Topics: Labor’s cost of living crisis; skyrocketing energy prices; Western Sydney Rail; tariffs

 

E&OE   

 

RO KNOX:

Great to have Angus Taylor in the seat today. We’ve been out talking to small businesses and hearing how they’re really suffering at the moment. We’ve had record insolvency rates throughout Australia and that’s been reflected in our seat of Wentworth. Great to have you here Angus and looking forward to hearing from you.

 

ANGUS TAYLOR:

Good on you Ro. Well, it’s great to be with Ro who’s been working hard here in the seat of Wentworth since May last year, fighting for what is really needed for all Australians but particularly here in this great seat of Wentworth, where Ro’s been fighting for making sure the cost of living is affordable for Australian families and particularly for businesses. We’ve been talking with Antonio here today about how the cost of doing business is causing enormous pain for him and for other small businesses like his, and for those around him – his suppliers. He has seen the rate of insolvencies going through the roof – 27,000 since Labor came to power, 27,000 businesses that Australian families and others have poured their hearts and souls into over a period of time have gone under since Labor came to power. That is a record level and we know right at the heart of that the cost of doing business has gone through the roof and customers are suffering under a Labor government where we’ve seen the biggest collapse of our standard of living in history. It’s really important to emphasise this. Almost 8% reduction in Australians’ standard of living. That means since Labor came to power only two and a half years ago, it seems like a lot longer than that. Only two and a half years ago Australians’ incomes are buying 8% less in real terms than they were just that short time ago. This is a record. We’ve never seen anything like this. We’ve got data going back to 1950. We also haven’t seen since across any other peer country in the world. You look at our peer countries around the world. There standard of living of that time period has been vastly different and I’ll give you an illustration of this. Greece in that time is up 9.6%, and we’re down just over 8%. Spain up 8.7%, Hungry 7.2%, Portugal 6.9%, the OECD average 5.5%, the United States up 5.3% and so on down the list. We are the worst by a long way. This is what you get with three years of Labor, near on 3 years of Labor. Australians are poorer under this Labor Government and they can’t afford another three years of it. We know right at the heart of that is huge increases in prices for the average working family, almost 20% since Labor came to power. Interest rates up 12 times and there’s no chance of getting back to where they were anytime soon and at the same time we know they’re paying huge increases in personal income tax - 24% increase since Labor came to power and all of that means Australians are feeling poorer because they are poorer. They’re working harder, they’re putting in extra hours, they’re having to make big sacrifices and some of those sacrifices of course are having big impacts on small businesses like the one here I’m talking to today. There is a better way. Getting back on track means boosting growth, beating inflation, cutting red tape, getting rid of the waste. We’ve seen an addition of 36,000 public servants since Labor came to power, Canberra based. That’s not what we can afford at a time like this. We need a government that is managing its pennies just like every business and every household around Australia is having to carefully manage their pennies. That’s what we need to see and its not what we’ve seen over the last two and a half years and that’s why our standard of living is in free fall. That’s why Australians are poorer and that’s why we can’t afford another three yeas of Labor. Now the result of all of that is Australia is in a very vulnerable position than most other global shocks like we are starting to see right now. When you’ve seen that collapse in your standard of living, prospects of new risks, new shocks, Australia is badly positioned for this. Labor is leaving Australia in a position where we simply don’t have the shock absorbers to major global shocks like we’re seeing around the world right now and that is a failure of government. The right answer here is strong economic management and that’s not what we’re seeing with Labor.

 

Now I do want to make comments about one particular area of price increases which is hurting Australians more than most others and that’s electricity prices because today we saw the new default market offers come out and that means an increase in electricity prices up 9% for Australians this year. That’s $1300 more than was promised under Labor and I’ll remind everyone that Chris Bowen and Anthony Albanese promised Australians a $275 reduction in their electricity bills. The tally now is up $1,300 in Western Sydney and not far from here, and similar sorts of numbers right across Australia. We know the biggest increases are in Western and south western Sydney, including Chris Bowen's electorate of McMahon, where it’s up to $1,300 more than it was promised. And that's money that has to be found out of after-tax income for Australian households. It's also money that has to be found by small businesses like the one I'm here at today, finding that money on top of everything else, the increase in insurance, increases in rent, the increase in gas bills, finding that money is increasingly difficult for hard working Australian families who can't see a pathway to get ahead. Chris Bowen is not up to the job. The bloke is simply not up to it. It is clear as that. His electorate can't afford him, and Western Sydney can't afford Chris Bowen. No one in Australia can afford the electricity bills that are coming from Chris Bowen right now.

 

Now, let me make a final comment about an announcement that was made by the government this morning. This morning in Western Sydney, which extends to my electorate about the rail around the Western Sydney Airport. Now this is an incredibly important project. The airport was a legacy project from our time in government. It was a commitment made back in 2014 under the Abbott Government, it was about building Western and south western Sydney, all of Western Sydney, creating a centre for local jobs, and it is hugely important. Anthony Albanese opposed it at the time. He's been reluctant all the way along. He has truly been a reluctant passenger on this, we are pleased to see a commitment of $1 billion dollars, and we'll back that commitment, but we will use it the right way. We will make sure it works. There are many questions to ask about what the government is planning. In particular, they haven't laid out which rail paths they're going to be pursuing and which technologies they're going to be using. Are they going to be thinking about whether this should be metro or heavy rail based on what's right for the community? Or are they going to be doing it based on what's right for their union pay masters? Labor needs to get this right. This is an enormously important project, $1 billion dollars. It's not clear exactly how that's going to be spent, but we need to see the project rolling on when it's completed, the current state of St Mary's down to the Airport, we need to see it going south, and we'll back continuing to spend to do that, because it absolutely needs to happen, but it needs to be done, right. We did this right when we were in government, and our fear is this is a project that is not going ahead in the interests of people of western and south western Sydney, but in the interests of the union pay masters of the Labor Party.

 

JOURNALIST:

So Mr Taylor you’ve said you support the $1 billion. Will that be for land acquisition which is what the Prime Minister has said?

 

ANGUS TAYLOR:

Well, it needs to be spent in the right way and this is the real question for Labor. There's a lot of questions to be answered about how this $1 billion dollars will be spent. Are we going to see Metro through to Leppington or ultimately, Glenfield? Is it going to be heavy rail? What do the unions want and what's right for the people of western and south western Sydney? I mean, these are questions that need to be answered. What's the next stage of the project going to be? Is it going to be to Leppington? Is it going to be down to Oran Park? These are all questions that have not been answered by Labor. They also need to say whether this is an election commitment or it's part of the budget. We don't know the answers and the truth is that Labor has never really had its heart in the Western Sydney Airport, nor has Anthony Albanese. Many of the local members have opposed it over an extended period of time, and Anthony Albanese opposed it. He wanted it in Wilton, in another part of my electorate all those years ago. This has been a project that hasn't had his full support all the way along. We support it. We know more money needs to be invested. We'll match it, and we'll match it by spending it the right way.

 

JOURNALIST:

Is it all too late though given that the airport is due in 2026?

 

ANGUS TAYLOR:

Well I’ll make a comment about this. When we left government the rail was on schedule to be completed when the airport started. That was a commitment we made, and it was a commitment that many Labor members felt was important, as did I, as did I? It's clear now it's behind, and it's not going to happen for around a year after the airport is open and this is what happens under Labor. This is what happens under Labor. Their hearts were never in this project. They were never in it. Now it needs to continue on. The rail needs to go south of the airport, and we will absolutely support that.

 

JOURNALIST:

Mr. Taylor, what do you make of Coalition MP’s saying that you and Peter Dutton need to release more and stronger economic policies, as well as claims from some MP’s that your reactive and have a lack of interest in policy?

 

ANGUS TAYLOR:

Look, I have to say, our focus on policy over these last two and a half years has been strong, and you see it in what we've said. We are absolutely committed to nuclear power in this country. This is a major shift in our energy system, along with making sure, in the shorter term, we get the gas and renewables into the system that are needed to bring down prices and keep energy affordable in this country. We've made very clear that over $100 billion of spending by Labor is not appropriate at this time, because it's boosting inflation and it's beating growth. We need to boost growth and beat inflation. That's what we need right now. I mean, they are major commitments that have been made, alongside the many commitments that I've made in my own portfolio, making sure our financial services sector is serving Australians, that advisors are available for Australians who need financial advice, making sure that retirees are able to get out there and work without penalties, making sure that small businesses like the one I'm here today, I'm talking to have access to accelerated depreciation so they have the incentives to invest, grow their businesses, and, in the process, create opportunities for Australians. These are profoundly important policies. They’re major shifts in direction. I mean accelerated depreciation - this will now be a permanent part of our taxation system. That has never been the case before. We need more investment in this country. We need to make sure that Australians have the jobs and great opportunities that they need, and that can only happen with businesses making investments. We've said in the construction sector, the CFMEU needs to go, it needs to go, and the ABCC needs to be brought back, because we need a construction sector that’s affordable for Australians. We've said that a $5 billion fund will go into place between government to put more supply into the housing market, alongside helping young Australians to get access to a house by accessing their superannuation and these are major policies. They're hugely important. And we will continue to announce policies in the lead up to the next election, all policies that are about making sure we can reestablish the dream for Australians of what Australia is all about, owning a home, building a business, having a great career where they can work hard and get ahead.

 

JOURNALIST:

Mr Taylor, what plans do you have to roll out a more detailed policy agenda and when can we expect to see that?

 

ANGUS TAYLOR:

I'll go through all of those again, if you like, but I mean, we've already announced policies in a whole range of areas, and we will continue to. Because it is important, but what's also important is to understand the starting point here is a Labor Party that has overseen the biggest collapse in our standard of living in Australian history, bigger than any of our peer countries and that's why all of those policies I talked about, and many more, are about boosting growth, beating inflation, and giving Australians hope that they can get ahead again because that's the opposite of what we’re seeing with Labor.

 

JOURNALIST:

So, can you outline…

 

ANGUS TAYLOR:

So can I go to Aaron.

 

JOURNALIST:

Mr Taylor are you satisfied with the performance of the Treasury under Stephen Kennedy?

 

ANGUS TAYLOR:

Well, I mean, what's very clear is that the Treasurer has failed Australians. Now I think ultimately, that's on the Treasurer. That's on the Treasurer, because this Treasurer has failed Australians. I mean we've seen it in the last week. This bloke heads off to DC, you know, gets all the photos, says, you know “I'm in there. I'm gonna get the tariff exemptions for you.” Comes back. Diddly squat. This is a bloke. He's never had a real job. He's never had a real job and so the prospect of a Treasurer delivering that kind of background where he's out of his depth and he's out of touch is zero and none, and he hasn't delivered. He has overseen the biggest collapse of Australian living standards in our history. There is a better way and that's all those policies and many more that I’ll announce later.

 

JOURNALIST:

Does Mr Kennedy have your support?

 

ANGUS TAYLOR:

Well, my support is completely lacking for this Treasurer, let me tell you. This Treasurer is hopeless. He is a doctor of spin, not a Doctor of Economics. Let's be clear about that and when it comes to the economics of Australian households, which are in a parlous state because of this Labor government, this bloke is completely out of his depth and he's out of touch.

 

JOURNALIST:

Can you clarify whether insurance companies are going to be part of a wider divestiture that the Coalition has floated. There seems to be a little bit of confusion. Can you just clarify once and for all whether insurance companies will be part of that and articulate clearly what it is.

 

ANGUS TAYLOR:

Good question, Patrick. So you give me an opportunity to talk about another one of our important policies, which is competition policy, and I have long been a believer in the importance of the business sector in this country serving its customers well. I spent many, many years before I went into politics, advising our businesses in this country on how they can better serve their customers, and they should and they must. It's incredibly important, it’s the most important thing any business can do and when they do it, well, we should celebrate it at all times. But when there's anti competitive behaviour, it's unacceptable. When there's abuse of market power, it's unacceptable. And as Energy Minister, and more recently as Shadow Treasurer I backed in hard policies that strengthen competition and in particular penalise anti competitive behaviour and abusive market in the energy sector. In the energy sector, and in the supermarket and hardware sectors, and they are policies we’ll take on supermarkets and hardware to the next election. If we see evidence of anti competitive behaviour, of abusive market power in a sector, we will take appropriate action, we will take appropriate action. I've never been frightened of doing that. I fought with the Labor Party for a long period of time across an election on doing that in the energy sector. They opposed it at every stage of the way, until they finally gave in after we won an election where this is one of the policies we took to the election. Labor is happy to work with its mates in the unions and big unions and big corporates who have not behaved as they should and when it comes to when it comes to insurance, we don't have a policy right now to add divestiture powers for insurance companies, but we are always on the lookout for abusive market power and anti competitive behaviour and we’ll remain so.

 

JOURNALIST:

The Albanese Government is probably going to address the electricity rise with a short-term effect, probably another $300 one off payment. If elected, will the Coalition do them same and will that address the cost of living crisis.

 

ANGUS TAYLOR:

This is government that fails to solve the underlying problem, and then day in, day out, puts a band aid on the bullet wound. That's what they do, because they've failed. I mean, Chris Bowen, this is just extraordinary. In his own electorate, the electricity, the underlying electricity costs for a typical household in his own electorate is up $1,300 compared with what he promised before the election. He says, okay, I'll put a band aid on. Well, that's not good enough. You got to get to the source of the problem, and the source is getting underlying electricity prices down. That is what he's failed, and that's why the guy is not up to the job. He should go.

 

JOURNALIST:

How will you address the cost of electricity prices?

 

ANGUS TAYLOR:

More supply into the market fast. We’ve said that. We’ve been consistent on that all the time. In the shorter term, we know alongside the continued rollout of renewables, particularly household solar technologies, for instance, we need to get more gas into the system fast. That's what I did when I was Energy Minister, and we saw the impact the reduction in prices, both wholesale and retail, as a result of that. We're seeing the exact opposite right now with the default market offer is up up to 9% I mean, seriously, this is out of control from a government that has completely failed. We have, from the start said the answer, get to the source of the problem and get more supply into the system and they’ve failed time and time again.

 

JOURNALIST:

Will you be offering a one-off payment during your campaign?

 

ANGUS TAYLOR:

We’ll be offering lower electricity prices, that’s what we’ll be offering and that’s the focus. We’ll see what Labor comes up with in the next little while.

 

JOURNALIST:

Just overall the impact on the steel tariffs now they’re in place?

 

ANGUS TAYLOR:

Well, look, I mean, Australia is reliant on having access to markets across the world. We always have been. This is hugely important for us as a country, for our resource producers, for our farmers, for other really critical sectors, manufacturing and other sectors, getting access to those markets is enormously important. So we will fight for free trade every single day, and we’ll continue to over time. I've been in touch already with the new Canadian Prime Minister to say that we are happy to work with Canada to make sure that we've got the free and open markets that resource rich countries like ours need. This is hugely important for Australia. I think it's hugely important for the world. So we'll continue, we'll continue to fight hard for that free trade. Let me tell you, let me tell you that what we've seen is a complete and abject failure under Labor. As I said, Jim Chalmers. He wanders off to the US, and he always gets a photo, doesn't he? They're the photos with all the big wigs over there, and he comes back with diddly squat. That's what you get with a Treasurer who has no idea, who’s never worked in the real world and simply doesn't understand how economics works.

 

JOURNALIST:

So is Australia going to join an alliance outside of the US with other countries?

 

ANGUS TAYLOR:

We'll work with other countries to make sure we fight against the global trade. We don't want to see that. None of us want to see that. And whilst the Canadian Prime Minister and I are on different sides of politics, I've known him for a long while. We simply will work with whoever we have to, to make sure Australia gets access to the markets that we need, that we need as a country, to be prosperous, to see our standard of living rise after the unprecedented collapse we’ve seen under Labor. Thank you very much.

 

ENDS.