Speakers: Ted O’Brien MP & Chris Kenny
Topics: ISIS Brides, King Charles 111 & AUKUS, Inflation and the Energy Crisis.
Chris Kenny
Ted, let's catch up now with Shadow Foreign Minister Ted O'Brien. Thanks for joining us, Ted. I know you're on Foreign Affairs now, and I'll get to that in a moment, but the first question I want to ask you relates to the economy. Of course, you're a former Shadow Treasurer. What is your take of the inflation numbers today? What they'll do to interest rates and where they're heading in coming months?
Ted O'Brien
Great to be with you. Chris. Well, the market is certainly pricing in further increases in interest rates. I have to say, though, that the Australian people shouldn't just be looking at the Reserve Bank here. They need to look at the government. Unfortunately, we went into this economic crisis triggered by the conflict in Iran, very ill-prepared. Unlike other countries, inflation in Australia was on the rise, interest rates on the rise, the biggest government spending in over 40 years outside of recession. This has meant that this time, unlike the GFC, unlike Covid, where the Coalition had the books in balance, this time, we enter an economic crisis that has us very ill-prepared and unfortunately, it will only get worse from here.
Chris Kenny
Look the level of government spending has to be driving this. The Reserve Bank has said, as much economists have been warning about this for years. Yet we have the ridiculous scandal, really, of the prime minister of this nation today saying that he's made $114 billion worth of budget savings. Where on earth is that $114 billion?
Ted O'Brien
He is absolutely full of it. This government has had the largest revenue windfall in Australian history, around $400 billion of unexpected revenues coming into the coffers. And instead of doing the right thing and ensuring that debt is paid down, they put their hand in the cookie jar and baked it into the budget. And this is the problem, that is why we just continue to see discretionary spending by this government increasing. It's why debts just about hit $1 trillion and yet we still see over a decade of deficits planned. This is a government that only a few months ago at MYEFO so their mid year economic update, they didn't find any net savings, because they are addicted to spending, and the more they spend, the higher prices go up right across the economy. Because the government ends up competing with households and businesses. This is on the government. We should have been well prepared for this crisis. $400 billion of a windfall would have put us in a wonderful position, but compared to our peers around the world, Australia is poorer and weaker, and of course, our over dependence on energy is ensuring our supply chains are hurting more than they should.
Chris Kenny
Not withstanding your criticism of them not being better prepared when it comes to fossil fuels to liquid fuels for this country, obviously, the Middle East war has fueled the most recent rise in inflation, but so too have electricity costs, and this is another apart from their own spending. Surely the complete mismanagement of the electricity grid forcing up prices relentlessly, rather than cutting them by $275 is a big factor in the inflationary pressures?
Ted O'Brien
It's enormous. Chris, well over 20%. 24-25% I believe electricity continues to be a major driver of problems. Small businesses in my electorate here on the Sunshine Coast are closing down because they cannot pay their utility bills. It's that simple, and yet the government refuses to face reality. They refuse to accept the fact that they are driving the Australian economy into the ground, and electricity has a lot to do with it. And you know, I heard some of your comments before and I think you were talking about Bruce Mountains work. Looking at some of the analysis. The cost of the transmission lines, the network charges, they're going to go out of control. It will only get worse, which is why we don't just need this suddenly changed a little bit. We need a fundamental shift in energy in this country, and that means to be proud of the resources we have. This government is ashamed of the fossil fuels that we have, and yet we've got the Prime Minister and the Foreign Minister traveling the world now begging for the very fuels they have demonized over the last four years. That's why we're in the problem we are.
Chris Kenny
They're ashamed of uranium as well. But I want to move on to Foreign Affairs now, and you would have watched with keen interest as King Charles the third spoke in Washington, addressed the Congress and historic address but with reports of waning enthusiasm for AUKUS in the US. You must have been pleased to see the King say this?
AUDIO - King Charles 111
We are building F 35 together, and we have agreed the most ambitious submarine program in history, AUKUS. We are doing it in partnership with Australia, a country of which I'm also immensely proud to serve as sovereign.
Chris Kenny
That's a pretty handy push along from the King to the President. isn't it?
Ted O'Brien
It's great words from the King. And it was also great to hear the applause coming from both sides of the Congress in the United States, AUKUS, I think, is probably the largest and most important legacy of the former Coalition government and the United States, the UK and Australia. It is a formidable partnership. And here we have a very bold and ambitious program with AUKUS. We are working together, but it's going to take all three countries to remain absolutely focused on the delivery, and that is why in Australia we are calling on this government to increase the spending in defence so we do not cannibalize other capabilities we need in order to deliver.
Chris Kenny
Just briefly, ISIS linked women due to arrive in Australia soon. Would you be surprised if any of the adults are not at least arrested and interrogated before they do anything else?
Ted O'Brien
There's been a couple of reports today that we might see two of them arrested. Of course, they would be welcomed, but there are questions to be answered about, what about the others? Of course, if this was a good news story, the responsible Minister Tony Burke, he would be down at the airport. He would be meeting them, he would be doing selfies, doing press conferences. But instead, this Minister has gone to ground. And that is because he is up to it, to his eyeballs. He has been deeply involved in the repatriation here. The evidence speaks to that, because it's his personal friend and supporter who has been trying to facilitate their passage back to Australia. He's previously done the same thing with other third parties, behind closed doors, kicking out departmental officials as he does agreements to repatriate ISIS people to Australia. The government needs to face up to the facts. Don't take Australian for Australians for mugs, and just be honest with the Australian people, especially those communities who will have to be hosting their return.
