E&OE TRANSCRIPT
Topics: Economy; airfares; airlines; cost of living; business.
SARAH ABO, HOST: Welcome back. Well, Australians are spending more on flights in the wake of Rex Airlines demise. New figures revealing airfares have shot up 12 per cent since the carrier collapsed. Joining us to discuss today's headlines is Minister for social services Amanda Rishworth and nationals Senator Bridget McKenzie. Good to see you both this morning. Amanda, I'll start with you. Those cheeky airlines. I mean, this is actually infuriating. For those who fly regularly, Bridget's aviation divestiture proposal isn't looking so bad after all. Maybe?
AMANDA RISHWORTH, MINISTER FOR SOCIAL SERVICES: Unfortunately for Bridget, her divestiture proposal didn't last until lunchtime and it's not actually on the table. But in all seriousness, it is concerning for consumers as a government. We've been, firstly, very much focused on the routes that are in the rural and regional areas, because in many places, there's no other option. But, of course, competition in our airline sector is critically important and that's why we've been working on the long term plan to increase competition. Of course, the ACCC plays a really important role, but so does the reform for slots, bringing new airlines in the western Sydney airport. All of these, along with the white paper, are really critical reforms that we need to focus on the long term. And we'll keep doing that. And in policies that actually do the job and actually work.
SARAH ABO: Attracting airlines is key. Obviously, we've seen bonds that go, we've seen wrecks now, which means that we've got the two major players. I mean, Bridget, you've sat opposite the chiefs of airlines and grilled them on various issues that have plagued the industry, yet we're still seeing them get away with this kind of behaviour.
BRIDGET MCKENZIE, NATIONALS SENATOR: Yes, Sarah, it's absolutely appalling. We've seen air prices, economy airfares go up 50 per cent under Labor. We've seen, as you said, two airlines into administration. Flying is no longer a luxury item in Australia and we've put a lot of suggestions on the table. The government's done nothing and Amanda talks a list. There's no action on limited cabotage, there's no action on competition reforms, there's no action on slots into our business airport being Sydney. And the competition reform that was promised in the white paper is not there. So, the government has sat on its hands for two and a half years and Australians are now paying more for airfares than they should be. I mean, if it wasn't for the Liberal and the National parties, Qantas would still have pocketed $200 million of COVID flight credit. So, we're doing our job. We just wish the government would get off their backsides and do something.
AMANDA RISHWORTH: Well, that is just not true.
BRIDGET MCKENZIE: I'm very frustrated about this, Amanda, and the talking points from Catherine King, the Minister, aren't going to help you here because she has done nothing. The white paper was silent on competition, which is why I've called for…
AMANDA RISHWORTH: This is just not true. That is not true. Bridget, you need to be honest with the people. The white paper was not. This requires long term reform. You're also not being truthful when you talk about slot reform. Of course, you received a reform when you were in government. Did nothing about that. Did nothing about that. We're getting on with the long term reform here and we'll keep doing it. But of course it's concerning and we'll keep working to ensure that we have long term, sustainable reform. And the idea is, Bridget, that you. The one idea you put on the table didn't last until it was shot down.
SARAH ABO: I take your point there and obviously the government is doing all it can, but when we're talking about long term reform, it's kind of what we need right now. Those prices to come down long term isn't going to help the consumer right now.
AMANDA RISHWORTH: Well of course, some of the reform does involve freeing up slots at Sydney airport and, of course, ensuring that we have the western Sydney airport done. But, of course, looking at price gouging through the ACCC is also critically important and ensuring, particularly when it comes to wrecks, that our rural and regional customers are not completely left in the lurch. So, this is a big problem and we will keep working on it. Of course there's short term things, but you need long term reform in this space if you're actually going to make a difference for consumers.
SARAH ABO: All right, let's hope the ACCC can get onto that. Well, moving on. Chief executives and leading economists this morning sounding the alarm on Labor's economic agenda. The CEO of the Business Council of Australia accusing the government of economic mismanagement. Amanda, our economy is near stagnant. In fact, the peak body business body lobby rather says we're taking a step backwards. What are the steps you're going to take to revitalise the industry?
AMANDA RISHWORTH: Firstly, I would say that we. It's not surprising organisations are posturing, particularly at this point in the electoral cycle. But of course, what we are doing is working with business across the board in many different areas to ensure that we're enhancing productivity, but at the same time, we are making things fairer for workers. I mean, one of the criticisms for Labor has been our legislation to say that the people doing the same job should get the same pay in a workplace. We have actually ensured that there's balance there when it comes to negotiating paying conditions. And what we've actually seen is industrial action down and wages up. That's a good thing for pet workers, but it's also a good thing for business as well. And so we'll keep working. We've had two budget surpluses, which, of course, put out…
SARAH ABO: We don't have much time, Amanda, to…
AMANDA RISHWORTH: Put downward pressure on inflation.
SARAH ABO: Look, I think you're right about the business council posturing. The unions are also posturing at this time in the electoral cycle, that's for sure. At the end of the day, the business council represents some of the wealthiest business owners in Australia. They're the ones who are hiring some staff and they're concerned about that now because of these workplace laws. Bridget?
BRIDGET MCKENZIE: Yeah, the economy is being smashed, Sarah, as your viewers absolutely know, they're struggling to pay their mortgages, their savings have run out. The reality is the government's decisions have an impact. The government was warned before they put their industrial relations policies through that this would be the end result and they ignored that. And now we are having our biggest employers saying they're cautious to hire, which Amanda can make a joke about. But the reality is it will be the Australian.
SARAH ABO: She's not making a joke about it, Bridget.
BRIDGET MCKENZIE: When you raised this, Sarah, she laughed.
SARAH ABO: All right, well, we have…
AMANDA RISHWORTH: And the reality is, Bridget, you don't have to be nasty.
SARAH ABO: We've unfortunately run out of time. But I always enjoy the robust discussion between the two of you. Thank you so much for joining us today.