SALLY SARA, HOST: The Foreign Affairs Minister, Penny Wong, heads to the Middle East this week as Australia plays a supporting role in the US-UK airstrikes in Yemen. US President Joe Biden confirmed the operation on Friday in response to the Houthis escalating attacks on ships in the Red Sea. The Houthis say its actions are in support of Palestinians under siege by Israel in Gaza and a warning of retaliation. The Prime Minister, Anthony Albanese joins me now. Prime Minister, welcome, your first interview of 2024 back on RN Breakfast.
ANTHONY ALBANESE, PRIME MINISTER: Good morning. Good to be with you.
SARA: Prime Minister, will Penny Wong be going empty handed or will she be offering more Australian assets and personnel to the US led mission against the Houthis?
PRIME MINISTER: Well, in response to these continued Houthi attacks against commercial shipping in the Red Sea, Australia did provide some support, along with countries like the Netherlands and Canada, to the strikes that occurred aimed at Houthi targets. These are aimed at stopping the capability that we've seen to threaten global trade that's so important. This is a vital international waterway and we would hope, along with the United States and the UK, that the Houthis get the message that the international community won't just sit back and allow for this trade to be disrupted with a potential significant impact on the global economy.
SARA: Returning to the question, will we be sending more help for that mission?
PRIME MINISTER: Well, we have sent the help that is required. We have operational support there at headquarters in Bahrain. We always give proper and considered analysis and act in Australia's national interest, and that's been the basis of our support up to this point. Of course, our concentration is on the Indo-Pacific, which is something that is supported by our allies.
SARA: As you say, Australia's focus has been on the Indo-Pacific. Given that, why are you sending the Foreign Minister to the Middle East at this time?
PRIME MINISTER: Well, the Foreign Minister is travelling to the Middle East because quite clearly what's occurring after the Hamas attack on innocent civilians in Israel and then the devastation that we've seeing in Gaza is something that is of concern to the global community. So, it is appropriate that Penny Wong travel to Israel, to the Occupied Palestinian Territories, to Jordan, as well as to the United Arab Emirates, to support the diplomatic efforts that will be required to have a durable peace in the Middle East that is in everyone's interests. We are not a central player in the Middle East, but we are a respected voice, and this visit is about us being able to express our voice and for Penny Wong to see firsthand and to have those discussions face to face.
SARA: Is it correct that Penny Wong won't be visiting the sites of the October 7 attacks?
PRIME MINISTER: Well, Penny Wong's itinerary is a matter for her.
SARA: But you know where she's going.
PRIME MINISTER: Well, I've got to tell you, what I don't do is have a precise itinerary of all of my Ministers. But Penny Wong will be meeting with survivors and families of victims from the October 7 terror attack in Jerusalem. She'll also be meeting with communities who've been impacted by settler violence in the Occupied Palestinian Territories.
SARA: When Israel kills civilians in Gaza, how does that make Israel any safer, do you think?
PRIME MINISTER: Well, we have very clearly, from the day that the Parliament adopted the resolution about the conflict asserted, and it was asserted in a bipartisan way on that day, that innocent lives need to be protected, whether they be Israeli or Palestinian. And we will continue to assert that as our position.
SARA: Just finishing up on the Middle East. Singapore has sent roughly the same number of staff officers to help out with the mission against the Houthis. And Singapore's much smaller than us, they're not part of AUKUS. Are we punching below our weight?
PRIME MINISTER: No, not at all. We're making an appropriate contribution, as Australia always does. We always play our role, and it is appropriate that we have people there in Bahrain. We had people before the Houthi attack. Since then, we've increased the number of personnel that are involved in that operation.
SARA: Let's move on to Taiwan now, which had elections over the weekend. The pro-sovereignty candidate, William Lai, has been elected as President. China has described Mr Lai as a dangerous separatist and a threat to peace in the region. Do you agree?
PRIME MINISTER: We support democratic processes, and we congratulate Mr. Lai on his election, as we would have congratulated whoever came out of that democratic process. Australia's position is we respect these processes and we support the outcomes. There was very high participation in that election, and it has resulted in Dr William Lai being elected. We'll continue to work on what is an important relationship, consistent though with our long standing and bipartisan one China policy that we have.
SARA: So, how will you navigate that relationship with dealing with the new Taiwanese leader but also trying to maintain a relationship with China?
PRIME MINISTER: Well, it won't change from before the election. Dr Lai is from the same political party as his predecessor. We think that it's a good thing when you see the peaceful exercise of people's democratic rights. That is what has occurred here. And we'll continue to support the status quo when it comes to the position of Taiwan, consistent with our bipartisan one China policy.
SARA: Prime Minister back home, in one of your first media conferences of the year, you said that you've ordered Treasury and the Finance Departments to come up with ideas about how to ease cost of living pressures without stoking inflation. What progress has been made there?
PRIME MINISTER: We will be having a Cabinet meeting today and continuing to have meetings over the next couple of weeks as well of our Expenditure Review Committee and our other Cabinet subcommittees that are looking at these issues. We did a lot of work in the lead up to MYEFO’s release in December. Treasury and Finance continue to provide suggestions for ways in which cost of living relief can be provided. But we need to make sure that we don't undermine what is the Government's priority, which is the fight on inflation. The fight on inflation is the number one measure. I'll be meeting with Dr Craig Emerson this morning, who's been put in charge of a review looking at the retailers and looking at what can be done in that area. And we'll continue to look for measures which put downward pressure on the cost of living whilst also maintaining the downward pressure that is so important on inflation.
SARA: Earlier on RN Breakfast, Oxfam revealed that since 2020, the total wealth of Australian billionaires increased by $120 billion in Australia, and that the wealthy are getting wealthier. Lyn Morgain, who's the CEO of Oxfam Australia, says there's one quick solution to addressing inequality.
LYN MORGAIN, OXFAM CEO: They absolutely must abolish the stage three tax cuts. It is absolute lunacy that a time when Australia cannot adequately house its own people or contribute our share to the global crisis, we are giving away money to the top end of town.
SARA: That's Lyn Morgain there. Why is the Government so against abolishing these tax cuts, given the current economic situation and your acknowledgement of that?
PRIME MINISTER: Well, I'll make a few points. The first is that the Government's position hasn't changed. The second is that inequality is an issue and the Government has looked at ways in which we can improve that position. That's why measures such as strengthening Medicare, the measures that we have for cheaper childcare, all aimed at improving that position. Bear in mind that the stage three tax cuts start at $45,000. $45,000 if that's your annual income, you are certainly not wealthy.
SARA: But the biggest benefits are for those who are further up the tree.
PRIME MINISTER: I understand that that's the position, but they do start at $45,000 is important. And the Treasurer has always said that returning bracket creep is a worthy aspiration if it's done in an affordable and responsible way. The Government will continue to look at the range of measures that are available at our disposal in the lead up to the May Budget and continue to do things, perhaps as we have done. We've been prepared to take action in between budgets as well, because we understand that people are doing it really tough out there.
SARA: I will look briefly at industry. Prime Minister, industry has been a big priority for your Government and your $15 billion National Reconstruction Fund. It passed through the Parliament in March last year and came into effect in July. But there's still no way on the Fund's website for industry to apply, even for a dollar of the money. Why is it taking so long?
PRIME MINISTER: Well, that's not correct. The National Reconstruction Fund is open for business from November. We then published our investment mandate that was required and we think this is really important, that we have a future made in Australia. There are a number of priority areas in renewables, medical, science, transport, value adding in agriculture, forestry and fisheries and resources, defence industry, in which we want to make sure that we make more things here, that we produce more jobs here, that we don't just concentrate, for example, on digging up resources, that we concentrate on value adding how we create the jobs here rather than see our resources be exported overseas. It’ll continue to play an important role, but where possible, we should be value adding here rather than waiting for the value add to happen somewhere else and then importing it back in at much higher value. And in areas such as batteries we see this as absolutely critical.
SARA: But Prime Minister, to draw you back to the question, and I'm on the National Reconstruction Fund Corporation website right now, there's no way to apply for any of this money. The Government had already scrapped the Coalition's previous scheme, which was the Modern Manufacturing Initiative. So, you took that away, but there's nothing to replace it as yet?
PRIME MINISTER: Well, there is the National Reconstruction Fund.
SARA: But it's not operating.
PRIME MINISTER: No, it is operating. It is operating. It is open for business.
SARA: But businesses can't apply for money at the moment, correct?
PRIME MINISTER: Well, it is open and businesses can look at the investment mandate, put together a proposition that doesn't take a matter of weeks or days, let alone days. What it does is take time to have proper consideration, because part of that investment mandate is that a return has to be produced of 2 and 3 per cent above the five year bond rate.
SARA: Apologies for interrupting. There's no way for business at the moment to apply for that money. So, it's not open for business yet, correct?
PRIME MINISTER: Well, it is open for business. It is open for business and the Department of Industry is responsible for the National Reconstruction Fund. Whether the website is there or not is an interesting point that you're making, but businesses that are interested in this would have looked at a media release from the Finance Minister, Katy Gallagher, in November that set out the investment mandate that was agreed to by the Government and the National Reconstruction Fund, which importantly, is an independent body at arm's length in terms of making those decisions, because we want those decisions to be commercial.
SARA: So, when will the money be available Prime Minister? What’s the date for that?
PRIME MINISTER: The money is available now. The money was put in the Budget and was made available when the legislation was passed.
SARA: So, if there's no application process up at the moment, just so that I understand, so there's no application process at the moment, but the money is there, but people can’t get it yet, correct?
PRIME MINISTER: The money is available.
SARA: How?
PRIME MINISTER: Well, the National Reconstruction Fund board will independently examine any submissions which are made to it. As I said, the NRF published its investment mandate in November. I'll examine the issue of the website. That is a reasonable point that you make, but people who are actually following this and are interested in applying will have seen Katy Gallagher's release from November, setting out what the process is. And of course, it'll all be overseen within, whilst it's an independent body, it's attached, of course, to the Department of Industry.
SARA: Prime Minister, just finally, I'm going to make the world's biggest segue from industry policy to the new Queen of Denmark. What's your reaction to Australia's Princess Mary becoming Queen?
PRIME MINISTER: This is just a fantastic day for Queen Mary, as she is now, but I think a great day for Australians and Tasmanians. We're very proud that Hobart born Mary Donaldson, has become the Queen of Denmark. She has carried herself with a great deal of dignity. She's very proud of her Australian origins. I think it's a good thing for tourism, I've got to say, in Tasmania and Australia, because the world is watching the coronation of Frederick and Mary this morning and every one of those reports will mention the fact that Mary was a very proud Hobart person before becoming very much proud of her role as the Queen of Denmark, where she has carried herself in a way that I think just brings enormous support and pride to all Australians.
SARA: Prime Minister, good to have you on the program for 2024. Thank you for your time.