TRANSCRIPT - ABC Afternoon Briefing with Greg Jennett

PAUL FLETCHER MP

Shadow Minister for Science and the Arts

Shadow Minister for Government Services and the Digital Economy

Manager of Opposition Business in the House

TRANSCRIPT

ABC Afternoon Briefing 

28 AUGUST 2024

Greg Jennett: We'll check in now as we routinely do on some running issues of recent days with Liberal front bencher Paul Fletcher he joins us now from Sydney.

Paul welcome back to the program can we start out on inflation, why not. The monthly figure across the board went down, 3.5% annualised, doesn't this put the lie to the Coalition's claim that somehow the government has quote “given up the fight against inflation”, it is doing what it's supposed to be doing isn't it?

Paul Fletcher: Well Greg, good to be with you but I'm sorry but I can't agree with your analysis. The fact is that inflation is still a long way ahead of or above the RBA's target range of 2 to 3%. The trim mean which is the measure the RBA looks at quite carefully is still at 3.8 gone from 4.1 to 3.8 and we know also in these figures there's Jim Chalmers accounting trickery where he's paid a rebate on energy bills. Now that's an on-budget subsidy, every taxpayer is paying for it and the reason that Labor’s had to do that is because the promise they took to the last election of a $275 dollar reduction in energy bills hasn't been achieved, in fact bills are up by about a thousand dollars. So, in a fairly desperate attempt to try and contain some of the damage they've announced this on-budget subsidy. 

Now that is a factor in these numbers and of course the Reserve Bank will look through those because that's just an accounting trick and it's not going to fool the Reserve Bank in terms of the real nature of the continuing persistent sticky inflation that we have in Australia and the reason it's persistent the reason it's sticky is because Mr Chalmers is spending money very aggressively, $316 billion of spending since Labor came to government - additional spending.

What that means is that fiscal policy is expansionary, it's going in the opposite direction of monetary policy, which the Reserve Bank has responsibility for. The Reserve Bank is trying to slow the economy to get interest rates down and Mr Chalmers expansionary fiscal policy is keeping the economy roaring along.

Greg Jennett:  Yeah, alright well a monthly figure only. We’ll await further data as I'm sure the Reserve Bank does. Paul Fletcher, can I take you now to the Greens, Adam Bandt and his big tax agenda. I'm pretty sure, I think I'm sure where the Liberals would stand on that, but many of his offerings today really are predicated on what he calls power sharing so can you clear up for us minority government scenarios and how the Coalition would approach that.

Peter Dutton has said that The Green, Teals we will not enter into government with. 

What does that mean, just explain that out?

Paul Fletcher: Well I think that's pretty clear because we well remember and Australians will well remember the disaster of the last minority government in which The Greens were a part. 2010 to 2013 the Rudd-Gillard-Rudd Government, with The Greens having the whip hand when it came to all kinds of economic policy issues and the idea of a party as extreme and left wing as The Greens having a major say over economic policy in Australia, not to mention national security policy is frankly horrifying.

What we've just seen them announce today, this kindergarten style economics  is deeply troubling. The fact is there's a global competition to attract capital. We want to attract capital, we want businesses and investors to look at Australia as a good place to invest and we know when investment occurs that generates jobs generates opportunity generates prosperity for Australians but these kind of excessive taxes that Mr Bandt is talking about will send a very clear signal to international investors, do not put your capital in Australia. 

Greg Jennett:  Okay so if the seat count was tight but below 76 in the next Parliament, you’re saying the Coalition would not seek even basic undertakings like confidence or supply from The Greens or perhaps more importantly the Teals, you're ruling that out are you?

Paul Fletcher: Well I think Peter Dutton, our leader, has been pretty clear on what the Liberal Party's position is. So I don't think there's much I can usefully add to what Peter has said. He's been very clear about it and again we have seen the disastrous consequences for Australia of a minority government with The Greens having the whip hand, 2010 to 2013 the Rudd-Gillard-Rudd government, we have no desire to see that kind of disaster repeated in Australia.

Greg Jennett: So if you got to 74 and we imagine that two people who were sitting on the crossbench were returned, Bob Katter and Andrew Gee, that's your ticket to minority government is it? Those two gentlemen. 

Paul Fletcher: Well look again, I think Peter Dutton's been very clear on the principles that would apply should the kind of numbers eventuate as you were talking about. But can I make the point we're contesting the next election to win it. Our proposition to Australians is that we can offer the stable, secure government that the Liberals and Nationals are renowned for. We are a party of government we've got that capacity and we are campaigning very vigorously, on the importance of getting cost of living under control, on the importance of strong border protection, on the importance of capable management of our national defence and national security challenges. These are all the things where we have a proven track record as parties of government. So our proposition to Australians is now is not the time to take the risk on a minority government.

Greg Jennett: Alright, somehow I think you'll be asked many more questions along those lines in the months ahead Paul Fletcher.

PsiQuantum, let's go to that we've talked about it before, you've received a letter back from the Auditor General in response to your request for an investigation. You got what I think might be described as a non-committal indication that the Auditor might look at all manner of investment funds the government's been running, doesn't look like an enthusiastic embrace by the Auditor does it?

Paul Fletcher: PsiQuantum as you know is an American company which has received a commitment of almost $1 billion of Australian and Queensland taxpayers’ money. This issue raises a lot of concerns, there was a very poor process in getting to that decision, and it's very unclear why the government has decided to splash so much money on one company using one particular technology path and it's also very unclear what Australian taxpayers will get for it.

That's why I wrote to the Auditor General. The Auditor General has written back to say that she is considering investigating the various investment vehicles that the Labor Party is using including PsiQuantum. And that is very consistent with the concerns the Coalition has been raising.

Whether it's PsiQuantum, whether it's the so-called National Reconstruction Fund which has chewed up millions of dollars in expenses for staff but hasn’t managed to get $1 out the door of this much talked about $15 billion dollars, whether it's the so-called Future Made in Australia. 

There's been a troubling lack of governance, lack of discipline, an appetite to splash money around, and no rigour in what taxpayers are going to get for it. And Psi Quantum is absolutely consistent with that.

And that is why I think what the Auditor General has proposed to do would certainly be a sensible way forward. There is a need for a very close look at the approach Labor is taking to these various vehicles it's using on what it dignifies as industry policy.

Greg Jennett: Alright, we'll await further developments on that through you or from the Auditor General I think. Paul Fletcher, we’ll wrap it up there thanking you as always

Paul Fletcher: Thanks Greg.