans, even though some people do so we acknowledge that as well.
KATE LANGBROEK, HOST: I know that you've got a plum job. Being Treasurer is a great job, ostensibly, but from where I sit, it doesn't seem like a very good job. It seems like a really hard, difficult job. How is it?
CHALMERS: It is a great opportunity, Kate, and I'm grateful for it. It's an area I've worked in now for really the best part of 15 years or so. So I know that there are difficult days in this job, but far more difficult for people who are facing these cost of living pressures. I put my hand up to do this job because I think I've got something to offer. Some days are better than others, but most important and always front of mind for me will be what this job means for real people in real communities right around the country.
PETER HELLIAR, HOST: It's a beautiful answer, Jim. It's a bit of a fluffy question I have to say I want to bring it back to some harder politics, Jim the cost of living crisis has gotten so bad that KFC has been forced to put cabbage on its burgers instead of lettuce because lettuce is too expensive. Jim, you're two and a half weeks into government. Are you up for the job of tackling the KFC lettuce crisis Jim? Because Australians don't deserve cabbage on their zingers.
CHALMERS: Can I just say something about that, Pete? Just between you and me I had no idea that the dirty bird had cabbage or lettuce. I don’t think anybody lines up at the KFC drive through for cabbage or lettuce.
LANGBROEK: You’re out of touch, Treasurer! You’re out of touch.
CHALMERS: I don't see them lined up at the drive through for cabbage or lettuce. To be honest, I don't think that's people's most pressing priority when they're in the drive through.
HELLIAR: Well, my priority is lettuce and chicken salt. Get on the chicken salt Jim, trust me.
MACDONALD: Treasurer, thanks for your time tonight. I appreciate it.
CHALMERS: Thank you, everyone.
ENDS
