Latest / Inside Politics / Is there beef between Chalmers and Albanese? And, we talk Palestine, and productivity mixed-messages
Transcript
- 0:00S1: From the newsrooms of the Sydney Morning Herald and The Age.
- 0:03S1: This is inside politics. I'm Jacqueline Maley, it's Friday, August 15th.
- 0:09S1: This week, the Albanese government announced it would recognise Palestine
- 0:13S1: as a state. A huge foreign policy shift that was
- 0:16S1: greeted with approval by many and criticism by many others. Plus,
- 0:21S1: we got decidedly mixed messages about next week's Productivity Roundtable.
- 0:27S1: Joining me to discuss, we have our chief political correspondent,
- 0:29S1: Paul Sacher. Welcome, Paul.
- 0:31S2: Hi, jacki.
- 0:37S1: So what exactly happened inside the Albanese cabinet in the
- 0:40S1: lead up to this decision to recognise Palestinian statehood? Because
- 0:44S1: just a few weeks ago, like even two weeks ago,
- 0:47S1: I think the PM was saying that the recognition was
- 0:50S1: not imminent. And yet, here we are. Has he got
- 0:53S1: a different definition of imminence to us?
- 0:56S2: Politicians always have tricky language around what decisions have been
- 1:01S2: made yet. What is not imminent? What they have plans
- 1:05S2: to do or don't have plans to do? But I
- 1:07S2: think this was this was a case that was less
- 1:09S2: about him using tricky language and more about just a
- 1:13S2: rapidly shifting global dynamic on this issue. You said a
- 1:17S2: couple of weeks or a few weeks there in your intro.
- 1:19S2: I think it was actually 11 days between the Prime
- 1:22S2: Minister going on insiders on a Sunday and his call
- 1:27S2: with the Israeli Prime Minister, Benjamin Netanyahu, where he effectively
- 1:31S2: in a it was last Thursday night at about 7:00,
- 1:33S2: they had about approximately 40 minute call, which was quite long.
- 1:37S2: And Albanese flagged his intent to the Israeli prime minister
- 1:41S2: and said they were moving towards recognition sooner rather than later.
- 1:45S2: They ended up making that call publicly on the Monday
- 1:48S2: after the Thursday. So two weeks and one day after
- 1:52S2: his insiders appearance. And on that insiders appearance, which was
- 1:55S2: the same day as the French president, Emmanuel Macron announced
- 1:59S2: that he would try and lead the Western world into
- 2:02S2: this pro-Palestinian push. Our Prime Minister said that there were
- 2:07S2: very strict red lines that he had around recognition. Any
- 2:10S2: role for Hamas would not be contemplated, and he would
- 2:13S2: not do anything that was symbolic or token or what
- 2:17S2: would be perceived as a gesture. But that all moved
- 2:18S2: very quickly.
- 2:19S1: Yeah, okay. I mean, some of his critics are saying, oh,
- 2:22S1: it's all for reasons of domestic politics, which seems like
- 2:25S1: a strange criticism to me because of course, the Prime
- 2:27S1: Minister is going to be interested in domestic politics. That's
- 2:30S1: kind of his job. But was that the primary, in
- 2:33S1: your understanding? Was that the primary motivator, or was it
- 2:36S1: international forces like your Emmanuel Macron's who are basically saying,
- 2:40S1: come and join this coalition and we'll try to end
- 2:42S1: this conflict this way?
- 2:44S2: I think the international politics was what triggered the very
- 2:50S2: hasty move into a public recognition of a Palestinian state.
- 2:55S2: Over the last two weeks, you had France, you had Canada,
- 2:58S2: you had the UK all nearly back to back. They
- 3:01S2: are the countries with whom we've moved in lockstep on
- 3:04S2: our positioning on Palestine. And the view inside the government
- 3:08S2: is that we're a middle power. We have very little
- 3:11S2: role in Middle East politics, but we're also a respected voice.
- 3:14S2: We're a respected voice in the Israeli political community. We're
- 3:17S2: a respected voice in South East Asia, where there are
- 3:20S2: some very large Muslim countries that have Muslim majority countries
- 3:24S2: that have close, very strong feelings about the Palestinian question.
- 3:28S2: And we're a respected voice in in international affairs. We
- 3:32S2: often punch above our weight in diplomatic forums fora. So
- 3:36S2: the cover that was provided by those nations moving quickly
- 3:39S2: on recognition, meant that Albanese and his cabinet were able
- 3:44S2: to fulfill the commitment that they had made in previous
- 3:49S2: policy platforms of the Labor Party. And those commitments to
- 3:52S2: recognise the Palestinian state at some point in the future
- 3:56S2: were driven by domestic politics and in internal labour feeling
- 4:00S2: on the Palestinian question. There's been for about a decade
- 4:04S2: now huge internal grassroots push within labor for them to
- 4:07S2: take a stronger pro-Palestinian stance. And this movement from our
- 4:10S2: like minded nations allowed that to come to life.
- 4:15S1: I suppose the criticism is that it's or the sort
- 4:17S1: of strange thing is that it's not coming in response
- 4:20S1: to any sort of moves in a positive direction from
- 4:22S1: Palestinian authorities or towards any sort of outbreak of democracy
- 4:27S1: or democratic institutions within Gaza and the West Bank. But
- 4:31S1: it's more coming from the need seen by countries like Australia,
- 4:37S1: to put international pressure on Israel to end the conflict
- 4:41S1: or make moves towards ending the conflict.
- 4:43S2: I think that's spot on. Its recognition in previous eras
- 4:48S2: of thinking has not really been conceived of as a
- 4:50S2: diplomatic tool to create change. Yeah, but because of Israel's
- 4:55S2: increasingly unjustifiable war effort that has isolated it so dramatically.
- 5:02S2: The balance is tipped away from them from the Israeli
- 5:04S2: view and Western nations, which have previously been allied to
- 5:07S2: Israel and do still have friendly relations, are so exasperated
- 5:11S2: by what's going on that they have decided to use
- 5:15S2: recognition as a tool to try and create change and,
- 5:18S2: and and potentially dissuade Israel from continuing, but also to
- 5:22S2: persuade some of the Arab nations and the US to
- 5:25S2: get involved and bring an end to this war.
- 5:27S1: What was the sort of political reaction to the decision
- 5:29S1: at home?
- 5:30S2: It was all very stock standard.
- 5:32S3: For this government to take this action offends every fair thinking,
- 5:37S3: decent Australian.
- 5:38S2: The opposition jumped back into its fervently pro-Israel position that
- 5:44S2: characterised a lot of the politics under Peter Dutton.
- 5:47S3: To recognise unilaterally, a Palestinian state does one thing for
- 5:51S3: the terrorists it rewards them and it emboldens them.
- 5:56S2: The sections of the media, particularly News Corp, uh, quickly
- 6:00S2: branded Anthony Albanese, a friend of Hamas, for making this decision.
- 6:04S2: The tabloids in each of the cities and the Courier Mail,
- 6:07S2: The Daily Telegraph, the Herald Sun and the Adi, I
- 6:09S2: think all had very similar looking splashes on whichever day
- 6:13S2: the next day was the Tuesday. All of them mentioning
- 6:16S2: Hamas and how this was a win for them, which
- 6:19S2: is obviously contested. I think what was telling also was
- 6:23S2: to your question, Jackie, about whether this was driven by
- 6:26S2: domestic politics. Labour backbenchers absolutely pumped this news out on
- 6:31S2: their social media feeds. On the Monday and Tuesday, you
- 6:34S2: could see how much it was a pressure release valve
- 6:36S2: for a lot of Labour MPs, particularly those on the left,
- 6:40S2: who had spent months and months getting absolutely hammered by activists,
- 6:45S2: but also increasingly non-activists who are fed up with what
- 6:48S2: they're seeing on their TV screens and who believe that
- 6:50S2: Labour hasn't quite done enough. So it was a pressure
- 6:52S2: release valve for the Labour Party. It was met with
- 6:56S2: a shrug of the shoulders from the hard left pro-Palestinian
- 6:59S2: movement who said this This will do nothing on the
- 7:01S2: ground and who want to see more. What they say
- 7:04S2: is practical sanctions. The government says that it has no
- 7:07S2: real power to sanction Israel anyway. And they would also
- 7:09S2: be symbolic. So pretty expected reactions from across the political spectrum.
- 7:14S1: Yeah, yeah. It's interesting you say that about the backbenchers. And,
- 7:18S1: you know, all these MPs are particularly, as you say,
- 7:20S1: Labour MPs getting a lot of mail on this subject.
- 7:23S1: And Albanese, you know, he's in an electorate that's very
- 7:27S1: heavily sort of you know, the Greens are his main
- 7:30S1: opposition in Grayndler in Sydney's inner west. I mean, it's
- 7:33S1: a huge issue within that electorate. So he'd be filling
- 7:36S1: it at home as well.
- 7:37S2: Totally. And he's had to, uh, he's had to deal
- 7:40S2: with protests outside his electorate office for long periods that
- 7:42S2: had blocked his staff being able to go to work.
- 7:44S2: And just on that question of MPs receiving mail for
- 7:48S2: a long time, there's been this narrative that this is
- 7:50S2: not within the top set of issues in the Australian electorate,
- 7:54S2: and I think that a lot of weight can probably
- 7:56S2: be put in that argument. But I heard an interesting
- 7:57S2: view from Jerome Laxale, who's the member for Bennelong in
- 8:01S2: Sydney's inner inner north. Many of our listeners would know
- 8:04S2: that electorate well. And he said that this has been
- 8:07S2: the number one, two and three issue in his inbox
- 8:10S2: for a long period of time. And I said to him,
- 8:12S2: does that include the inflation crisis and all other top
- 8:16S2: of mind issues? And he said this is the biggest one.
- 8:18S2: It's not just activists. It's not just Change.org bots. It's
- 8:23S2: people in his electorate concerned.
- 8:25S1: Yeah, I think once you get images of starving children
- 8:28S1: on the television, people do tend to get upset. Coming
- 8:37S1: back home to some of these pertinent to the domestic
- 8:39S1: economy issues. Next week. Are you excited? Are you getting pumped?
- 8:44S1: Have you got your outfits planned for Canberra? Coachella?
- 8:47S2: Have you booked your room because the Airbnbs are chockers,
- 8:51S2: I hear.
- 8:52S1: Of course we're talking about the Productivity Summit or Roundtable,
- 8:55S1: if you will, which is happening next week, and we're
- 8:58S1: getting a lot of mixed messages about it. In fact,
- 9:01S1: if you're trying to like me, you're trying to fashion
- 9:04S1: a coherent narrative in the sort of lead up to
- 9:06S1: this summit. It's almost impossible because on the one hand,
- 9:10S1: you know, Albanese is going, yes, we're open to big reform.
- 9:12S1: We want to be a big reforming government, just kind
- 9:14S1: of maybe not now. And they're pouring cold water on
- 9:17S1: almost every idea that's come up in in the lead up.
- 9:21S1: What what is the latest news? Can you cut through
- 9:23S1: this all to tell us what's really going on?
- 9:26S2: I do not blame you for not being able to
- 9:28S2: form a coherent understanding of where this is all going.
- 9:31S2: And the blame for that lies at the feet of
- 9:34S2: the Prime Minister and the treasurer, who haven't really been
- 9:37S2: able to set a coherent message up in terms of
- 9:40S2: what they are trying to solve and what the solutions
- 9:44S2: are and what the trade offs are inherent in those solutions.
- 9:49S2: They talk a lot about the productivity challenge. Famously, we've
- 9:52S2: talked about this in this podcast many times. That's a
- 9:54S2: word that not many people understand. Yeah. So if you're
- 9:57S2: trying to set up a get public sentiment to the
- 10:00S2: place where they understand that there is a big problem
- 10:02S2: that needs to be solved, that affects their hip pocket,
- 10:05S2: and that doing some of these big changes that might
- 10:07S2: have losers on the tax side, or the workplace relations side,
- 10:10S2: or anything else to allow those people to understand that
- 10:13S2: they are still worth pursuing because they make everyone better off. Overall,
- 10:17S2: then critics have a fair argument. I think at this point,
- 10:20S2: to say that the government hasn't been doing that kind
- 10:23S2: of shaping of public opinion.
- 10:25S1: Yeah, well, maybe they're hoping that the Productivity Roundtable itself
- 10:30S1: will do some of that work on productivity. And as
- 10:34S1: our friend of the podcast, Shane Wright, is fond of
- 10:37S1: telling us, productivity is not about working harder, it's about
- 10:40S1: working smarter. But we did get some productivity data this
- 10:44S1: week that were sort of hidden amid the good news
- 10:46S1: of the RBA cutting rates. What was that productivity number?
- 10:51S2: This is one of those moments where you think to yourself,
- 10:54S2: why on earth would you be a politician? Jim Chalmers
- 10:57S2: is just I was just thinking about what his office
- 10:59S2: would have been feeling at this moment. So he's just
- 11:02S2: gone through an inflation crisis. Rates are finally coming down.
- 11:05S2: He can claim a lot of credit for that and does.
- 11:08S2: It's within the target rate band. And we're probably going
- 11:10S2: to see some more interest rate cuts.
- 11:12S4: These interest rate cuts and the progress that we've made
- 11:15S4: in our economy, they put us in good stead for
- 11:18S4: the global uncertainty that surrounds us and for the big
- 11:22S4: economic challenges which confront us as well, inflation.
- 11:26S2: And then Michelle Bullock, the reserve Bank governor, releases a
- 11:28S2: statement saying rates are down. Good news. Jim Chalmers hope
- 11:32S2: she does a press conference saying there'll be future rate cuts.
- 11:34S2: People feel happy in their homes and pleased towards the
- 11:37S2: government and then bang the RBA at that moment, at
- 11:40S2: that same afternoon, decide to release their updated, uh, assumptions
- 11:46S2: on what will happen to productivity over the next few years.
- 11:50S5: That for the purposes of our forecast period, we think
- 11:53S5: that the productivity assumption needs to be a bit lower. Interestingly, um,
- 11:59S5: the reason one of the reasons we've come to this
- 12:01S5: position is that our forecasts were such that we were
- 12:06S5: hitting our employment and our inflation forecasts, but we were
- 12:10S5: overestimating our GDP and our consumption forecasts. So there was
- 12:14S5: a tension in the forecast. Why were we hitting our
- 12:17S5: targets when we weren't hitting?
- 12:19S2: And and they use those assumptions to do their forecasting
- 12:22S2: around growth and rates and the trajectory for the economy,
- 12:26S2: because all of those help flow into their decision making
- 12:29S2: around monetary policy. And this productivity assumption drops from 1%
- 12:35S2: over the next few years to 0.7 of a percent,
- 12:38S2: which has actually been closer to the average rate of
- 12:41S2: productivity over over the last 5 or 10 years. And
- 12:44S2: those numbers seem very close to the lay observer. But
- 12:48S2: if you had Shane write on here, and I'm sure
- 12:50S2: he's raring to go ahead of next week's Productivity Roundtable,
- 12:54S2: he'll tell you that, uh, that change in productivity in
- 12:58S2: a yearly basis over a long period of time has
- 13:00S2: a significant effect on economic growth, on living standards, on
- 13:04S2: how much people's wages will rise, because it effectively means
- 13:07S2: that we're not using our resources and our inputs as
- 13:10S2: effectively as possible, and people will be, on average, poorer
- 13:13S2: compared to the 1%. So Jim Chalmers sits there thinking
- 13:16S2: it's meant to be a fantastic day for me. And
- 13:19S2: then the next day's headlines, page one, I think of
- 13:21S2: the Australian Financial Review and our paper were all leading
- 13:25S2: off on the double edged nature of the news being
- 13:28S2: rate cut, yes, but worse productivity and pretty bad timing
- 13:31S2: ahead of next week's roundtable.
- 13:32S1: You can always trust an econocrats to kind of come
- 13:35S1: in and rain on everybody's parade.
- 13:38S2: They're just so negative.
- 13:39S1: Yeah, I know. They're so, so negative. It looks now
- 13:43S1: like housing and housing approvals are going to be a
- 13:46S1: focus of the Productivity Summit. And you wrote about that
- 13:49S1: this week. Tell us what's going on with housing approvals
- 13:51S1: and how that can lift productivity.
- 13:54S2: Well the government's done a lot of tamping down of
- 13:56S2: expectation on areas such as tax reform items like the
- 14:02S2: capital gains tax, negative gearing, which we've heard so much
- 14:05S2: about over the years, about how they are good reforms that, yes,
- 14:09S2: create losers but are still worthwhile. The government is doing
- 14:12S2: a lot of backgrounding in the last week or so
- 14:15S2: to say that those big items around tax and other
- 14:18S2: contentious issues will not be the ones that are immediately
- 14:21S2: solved at next week's roundtable. There might be set up
- 14:24S2: for more work after the roundtable, after a debate has
- 14:26S2: started and then pursued in future budgets. But next week,
- 14:30S2: the agenda has been narrowed to red tape and excessive regulation,
- 14:36S2: and how to get the economy and key areas of
- 14:40S2: supply moving more quickly. There is broad consensus across mining
- 14:45S2: firms who want to build mines more quickly. Among green
- 14:48S2: energy firms, who want to get solar and wind farms
- 14:50S2: up more quickly than they currently are, and they are
- 14:52S2: very slow. These approval processes and construction firms who want
- 14:56S2: to build housing. There's broad consensus as well as inside
- 14:59S2: the cabinet that the environmental laws are clogging up the
- 15:02S2: building of all of these types of items, and causing
- 15:07S2: us to move less quickly than we can on the
- 15:09S2: green energy transition, and to build far fewer houses than
- 15:12S2: we need to. So there's a big effort behind the
- 15:14S2: scenes to get to fix some of that.
- 15:15S1: Yeah. And I feel like, you know, the government's got
- 15:17S1: a lot of skin in the game. On the housing
- 15:19S1: approval issue, particularly because they've promised to build so much housing.
- 15:23S1: And it is actually one thing where the opposition can
- 15:26S1: very credibly say, you said that you would build, you know,
- 15:29S1: 10,000 homes and actually only one has been built. So
- 15:32S1: it's something where the report card is very easily kind
- 15:35S1: of tallied up. There's also road user charges, which is
- 15:39S1: maybe not a sexy subject, but quite an interesting one
- 15:41S1: because it sort of points to the difference, you know,
- 15:44S1: a transition, an economic transition and an environmental transition away
- 15:49S1: from petrol cars. Yeah, I'm sure there's a different word
- 15:53S1: for them. But cars that use petrol and EVs.
- 15:56S2: So diesel combustion engines, I think they call them.
- 15:59S1: That's the one that I'm talking about. To me, cars
- 16:01S1: are just red cars, blue cars, white cars, etc..
- 16:04S2: What car do you have?
- 16:04S1: Um, I've got a dark blue, a midnight blue, um,
- 16:09S1: and it uses petrol. So more and more people are
- 16:12S1: taking up EVs. You know, that's obviously an industry that
- 16:15S1: will help us move towards the energy transition that we
- 16:19S1: need to make. But that means that fuel excise goes
- 16:21S1: down because fuel excise is essentially a tax on petrol.
- 16:24S1: The fewer people using petrol, the less money the government
- 16:27S1: collects in fuel excise. So what are they going to
- 16:30S1: do to make up that revenue?
- 16:32S2: Well, they're moving towards a road user charge that will
- 16:36S2: bring in EV drivers. Our proportion of EVs is is
- 16:40S2: still far fewer than uh, some countries like China, which
- 16:43S2: has moved much more quickly in that direction. There seems
- 16:46S2: to be in Australia an attachment to using petrol cars,
- 16:50S2: but we are moving more quickly. In the last couple
- 16:52S2: of years, a bigger and bigger proportion of cars being
- 16:55S2: sold are EVs. And Jim Chalmers has been flagging this
- 16:58S2: for quite a while, for years really into well into
- 17:01S2: the first term of his government. He was flagging work
- 17:04S2: with the states to fix the fuel excise issue. In
- 17:08S2: a similar vein, fuel excise. The tobacco excise is also
- 17:11S2: facing huge black holes, and these are really critical because
- 17:15S2: of the booming black market for tobacco. So between fuel,
- 17:19S2: fuel and tobacco that they're actually key federal revenue sources.
- 17:23S2: And over time, if those black holes continue to enlarge,
- 17:26S2: and that's a really bad thing for our budget. So
- 17:29S2: there will be something on the on the road user
- 17:31S2: charge at some point over the next few months, it
- 17:34S2: looks like, and there'll be trials on which cars will
- 17:37S2: be which EVs will be dragged into it and at
- 17:39S2: what point. But we're kind of yet to see the
- 17:41S2: detail on that.
- 17:42S1: Yeah. Okay. And on a more popular sort of note,
- 17:45S1: there has been the prospect raised of a four day week.
- 17:47S1: So the ACTU has made headlines about this. Business groups
- 17:51S1: are very up in arms about it. It seems to
- 17:53S1: me it's putting the cart a little bit before the horse,
- 17:56S1: because don't you need productivity gains before you can drop
- 17:58S1: back to four days a week? But I don't want to,
- 18:00S1: you know, I don't want to pour cold water on this.
- 18:03S1: What has the government said about the prospect of a
- 18:05S1: four day working week? Good things.
- 18:07S2: They're pretty cold on it.
- 18:08S1: Can I take tomorrow off?
- 18:10S2: Well, when they start printing just four newspapers in a week,
- 18:13S2: maybe we can. We can. We can have a four
- 18:15S2: day week, too.
- 18:16S1: Let's not put the idea in their head.
- 18:18S2: Um, the four day workweek won't get much traction with
- 18:21S2: orthodox economists, because one of the key benefits of productivity
- 18:27S2: over time, when you can get your society working more efficiently.
- 18:32S2: One of the byproducts of productivity is not just increased wages,
- 18:36S2: it's actually increased leisure time. Yeah. And if you look
- 18:39S2: over time, productivity grows and so does the amount of
- 18:42S2: time you get to spend at home with your family,
- 18:44S2: or going to the footy or writing books or doing
- 18:46S2: whatever else. So economists will laugh that that idea out
- 18:48S2: the door.
- 18:49S1: Okay. Um, well, I don't know. Maybe we can we
- 18:52S1: can look to the robots to, um, make up that
- 18:54S1: fifth day for us. I the other thing that's again,
- 18:58S1: speaking of populist appeal, there have been some reports of
- 19:00S1: tension between Anthony Albanese and Jim Chalmers leading up to
- 19:04S1: this summit. I don't know if this is just the
- 19:06S1: work of hopeful journalists, you know, hoping for some internal
- 19:09S1: conflict that they can report on. Far be it from
- 19:12S1: me to, you know, suspect journalists of wanting conflict that
- 19:16S1: they can then make headlines out of. But, I mean,
- 19:19S1: it does seem like Chalmers is a little bit more
- 19:21S1: open to reform, particularly tax reform. Albanese seems to have
- 19:25S1: a much more cautious and risk averse approach. And they're
- 19:28S1: coming from different directions. Right. Like they've got slightly different
- 19:31S1: objectives and they've got different personal interests and maybe even
- 19:34S1: different political interests. So what's your take on on the
- 19:37S1: Albanese v Chalmers beef?
- 19:40S2: Yeah. Well the starting point I don't think it's a beef.
- 19:42S2: So I'm going to disappoint listeners there. The starting point
- 19:45S2: is what you've just said that they they do have
- 19:47S2: different roles in the government.
- 19:49S1: Can we call it a stoush. A fight?
- 19:52S2: I think it's I think it's even more gray than that.
- 19:54S2: There's something in the in the differences of, um, there's
- 19:57S2: there's something there in the difference of approach And the
- 20:01S2: different intents they have and potentially how open they are
- 20:04S2: to to moving more quickly. But they have a pretty
- 20:06S2: close working relationship. Uh, there's not been any overt public
- 20:12S2: feud in between them, which is unlike Howard and Costello.
- 20:15S2: And unlike Hawke and Keating, their feuds were much more clear.
- 20:19S2: There's more nuance in this one, but I'm not suggesting
- 20:21S2: there's no feud in at all. Fundamentally, Chalmers is hyper
- 20:26S2: ambitious and eventually wants to become the Prime Minister. He
- 20:29S2: can't say that at this point. The Prime Minister has
- 20:32S2: just had a thumping election win, so he's pretty comfortable
- 20:35S2: in his own shoes and doesn't need to worry as
- 20:37S2: much about the rivals underneath him. Uh, Chalmers is interested
- 20:42S2: in building his legacy as treasurer by doing some big
- 20:45S2: reform that marks him out as the replacement to the
- 20:49S2: Prime Minister. Whenever that comes, comes about, it might be
- 20:52S2: much longer than people predicted before the last election, because
- 20:55S2: why would he go anywhere given the resounding win he
- 20:57S2: just had? Uh, and Albanese has made a core part
- 21:02S2: of his leadership. This sense of steadiness, this sense of, uh,
- 21:07S2: putting an absolute premium on retaining the trust of the
- 21:10S2: electorate by not doing more than he said. The lessons
- 21:13S2: of the Rudd-gillard era are like, um, branded into his skin.
- 21:18S2: He was a key part of it, and he sees
- 21:20S2: he puts a lot of emphasis on the fact that
- 21:24S2: when he amended the stage three income tax cuts last election,
- 21:28S2: which was a huge call for the government to make
- 21:30S2: and was actually led by Chalmers internally, he stood up
- 21:33S2: at the Press club, admitted that he was changing course,
- 21:36S2: and he tried to keep as much trust with the
- 21:38S2: electorate as possible. So the idea that he would use
- 21:41S2: a round table, as we're having next week, to radically
- 21:44S2: alter the trajectory of the government and come up with
- 21:47S2: a whole bunch of new tax ideas, would run counter
- 21:50S2: to everything that Albanese has said that he's for. But
- 21:55S2: where the evidence of the feud has emerged is that
- 21:59S2: the expectations for this round roundtable and all of the
- 22:02S2: big ideas that were being put up by experts and
- 22:04S2: the opposition and independents and whoever else. And interest groups
- 22:07S2: got a bit too big on the government, and they
- 22:09S2: were facing daily questions about the GST, about negative gearing,
- 22:13S2: all these tough issues that they don't really intend to prosecute.
- 22:16S2: And at each point when the expectations have been tamped
- 22:19S2: down or an idea has been ruled out, such as
- 22:23S2: the GST, the first mover to tamp down or to
- 22:27S2: rule out has been the Prime minister. Yeah. And for
- 22:30S2: it's looked as if at least in public, this may
- 22:32S2: not be quite right. It might just be a more
- 22:35S2: blunt rhetorical style from the Prime Minister, but it's looked
- 22:38S2: like the Chalmers has followed him in step the next
- 22:41S2: day by making the same ruling out points and doing
- 22:45S2: the same expectations management. So that has created at least
- 22:48S2: the kind of, uh, the public appearance of being slightly
- 22:52S2: at odds. But I think it's a bit more complex
- 22:53S2: than that.
- 22:54S1: Mhm. Okay. Maybe there's some complex mind games going on
- 22:57S1: there that we can delve into in a future podcast. The.
- 23:00S1: The Prime Minister was at pains to say this week that,
- 23:02S1: you know, he talks to the treasurer almost every day.
- 23:05S1: Just quickly, I want to check in on the opposition
- 23:07S1: because we haven't heard so much from them. Yeah. So
- 23:10S1: what's your I mean, Susan Lee has been a little
- 23:14S1: a little bit out and about this week sort of
- 23:15S1: talking about the round table and saying that, you know,
- 23:18S1: basically it's a foregone conclusion and, you know, it's a charade. Um,
- 23:23S1: do you think she's cutting through? How do you think
- 23:24S1: she's going?
- 23:26S2: It's funny timing. I just had a call from one
- 23:29S2: of her senior colleagues who was just calling to complain
- 23:32S2: about what he believed to be the easy run we
- 23:35S2: were giving Jim Chalmers. But the other point he made
- 23:37S2: was that he doesn't even understand why we're quoting the
- 23:40S2: opposition in news stories.
- 23:42S1: He doesn't understand why we're quoting.
- 23:44S2: Obviously he wants to be quoted, but he said we're
- 23:46S2: just so irrelevant to the show at the moment. I
- 23:48S2: don't even understand why you're asking us for comment. So
- 23:51S2: that's a bit of an insight into how they're thinking.
- 23:53S1: Oh, dear. Okay. All right. Well, I think I think
- 23:55S1: we can end there pretty much because I think that that, um,
- 23:58S1: is quite a powerful statement in and of itself. But no,
- 24:01S1: just quickly. What do you think?
- 24:03S2: Yeah, well, I think Sussan Ley has done well to
- 24:07S2: not make any mistakes to this point. Uh.
- 24:09S1: She that's not a, that's not, that's damning with faint praise.
- 24:12S2: She, she hasn't she hasn't lost any skin by making
- 24:15S2: a kind of overreach, which I think other opposition leaders
- 24:19S2: in such a dire, um, electoral position would have, uh,
- 24:23S2: she's been careful not to look as if she's brawling
- 24:26S2: all the time. I think she's read the public mood
- 24:28S2: pretty well. She's. And and her team's key focus at
- 24:32S2: the moment. There's a view in the opposition that in
- 24:34S2: the first six months after that election drubbing, there's not
- 24:37S2: really many votes to be won. Very little attention has
- 24:39S2: been put on her. They're trying to get their internal
- 24:41S2: processes around policy making, around how they approach media, around
- 24:45S2: parliamentary tactics. They're trying to clear the decks from the
- 24:48S2: Dutton era and become a coherent force that can set
- 24:52S2: them up for more success later in the term. And
- 24:55S2: the word is that internally, she's doing quite a solid
- 24:57S2: job at all of that. Okay. Um, so they're not
- 25:00S2: a huge feature in public debate. They were probably never
- 25:02S2: going to be. There's very little she can do to
- 25:04S2: make the opposition super relevant right now, but I think
- 25:07S2: she's at least meeting minimum standards.
- 25:09S1: Maybe they should just all take four day weeks for
- 25:11S1: a while until things hot up in the electoral cycle. Paul,
- 25:14S1: thank you as ever and we will see you next week.
- 25:17S2: Thank you. Talk to you soon.
- 25:21S1: Today's episode was produced by Kea Wong with technical assistance
- 25:24S1: from Debbie Harrington. Our executive producer is Tammy Mills, and
- 25:28S1: Tom McKendrick is our head of audio. To listen to
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- 25:46S1: To support our journalism, subscribe to us by visiting The
- 25:49S1: Age or smh.com.au. I'm Jacqueline Maley. Thank you for listening.