Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

Just today the minutes released by the Reserve Bank show that inflation is what has been concerning them, if anybody needed that clarified. If the member for Wentworth needed an explanation, if he needed a little bit more evidence, the Reserve Bank minutes released a few hours ago show that. But of course these are members of a government that said inflation was right where we wanted it. What an insult to working families, to seniors and to other Australians to say inflation is right where we want it when the Reserve Bank just today released its minutes showing that the CPI was expected to top four per cent. Inflation is right where we want it! And they have not learned their lesson. Yesterday the alternative Treasurer in this chamber, standing at that dispatch box, said when it comes to inflation under the Howard government: ‘Mission accomplished.’ What an insult to the intelligence of Australians and an insult to the intelligence of families who are struggling with rising costs, which this opposition is apparently so concerned about.

But within inflation there is further cause for concern when the price of goods that are unavoidable purchases, such as groceries and petrol, goes up more than the average inflation rate—which is what happened for more than 11 years. Australia’s food price inflation at 43 per cent has been amongst the highest in the world. Those opposite let that happen. When it comes to inflation, and to petrol prices in particular, we are hearing a lot from the opposition; we just heard a lot about petrol prices from the member for Cowper. But it is a concern that dawned on the previous government on 25 November. As the sun set on the Howard government, it suddenly had this concern with petrol prices in this country. Suddenly it was concerned about the impact of petrol prices on struggling families and seniors. Up until then, it was okay. Up until then, the ACCC had enough powers. Up until then, there was nothing further that the Howard government could have done!

On 28 May, the former Deputy Prime Minister said:

... the ACCC already has significant powers of monitoring and being able to take action.

On 7 June, the former Treasurer said:

The ACCC has extensive powers. It can demand people give evidence, it can demand documents, upon a search warrant it can go into anybody’s premises and seize books.

The ACCC has those powers now, but it did not have them under the Howard government until formal monitoring powers were granted to the ACCC. If the ACCC has any concerns at all at any point in the supply chain, it now has those powers. But they were not powers that it had under the previous government in relation to petrol generally.

We heard again just then the member for Cowper claiming that the Labor Party, when in opposition, said, ‘We have a magic solution; we are going to drive down prices.’ We know what those opposite are trying to do. They are trying to pin us for their bad policy and for their mistake, when they said in 2004, ‘We will keep interest rates at record lows.’ They misled the Australian people, because that was a promise they could not keep—and they paid the price for it on 24 November. But the facts do not bear out their little equation. They do not bear out their story.

Let us have a look at what the Labor Party said in the election campaign; let us have a look at what the now Prime Minister said. On 8 August 2007, on ABC Radio AM, he was asked by Chris Uhlmann about Labor’s policy:

Could you guarantee to lower the cost of any grocery item on any supermarket shelf in Australia by a dollar?

KEVIN RUDD: I couldn’t guarantee that for the reason being that what I have said is that we need to have a robust competition policy watchdog on the beat.

We are about introducing more competition and more transparency to put downward pressure on prices. What did the now Treasurer say on 15 July, when being interviewed by Laurie Oakes? The transcript reads:

OAKES: Can you guarantee if Labor wins the election grocery prices will fall?

SWAN: No, but what I can certainly guarantee is we will make consumer information widely available so people can scrutinise the prices in an accessible way.

The transcript continues:

OAKES: Can you guarantee if you win government petrol prices will fall?

SWAN: No, I can’t guarantee that, but I can guarantee that we will do the maximum amount possible to make sure that people aren’t being ripped off.

As though that evidence was not clear enough, our old friend the member for Higgins, the then Treasurer, raced down to a hold a press conference to draw attention to Wayne Swan’s comments earlier that morning—to point out that the then shadow Treasurer had said that there was no formal guarantee that, under a Labor government, we could reduce petrol or grocery prices. But the then shadow Treasurer had added that what we would do was take every step possible to introduce more competition and more transparency into the market, which those opposite had failed to do for 11 years. We now constantly get this cheap grab for a headline from the opposition, but it is not borne out by the facts.

But the confusion continues. It goes to where those opposite stand now. It goes to where they stand on petrol prices. It goes to where they stand on grocery prices. It goes to where they stand on being honest with people. Just after the election, our old friend the Leader of the National Party made comments to the Courier-Mail and said that he had a plan to reduce petrol prices. After 11 years, he suddenly had a plan to reduce petrol prices. What was it? It was to take the GST off petrol. It just dawned on him on 25 November. He said: ‘I’ve got a good idea. It just escaped me for the last 11 years. We’ll take the GST off petrol. That’s what will do it.’ But then the shadow Treasurer, when asked recently whether he supported that policy, said, ‘No, I think that would be a very bad idea.’ So we do not know where they stand on anything. They stand for nothing. They cannot develop or agree on a policy on petrol or grocery prices—in contrast to the government, which has a plan in place which says: ‘There are no magic solutions here, no easy answers. There are a lot of impacts on the rising cost of living, but we will do whatever we can and we will put these concerns at the forefront of government thinking.’

But the confusion goes on. Last weekend we had the Leader of the Opposition and the member for Stirling complaining that the petrol commissioner had not yet officially started at work. There were two points of confusion. Firstly, they do not understand how the law works and what the Trade Practices Act says about appointments to the ACCC—that, when the Commonwealth recommends an appointment to the ACCC, there is a statutory period of consultation with the states and that a majority of states must agree. That has now happened. A majority of the states have agreed to the appointment of Patrick Walker and, subject to the agreement of His Excellency the Governor-General, Mr Walker will start on 31 March.

But the second point of confusion is this: they claim that the petrol commissioner will not make a difference. They say that they do not support the petrol commissioner—but they are very disappointed that he has not started work yet. They are very disappointed that an officer that they do not believe in has not yet started work. This is their cheap attempt at a headline. This their cheap grab for a headline, because they do not know where they stand. They have criticised the decision to appoint a petrol commissioner. They do not support a petrol commissioner. They did not appoint one for 11 years. I agree with them: the petrol commissioner is starting a little bit late—about 11 years too late, because those opposite never got around to appointing one.

Those opposite do not believe in competition. They do not believe in transparency. They do not believe in the regulator having the power to ensure that consumers are not being ripped off. They sat by and watched for 11 years while Australian consumers did not have a petrol commissioner looking out for their interests. That is what they did. They did not give the ACCC extra powers; they claimed it had enough. They have the hide, the hypocrisy and the chutzpah to come into this chamber and lecture us about the cost of living on ordinary, everyday Australians. Shame on you. Shame on you for taking the Australian people as mugs. Shame on you for pretending that you could get away with that.

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