Latest / Inside Politics / Best of 2024: What does Australia's shift on Palestinian statehood mean?
Transcript
- 0:02S1: Hi there. I'm Jacqueline Maley, the host of Inside Politics,
- 0:06S1: The Age and the Sydney Morning Herald's weekly politics podcast.
- 0:09S1: We're bringing you the best episodes of 2024 before we
- 0:12S1: return in early February for the election year. In this episode,
- 0:18S1: which aired in April, we take you to the moment
- 0:20S1: Foreign Affairs Minister Penny Wong signalled the start of a
- 0:23S1: shift of Australia's position on the question of Palestinian statehood
- 0:27S1: in the wake of the Israel-hamas War. Since then, Australia
- 0:31S1: has changed its stance, voting for the first time in
- 0:34S1: more than 20 years for a United Nations resolution that
- 0:37S1: demanded Israel end its presence in the occupied Palestinian territories.
- 0:42S1: We're releasing this episode, which features foreign affairs correspondent Matthew
- 0:47S1: Nott and chief political correspondent David Crowe, on January 3rd.
- 0:56S1: Welcome to the podcast, Matt and David.
- 0:59S2: Hi, Jackie.
- 1:00S3: Good day. Jackie.
- 1:01S1: So first of all, Matt, for those of us who
- 1:03S1: weren't paying close attention this week, can you just brief
- 1:05S1: us on what the foreign minister said in her speech?
- 1:08S2: Yeah, so I was here at this event, which was
- 1:11S2: at the Australian National University, which has been having a
- 1:14S2: big national security conference in Canberra with lots of experts
- 1:19S2: from around the world talking about big strategic issues. And
- 1:22S2: Penny Wong was giving the key speech on Tuesday night.
- 1:26S4: Well, we're coming to the end of our second year
- 1:28S4: in government, and tonight I want to take account of
- 1:30S4: these first two years where we started and where we
- 1:34S4: are now. But mostly, I'd like to give you my perspective.
- 1:38S2: Now, we would have expected, given all the things going
- 1:40S2: on in the world that she would mention, perhaps touch
- 1:43S2: on the war in Gaza. But the key component of
- 1:47S2: her speech, the thing she spent most of her time
- 1:49S2: talking about, was this question of a two state solution,
- 1:53S2: and in particular, recognition of Palestinian statehood.
- 1:58S4: We need to build the pathway to a peace that
- 2:00S4: is enduring. And just because the simple truth is that
- 2:05S4: a secure and prosperous future for both Israelis and Palestinians
- 2:09S4: will only come with a two state solution recognition of
- 2:14S4: each other's right to exist.
- 2:18S2: Now, this in Australia hasn't been a big part of
- 2:21S2: the debate since the war broke out, but she really
- 2:24S2: put this up in lights in her speech by saying
- 2:28S2: that a two state solution is the only way to
- 2:31S2: end the cycle of violence here, and specifically saying that
- 2:35S2: the international community is considering the question of Palestinian statehood
- 2:39S2: as a way to build momentum towards that two state solution.
- 2:43S2: She didn't commit the government to doing anything on this,
- 2:48S2: but she very notably put this up as something she
- 2:52S2: wanted people to be talking about.
- 2:53S1: Now, David, talk us through whether or not this is
- 2:55S1: actually a significant shift in Australia's Australia support or Australia's
- 2:59S1: stance on Palestine because for people who are not, again,
- 3:02S1: following this really closely, Palestinian statehood is recognised by some countries,
- 3:07S1: but Australia is not one of those countries. We sort
- 3:10S1: of say that there should be a two state solution,
- 3:13S1: but at the moment we don't recognise Palestine as a state.
- 3:16S1: Is that right? So is this a shift?
- 3:17S3: I don't think it's a significant shift, or at least
- 3:20S3: not a shift just yet. It was a speech to
- 3:25S3: provoke a debate and to start a discussion. The Australian
- 3:28S3: position is that Australia supports a two state solution, which
- 3:33S3: means statehood for Palestine in a settlement with Israel at
- 3:37S3: some point in the future. And now this is an
- 3:40S3: outcome that's eluded all sides for three decades. And there's
- 3:45S3: a lot of blame to go around about why that's happened.
- 3:47S3: But that's the fact. And really, what Penny Wong was
- 3:50S3: doing was making a couple of arguments about why you
- 3:54S3: might recognise Palestinian statehood. If it was getting you to
- 4:00S3: the outcome of a peaceful resolution and a two state solution.
- 4:04S4: Now there are those who always claim recognition is rewarding
- 4:08S4: an enemy. This is wrong. First, because Israel's own security
- 4:13S4: depends on a two state solution. But of course.
- 4:17S3: She put a lot of caveats on what she was.
- 4:19S4: Saying, because there is no role for Hamas in a
- 4:22S4: future Palestinian state. Hamas is a terrorist organization which has
- 4:27S4: the explicit intent of the destruction of the state of
- 4:31S4: Israel and the Jewish people. And we should acknowledge Hamas
- 4:37S4: rains terror also on the Palestinian people in Gaza. It
- 4:41S4: has long been understood that any future Palestinian state cannot
- 4:46S4: be in a position to threaten Israel's security and will
- 4:48S4: need a reformed Palestinian Authority, recognizing she started.
- 4:53S3: The debate without necessarily having a specific solution, and certainly
- 4:59S3: nothing like a specific policy decision that she was outlining,
- 5:03S3: because there is no such policy decision at federal cabinet
- 5:06S3: level to change the Australian position.
- 5:09S2: Also, this issue has been building for a long time.
- 5:12S2: We're focused on the war in Gaza right now, but
- 5:14S2: this has been playing out within inside the Labor Party
- 5:18S2: for many years, decades even, really. And there has been
- 5:22S2: a shift on this. Penny Wong has been an active
- 5:25S2: player in this. The prime minister, Anthony Albanese, has been
- 5:28S2: a very active player on this in terms of shifting
- 5:31S2: Labor's position. The Labor Party policy platform says that they
- 5:35S2: support recognition of a Palestinian state, and that this should
- 5:39S2: be an important priority for a labor government. Labor is
- 5:43S2: now in government. So it has been a question since
- 5:45S2: they got in, would they enact the party platform? They've
- 5:49S2: certainly been in no rush to do it. It's a
- 5:51S2: tricky thing to pull off in practice, But for those
- 5:56S2: in the labor movement and the Labor Party, there's a
- 5:58S2: lot of history to this. Yep.
- 6:00S1: And as we know, Wong and Albanese are both of
- 6:03S1: the labor left, as you just alluded to, which tends
- 6:05S1: to be very pro-Palestine. So there might be a bit
- 6:07S1: of internal pressure, which is certainly what the opposition is saying,
- 6:10S1: which we'll come to later. But Matt, can you just
- 6:13S1: sort of speculate, perhaps on why Wong would do this now,
- 6:17S1: apart from the reasons you've just presented about a growing pressure?
- 6:21S1: I mean, there's stuff happening at the UN level, isn't there?
- 6:23S2: Yes. And this was a curious factor for me. Having
- 6:27S2: followed this and written about this was exactly why now?
- 6:31S2: Because I don't think Penny Wong was just doing this
- 6:34S2: for no reason, or because she had a speech to give.
- 6:36S2: She could have spoken about many things in her speech.
- 6:38S2: She very deliberately chose to speak about this. So this
- 6:42S2: is coming up at the UN. As Penny Wong said,
- 6:45S2: political leaders around the world are speaking about this exact
- 6:49S2: question of recognition of Palestine. Palestine has had a long
- 6:54S2: standing request to become a member state at the United Nations.
- 6:58S2: That is going to come up before the UN Security
- 7:01S2: Council this month. Australia is not a member of that council,
- 7:07S2: but then the expectation is that this issue will at
- 7:10S2: some point a bit down the track, come up for
- 7:12S2: a vote in the United Nations General Assembly, and Australia
- 7:16S2: would have to stake a position on it. We could
- 7:19S2: always abstain. But people are that I speak to in
- 7:22S2: this space are saying, keep an eye on that United
- 7:26S2: Nations timeline, because that would be the time we would
- 7:28S2: really have to declare our view on this. Yeah.
- 7:31S3: Penny Wong's speech was in the context of comments from
- 7:35S3: other countries in the same space. David Cameron, Foreign secretary
- 7:39S3: of the United Kingdom, was talking in February about statehood
- 7:43S3: for Palestine without putting the proviso that a two state
- 7:47S3: solution had to come first. So Penny Wong is totally
- 7:50S3: in line with what David Cameron, a conservative peer in
- 7:53S3: the House of Lords was saying. And so I think
- 7:56S3: that's that's important. Whether this actually affects anything is another matter.
- 8:02S3: As somebody who's a close observer of this pointed out
- 8:04S3: to me when I was writing on it, 138 countries
- 8:07S3: recognize Palestine. Has that made Palestine a state? I mean,
- 8:12S3: recognizing statehood for Palestine can work in theory. And there's
- 8:16S3: an argument that some of this is a superficial debate,
- 8:19S3: because you've got a war in Gaza at the moment,
- 8:21S3: and that should be the priority. Mhm.
- 8:23S1: Matt, I just want you to tell us about the
- 8:25S1: reaction to this statement, because the opposition leader in particular
- 8:27S1: was very critical wasn't he.
- 8:29S2: Yes. Peter Dutton has been incredibly critical of this reality.
- 8:33S5: Makes the Foreign Minister's remarks last night utterly illogical, ill
- 8:36S5: timed and indeed inappropriate. It is the most reckless act
- 8:40S5: of a foreign minister I've seen in my 22 years
- 8:43S5: in the parliament.
- 8:44S2: He thinks the government isn't doing enough to tackle the
- 8:48S2: problem with anti-Semitism. There very strong comments, particularly as David says,
- 8:53S2: Penny Wong's comments are not that out of line with
- 8:56S2: even what we're hearing out of America. I just wanted
- 8:59S2: to add to what David was saying there in terms
- 9:01S2: of a bit of a reality check. The Prime Minister
- 9:04S2: was out saying that the whole world supports a two
- 9:09S2: state solution.
- 9:10S6: We have said very clearly that we want a two
- 9:14S6: state solution, and we've said very clearly as well, we're
- 9:18S6: working with like minded partners as well to say that
- 9:23S6: Hamas has no role in a future Palestinian state.
- 9:28S2: And in theory, pretty much everyone in the world does,
- 9:31S2: except right now, it seems the Israelis and the Palestinians,
- 9:34S2: who are the people who matter most here and would
- 9:36S2: have to live with these two states. Polling makes this
- 9:40S2: very clear. It's very clear when I was on the
- 9:43S2: ground there that there's incredibly little goodwill between these two sides.
- 9:48S2: The leadership of the groups, Benjamin Netanyahu has in practice
- 9:54S2: opposed a two state solution throughout his career and maneuvered
- 9:57S2: to make sure it doesn't happen. Hamas has basically committed
- 10:01S2: to the destruction of Israel, and the Palestinian Authority is very,
- 10:06S2: very weak and hasn't seriously engaged with peace negotiations in
- 10:11S2: several decades. People say the conditions on the ground aren't
- 10:15S2: there for anything to happen. It doesn't really matter what
- 10:18S2: David Cameron or Penny Wong or even Joe Biden think
- 10:21S2: about this. If Israelis and Palestinians can't get on the
- 10:25S2: same page.
- 10:26S1: So that's the international sort of audience for Penny Wong's remarks.
- 10:29S1: I just want to talk really quickly about the sort
- 10:31S1: of more internal audience, if you like. So what what
- 10:35S1: what is the Labor Party doing in terms of its internals? So,
- 10:39S1: you know, it's obviously giving a nod to some of
- 10:41S1: the branch members who are particularly pro-Palestine. And there's also
- 10:45S1: sort of the worry, perhaps, of Muslim constituents in some
- 10:48S1: of the South west Sydney electorates which Labour holds. David,
- 10:53S1: do you want to talk to that?
- 10:54S3: I think it's a real concern within labor, in the
- 10:58S3: sense that they've got communities that are in their electorates
- 11:01S3: and they listen to those communities. They listen to communities
- 11:04S3: who say, look, how can you stand silent while this
- 11:08S3: death and destruction is being visited upon Palestinian people in Gaza?
- 11:12S3: And as the conflict has gone on, those calls have
- 11:16S3: got louder. And Labour can't ignore that. And it doesn't
- 11:20S3: ignore that. I mean, but I think Penny Wong wasn't
- 11:22S3: necessarily coming to this debate with her speech this week
- 11:25S3: from a position of great strength. I mean, there's still
- 11:28S3: criticism of her for, for instance, suspending, um, aid funding
- 11:33S3: for the UN organisation in Gaza because of the accusations
- 11:37S3: that it's some of its members were complicit in the
- 11:40S3: Hamas killings. Then the government said, well, we'll decide our
- 11:45S3: policy once we get the full report on what happened
- 11:48S3: there and then before waiting for the full report, they
- 11:51S3: resumed funding. So there wasn't a total consistency there in
- 11:55S3: what the government was doing and people noticed that. So
- 11:59S3: there's still this frustration within the Labour ranks about how
- 12:02S3: this is being managed. And that, I think, helps explain
- 12:06S3: why Penny Wong was sending this message.
- 12:08S2: Domestic politics does come into foreign policy, but it was
- 12:12S2: noticeable in Penny Wong's speech, given to a very, I'd say,
- 12:16S2: quite elite audience of, you know, foreign policy, national security thinkers.
- 12:21S2: I'm not counting myself. I'm just a humble reporter. But
- 12:24S2: that she did speak about the politics of this. She
- 12:26S2: spoke about the Greens, and she said she thinks the
- 12:29S2: Greens rhetoric on this has been really inflammatory. And they're
- 12:32S2: adding to the tensions in the community, not making it better.
- 12:36S2: She criticised the coalition as well and said they're not
- 12:40S2: playing a productive role here. So she mentioned the two
- 12:43S2: opposing parties and showed that she was trying to position
- 12:46S2: Labour as being in the centre as the sensible force
- 12:49S2: within these two extremes.
- 12:52S1: So it was a very political speech in that sense.
- 12:54S1: I mean, most people, I would say most Australians are
- 12:57S1: somewhere in the middle on this and have probably quite
- 13:00S1: a moderate line on it. And Wong is trying to
- 13:03S1: present herself and the Labor Party as that.
- 13:06S3: There is something that we can only sort of monitor
- 13:09S3: over time, how the killing of the Australian aid worker
- 13:13S3: in Gaza has shifted debate that has been described to
- 13:17S3: me by some labor people as a turning point. And
- 13:21S3: you can clearly see much greater frustration from Anthony Albanese
- 13:25S3: and Penny Wong towards Israel as a result of that death.
- 13:28S3: How does that play out in the public debate as well?
- 13:31S1: Yeah, we're going to keep a watching brief on this. So, Nadia,
- 13:34S1: will you come back and talk to us again?
- 13:35S2: Of course, of course.
- 13:36S1: Thank you for joining us and we'll see you again soon.
- 13:38S2: No worries at all.
- 13:50S7: Hi. Morning edition listeners, if you're looking for a series
- 13:54S7: to binge over the break, I want to recommend Trial
- 13:56S7: by Water. It's a podcast by some of my colleagues
- 13:59S7: at The Age and the Sydney Morning Herald. It's about
- 14:01S7: a man, Robert Farquharson, who was convicted of murdering his
- 14:05S7: three sons by driving them into a dam, and about
- 14:07S7: the people who are now questioning that conviction. Trial by
- 14:11S7: Water is a compelling and informative podcast series that will
- 14:14S7: make you question the way our justice system operates, so
- 14:18S7: please take a listen and recommend it to your friends. Thanks.
- 14:28S1: And now we welcome Shane Wright, who has just sauntered
- 14:31S1: into the Canberra studio to talk to us about Prime
- 14:35S1: Minister Anthony Albanese, who has just unveiled a big agenda
- 14:38S1: to get more stuff made in Australia. So he's given
- 14:41S1: a speech on Thursday to this effect. Hasn't he, Shane?
- 14:44S8: Yeah. This is interesting because you can see now, the
- 14:47S8: way that the government is aligning, as David Crowe alludes to,
- 14:52S8: often they're aligning the stars for the election next year.
- 14:56S6: Only government can draw together the threads from across the
- 14:59S6: economy and around our nation to anchor this reform and
- 15:04S6: secure this growth. Today I announce that this year our
- 15:08S6: government will create the Future Made in Australia Act. But
- 15:13S6: this is.
- 15:13S8: Really about May 14th, when Jim Chalmers will get up
- 15:17S8: and deliver his third budget.
- 15:19S6: In next month's budget and beyond. We'll be building on
- 15:23S6: that foundation in this time of transformative opportunity. Our government
- 15:28S6: will not be an observer or a spectator. We will
- 15:32S6: be a participant, a partner, an investor, an enabler. We
- 15:37S6: will be.
- 15:37S8: So you can see the policy. Breadcrumbs. This is more
- 15:40S8: like a loaf that have been strewn out and giving
- 15:44S8: us an insight into what this government really thinks and
- 15:47S8: their policy agenda.
- 15:48S1: Okay. So David, tell us about this new future Made
- 15:51S1: in Australia plan. It's about government serious government investment in
- 15:55S1: manufacturing things locally. But why would we do that when
- 15:58S1: other countries can do it more cheaply?
- 16:00S3: Because the central assumption from Anthony Albanese and the people
- 16:04S3: around him in federal cabinet is that we can actually
- 16:06S3: make things here in an economic way and we can
- 16:10S3: make it pay. Now, I reckon that is hugely contested,
- 16:13S3: but it is their fundamental argument here with this policy.
- 16:17S3: We don't know the full cost, but expect tax breaks,
- 16:21S3: expect grants, expect loans backed by federal taxpayers to big
- 16:26S3: projects that make things. And we're talking about developing critical minerals,
- 16:32S3: turning Australian raw materials into batteries that we can make
- 16:35S3: in Australia, making solar panels in Australia. Now, one background
- 16:42S3: fact here is the government's been concerned for a while
- 16:46S3: that we buy millions of solar cells. 99% of them
- 16:51S3: are made overseas. Most of them are made in China.
- 16:55S3: There's one country in the world economy that basically controls
- 16:58S3: the supply of this, and so it becomes a matter
- 17:00S3: of economic sovereignty and national security. Mhm. That becomes an
- 17:04S3: argument for using state power to make sure we can
- 17:08S3: make that as well. But I'm not sure that it's
- 17:10S3: going to be economically viable. But that's the intention.
- 17:13S1: So there's the economics of it versus the national security angle.
- 17:17S1: Because I suppose there is always the risk that China
- 17:21S1: will turn off the tap for these really essential materials
- 17:23S1: like solar panels. Shane, the Prime Minister, sort of put
- 17:26S1: it in different language. He said that it's not about
- 17:28S1: old fashioned protectionism or isolationism, but this kind of way
- 17:31S1: of doing business is the new competition.
- 17:34S6: We need this change in thinking and approach, because the
- 17:38S6: global economic circumstances are changing in ways far more profound
- 17:43S6: than the consequences of the pandemic or conflict alone. This
- 17:48S6: decade marks a fundamental shift in the way nations are
- 17:52S6: structuring their economies. What do you think?
- 17:56S8: Oh, it's more new, new protection rather than old fashioned.
- 18:00S8: But it is interesting. We've we've seen and we've lived
- 18:05S8: through this in terms of what happened through the pandemic,
- 18:08S8: and we've lived through it with Russia's invasion of Ukraine.
- 18:12S8: What how the the global supply chain has become now
- 18:18S8: victim to the fact that the politics of the world
- 18:22S8: are changing when you've got a China, when you've got India,
- 18:26S8: which is effectively defying the UN sanctions on Russian oil
- 18:31S8: and is doing things like that, and you've got Russia,
- 18:34S8: you've got these big threats and changes to the the
- 18:39S8: Western liberal economic construct of the past 30 to 40 years,
- 18:44S8: when we've seen this huge expanse in economic global chains
- 18:50S8: and real liberalism in terms of trade, in terms of
- 18:55S8: the movement of people, the movement of cash. It's unraveling.
- 18:58S8: And the pandemic has really highlighted this. And Crowe is
- 19:01S8: right in this way. The government has made this decision
- 19:04S8: we have to follow, because the United States is sucking
- 19:09S8: the air and money out of the world as part
- 19:12S8: of its its Inflation Reduction Act and its Chips act.
- 19:15S8: The Europeans are going down the same path because they've
- 19:19S8: been hit by the problems about in terms of linkages
- 19:23S8: to Russia with their gas supply. Yeah, they are living
- 19:26S8: the problems that these things create, and the intersection of
- 19:31S8: politics and economics is right in front of us. As
- 19:35S8: Albanese gets up to speak.
- 19:36S1: Yeah. So it's about it's about sort of self-reliance, I
- 19:39S1: suppose you could say. Or the Prime Minister might say
- 19:41S1: it's about self-reliance. Just talk us through quickly the stuff
- 19:46S1: that the Inflation Reduction Act in the US, which you
- 19:48S1: just mentioned, Shane, what is that? And Anthony Albanese did
- 19:52S1: specifically mention that vast amount of money that Biden has
- 19:55S1: pumped into the US economy in his speech on Thursday,
- 19:58S1: didn't he? Yeah.
- 20:00S8: So he talked about the IRA and the Chips act,
- 20:03S8: which are two separate acts. The IRA, which really is
- 20:08S8: effectively trying to build solar, wind EVs and get. And
- 20:15S8: effectively decarbonising the American economy. Now, it has been spectacularly
- 20:20S8: successful in terms of what it's set out to do.
- 20:22S8: The cost of it is on. It was set out
- 20:25S8: at about 390 billion USD when they first announced it.
- 20:29S8: It's probably on track for 800 billion because it's uncapped.
- 20:33S8: But for instance, in the final, the third quarter of
- 20:38S8: last year, $64 billion was invested by American companies into
- 20:44S8: clean energy and transportation. A 42% increase over the same
- 20:48S8: quarter of the previous year. There is a reason US
- 20:52S8: unemployment is as low as it is and why wages
- 20:55S8: are growing. This act has supercharged the American economy and
- 20:59S8: Biden is unapologetic about that. The Chips act, which is
- 21:04S8: all about getting semiconductors, being, manufacturing, being brought back into
- 21:08S8: the US, the Nvidia company, which has gone hell and
- 21:12S8: high water into the manufacturing of AI semiconductors. It's it's
- 21:19S8: now valued more as a company than the entire Australian economy. Yeah,
- 21:24S8: because there is so much activity going on. So you
- 21:27S8: can see that's the economics there's which intersects with the environment,
- 21:31S8: which then intersects with the we can't rely on China.
- 21:35S8: And Australia is the most exposed developed country in the
- 21:39S8: world because we sell so much red earth and LNG
- 21:44S8: to China. And we are you can see that the
- 21:48S8: geopolitical risk that Australia is exposed to because of our
- 21:51S8: financial dependence on China. Yeah.
- 21:53S1: So, David, it's worked really well in the US. And
- 21:56S1: obviously the Albanese government would like to get a bit
- 21:58S1: of that action happening here. But is it actually viable
- 22:03S1: that we would compete with the US on that scale?
- 22:05S1: We don't have as much money. How much money will
- 22:07S1: the Albanese government pour into this initiative.
- 22:10S3: To be determined? But explicitly, Albanese says we won't go
- 22:14S3: dollar for dollar against the Inflation Reduction Act in the
- 22:16S3: United States. The way I see it is that Albanese
- 22:20S3: is telling voters what he wants to do. The invoice
- 22:24S3: is going to come later. We don't know how many
- 22:28S3: measures will be revealed in full in the budget, but
- 22:31S3: what we do know is that the remarks this week
- 22:34S3: are the start of a process to unveil different things
- 22:37S3: between now and May 14th. What concerns me, I think,
- 22:41S3: is the oversight is yet to be revealed. How many
- 22:44S3: checks and balances are there on who's going to get
- 22:46S3: this money and the terms that they that they get
- 22:49S3: it on. Because, you know, there's a lot of scope
- 22:52S3: for things to go wrong when taxpayer money is thrown
- 22:55S3: around like this.
- 22:56S1: So it's a vision, but it's at the moment it's
- 22:58S1: still quite a blurry vision. So Shane, this is all
- 23:01S1: part of the government's broader economic agenda, which Treasurer Jim
- 23:04S1: Chalmers also weighed in on this week with a with
- 23:06S1: a speech about hardening up competition across the economy. Can
- 23:10S1: you tell us a little bit about that just quickly.
- 23:12S8: Yeah, this has been one of the more interesting and
- 23:15S8: sleeper issues, because the idea of the the whole concept
- 23:19S8: of competition as an economic driver has been disappearing for, well,
- 23:23S8: since the GFC. Really? Uh, this government. Chalmers, he's got
- 23:28S8: a competition minister in Andrew Lee, very active in, in
- 23:30S8: this space because there's so much more evidence showing that
- 23:34S8: countries with less competition, with higher market concentration aka Australia,
- 23:39S8: with everything from retail to to airlines to banks. It's
- 23:44S8: holding back productivity growth and that's one of the great issues.
- 23:48S8: So you've actually seen this week Chalmers outline in terms
- 23:53S8: of mergers and acquisitions, which is this is a law
- 23:56S8: really the laws in this space have not changed for
- 23:58S8: 50 years. The SEC had been looking for a lot
- 24:01S8: of new powers to actually say, we're allowing too many
- 24:04S8: businesses to merge, and that's dampening competition, that's hitting wages,
- 24:10S8: that's hurting productivity. So they've outlined what they're going to do.
- 24:14S8: As you'd expect, those sectors are there where companies want
- 24:18S8: to merge and reduce competition, aren't so keen on it.
- 24:22S1: They're very cross about it, aren't they?
- 24:23S8: It's intriguing to see how this will play out, because
- 24:27S8: it's not just mergers and how they're vetted. It's non-compete
- 24:33S8: clauses facing employees. Like we've got a situation where a
- 24:38S8: burger flipper can't go to a different franchise, or because
- 24:42S8: they've effectively carved up and prevented competition. So they've got
- 24:46S8: a competition review over the next two years. This is
- 24:49S8: going to continue rolling out and cause some tension. That's
- 24:53S8: probably been missing in the economic and political debate for
- 24:56S8: some time. Mhm.
- 24:57S1: Thank you very much, gentlemen.
- 24:59S3: Cheers, Jackie. Cheers.
- 25:00S1: Today's episode of Inside Politics was produced by Kai Wong
- 25:04S1: and Rachel Clun, with technical assistance by Debbie Harrington. Our
- 25:08S1: executive producer is Ruby Schwartz. Inside politics is a production
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- 25:25S1: I'm Jacqueline Maley, this is inside politics. Thanks for listening.