Minister Shorten Interview on ABC News Breakfast with Michael Rowland.

E&OE TRANSCRIPT

MICHAEL ROWLAND, HOST: Let's take it to Federal Parliament where there is lots happening this morning. Of course, the government is grappling with the political implications from the Reserve Bank’s latest interest rate hike. And NDIS Minister Bill Shorten has just announced this morning that charges have been laid against three men accused of defrauding that scheme. Bill Shorten joins us now from Parliament House. Minister, good morning to you.

BILL SHORTEN, MINISTER FOR THE NDIS AND GOVERNMENT SERVICES: Good morning, Michael.

ROWLAND: Lots to get through. Let’s start with those fraud charges, what can you tell us?

SHORTEN: Well, I'm determined that people who are ripping off the NDIS scheme stop. We will make sure that they're accountable. There's nothing worse than stealing from taxpayers and people with disabilities. So, I think the extra money which we announced in October to investigate crime and fraud is now seeing some early dividends. There's been a man charged, another two summons to appear. There were raids yesterday, early morning across a series of properties in Western Sydney. For the few service providers who are cheating the system, just don't. You will eventually get caught, and you give the whole scheme a bad name. We're determined to clean up the name of the NDIS.

ROWLAND: We're talking alleged fraud of more than $3 million, Minister, how big a problem is fraud for the NDIS?

SHORTEN: I think it is a big problem. I think viewers can all understand that wherever there's government money, it'll attract flies. I am a bit perplexed that our predecessors didn't focus more on the law-and-order side of the NDIS. Take the welcome mat away from the crooks. But I'm confident that if we can reduce some of the fraud, then we'll see the scheme looking healthier financially and that people with severe and profound disabilities are not vulnerable to being ripped off or having their money be taken.

ROWLAND: Let's move on to the RBA rate rise. Yesterday the 9th consecutive one official rates have now increased by more than 3% in less than twelve months. Has the RBA gone too far in your view?

SHORTEN: You understand the RBA is independent, the government can’t, doesn't make the decisions on interest rates there's no doubt though that millions of people are feeling pain here by these decisions the reason why the RBA says it increases the rates is to put the inflation genie back in the bottle. The Federal Labor government's tackling inflation in a range of ways. We want to get wages moving, cost of living measures to support people with energy prices, childcare, we want to take some of the speed limits off the economy, bring back more labour, skilled labour, into the economy itself, unblock some of the supply chain issues with energy. And of course, we will at the next budget demonstrate better, increased fiscal responsibility.

But with the Reserve Bank increasing the rates, I guess the issue for mortgage holders is are they the meat in the sandwich here? And I think they are. The reality is that hopefully inflation is coming down anyway. So, for some of the commentators out there who are pushing for more interest rate rises, this is real people who are getting affected very painfully by increased mortgages

ROWLAND: Phil Low himself, the RBA governor, says there will be more rate rises - he said that in his statement yesterday, should he take greater account of, as you say, the pain many Australian households are feeling as a result of the RBA's decisions?

SHORTEN: I'm sure the Reserve Bank can read the newspapers and talks to people in the real world, so I'm sure they are. The challenge is, of course, inflation is a lag indicator, so it was definitely higher than expected in the October December quarter last year. But all the signs show that there's some pressure easing in terms of inflation and the problem is it's the mortgage holders, who are - the economy - and Labor understands it can't be a one trick pony. It can't just be mortgage holders who help get inflation under control. That's why the Labor government is doing what it can, with the leavers we have.

ROWLAND: RBA has monetary policy, the government, as you pointed out, has fiscal policy as a way of addressing inflation. It's still pretty high though, even if it has peaked in the December quarter. In the May budget that will mean withdrawing stimulus. That's either cutting spending or raising taxes. Is it going to be a tougher budget than the government had been hoping for?

SHORTEN: Well, Jim Chalmers is doing a great job as Treasurer, so I'll let him unveil the May budget. Clearly, though, you can see the signs of labor's three-point strategy. One is assisting people with cost-of-living measures, so that's underway, childcare changes, energy relief, modest improvement in wages. The second thing is that there's been blockers in the economy, the lack of emphasis of training of a skilled workforce for years is now the chickens have come home to roost. Also, our energy market system, especially on the East Coast, has been a shemozzle, so we're trying to unpick that and get that working properly. But of course, in the budget, there's no doubt, and the treasurer has made no secret of it, that there's pressures on the budget, including NDIS, aged care, health care, defence, you know, I'm sure that we'll see in the budget a plan to help decrease inflation pressure.

SHORTEN: Bill Shorten, I appreciate your time this morning. Thank you.

ROWLAND: Lovely to chat Michael, have a nice day.