TRANSCRIPT - SKY NEWS AFTERNOON AGENDA WITH TOM CONNELL

PAUL FLETCHER MP

Shadow Minister for Science and the Arts

Shadow Minister for Government Services and the Digital Economy

Manager of Opposition Business in the House

TRANSCRIPT

SKY NEWS AFTERNOON AGENDA

23 FEBRUARY 2024

TOM CONNELL: Well, the opposition is campaigning already against Labour's changes to vehicle emissions standards. They say they'll drive up the cost of many everyday Australian cars. Joining me now is shadow government services minister Paul Fletcher for more on this. Thanks for your time. So the initial position on this is no from the opposition, but are you proposing anything else or are you just saying that this area of policy can be left as is?

PAUL FLETCHER: Well, what we've seen from the Albanese government is a proposal here that would see the cost of some family cars increase by up to 25,000, according to estimates from the automotive industry. Some utes up to 18,000. As we know, SUVs and utes are amongst the most popular vehicles being sold. The cost of a LandCruiser could easily be up by $25,000, the cost of a Ford Ranger up by $18,000. And those estimates obviously draw on the figures within the discussion paper or the paper the government's released, which sets out its preferred option, including a penalty payment of $100 per gram per kilometre. So this is a policy package that would reduce choice, despite what the government is saying, because we may well see automotive manufacturers, automotive distributors forced to withdraw certain models in the Australian market. It's being proposed to be introduced very quickly. So it would take effect from 1st July 2025 and by the end of 2029, on the government's preferred option, the average emissions level per vehicle would be down by 67%. That's a much sharper drop than we have seen in other countries, which is one of the reasons why it is deeply problematic.

TOM CONNELL:Some of the proponents of this point out there might be other vehicles available instead of those with lower emissions. But let me go back to that other question. You're opposing this. You've made that clear. You've made your point on what you say. Could be price rises. Are you, though, saying there could be a vehicle emissions standard introduced? It might just be a different one. Are you saying you'll just leave it as is?

PAUL FLETCHER: What we have is a government which has responsibility for these matters, and of course has all the resources of government to support their work. They have brought forward a proposal. It's very clear when you look through the discussion paper that despite some of the rhetoric about a cheaper operating costs, the principal motivation here is very much framed in terms of emissions reduction. Now, of course, we are committed to net zero by 2050. But what you need to do is look at the impact of each proposed policy instrument on the Australian people. Now, at the time when we've got a cost of living crisis -.

TOM CONNELL: But you also. Yeah, but you can also say that if you do more in this area, you do less in others So if you're not going to touch vehicles, other parts of the economy have to reduce emissions by more. That's true isn't it?

PAUL FLETCHER: Well, what we are saying is there is a specific proposed policy, a preferred policy that the government has now announced that involves a penalty of $100 per gram per kilometre that, on the estimates of reliable independent parties, will see the prices of popular models of SUVs and utes up by 18,000 to $25,000. Now the government -

TOM CONNELL: So is there a better way to do it?

PAUL FLETCHER: The government has sought to conceal from the Australian people the true impact of this with soothing language. But the analysis is very clear, and it's certainly our job as an opposition to be highlighting for the Australian people the likely outcomes of a policy that the government has announced when they're doing everything they can to avoid discussing the detail

TOM CONNELL: And generally coming up with alternatives, perhaps that will be closer to the election. We'll see. Let me ask you about the Nats idea divesting or divestment powers for supermarkets. Is that a coalition policy?

PAUL FLETCHER: Well, let's have a look at what's happened here. So after many months of not paying much attention to the cost of living crisis, the Prime Minister was jetting around the world and perhaps not noticing it in the way that most Australians were. Finally, belatedly, this government is now recognising there is a cost of living crisis, and they're trying to do all sorts of things. So early this month, they announced that there would be an inquiry by The ACCC into issues like the market structure and market power in the supermarket sector. Now we have a very concentrated supermarket sector, 68% market share across Coles and Woolworths. The two leading supermarket networks are chains in the UK, for example, it's the top four supermarkets that have about that market share, so we have a considerably more concentrated market and it's well known that when you have concentrated markets, when you have oligopolies in the economic jargon, that those businesses have market power, that lets them charge higher prices to consumers than in a competitive market, and it lets them pay lower prices to suppliers and in a competitive market. Now, the point I'd make is that when you've announced an inquiry, it is very odd that the Prime Minister would then, just a few days later, rule out the use of a particular policy tool of divestiture. That is a policy tool that is used in a range of market economies around the world US, UK, other places. You know, in Britain, there was a divestiture going back 30 years or so. In the Thatcher years, I think of some of the breweries in the US there was famously the Break-Up of AT&T, the telecommunications monopoly. So this is a well recognised power used to deal with these kinds of issues. Now, I'm not calling for divestiture, but what I am saying is very odd that the Prime Minister would rule out a potential policy tool just a few days after they'd announced an inquiry,

TOM CONNELL: Perhaps. Well, a lot of people perhaps say it's a bit hard with the nature, you know, what business are you actually splitting out? But look, we'll delve into it another day. Paul Fletcher, I've got to leave it there. Thank you.

PAUL FLETCHER: Thanks, Tom.