SENATOR THE HON KATY GALLAGHER
MINISTER FINANCE
MINISTER FOR WOMEN
MINISTER FOR THE PUBLIC SERVICE
E&OE TRANSCRIPT
TV INTERVIEW
ABC NEWS BREAKFAST
WEDNESDAY, 4 DECEMBER 2024
SUBJECTS: South Korea; Commonwealth Bank surcharges; Greens political party; National Accounts.
MICHAEL ROWLAND, HOST: Finance Minister Katy Gallagher joins us now from Sydney, Minister, very good morning to you.
SENATOR THE HON KATY GALLAGHER, MINISTER FOR FINANCE: Good morning, Michael.
ROWLAND: I'll get to the growth figures in just a moment. But a few other issues. Firstly, our top story as a senior cabinet minister, does the Australian Government have a view on what we've seen has happened in South Korea with this declaration of martial law overnight?
GALLAGHER: Yes, certainly Michael, and those images are, you know, showing just the uncertainty that's happening there at the moment. Obviously, we're being briefed by our agencies. I think the best message we can give on this unfolding situation is for any Australians in South Korea to really listen to official advice, and, you know, stay away from some of the mass gatherings as we continue to get across and understand the full implications of what's happened overnight.
ROWLAND: Yes, still very much an unfolding story with that martial law declaration pulled back by the President just in the last hour or so, we'll certainly stay across that. Also, this morning back home, the Commonwealth Bank is under fire after bringing in a $3 fee for its customers simply wanting to go into a branch or a post office to withdraw their cash. What do you think of that?
GALLAGHER: Yeah, look, we really think the CBA should rethink this decision. I mean, I think everyone understands there are some, you know, charges that come, you know, transaction charges that come with using banks. But I think this type of charging, in looking at $3 per transaction, I think is, you know, really hard, and particularly for those customers that have those types of accounts and want to go into the branches. So, I think, you know, we're having a close look at this, as you know, and so is the RBA about some of those transaction costs. But I would really think that, you know, some good will here, just before Christmas is for the CBA to have a think about the announcement they made yesterday.
ROWLAND: Okay Adam Bandt, the Greens leader, has, I guess, said the quiet part out loud on the ABC’s Afternoon Briefing program yesterday, saying that he wants a formal power sharing arrangement with Labor if the next election delivers a hung parliament. Is that something, if that were to happen, the Labor Party would consider?
GALLAGHER: Well, Michael, I didn't see that interview. I've seen some reports of it. I think, you know, again, we've seen Adam Bandt get ahead of himself a number of times in the last year. We are campaigning for majority government. We think that's what brings stability and certainty to the Parliament, and that's what – we are the only party that does that, you know, and that's what we'll continue to do. We'll campaign on our record and on the policies we want to do. And really, I think, continue to ignore some of this commentary from the side, from Adam Bandt.
ROWLAND: A formal power sharing arrangement, though, would that be something the Labor Party would have to contemplate if you fall short of majority?
GALLAGHER: Well, we're not planning on that Michael. I mean, we will go into the campaign seeking majority government. We will be explaining why we think that is important to provide certainty, particularly in these difficult economic times, and that is what we will campaign for. We are the only party that will do that. All the others have some sort of power sharing arrangement, like the National Party and the Liberal Party, but we believe that we are the party that should govern in majority, and that's what we will be campaigning for.
ROWLAND: Okay, let's go to the growth figures, the September quarter national accounts out later this morning. The Treasurer, Jim Chalmers, says they'll confirm historically slow growth in Australia. How long is it going to take for the economy to start picking up again?
GALLAGHER: Yeah. So, our forecasts are that this was always going to be the most difficult year, and we’ve seen some of that come through the quarterly data. Obviously, the national accounts will give us a picture of what's happened and updated with the latest information. So, we expect that low growth to be a feature of today's national accounts. But I think at the same time, you know, that is explainable considering inflation, rising interest rates, and some of that global uncertainty. And you know, I think that's part of what the bank has been trying to do, is slow the economy, so that we can get the inflation challenge under control. And we're seeing really positive results there with inflation moving back into band, and really quite extraordinarily, an unemployment rate of 4.1 per cent, meaning tens of thousands of people have kept their jobs or remained employed, and that's really something that I think, you know, we should all be pretty proud of.
ROWLAND: Yeah, well, the RBA, as you know, reckons the unemployment rate should be considerably higher at four and a half per cent for inflation to stabilise. At odds with the Treasury's forecast, at odds with how a lot of private sector economists are looking at the situation. Has the RBA got it wrong on the jobs impact on inflation?
GALLAGHER: Well, you know, there's a fair bit of commentary Michael about what is the unemployment rate to sustain, you know, have inflation sustained within the band, and there's a view, and a range, across economists. Treasury have it slightly lower than the bank, but our focus, certainly Jim Chalmers’ and my focus in our economic plan has been, how do we manage to get inflation back to band whilst keeping as many people in jobs as possible? Because, you know, that is obviously great for those individuals, but good for the economy as well. And you know, I think we have a pretty remarkable thing when we've been talking about that narrow path of how do you get inflation down without, you know, smashing the economy. You know, looking at the results today, but also seeing some of the data in the last few months, is, you know, that is looking more possible than perhaps some had thought some time ago. And so, you know, I think our job, our view, is as many people in jobs as possible, because that makes a difference to their lives.
ROWLAND: Okay, we'll see what the growth figures today will show. Katy Gallagher, really appreciate your time this morning. Thank you.
GALLAGHER: Thanks, Michael. I just wanted to say congratulations on a huge effort on the breakfast show. You know, watching it for a long time, it's an extraordinary commitment. So, thanks very much for everything you've done.
ROWLAND: I really appreciate that Minister, thank you so much.
GALLAGHER: Thank you.
