Interview with Laura Jayes, AM Agenda

12 February 2025

LAURA JAYES: Let's go to Parliament House now. Jane Hume, the Finance Minister, joins us. There's a bit to get around that we can start with the Trump trade tariffs Jane and there's a bit of mixed messaging in the 24 hours that after we saw that phone call happen, it seems that this is going to be a tough negotiation. You have Pete Navarro saying that Australia has essentially decimated the aluminum market. Is that a fair criticism or just part of the art of the deal?

JANE HUME: Laura, you saw Peter Dutton stand up yesterday and say that we want to support Anthony Albanese in a bipartisan way to ensure that there is an exemption for Australia under the Trump administration's new tariffs on steel and aluminum. This is profoundly important. As you know, during a Coalition Government, there were exemptions that were negotiated. I know that they have come up again in conversation just in the last 24 hours or so, but it's really profoundly important for, not just Australia's bilateral relationship with the U.S, which is a very deep and abiding one, both strategic as well as economic. But most importantly, for our steel and aluminum industries to have a thriving industry here, a domestic industry as well as an export industry as well. It's going to be really important for part of it's part of our AUKUS agreement. I'm surprised that that hasn't been raised between the Prime Minister and the Trump Administration, but we would hope to see that those bilateral relationships are being used to their full extent to make sure that Australia does well out of this deal and hopefully gets an exemption for its exports.

LAURA JAYES: If it doesn't, do you accept that the circumstances are different?

JANE HUME: Well, we would hope that it wouldn't get to that. Obviously, circumstances are different from one year to the next. However, I don't think that the Trump Administration understands, potentially, the extent of which our aluminum and steel industries rely on good relationships, good trading relationships, with the U.S, as well as having a thriving domestic sector as well, because that's going to be fundamental to delivering on our AUKUS commitments.

LAURA JAYES: Okay, but we've just seen a pretty good meeting between the Defence Minister Richard Marles and Pete Hegseth, particularly on AUKUS, we've made a down payment. I mean, I think Anthony Albanese and the Labor Government is making a pretty good argument about AUKUS right?

JANE HUME: Yeah, we would hope that that was brought up in the discussions around tariffs on aluminum and steel as well. We think AUKUS is really good and is going well. That was, I think, one of the shining lights of a Coalition Government, was the AUKUS agreement that is going to provide not just strategic and military alliance for decades to come, but also an economic one. This is part of that.

LAURA JAYES: Okay, what about Rex this morning? Do you back the government's bid here, if there's no private buyout for the government to acquire it?

JANE HUME: The Coalition have always said that we want a safe, reliable and affordable regional airline, but the idea that we would come out and own that airline, I think, is maybe a bridge too far. Under this government, we've already seen two regional airlines collapse just in the last three years. At the same time, we've provided $130 million bailout to Rex already. $80 million to keep Rex flying in regional communities, and then another $50 million to buy out their debt. Our concern here is that the messages that the government are sending are actually potentially threatening an appropriate commercial arrangement and putting off other bidders. There are 43 regional airlines that are continually operating in Australia right now, and that's a good thing, but how would they compete against a government owned airline? I get a sense that potentially, the government is just doing the bidding here of the TWU. We know that the Labor Government, Labor have always wanted to own an airline. They tried to push the Coalition into buying Virgin during COVID. Now they've got their eyes on Rex. We want to make sure that we protect regional communities, but that can be done through policy and regulatory settings. It doesn't require an investment of taxpayer monies into buying an airline.

LAURA JAYES: Okay, but what would happen if Rex collapsed? What would the Coalition do? Just let it collapse, because we can see how much financial trouble it is in, and then you have this oversaturated market again. Qantas would be the only airline servicing the regions.

JANE HUME: We want to make sure that regional communities are serviced and as I said, there are 43 regional airlines out there right now, and we can work with those regional communities, work with those regional airlines, to make sure that services are delivered to regional communities, who we know need an airline. They are a lifeline for those communities. That said, is the best solution the government stepping in and owning an airline? That's something that we are not entirely comfortable with. This sounds like a solution that's been put together by the TWU. It's not a commercial solution, and it's actually putting off those commercial bidders that might come in and rescue Rex and resurrect it. But if the government is saying, well, you know, that's alright, we'll take on the risk, why would those commercial bidders come in?

LAURA JAYES: Okay, let's talk about the CBA, half year, cash profit today, profit today, posted. It is above expectations, $5.1 billion. Is that a good sign? Because if the banks are strong, our economy is strong, isn't it?

JANE HUME: Well, we always want a strong and thriving banking sector, but I have to admit, that at a time when the average mortgage holding family has seen the cost of their mortgage go up 12 times under Labor, it's gone up to around $50,000 more paying off your mortgage now than it was three years ago. We would hope that when the Reserve Bank eventually does move on interest rates, that those interest rate cuts, potential interest rate cuts, whenever they may be, will be passed on in full by the banks, including the CBA.

LAURA JAYES: Okay, we'll wait to see what happens there at the next meeting. What is it next week? Yeah, it's next week, the RBA meeting. You're all sweating on that one. Jane, before I let you go, an interesting meeting at The Lodge last night with the Teals and some of the crossbench. Anthony Albanese must think a minority government, like the rest of us, like the polls have shown, is a real possibility there. Do you think most of the Teals would support Labor in a minority?

JANE HUME: Well, I think maybe, after being wooed at The Lodge, it makes it pretty clear. We've been saying for some time that if you vote for a teal independent, it's simply a vote to keep Anthony Albanese and I think that that's been proven now.

LAURA JAYES: So you think that they will all support Anthony Albanese, you couldn't pick any of them off?

JANE HUME: That's not what I'm saying. I wouldn't want to pick one of them out over the other but what I'm saying is that quite clearly Anthony Albanese, the whites of his eyes are showing. He realises that he's going to need those Teal independents. He's wooing them pretty hard, but a vote for an independent is clearly going to be a vote to keep Anthony Albanese and voters should be aware of that when they cast their ballot.

LAURA JAYES: It'd be pretty extraordinary for Andrew Gee to support a Labor Government, prop up a Labor government, wouldn't it?

JANE HUME: Well, you never know.

LAURA JAYES: Okay, Jane, good to see you.

JANE HUME: I’m sure it was more than just a cocktail.

LAURA JAYES: What do you think was on offer then?

JANE HUME: I don't know. Perhaps there were very attractive canapés as well.

LAURA JAYES: Okay, we'll try and do some digging. Thanks so much, Jane, good to see you.

JANE HUME: Thanks, Laura.