Interview with Kenny Heatley, First Edition

10 February 2025

KENNY HEATLEY: Despite the Albanese Government lashing Opposition Leader Peter Dutton over his plans to cut the number of public servants, analysis from the Parliamentary Budget Office shows the government is budgeting for a public service that is cut by 20,000 over the next four years. The Coalition is accusing Labor of hiding an $11 billion budget black hole. Joining me live is Shadow Finance Minister Jane Hume. Good to see you Jane, thanks for coming on the program. Do you think that Labor is actually planning on cutting the amount of public servants? What's going on here?

JANE HUME: Well, it can only be one of two things, Pete. Either they're lying in their budget papers or they are planning a cut to the public service. We noticed when we were looking at the MYEFO numbers in December that public sector wages flatlined over the next four years. Now, that's despite an increase of the public service of around 36,000. That's a 20% increase and an 11% pay rise that was signed off by Katy Gallagher. Now, those same budget papers were also signed off by Katy Gallagher and yet they show that public sector wages have flatlined. When we asked the PBO to explain that to us for our own purposes, it became very clear that either there is an $11.1 billion black hole, money that hasn't been budgeted for public sector wages, or there is a planned cut of around 20,000 public service. One has to be true. The question now is for Katy Gallagher. Which one is it? Because Labor, we have always known, lacked economic credibility. But this is a clear lie. Something has gone very wrong in their budgeting.

KENNY HEATLEY: Finance Minister Katy Gallagher doesn't deny that the budget was assuming reductions in the public sector workforce, but says the way that they had budgeted APS wages is exactly the same as it was under the Coalition. What do you make of her response?

JANE HUME: The Coalition never had plans to expand the public service to the extent that Katy Gallagher has. In fact, she said that she believes that the public service is right sized, right now. That there is no need for any cuts. But that's not what her own budget papers say. So that requires an explanation. One must be true. Is there a cut to the public service that's planned? 20,000 over the next four years? Or is there an $11.1 billion black hole? Because one has to be true.

KENNY HEATLEY: You are a Senator for Victoria. What's your reaction to the by-election results we saw over the weekend? With massive swings against Labor in Werribee and the Greens losing to the Victorian Liberals?

JANE HUME: Yes, certainly. There was a message loud and clear, delivered to Labor over the weekend that the people of Victoria have had enough of a bad Labor Government that has failed to deliver on its promises, and yet has increased taxes to continually pay for more and more. That tax and spend, that tax and spend mentality of a Labor government is not delivering what it is that people want. Now I congratulate Rachel Westaway who as our new member for Prahran, she's going to make a terrific contribution to the Victorian Liberal team down there and Steve Murphy, who came so close in Werribee, with a 16% swing. I mean, that is just extraordinary. If I were Labor, I would be quaking in my boots because that is the electorate telling you that your time is up.

KENNY HEATLEY: But also, despite that massive swing against Labor in Werribee, there was only a 4% swing to the Liberal Party. The rest went to independents. So what does that show? Does that mean that you still have more to get your message right, more to do, to get it right in those outer suburbs?

JANE HUME: There is no time for complacency, no opportunity for complacency here and of course, the Liberal Opposition in Victoria when it gets to its election in November 2026, will have an awful lot more in its messaging and look, let's face it, we've got a brand new leader down there. Brad Battin has only been in the hot seat for a few weeks, but clearly his message is beginning to resonate. That's a very positive sign. There's an awful lot more to come.

KENNY HEATLEY: Just finally, tonight the Prime Minister will look to reset his relationship with the private sector and miners as he pushes the Senate to back Labor's plan to give tax credits to miners of critical minerals. Is this something you support?

JANE HUME: I can't believe that the Prime Minister has been so deaf to the message from the miners. It was only in September last year that the miners were very clear. Tania Constable at the MCA, essentially ripped Anthony Albanese a new one. She said that he had brought conflict to their workplaces for the first time in a generation, that high energy prices, difficulty getting approvals, increased red tape and particularly industrial relations laws were hampering, not just existing projects, but new projects as well, and turning new business investment away from the mining sector. For Anthony Albanese to come out and say that the mining sector has never had a friend like him, I think he's living on another planet.

KENNY HEATLEY: Okay, Jane Hume, appreciate it as always. Thanks very much.