Interview with Greg Jennett, ABC Afternoon Briefing

GREG JENNETT, HOST: Ministers are travelling the country promoting Budget announcements. Assistant Minister for Climate and Energy Jenny McAllister is in her hometown of Sydney today, before hitting the road later in the week. Most of the Budget's biggest new spending announcements came in her portfolio areas. We spoke to Senator McAllister earlier this afternoon.

Jenny McAllister, welcome back to the programme. Why don't we start with the keynote Budget initiative last week, which is energy bill relief. You might have seen the Prime Minister today made an argument that energy bill relief should be universal and not means tested and that its universality makes it a bit like Medicare and free public education, he argued. The question is, if that's the case, won't it need to be done again next year, perhaps indefinitely from here on?

SENATOR JENNY MCALLISTER, ASSISTANT MINISTER FOR CLIMATE CHANGE & ENERGY: Look as you know, and I think your viewers will know, cost of living was a core focus, the core focus for us in the Budget. We know that a lot of Australians are doing it tough and it's why we brought forward a tax cut for every Australian taxpayer and energy bill relief for every household. We know that the cost-of-living impacts are being felt up and down the income scale. We wanted to provide an opportunity, without adding to inflation, of supporting a whole range of households. There are, of course, other measures in the Budget that are more targeted, the measures that go to students, for example, or the measures associated with rent assistance. But on this one, we wanted to provide something for every household.

JENNETT: And what's the threshold test, then that would determine whether this apparently universal entitlement is needed next financial year, particularly if you have a Budget in March and an election in May. What is the test that will be applied?

McALLISTER: Look, we put every Budget together in response to the economic circumstances before us. Going into this Budget, we knew a couple of things. The first, that the task of Budget repair is ongoing, and you saw in the Budget the Treasurer seeking to make saves, to support and make room for our priorities. And also, of course, delivering for the second time, we project, a surplus. We also wanted to support cost of living in this Budget because we know how tough it is for so many families. And we wanted finally to make room in the Budget to set Australia up for the future growth opportunities that come about with a decarbonising global economy. We think it's a Budget that's right for the times. We think that's a Budget that's right for the times. The next time we put a Budget together, we'll look at the prevailing circumstances and make our assessment in that context.

JENNETT: Alright, I understand. So, just on cost of living, would the test be inflation being at or below 3%, or would you apply some test on energy bill inflation, as it may or may not persist next year?

McALLISTER: Look, the Budget for next year will be put together next year. I'm really only in a position to comment on the Budget that we have just put out. And it's one that really responds to the information we're getting back from the community about the pressures they're feeling here and now, but also makes the necessary investments that we think are necessary to set Australia up for the future. Jobs, opportunities, business growth in our suburbs and in our regions, connected to the decarbonisation across the world.

JENNETT: All right, thank you for making that point. I didn't really expect you to give away next year's Budget plans, but I was rather taken by the Prime Minister's comments on radio earlier today. Jenny, let's move on to vehicle efficiency standard. These laws have passed through the Senate, effectively bringing this regime into force in the middle of next year. Now, you will have noticed that while we were having Budget week here in Australia, the US slapped a 100% tariff on Chinese EVs, not that it imports many electric vehicles from China, more importantly, also extra tariffs for batteries. Has the government done an assessment of what this might mean for Australian consumers? I'm wondering if there are any benefits, in fact, for Australian consumers if China dumps tariff free EVs and batteries here.

McALLISTER: You're right that the new vehicle efficiency standard went through the Parliament last week. Now, this is a very important reform for Australian motorists and Australian consumers, and one that was in the too hard basket for a very long time. The Liberal Party under the last government tried to do this, but divisions in their own party room meant that they just couldn't get it done. The benefits come about through reduced costs at the bowser, but also through improvements to air quality and a range of other ways that support Australian communities. We think that our plan, which will involve more choices for consumers, will be really helpful. Other countries need to make decisions about their own policy settings, but we're really confident that the settings we've put in place will deliver greater choice for Australian consumers and allow those consumers who want to to save significantly at the bowser by purchasing vehicles that are more efficient, whether they're more efficient petrol vehicles or an electric vehicle.

JENNETT: Now separately but in a related announcement, the US is also putting a 50% tariff on Chinese solar panels. Doesn't that mean Beijing will be much more likely to send greater supplies of its own low-cost panels to Australia, undermining the other part of the Budget that you've already referenced briefly, Jenny McAllister? That's Future Made in Australia initiatives.

McALLISTER: We believe that there are opportunities for Australia as the world decarbonises. And you saw that in the Budget, Greg. So, we are making significant provision to bring on economic activity in areas like hydrogen production, critical minerals processing and of course, opportunities in battery manufacturing and solar. We assess that there are opportunities there for Australian firms in the supply chains for solar manufacturer and battery. We are looking for ways to support those Australian firms that want to participate in this new part of the economy. I mean, again, the global economy is shifting at the moment the solar production is overwhelmingly concentrated in China. We think it's not healthy for a product to be concentrated so heavily in any one country, and that's a view shared by many of our trading partners as well.

JENNETT: Yeah, I know. The history of these tariff wars, when they begin, is it tends to have flow on effects to neutral players like Australia. We might keep an eye on that – solar panels and EVs – and what flows from the US decision. Just finally, Jenny McAllister, you've managed or chaired ALP national conferences. I was keen to get your impressions. You know, they can get willing, but was a line crossed at the ALP’s Victorian State Conference at the weekend around middle eastern policy motions and the level of protest there? Jacinta Allan, the Premier in Victoria, described some of the scenes as disgusting. Do you agree?

McALLISTER: You're right that Labor party conferences often attract people who wish to make their views known about the posture taken by the Australian Labor Party. And, you know, peaceful protest is an incredibly important part of Australia's democratic arrangements, but it needs to be peaceful. That wasn't the case, unfortunately, on the weekend. We are very grateful to the police for their rapid response and their support.

JENNETT: Will Labor nationally endeavour to shape future conferences in a way that this couldn't recur?

McALLISTER: Look, I think that our conference arrangements, which allow for a great degree of transparency about what goes on inside our hall, are a really terrific part of our arrangement. We've always been open about the fact that debate takes place in Australian Labor. I think those are characteristics we'd seek to preserve. But we're always mindful of advice from our security agencies and from police. Of course, we'd think about that the next time the conference comes around.

JENNETT: All right, thanks for reflecting on it and I know we in the media appreciate at least the transparency around ALP policy making for it. The same can't be said of other parties on the landscape in this country. Jenny McAllister, we'll wrap it up there. Thanking you, we’ll leave it there.

McALLISTER: Thanks Greg.