Interview with Holly Stearnes, AM Agenda

13 November 2024

HOLLY STEARNES: Well doubts have been raised over Kevin Rudd's future as Australia's Ambassador to the United States. It comes after he previously made comments about the president-elect Donald Trump. Joining me now is Shadow Finance Minister Jane Hume, good morning to you. Is Kevin Rudd's time in the job numbered at the moment?

JANE HUME: Holly, we know that there's going to be a changing economic environment. That's certainly the case. Inevitably that's the case. My concern for Australia is that we are less able to cope with the changing economic environment, less resilient to an economic environment because of domestic issues, because labor has failed to get inflation under control here in Australia, because inflation has stayed higher for longer and interest rates have stayed higher for longer. We are more vulnerable to those economic shocks, which is why it's so important that we have strong and enduring relationships with our biggest trading, one of our biggest trading partners and indeed our most important strategic ally in the United States. Kevin Rudd has made significant contributions to that relationship. He has deepened some of our economic ties through AUKUS, but there is no doubt that he has made disparaging comments about Donald Trump in the past. He is a specifically an appointment from Anthony Albanese. He was hand-picked hand chosen for this job. It's now up to Anthony Albanese to decide whether he is capable of not just maintaining the relationship we have, but deepening the ties, which are so important going to be so important for Australia, both economically and strategically in the future. He has a term to serve. It's up to Anthony Albanese to make sure that he can do that and deliver for Australia's economic and strategic interests

HOLLY STEARNES: And I mean, it's important to note Elon Musk as well as JD Vance. They were previously critical of Trump but have changed their view. So potentially Kevin Rudd can still repair this relationship here with Donald Trump moving forward. And another important point given Kevin Rudd's relations with China, would that make him a pretty suitable to, I guess, stay in the role to temper those relations?

JANE HUME: Well, certainly Kevin Rudd has deep relationships both in the states and in other countries as well. He's a good diplomat. And that has been demonstrated in the past. These disparaging remarks that he has made in the past have not gone unnoticed by the Trump administration, both the old one and indeed the new Trump administration It's not unusual. We know that disparaging remarks have been made by the Prime minister himself. And also we're here today by Environment Minister, sorry, Energy Minister Chris Bowen. I would imagine that these are issues of judgement that Anthony Albanese, as Prime Minister, will have to now exercise as to whether Kevin Rudd is the right person to continue on in that role, who can enhance our relationship, not just maintain the ties that we have, but improve and deepen those economic ties, as well as strategic ties with the US which are going to be so important for Australia's national interest.

HOLLY STEARNES: Jane, Jim Chalmers is warning Australia has more at stake than most from a trade war, but says Australia is well prepared to navigate the second Trump presidency. Should Anthony Albanese be seeking these trade exemptions or be going to the US to meet with Trump soon?

JANE HUME: Well, certainly under a Coalition Government, that was exactly what happened under the previous coalition government and a new Trump Administration. There were tariffs put on specific metals and coalition forces went out, spoke to Trump directly and secured an exemption for Australia from those tariffs. We would hope that the Albanese government will be doing similar in order to make sure that we have that special relationship that is maintained between Australia and the US, you know, it's a very deep and abiding relationship. It started with ANZUS. It's been strengthened through AUKUS. We have to make sure that whoever is in the white House and whoever is in the Lodge can maintain and deepen ties with this important ally for Australia.

HOLLY STEARNES: Are you concerned about a looming trade war with China?

JANE HUME: We would hope that it wouldn't. That wouldn't come to that, we have a normalisation of relations with China, who, again, is also an important trade partner with Australia. As I said earlier though, Holly, my most important concern, what's keeping me awake at night is that Australia is a less economic, resilient, economically resilient country because of mistakes that the Labor Government have made, because they came into government saying that the cost of living and productivity were their number one issues. And yet cost of living has gone backwards that productivity has gone backwards, and that has left us more vulnerable to economic, to international economic circumstances and environment, because we have failed to get inflation down, because we've failed to get interest rates down. And we're still seeing inflation not expected to get back to band now until the end of 2026, in a sustainable way. That should be our number one concern. This has been a failure of this government to focus on what's important, not just to our, you know, to ordinary Australians who are feeling it in her pocket, but also to our economic prosperity for the future in Australia, they've failed to get inflation under control, they've failed to get interest rates down and all Australians will pay the price.

HOLLY STEARNES: I mean, I was just going to ask you that about potentially a rate cut soon here. I mean, lots of people would be hoping for that because of lower inflation and the UK and US cutting rates just last week. Jane, we do have to wrap things up, but I want to get your thoughts on something. It's been revealed Anthony Albanese's public sector splurge has cost taxpayers an extra $5 billion. Now, Public Service Minister Katy Gallagher defended these numbers, saying that the Albanese government had been rebuilding the Australian public service after a decade of neglect by the former Coalition Government. What do you say to that?

JANE HUME: Big government isn't always better government, Holly, and what we've seen is an explosion in bureaucracy, particularly in Canberra, because of the Labor Government, at an enormous cost to taxpayers, around $5 billion, according to these latest ABS figures. And yet, at the same time that we've seen, according to the government's own budget figures, 36,000 new public servants come online in Canberra. We haven't seen an improvement to services. I don't think that there's many Australians out there that would believe that their 36,000 public servants, or $5 billion, better off, in fact, wait times for things like getting the age pension have blown out to almost double the wait times that were under the coalition government. So big government isn't always better government, and I think it's up to the Albanese Government to not just defend the numbers, but to defend the services that they're providing, which haven't improved.

HOLLY STEARNES: Okay. Jane Hume thanks for your time this morning.

JANE HUME: Thanks, Holly.