Well, all eyes around the country were on this decision today, not least from the Prime Minister himself. This was seen politically as crucial for Anthony Albanese's hopes of reelection that the Reserve Bank cut interest rates. Today, as I was sitting and listening to Michele Bullock speaking, my phone rang. It was the Prime Minister's office. This was at about 20 to 3 before I came on air. 'Would you like to speak to the Prime Minister?' Well, on your behalf, of course, the answer is always yes. So, I spoke to him a short while before coming to air and I asked him straight up if the rate cut was too little, too late for people who are continuing to struggle with the cost of living and blame his government for that.
PRIME MINISTER: Well, we've achieved this outcome together. Australians are doing it tough. We know that after Covid we had global inflationary pressures. Inflation was rising when we came to office, had a six in front of it. Interest rates started to rise before the last election. And our task has been to do what we could to engineer as soft a landing as possible, to not cast people aside, see massive unemployment, which is what we've seen in some comparative countries, but bring inflation down while providing cost of living relief. And that is something that we have done. We designed cost of living relief in a way that didn't put that pressure on inflation. Indeed, that assisted in getting inflation down to that headline figure of 2.4 per cent where it is today and falling, as opposed to 6 per cent and rising, which is what we inherited.
FANINNG: Yeah. At the same time, the Opposition is saying today this has been the steepest drop in living standards in living memory. And the Reserve has warned that living standards will continue to fall for Australians. I mean, they're not going to thank you for that, are they?
PRIME MINISTER: Well, the Opposition continue to talk Australia down. I saw some of Angus Taylor's media conference and I've never seen anyone look so miserable. The truth is that Australians will welcome this fall in interest rates today. They are still under pressure. It's certainly not job done, but they'll welcome it. The only person who wouldn't welcome it is Angus Taylor and of course Peter Dutton, who just on the weekend was making the case for higher interest rates and it's up to him to explain why he was doing that. We have worked very hard to get inflation down, but we've done so as well while providing that cost of living relief, whether it be the tax cuts for every taxpayer or cheaper medicines, the energy bill relief that they've opposed. They've opposed every measure that we've put forward. And with some measures like free TAFE. They've said that they're worthless. Well, 600,000 Australians who've benefited from free TAFE certainly think that it's very worthwhile.
FANINNG: I just wonder whether or not - we will open the phone lines later on 612 ABC Brisbane and I know what, I suspect I know what people will say - they will say an interest rate cut, reducing inflation doesn't mean that prices won't keep rising. Prices will keep rising in the grocery store and they're going to have to cop that on insurance premiums and they're going to have to cop that for health costs, and they're going to have to cop that. What is your answer to people who say 'I'm not better off under Anthony Albanese than I was three years ago'? I'm worse off.
PRIME MINISTER: If Peter Dutton had his way, Australians would have been on average $7,200 worse off. If there wasn't that Cheaper Medicines where more than a billion dollars has been saved, if there wasn't the tripling of the bulk billing incentive and free Medicare Urgent Care Clinics, if people hadn't have got a tax cut. What we have is inflation falling, wages rising in real terms four quarters in a row. Tax cuts for every single taxpayer, not just some. Two budget surpluses, two more than were produced by the previous government in their decade in office even though they promised a surplus every single year. They didn't deliver one. And we've worked hard with Australians. We know that it's been difficult. That's why we've taken action. But the Coalition have opposed every single one of those measures. And if they had their way - they only have three policies at the next election, after three years, have announced a $600 billion nuclear plan, free lunches for bosses that everyone has to pay for, and cuts where they've said they'll tell you what they're going to cut after the election and we know that means health and education.
FANINNG: My guest is the Prime Minister, Anthony Albanese. Thank you so much for calling in. PM, Ian Verrender, our chief business correspondent, made the point that a lot of economists and commentators have made, and that is that once you get bashed up by inflation, as Australia has, as countries around the world have, after Covid, it takes you a long time to claw back your standard of living. And he estimated that, yes, wages are rising, but it might take until 2030, that Australians feel like they've got their feet under them again, that they're back in control of their household budgets rather than scrambling and scraping. Do you accept that?
PRIME MINISTER: Well, Mr. Verrender, and other economists have pointed towards that, the impact of COVID and then the following on straight after, not disconnected obviously, global inflation, has had an impact right around the world. But in other comparable countries you've seen double digit inflation. You didn't get to that here. You've seen double digit unemployment as well. Our neighbours just across the ditch in New Zealand in a deep recession and we haven't had that here. The government has been responsible in the way that we've managed the economy. We accept that people are doing it tough. That's why we've worked together with people on achieving the outcome which has seen inflation decrease to almost a third of what it was at 2.4 per cent. And now the Reserve Bank's been in a position to make this decision today to see interest rates falling. And when you've got a situation where inflation is falling, employment remains strong, wages are growing and now interest rates are falling as well as tax cuts being delivered, then those are economic figures that are better than just about anywhere else in the world. We have had the fastest employment growth, faster than any of the G7 countries, the seven largest economies and indeed our average unemployment rate has been lower than any government in the last 50 years. Now that's something that any Labor Prime Minister would be proud of because keeping people in jobs is absolutely central to the standard of living.
FANINNG: Are you going to have a budget and will that budget have further cost of living relief in it, or are you going to take a drive in the car to Yarralumla and talk to the Governor-General and call an election?
PRIME MINISTER: Well, I'll be opening the new ABC facilities in Parramatta in Sydney this evening. That's where I'll be driving to this evening. We're continuing to get on with the business of governing. That's what we've been doing, working each and every day for how we can provide assistance for people.
FANINNG: I think at the same time the audience can hear the crockery rattling right - we've been getting ready for a federal election. It's due by May 17th. Does this make you more inclined to go to the polls sooner rather than later, given that this is some good economic news in what's been a tough time for Australians?
PRIME MINISTER: No, this won't have an impact on the timing of the election. We've been really working hard. We've been working hard and we've been preparing. We prepared a mid year economic forecast in December. We've been working on the budget and the ERC, our Expenditure Review Committee met for, for many, many hours yesterday and again this morning. We'll continue to work and we'll continue to look at ways in which we can provide support for Australians. Just in the last week when Parliament sat, we carried our legislation, the next reform of child care, getting rid of the activity test, providing increased infrastructure investment for new childcare centres to be built, making sure that in appropriations, we continue to provide that support for people. And we'll always look at ways responsibly of providing support, but in a way that continues that downward pressure on inflation.
FANINNG. So, there will be a budget?
PRIME MINISTER: Yeah, we're working on a budget.
FANINNG: Yeah, but that's not what I asked. I asked, will there be a budget?
PRIME MINISTER: Well, there's always a budget, Ellen. There's always a budget.
FANINNG: Will the Treasurer get to his hind legs in the House of Representatives and bring down a budget?
PRIME MINISTER: Well, yes, he will. That's what happens every year.
FANINNG: And it will happen next month.
PRIME MINISTER: Well, that's the plan. We're working hard on all of those processes.
FANINNG: And finally, let me ask you this with respect. What Australians are being asked to believe is that you are, compared to Peter Dutton, a weak leader, that he is a strong man and when the tough decisions need to be made, he's better placed to do that. How do you respond to that?
PRIME MINISTER: Well, he's yet to make a tough decision. He's saying that there'll be cuts in the budget, that if he is Prime Minister, they'll make all these massive cuts. He's speaking about $350 billion of waste, but he won't tell you what they are, tell you what a tough decision is. A tough decision is saying, I'm going to, in the interests of Australians, change the tax cuts that have been legislated so that everyone gets a tax cut, not just some. I'm going to argue the case. I'll go to the National Press Club. This is a guy who thinks a tough interview is speaking to Peta Credlin for an hour and a half.
FANINNG: You sound like you're confident of winning. Do you think you're kicking with the wind?
PRIME MINISTER: I'm certainly not getting ahead of myself. Unlike - I noticed Peter Dutton seems to be measuring up the curtains. You've got to do the hard work. He hasn't done the hard work. They don't have policies across the board. They have those three policies they've put forward. They're treating Australians in an arrogant way. And, you know, I think during an election campaign, Australians will want to know exactly what their plan is. How do they pay for these nuclear reactors at a cost of $600 billion. What happens to energy security in the meantime? Coal fired power stations, when they reach the end of their life, you can't just extend them forever and there's no plan going forward. We've got a serious plan for renewables backed up by gas and firming through batteries, making sure that we have that energy security, but making sure as well that that we take advantage of the transition to grow the economy and grow jobs and have a future made in Australia.
FANINNG: Will we see a lot of you in Queensland in the coming weeks.
PRIME MINISTER: You sure will. Well, you have - as Prime Minister, I have been to Queensland very regularly, including this year, spending substantial time not just in Brisbane, but in Rocky and Gympie and Cairns and Townsville. And you'll continue to see - Mount Isa - you'll continue to see more of me in coming weeks and months.
