02-November-2011
Portfolio Media Releases
E&OE
Issues: Interest Rates, Qantas Dispute, Mining Tax
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GLEN BARTHOLOMEW:
Qantas services are back to normal after the weekend grounding of flights, but the political battle over the dispute is continuing. The Opposition’s been accusing the Government of failing to act when it learned of Qantas’ plans to ground its operations worldwide. Now the Government says Tony Abbott and other leading Opposition figures have revealed that they were told of the airline’s plans in advance.
And as the air battle goes on, the Government today introduces another key piece of legislation that is the mining tax. For a view on those issues, Marius Benson is speaking here to the Shadow Finance Minister, that’s Andrew Robb.
MARIUS BENSON:
Andrew Robb, can I begin by asking you today about the interest rate decision yesterday by the Reserve Bank? Two of the large banks, two of the Big Four, have said they will cut their rates in line with that, Westpac and Commonwealth, the other two, no announcement yet, you’d obviously like to see them do the same?
ANDREW ROBB:
Well it’s quite clear that there’s been a massive increase in deposits locally over the last few months, so the banks are well placed to pass on the full amount of the interest rate cut, because they are less stressed in trying to get dearer wholesale monies off the international markets, so there is no argument for this not to be passed on. And bear in mind that the $50 a month for families with an average mortgage I think will be an important assistance to many families, and the irony is that it’s born out of a crisis of confidence, because of the incompetence of this Government.
MARIUS BENSON:
Okay, can I leave the banks issue there and interest rates and go on to the Qantas circumstance because it was claimed and counter-claimed yesterday about who knew what when. When did you personally learn that Qantas intended to ground its fleet worldwide?
ANDREW ROBB:
About 5:30 or 5:15 on Saturday.
MARIUS BENSON:
There was talk around, according to Joe Hockey and others, there was talk around Federal Parliament were you informally advised that Qantas was considering it?
ANDREW ROBB:
No I wasn’t. Look, I just feel, Marius, that this is a desperate attempt by the Government to try and re-focus this issue, because of the fact that they spent three hours on Saturday talking amongst themselves rather than picking up the phone to the CEO, who was waiting for a call, who would have responded to a call.
MARIUS BENSON:
Again can I move on, Andrew Robb, and ask you about the mining tax, that’s in Parliament today, you’re against it?
ANDREW ROBB:
We are against it. The fact of the matter is you don’t penalise your great strengths. I mean, what team would put a lead weight around their best player running on to the football field? That’s effectively what we’re doing.
MARIUS BENSON:
Well can I ask you then, because the public seems to think something should be done there, the polls indicate an overwhelming public support for more being paid by the resources sector in a two-speed economy.
ANDREW ROBB:
Well, firstly, it’s a Labor poll, I think, so I’d be a little bit jaundiced about –
MARIUS BENSON:
– One is, there are others.
ANDREW ROBB:
– reading too much into it, but secondly, the fact of the matter is that the level of corporate revenue, from corporate tax, is largely underpinned and has grown very significantly because of the mining operations. Now people aren’t aware of that. We would be having deficits much, much bigger than what we are at the present time if it wasn’t for the mining tax, and of course you’ve got extraordinary levels of activity, and it is filtering through many parts of the economy, so I believe that the polls don’t reflect the reality.
MARIUS BENSON:
Andrew Robb, thank you very much.
ANDREW ROBB:
Thanks Marius.
ENDS