Interview with Kenny Heatley, First Edition

18 November 2024

KENNY HEATLEY: Joining me live is Shadow Finance Minister Jane Hume, good to see you, Jane. Thanks for coming on this morning. What, would a Coalition government be open to extending the lives of coal fired power stations, if it meant keeping power prices down?

JANE HUME: A Dutton Coalition Government is 100% committed to net zero by 2050, but most importantly, is committed to a sensible and practical transition from coal, away from coal, via gas, towards nuclear to make sure that we can keep costs down for consumers in the long run. We know that coal is going to be part of our energy mix for a number of years still. In fact, State governments are now paying coal fired power generator owners to keep their coal, to keep coal in the system for longer and that's because of Labor's renewables, all, one size fits all, all eggs in one basket approach that is not delivering, either net zero by 2050, nor is it delivering lower power prices. That's despite the fact that Labor promised that power prices would come down by $275. They haven't. They've shot up potentially by, in some places by more than $1,000 just in the last few years and that's because of Labor's misguided and ideological approach to the energy transition.

KENNY HEATLEY: A Cost of Living Committee has found Australia's living standards are tanking. You are asking the Albanese Government to call a National Cabinet to try to convince states to limit spending. Why do you think the states will listen when doling out cost of living relief wins votes?

JANE HUME: Well, the evidence is in. People are poorer under Labor. This Committee has had two years now to collect evidence from right across the country, through different industries and businesses, different geographies, different demographics and it's very clear that Australia's living standards have collapsed under Labor and the biggest driver of that collapse has been inflation. The biggest driver of inflation has been public sector spending at both State and Federal levels and it's not just the Coalition that is saying this. This is the IMF, it's the Reserve Bank and the only way to deal with a national crisis is with a national response. We have National Cabinets to discuss national crises and things like domestic and family violence. We had one just last week to discuss social media bans for young Australians. Well, this is the biggest issue facing Australians right now and it does need a whole of government, State and Federal response. That's why a National Cabinet is the right solution. It's public sector spending across both State and Federal that have kept pushing inflation higher and higher. We're now up to about 27.5% of GDP is public sector spending. That's well up from the 22.5% of the previous decade before Covid. Just in my home state of Victoria, public sector spending has increased 7.7% in the last 12 months alone. Anthony Alabnese needs to show leadership here.

KENNY HEATLEY: Jane, can I just ask, when Labor came to office, inflation was running at 6.1%. Now inflation is at 2.8%. Do you accept that?

JANE HUME: Well, yes, except for the fact that it's come down much faster in equivalent countries and other developed nations. In fact, Labor's policies have kept inflation higher for longer here in Australia and Australians are paying the price. They're paying the price every time they go to the grocery store or fill up with petrol, or pay their mortgage or pay their rent. Labor's policies have kept inflation too high for too long and Australians have paid a price. That's why we think there should be a national response through a National Cabinet.

KENNY HEATLEY: Okay, as the decline of physical currency continues, the Albanese Government is announcing today they will mandate that cash be an option when paying for essential items like groceries and fuel. Is this a good move?

JANE HUME: Well, this seems to me to be an announcement about an announcement. It's a plan for a plan. Yet another, not dissimilar to the announcement around surcharges just a couple of weeks ago. Nothing will actually come into effect until January 2026. This is all about having further consultations and discussions. It's a government that's scratching around for an economic agenda because it knows it's losing the war against the big issue, which is the cost of living. Australians are crying out for help. They don't need more announcements. They need action. That's why we're calling for a National Cabinet so that this government, which has been gutless on dealing with the cost of living for two years, can actually do something rather than simply have a plan for a plan.

KENNY HEATLEY: Yeah, I understand that it's going to be after the election when this will happen. Will the Coalition make moves to protect cash?

JANE HUME: Well, cash is not just a store of value. It's also legal tender. But we want to make sure that any decision that's made isn't pushing up costs for small business and passing, having that passed on for consumers. There's lots of issues that need to be addressed here. This announcement is nothing more than that, simply an announcement. We want to see a little bit more detail than that before we commit.

KENNY HEATLEY: Jane Hume, thanks so much for coming on the program. Have a great day.