Topics: Monthly inflation data; Labor’s economic mismanagement; rising grocery prices; high speed rail link project

 

E&OE   

 

MONIQUE WRIGHT:

Good morning, great to have your company. Well, in just a few hours, the first all-important inflation figures for 2025 will be released, which will set the scene for the upcoming federal election. Trimmed, means inflation recently fell from 3.5 to 3.1% with Labor hopeful that this time there will be two in front of it for that figure for the first time in over two years out for their take. Let's bring in Finance Minister Katy Gallagher and Shadow Treasurer Angus Taylor. Good morning to you both, good to see you. Katy, you're in full election mode, it's just around the corner, you must have your fingers crossed for a good result today.

 

KATY GALLAGHER:

Well, it's certainly going to be a busy year this year. Look, we've done a lot of the heavy lifting on inflation across the country and it's coming down. It's had a two in front of it last year and we're hopeful to continue to see that in these numbers. They do jump around a bit, the monthly inflation numbers, but the trend is continuing to go down, moderating from the six we had it was when we came to government, so we've seen substantial progress, and we hope to see that continue.

 

MONIQUE WRIGHT:

Yeah, still sticky though.

 

KATY GALLAGHER:

Well, we're seeing that the trend is that it's coming down and we saw that throughout, you know, the last year and we are hoping for that to continue because what that means for people at home is that some of those big price increases they've been seeing are starting to ease and combined with our cost of living help, energy bill rebates, cheaper medicines, those types of things that we're trying to give people a hand whilst, you know, these times are really tough.

 

MONIQUE WRIGHT:

Gosh, the perception though is that people are still really finding it so tough, particularly with the average grocery bill. Angus, we'll bring you in now. It's expected to be much higher this year than in 2024. We're seeing these figures of $213 a week compared to $191, which was the average for last year. Let's talk about those supermarket prices and those grocery prices, because that's what we all know. Couple of times a week when we go to the supermarket, we're all shocked by it. Angus, is there anything that a government can actually do to specifically intervene and lower our grocery bills?

 

ANGUS TAYLOR:

Well, Monique, good to be with you and can I say that we've seen prices, core inflation going up in the last data, not down, and it is sticky as you rightly say and grocery prices are right at the heart of that, over 12% increase in the cost of groceries since Labor came to power. We're continuing to see that, and we will do. There are things government can do. We've argued for over two years now to put a grocery code in place. What we've seen from Labor is too little too late. But more importantly, beating inflation is the key and governments can beat inflation. We saw it in the 70s and the 80s. We know what they have to do. What they don't do, yet shouldn't do, is record levels of government spending and that's exactly what we've seen under this government. We know that's driving prices up and the one thing I can assure you about the data coming out today, prices will keep going up.

 

MONIQUE WRIGHT:

Yeah, Angus has got a point hasn't he Katy? Every time the government seems to spend here, inflation really isn't moving enough.

 

KATY GALLAGHER:

Well, I think the translation of what Angus is saying there is complaining about government spending but he's not being clear on what they would cut. We are spending and making investments in areas where it helps people with cost of living pressures. We see that as our responsibility to help, particularly when inflation has been higher than we would like. And the Coalition, of which Angus is a member of, have voted against those cost of living measures. So energy bill relief, cheaper medicine, investments in Medicare, these are all designed to help people through these difficult times. And what Angus should be clear about when he complains about government spending is exactly what they will cut and what that means for people who might want to use Medicare or who are struggling with their medical bills.

 

MONIQUE WRIGHT:

Angus, what would you cut?

 

ANGUS TAYLOR:

Yeah, no, I will respond to that because we've been very clear on this. Over $100 billion of spending we've opposed in this term of Parliament, including adding 36,000 new Canberra-based public servants. We don't think now is the right time to be doing that.

 

KATY GALLAGHER:

That's simply not true.

 

ANGUS TAYLOR:

It is true, Katy. We learned today. Well, let me finish. Let me finish. And can I finish? And worse than that, we learned today that you haven't even included the increase in salaries that you’ve negotiated in the budget. So, look the truth of the matter is this is a government that has lost control of its spending, record levels of spending under Labor, over a hundred billion dollars we've opposed, power lines to nowhere that we think are not appropriate at a time like this in an electorate like mine and right across Australia. Look this is not the time for government to lose control of its spending. Australians are having to manage their spending so too should the government.

 

MONIQUE WRIGHT:

Alright I'm going to jump in here because we just want to ask you before we let you go, we’re told this morning that a high-speed rail link connecting Brisbane, Sydney and Melbourne could soon become a plank of Labor's election campaign. Katy, give it to us straight. Is there a world where I can get on a train in Melbourne and arrive in Brisbane four hours later?

 

KATY GALLAGHER:

Well, we're doing the work Mon, there's a business case that's being done, it's currently being assessed by Infrastructure Australia for the first step which is I think Sydney to Newcastle and that's being assessed as we promise so we're going through a thorough process making sure we're getting all of those details right. I haven't seen that business case yet because it's being assessed by Infrastructure Australia, but we've got the High-Speed Rail Authority in place, you know we want to do the work to make sure that this project can be done, and the economics and the business case stack up.

 

MONIQUE WRIGHT:

Okay all right Angus just quickly would you support it?

 

ANGUS TAYLOR:

It must be election time, Mon, because this one's coming along again and all we've seen in the half a billion spent so far is a shop front and a few holes dug. But let's see.

 

MONIQUE WRIGHT:

Yeah, but it is an election, so would you support it? Because you're facing the same.

 

KATY GALLAGHER:

Yeah, come on. Do you support it, Angus?

 

ANGUS TAYLOR:

Yeah, yeah, I know, but we haven't seen anything. Katy, you've spent half a billion dollars on this thing and so far, all we've seen is a shop front and a few holes. I think we need to see a few details. The Australian people deserve better than that.

 

KATY GALLAGHER:

Like they do on your nuclear power plant Angus perhaps. Maybe we'll see the costings on that.

 

MONIQUE WRIGHT:

Yes, drop that one in Katy, just as we have to go. Thank you both, good to see you. Katy, Angus, appreciate it.

 

KATY GALLAGHER:

Thanks for having us.

 

ANGUS TAYLOR:

Good on you.

 

ENDS.