E&OE TRANSCRIPT
PRESS CONFERENCE
BRISBANE
TUESDAY, 4 JUNE 2019
 
SUBJECTS: RBA interest rates cut; Liberals’ economic mismanagement; ANU data hack; AFP search; Liberals soft on banks; Budget
 
JIM CHALMERS, SHADOW TREASURER: If the Liberals were doing such a good job managing the economy, the Reserve Bank wouldn't have needed to cut rates today to try and get the economy moving again. The RBA's not cutting rates today because the economy's strong, they’re cutting rates today because the economy is weak and the Government has absolutely no plan to do anything about it. After six years of this Government, they have nobody else to blame for slowing growth and rising unemployment and stagnant wages and weak consumption and all of the other problems which are bedevilling our domestic economy. If you look at the statement that the Reserve Bank made today, they key point is this: said “the main domestic uncertainty continues to be the outlook for household consumption, which is being affected by a protracted period of low income growth”. The Reserve Bank is pointing to the wages crisis that we have in our economy as a key reason for having to cut interest rates today for the first time in some time.
 
If only this Government spent less time bagging Labor or pointing the finger at others, and more time focused on the substantial weaknesses in the economy, then it wouldn't be floundering as badly as it is today. Interest rates are now less than half what they were during the depths of the Global Financial Crisis, and the Government has no plan to turn things around. The Reserve Bank had to do their bit today because the Government has vacated the field on economic growth.
 
This is further proof that the Government is failing to manage the Australian economy in the interests of middle Australia. This is all about a floundering economy and a failing Government. We’ll see more evidence of that in the National Accounts when they are released tomorrow morning. Over to you.
 
JOURNALIST: Three per cent was regarded as emergency levels by Wayne Swan. What does 1.25 per cent mean then?
 
CHALMERS: Interest rates were three per cent - the cash rate was three per cent - during the depths of the Global Financial Crisis, and now less than half of that at 1.25 per cent; a record low for interest rates in this country. If this doesn't ring the alarm bells for an arrogant and out of touch Government, I don't know what will. The message that this sends to the Government today is that it's not good enough to spend all their time bagging Labor and pointing the finger at others and patting themselves on the back for winning an election when we have an economy which is floundering. They were crisis levels at three per cent. They're now 1.25 per cent. And the message that this sends to the Government is, stop stuffing around, stop pointing the finger, stop blaming others, and take responsibility for once and be accountable and responsible for the fact that we have a weak economy on the Liberals' watch.
 
JOURNALIST: Just on the ANU data hack, what does this say if it was a cyber attack and these people can get around some of the well-protected institutions in the country?
 
CHALMERS: This was very concerning news. It appears to be quite a serious hack. No doubt more details will be discovered as the police go about their work, and we'll see what the conclusion of that investigation is. 
 
JOURNALIST: Are you concerned some of your details might have been caught up in the attack?
 
CHALMERS: I don't know if they are or they aren't. I'm a former student of the ANU, some time ago, but more importantly than that - much more importantly - this is a very serious breach. It appears to be an incredibly serious hack. We support the work of the relevant authorities as they attempt to get to the bottom of things.
 
JOURNALIST: And what's been your response to the AFP's raid on the News Corp journalists' home this morning?
 
CHALMERS: I can understand why people are concerned about it. I think, at the end of the day though, it's a matter for the authorities, it's a matter for the police. I don't have all of the details on that particular case. No doubt we'll learn more about that as time goes on.
 
JOURNALIST: It’s been denounced though as an attack on press freedom. What’s your take on that?
 
CHALMERS: I'm happy to wait for more details to see what the story is there. I certainly have seen reports and I've seen comments from people who are very concerned about this development. I think it's important I wait for more information before coming to a concluded view.
 
JOURNALIST: Do you think banks will be passing on these rate cuts to customers?
 
CHALMERS: I think Australians will be absolutely filthy at any bank which doesn't pass on these rate cuts in full. If these rate cuts are to do the good that they're supposed to do in the economy, to boost household consumption, then they need to be passed on. And any bank that doesn't pass on these rate cuts has to answer to their customers. I don't think that the banks take Josh Frydenberg seriously with all of his bluff and bluster. Josh Frydenberg's got a long record of going soft on the banks. And now that the banks will ignore him on passing on interest rate cuts, I think all Australians will conclude that the Liberal Party will always go soft on the banks. Australians have a right to receive the full benefit of these interest rate cuts. They are doing it tough under this Liberal Government. Growth is not exactly thick on the ground in this economy, and so we need to see the benefits properly passed on.
 
JOURNALIST: When we were talking Budget and surplus, there was a bit of confusion in the Morrison Government as to when it will actually be in surplus. Where do you actually think they're at with that at the moment?
 
CHALMERS: The Government is trying to claim that the Budget is already in surplus, and it's not. We won't know if the Budget's in surplus next year until September of next year. The Budget is currently in deficit. That is a fact in their own Budget papers. They tried to pull a swifty on the Australian people and pretend that they have handed down a surplus. That is yet to occur.
 
Thanks very much everyone.
 
ENDS