Carina Garland (Chisholm, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. How is the Albanese Labor government responding to the inflation challenge in the economy and addressing any barriers to the government's plan?

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Thanks to the member for her question but also for the time we spent at the Ashburton, Ashwood and Chadstone Public Tenants Group at the hub there at the Beresford Park Reserve in Chaddy. I also know now, from talking to the minister for infrastructure, that she worked at the Priceline at Chaddy when she was going through university, but thank you to the member for her question. The member understands, as does this government, that the big pressure on Australians right now is cost-of-living pressure. The big challenge in our economy is inflation and that is what makes it the biggest focus of the Albanese Labor government. Our plan to address the inflation challenge has three parts to it. It is about relief, it's about repair and it's about restraint. It is about: cost-of-living relief when it is responsible to do that; repairing the broken supply chains that made inflation worse; and showing spending restraint in the budget as well.

A key feature of the May budget will be direct energy bill relief for struggling households and small businesses. Some welcome news over the weekend and on Friday was more evidence from the energy market and from the Reserve Bank that our energy plan is taking the pressure off inflation by taking some of the sting out of these high energy prices. The Reserve Bank statement on Friday also reported that supply-side shocks account for at least half and as much as three-quarters of the inflation in our economy. That is why the second part of our plan, repairing broken supply chains, is so critical. It is why we are addressing labour and skills shortages with fee-free TAFE and more university places. It is why we are investing in cleaner, cheaper and more reliable energy. And it is why we are bringing in the National Reconstruction Fund, to broaden and deepen our industrial base to make our economy resilient and self sufficient, and to secure the high-wage, high-skilled jobs of the future.

It is not at all surprising but it is disappointing that those opposite are standing in the way of so much of our economic plan. It is especially disappointing because, having been so much of the problem over the past decade and contributing to this inflation challenge, they are now voting against the solutions. By voting against our energy plan, they are voting for even higher power prices and even higher inflation. By voting against a more resilient manufacturing sector, they are voting for even higher inflation for longer. And by voting against more affordable housing, they are voting for even higher inflation for even longer.

The Australian people are already paying a hefty enough price for the wasted decade of missed opportunities and messed up economic priorities of those opposite. Our job on this side of the House is to engage in the right and responsible economic plan, which is all about relief and repair and restraint in the budget. That is our job and we will continue to do it.