MARIUS BENSON: Penny Wong, can I ask you firstly about the first short-term economic issue on the table today, which is interest rates, official rates. The decision is coming from the Reserve Bank this afternoon. A cut is expected. I don’t expect you to comment on that. But the banks are saying that they’re not tied to that. Now smaller banks have joined with the big banks in saying that. What do you think about that?
WONG: Well the first thing I’d say is, as you said, obviously the Reserve Bank is independent. But I would note that a family on a $300,000 mortgage is $3000 better off a year than since we came to power. And that’s a good thing for families. Obviously, as I said, interest rates are a matter for the Reserve. In terms of what banks do, I’ve made it clear, it is true that banks are private businesses, and their decisions are a matter for them. But they do operate within the community, and they need to be aware of the views of their customers and the broader community.
BENSON: Do you think the banks can afford to follow a Reserve Bank cut? Do you believe they are in a position to do that? Or do you accept their argument that the changes in the official rates don’t really dictate the cost of money to them?
WONG: There’s a lot of different propositions out there. What I would say is we do know that we have very profitable banks. We also know how important it is to have a strong banking sector. And ultimately the banks have to make their decision. Again, what I’d say is they have to be aware of when they’re doing that, of the views of their customers, and the views of the broader Australian community.
BENSON: Back on the Government’s handling of the economy, the Prime Minister has recently stepped up the degree of guarantee on a surplus. She says a surplus will be delivered over the next financial year. That is no longer an aspiration, it’s a guarantee?
WONG: The Prime Minister has made it clear that, given the economic outlook for Australia which is an economy that’s continuing to grow, that returning to surplus is the right economic strategy and that’s why we intend to keep doing so. But I would say this – the Prime Minister’s commitment to economic discipline in the interests of all Australians stands in stark contrast to the complete disarray on the other side of politics. Last night we saw my counterpart, Andrew Robb, walk away from a commitment to a surplus in a first term of a Liberal government. So, for all the tough talk earlier on last year, we now know that the person who wants my job is saying that the Coalition could not indicate that they’ll get to surplus, even in the first term of a Liberal government. This is just yet more economic irresponsibility from the Coalition.
BENSON: The Prime Minister yesterday was stressing that economic issues should be the subject of debate in Parliament, and she was asked some questions about Labor party leadership, and she dismissed those as simply ‘fevered speculation’. There’s been confirmation since, from literally independent sources – both Rob Oakeshott and Tony Windsor say they were sounded out by the Rudd forces over the last year about a possible leadership change. So it’s not just a media beat-up.
WONG: Look, I’ve made it clear I don’t intend to get involved in the commentary on commentary on speculation that seems to be all the rage at the moment –
BENSON: But that was a direct confirmation from people who don’t have any anti-Labor cause to push.
WONG: As I recall, Mr Oakeshott made it clear he hadn’t had any recent conversations. But you know what I think is important as the Minister for Finance, is to continue to do what we need to do to govern the country, to ensure that we support jobs and growth, because that’s how you ensure the interests of working Australians are best promoted.
BENSON: And how concerned is the Government by the expectation that the Opposition will be pressing its criticism of Craig Thomson, the Labor MP in the Lower House who is subject to an inquiry into the alleged misuse of credit cards. How awkward is that for the Government, and how concerned are you at the prospect of a possible no-confidence motion on that?
WONG: Tony Abbot is only interested in throwing mud. What he perhaps should be more interested in is that his Finance spokesperson has walked away from committing to a surplus. And the costings released when it comes to the centre on Nauru, which is part of his policy, are reportedly having been done by a catering company. These are not the actions of a man who is serious when it comes to the economy and jobs for Australians.
BENSON: Penny Wong, thank you very much.
WONG: Good to speak with you.
ENDS
