WEBVTT - The Week In Canberra with Dennis Shanahan

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<v Speaker 1>Prime Minister, the law, the federal politics with Dennis Shanahan.

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<v Speaker 1>And sadly, Dennis and I will be talking for the

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<v Speaker 1>last time for quite a few weeks because I'm about

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<v Speaker 1>to have a bit of a break he pooh, And

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<v Speaker 1>Dennis is having his regular winter break, and when I

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<v Speaker 1>come back, he won't be here. But when he does

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<v Speaker 1>come back, I will be here, but that might be

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<v Speaker 1>a few weeks off. So good morning, my friend. I

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<v Speaker 1>look forward to resuming activities in a few weeks. In

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<v Speaker 1>the meantime, How is it in the Nation's Capital? I

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<v Speaker 1>think I read it was minus seven point six earlier today.

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<v Speaker 2>Yeah, look at I tell you though, the weather is

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<v Speaker 2>beautifully that there's no wind. You know you talk about

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<v Speaker 2>wind chill factor and no wind at all. It is

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<v Speaker 2>just perfectly sunny, clear, but it is cold. This morning,

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<v Speaker 2>as I was preparing for my little chat with you,

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<v Speaker 2>wash a big pied turrelong come in. He comes in

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<v Speaker 2>every day to land on the on the bird bath,

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<v Speaker 2>have a drink and a bit of a bath and

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<v Speaker 2>then he flies off. This morning he went down and

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<v Speaker 2>slipped straight across the board, fell off the other side.

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<v Speaker 2>It was solid ice. I've never seen a turrolong with

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<v Speaker 2>surprised look on his face. It was col the third

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<v Speaker 2>bath is solid ice.

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<v Speaker 3>Wow.

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<v Speaker 1>Fancy that now Dennis A PM's trip to Canada is

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<v Speaker 1>over and ended with a whimper as Donald Trump ducked

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<v Speaker 1>out of the G seven and didn't even give Olbow

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<v Speaker 1>a sorry, I can't make it. There's no rush to NATO.

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<v Speaker 1>In fact, I think that's been ruled out now, little

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<v Speaker 1>prospect of a face to face meeting for some time.

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<v Speaker 1>As I joke before, it's not like there's, you know,

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<v Speaker 1>anything significant happening with our relationship. Potentially not if you

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<v Speaker 1>count orcus and tariffs as things that are serious. What's

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<v Speaker 1>going on here?

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<v Speaker 2>Well, look I think that yes, Donald Trump left seventh early.

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<v Speaker 2>He didn't meet a number of other leaders, but Anthony Alberinase,

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<v Speaker 2>he was listed as the second last on the agenda.

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<v Speaker 2>I don't know virtually who was last. When Donald Trump

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<v Speaker 2>said I'm leaving early, he rang other leaders and said, oh, look,

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<v Speaker 2>I'm sorry, we can meet up later. Whatever. Anthony Albinase

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<v Speaker 2>didn't even get a call. And so what we're seeing

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<v Speaker 2>is that the failure of Anthony Albinase is to try

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<v Speaker 2>and establish an early relationship with Donald Trump despite the

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<v Speaker 2>political differences and all the rest. The Prime Minister said

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<v Speaker 2>on another a number of occasions, doesn't matter who's president,

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<v Speaker 2>who's Prime minist we need this relationship. Well it's not happening.

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<v Speaker 2>The Prime Minister had gone to Canada with a whole

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<v Speaker 2>series of ideas about critical men rolls that we're going

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<v Speaker 2>to use as a bargaining chip to get lower tariff's.

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<v Speaker 2>There was going to be discussion of aucas while there

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<v Speaker 2>was a review on in the US, and nothing happened.

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<v Speaker 2>The Prime Minister met some trade officials that Kevin Rudd,

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<v Speaker 2>as Ambassador to Washington, had already met. So what we've

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<v Speaker 2>seen is a failure early on for the Prime Minister

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<v Speaker 2>to try and establish that key personal contact with President Trump.

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<v Speaker 2>He did consider going to the Netherlands because the NATO

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<v Speaker 2>meeting on the off chance of getting a sideline meeting,

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<v Speaker 2>but in the end has decided no, he's not going

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<v Speaker 2>to do that. The likelihood is that he was good

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<v Speaker 2>go over there, not going to meeting anyway. So this

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<v Speaker 2>has been a failure as far as a trip goes

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<v Speaker 2>where the Prime Minister had hoped to meet and discuss

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<v Speaker 2>and negotiate issues of tariffs, which are still very important

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<v Speaker 2>for US and of course AUCAS to try and talk

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<v Speaker 2>to the President about August before the US review is completed.

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<v Speaker 2>Now looks like there will be no meeting until probably

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<v Speaker 2>New York in September.

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<v Speaker 1>At the UN, Joe Hockey as ambassador play golf with Trump.

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<v Speaker 1>Kevin Rudd referred to him as a really jdiot. Can

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<v Speaker 1>you can you shoot any of the blame to Kevin Rudd?

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<v Speaker 1>I mean they're not going to take him seriously, are they?

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<v Speaker 2>Look I think that actually Kevin Rudd's done quite a

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<v Speaker 2>good job as far as ambassador on the grounds concerns

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<v Speaker 2>is kept open. All the negotiations on tariff almost escaped

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<v Speaker 2>the full brunt of tariff, but there was a political

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<v Speaker 2>interference there. Certainly what Kevin Rudd had said previously about

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<v Speaker 2>President Trump wouldn't help. But look, the issue here is

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<v Speaker 2>about leaders face to face and that relationship. This is

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<v Speaker 2>what Donald Trump operates on and we saw the success

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<v Speaker 2>of their care Starmer, a UK Prime minister who went

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<v Speaker 2>early to see Donald Trump and put up the UK

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<v Speaker 2>spending on defense very quickly. It is clear that Donald

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<v Speaker 2>Trump talks to people who are prepared to talk to

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<v Speaker 2>him and act.

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<v Speaker 1>You know, I reckon the PM's office would be wouldn't

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<v Speaker 1>they very concerned that if he went to Washington there

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<v Speaker 1>would be a you know what show if the meeting

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<v Speaker 1>was in the Oval office. It's not like Trump has

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<v Speaker 1>spared any other leader from embarrassing them or at least

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<v Speaker 1>calling them out. There's no doubt in my mind that

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<v Speaker 1>if Albo and the Trumpster sat together and the cameras

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<v Speaker 1>were rolling, mister Trump would have some difficult questions, wouldn't.

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<v Speaker 2>He He would indeed, And look, I've mentioned before on

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<v Speaker 2>the program, I've been there in that room. It was

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<v Speaker 2>Scott Morrison, who is Prime Minister, and Donald Trump, and

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<v Speaker 2>that was very warm and friendly and a little bit

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<v Speaker 2>off a wall. But in any case, there would be

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<v Speaker 2>no doubt that a trip to Washington would have to

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<v Speaker 2>mean that appearance in what has now become a star

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<v Speaker 2>chamber where the Prime the President is prepared to rip

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<v Speaker 2>strips off people, so is the Vice president, and it

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<v Speaker 2>would be extremely embarrassing. The advantage of a so called

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<v Speaker 2>meeting in the sidelines is that it's not televised, and

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<v Speaker 2>there isn't that whole feeling of being interrogated. I think

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<v Speaker 2>that the Prime Minister would prefer to go to New

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<v Speaker 2>York and meet President Trump again in the sidelines of

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<v Speaker 2>the UN meeting.

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<v Speaker 1>What about Aucus, mate? There's concern here, isn't there? The

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<v Speaker 1>US want us to spend more on our defense. Richard

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<v Speaker 1>Miles is going to have to come up with more

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<v Speaker 1>than just words here, isn't he?

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<v Speaker 2>We certainly is. And of course, apart from tariffs which

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<v Speaker 2>went nowhere, Aucus was the other big issue that Australia

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<v Speaker 2>had to address with President Trump in Canada. That didn't happen.

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<v Speaker 2>And now it is clear that the Prime Minister has

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<v Speaker 2>made it clear is not going to the Netherlands. They

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<v Speaker 2>thought about it and then thought, no, we wouldn't do it.

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<v Speaker 2>This means that Richard Miles, as Deputy Prime Minister and

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<v Speaker 2>Defense Minister, has to go to the NATO meeting and

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<v Speaker 2>there defend Australia's decision not to increase defense spending to

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<v Speaker 2>three point five percent, which the US wants us to do.

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<v Speaker 2>That's much less than what the US wants our NATO

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<v Speaker 2>allies to He wants them to go to five percent

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<v Speaker 2>of GDP on defense. We can see what's happening in Israel.

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<v Speaker 2>We can see what's happening in the Ukraine. There is

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<v Speaker 2>a worldwide pressure pressure to actually increase defense spending. It's

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<v Speaker 2>not happening in Australia. Richard Miles is going to have

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<v Speaker 2>to try and explain this to the US. The Prime

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<v Speaker 2>Minister has not been able to talk to Donald Trump

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<v Speaker 2>while and we've already paid eight hundred million dollars by

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<v Speaker 2>the way on the nuclear submarines, and we can't even

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<v Speaker 2>get to talk about it while the US is reviewing it.

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<v Speaker 2>Our only hope has been a starmer of the UK

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<v Speaker 2>who managed to get the President to nod to nod

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<v Speaker 2>at the Joint press conference when he said yes that

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<v Speaker 2>was still going ed with Aucus. This is how tenuous

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<v Speaker 2>it is. It is a key issue, and as we

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<v Speaker 2>discussed last week, the Australian government, the current Australian governments

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<v Speaker 2>still refuses to put forward a very strong justification to

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<v Speaker 2>the Orchist project and it looks as if somehow it's

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<v Speaker 2>actually not committed to it.

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<v Speaker 1>Yeah, all right, Dennis, So we'll take a break before

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<v Speaker 1>we do. Elizabeth has called through from Brisbane with a

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<v Speaker 1>traffic drama. Elizabeth, thank you for this. What can you

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<v Speaker 1>tell me?

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<v Speaker 3>There's like a car's got into a real estate on

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<v Speaker 3>Logan Road at Moncrovit and and there's a car behind

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<v Speaker 3>it smashed as well, and three lanes are blocked all

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<v Speaker 3>the way to Garden City.

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<v Speaker 1>And do we have emergency services on the scene, Elizabeth,

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<v Speaker 1>there is, yes, there is, Okay, am I right in

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<v Speaker 1>saying this is a corner of Logan Road and Selborne Street.

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<v Speaker 3>That's the one.

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<v Speaker 1>Okay, thank you so much for calling and allowing us

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<v Speaker 1>to share that news with people on the roads in Brisbane.

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<v Speaker 1>Thanks Elizabeth. A car and there were a real estate

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<v Speaker 1>agency blocked the corner of Logan Road and Silborne Street

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<v Speaker 1>at Mount Gravat back in a moment. It's a quarter

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<v Speaker 1>to ten and we're of course to Dennis Shanahan and Dennis.

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<v Speaker 1>Jim Chalmers has considered the budget is unsustainable, promised not

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<v Speaker 1>to shoot down any ideas on tax reform as the

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<v Speaker 1>Productivity Commission suggests changes to the GST would help. I

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<v Speaker 1>don't know if he's open to everye suggestion.

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<v Speaker 2>Do you no, he's look. It was a very important

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<v Speaker 2>speech by the Treasurer at the Press Club in Camber

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<v Speaker 2>this week, while all the concentration was on what Prime

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<v Speaker 2>Minister was doing Israel and Ukraine and all the other

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<v Speaker 2>defense issues. The economy continues to be a grave concern

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<v Speaker 2>and the treasure of this week actually said without change,

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<v Speaker 2>the budget is unsustainable. Now, this would have been nice

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<v Speaker 2>to have heard about a little while earlier. You and

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<v Speaker 2>I have been talking about productivity for as long as

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<v Speaker 2>we've been on the show to get her, and of

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<v Speaker 2>course it is the big issue. The treasure has now

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<v Speaker 2>come out and said, yes, it is the big issue.

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<v Speaker 2>That's why the budget's not sustainable. We have to have

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<v Speaker 2>tax reform and we have to actually increase productivity. Now

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<v Speaker 2>how he goes about that is going to be the

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<v Speaker 2>big issue. And can he continue to try and lift

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<v Speaker 2>productivity while continuing to spend government spending is getting out

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<v Speaker 2>of control and can he do it without introducing new taxes? Now,

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<v Speaker 2>the Productivity commission Commissioner has said today in Australian, well, look,

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<v Speaker 2>we could look at the GST, actually increasing the GST

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<v Speaker 2>and increasing the coverage of the GST as well as

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<v Speaker 2>how we distribute it to the states. So this is

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<v Speaker 2>a big issue. The Productivity Commissioner said, we should look

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<v Speaker 2>at The Treasurer also said, oh, look he was going

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<v Speaker 2>to stand by the tax the capital gains tax on

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<v Speaker 2>unrealized capital gains tax for people with superannuation, and that

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<v Speaker 2>he said, no, no, we're not going to touch that.

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<v Speaker 2>This is the idea that I hear. All things are

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<v Speaker 2>on the table. He also, though obviously concerned about the

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<v Speaker 2>fact that people are arguing that this unrealized superannuation tax,

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<v Speaker 2>which is not indexed, will over ten years increase its

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<v Speaker 2>grab to eight billion dollars as one inestimate from today.

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<v Speaker 2>And what we've seen already is fears that the capital

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<v Speaker 2>gains tax could be applied to a family home or

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<v Speaker 2>some inheritance tax. Now Jim Chalmers has said no, we're

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<v Speaker 2>not going to touch the family home. We're not going

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<v Speaker 2>to touch in inheritance or death tax. But he's leaving

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<v Speaker 2>open the whole idea of family trusts and the continuing

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<v Speaker 2>pressure on superannuation of funds at the moment over three

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<v Speaker 2>millions when you start paying the tax on unrealized capital

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<v Speaker 2>gains and that that will just grow. So what we're

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<v Speaker 2>seeing on the one hand, the Treasure is saying and

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<v Speaker 2>trying to make a very bold statement and it's about

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<v Speaker 2>time somebody did it to say that debt and deficit

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<v Speaker 2>and lack of productivity means the budget is unsustainable. We're

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<v Speaker 2>facing a decade of deficits. He says, something has to

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<v Speaker 2>be done. He try and pull together a group of

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<v Speaker 2>business leaders and union leaders and so on to try

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<v Speaker 2>and do something about productivity. But the issue remains that

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<v Speaker 2>there are still no go zones as far as he

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<v Speaker 2>is concerned, while others are saying you're going to have

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<v Speaker 2>to do much more than just put a tax on

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<v Speaker 2>unrealized capital gains a superduation. I think the Treasurer has

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<v Speaker 2>been courageous here at the courageous tuger in opening up

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<v Speaker 2>the issue. He has admitted it's not sustainable. But what

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<v Speaker 2>is he going to do and what can he do?

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<v Speaker 2>These are big issues for the economy and for the

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<v Speaker 2>new the newly elected labor government.

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<v Speaker 1>Yeah, and with those taxes, it's it's time Brook starts.

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<v Speaker 1>It's it's where it finishes. And that's that's the real concern.

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<v Speaker 1>Are you Are you heading away to your weekender on

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<v Speaker 1>the Mediterranean?

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<v Speaker 2>Not just yet, but I will be away, and I'm

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<v Speaker 2>very sorry to hear that today is our last not

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<v Speaker 2>on chat for a while, but I'll be I'll be

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<v Speaker 2>around for a bit long yet Before I head off

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<v Speaker 2>right to the Apennines and the Italian Alps.

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<v Speaker 1>Yeah, you're lucky, lucky thing. Well, mate, I'll miss you

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<v Speaker 1>for the four or five or six weeks. You don't

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<v Speaker 1>get the too, But of course I really enjoy talking

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<v Speaker 1>to you. You know that, Dennis. But we'll catch you when

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<v Speaker 1>i'm back and you'll be on with Trent next week.

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<v Speaker 1>Stay well, my friend.

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<v Speaker 2>Stay well the week and have a good holiday.

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<v Speaker 1>Yeah, thanks so much mate, And when you get to

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<v Speaker 1>have on you too, Dennis Shanahan