JAMES GLENDAY, HOST: Well, it seems like a good time to bring in the Federal Transport Minister, Catherine King, who joins us from Ballarat this morning. Minister, welcome to News Breakfast.
CATHERINE KING, MINISTER FOR INFRASTRUCTURE, TRANSPORT AND REGIONAL DEVELOPMENT: Thanks for having me, James.
JAMES GLENDAY: Can we start with Qantas? Just before the war began, Qantas announced a record underlying half yearly profit of nearly $1.5 billion. What do you think about it now pushing up flight prices and cancelling services, as we just heard?
CATHERINE KING: Well, obviously, Qantas made us aware, and we've been talking to them since the fuel crisis has hit about what they are planning to do. And so, obviously, yesterday they made the announcement they're going to reduce services and that's as a result of the war in the Middle East and the incredible price spikes we're seeing in jet fuel in particular. And I think they've announced that that's having a significant impact on their business in terms of what- you know, fuel's obviously one of the largest inputs. So, it's disappointing to see but understandable in the context that all businesses are grappling with how to actually manage with the fuel increases that we're seeing. It's why we've been very focused on trying to through- you know, the dropping of the fuel excise, the heavy vehicle road user charge, trying to keep freight moving and really focusing on trying to alleviate as much pressure on people as we can. But jet fuel obviously is under some pressure from a price point of view.
JAMES GLENDAY: Sure. The airlines are a heavily regulated sector. Have you asked for an explanation from Qantas about why it's targeted these specific routes?
CATHERINE KING: Certainly they've been working with my department and letting us know, you know, these are commercial decisions in essence that Qantas has made in relation to its business. Obviously what we've heard in terms of Mount Gambier and I've just heard the mayor then, and I know that's incredibly disappointing for the community. Patronage was low. I know the local federal member's been making representations to Qantas about the timing of the route and trying to get the patronage up on that for some time. I understand the service is suspended for now, but let's see, obviously, as we get through this global fuel crisis, what actually happens. But, you know, Qantas has got obligations to regional communities as well.
JAMES GLENDAY: Yeah, some other sectors are taking a hit at the moment. Is Qantas able to act in this way, cancel services, bump up prices, because there's just not enough competition in our airline sector?
CATHERINE KING: Well, I don't think it's a matter about competition. I think every airline, whether it's Virgin, Qantas or Rex, and some of our independent air suppliers as well, are all experiencing the costs of jet fuel, and that's the issue globally. We're not immune from what's happening in the Middle East, obviously. So, I don't think it's a matter in terms of competition. It's certainly an issue in terms of fuel being one of the largest input costs that is in aviation. But also in terms of the price hikes, the ACCC is monitoring airline airfares and, you know, they need to be able to explain very, very carefully to the ACCC any increases in costs that have to be able to be justified.
JAMES GLENDAY: Just on that, before we move to trucking, are you expecting Virgin, maybe Rex, other airlines to be following suit and bumping up prices imminently?
CATHERINE KING: Well, that will be a matter for them, but, again, my department has been in constant contact with them. I hold a weekly meeting with all of the transport sector around fuel security, and Qantas and Virgin and Rex are all involved in that, keeping a good, clear line of sight about what's happening in their businesses and we'll keep working and talking to them.
JAMES GLENDAY: We've been speaking to a number of trucking companies on the show including one about 20 minutes or so ago. They have been warning for some time now that at the end of this month, maybe early into May, there is this risk of some pretty big price spikes, particularly at the supermarket. Are you considering any further assistance to try to keep trucking costs down?
CATHERINE KING: Well, the first thing we did, which was significant, was take the road user charge to zero. That's a really substantial cut for trucking in terms of the fuel that they use, being able to actually claim the full percentage of that on their tax credits. So that was an important move to make. The second thing which was important to make was the changes we made to the Fair Work Act that allows trucking companies in their contracts to actually account for the increases in fuel and that was really important. That's making its way through the Fair Work Commission as we speak, so making sure that they've got that capacity, because we do need to be able to keep freight moving right the way across the country. We've got representations from the rail industry as well about trying to get more of our freight, particularly our food services, onto rail, again which uses less diesel as well. So, this is really an important part of trying to keep Australia moving is making sure that we've got a freight industry, the freight industry remains strong, the state governments putting in place the cut to GST. I think that's been important for trucking as well, as the fuel excise cuts across the board. But we'll continue talking to the industry about what they may need to get through this.
JAMES GLENDAY: So maybe, it seems. The Government's got this advertising campaign. I started seeing it last night. $20 million is being spent urging people to save fuel. The main message is every little bit helps. What are you doing in your own life, minister, to save every little bit of fuel?
CATHERINE KING: Yeah, well, certainly I'm doing the same things I think every family is trying to do. We caught the train to Melbourne a couple of times over Easter. My husband was on it today. Free public transport in Victoria has been very well patronised. It's great being able to have the train, but not every community has done that. I've got a car, unfortunately, I've got a diesel car. I've got an electric one on order, but there's been such a huge uptake in demand, it's a little while coming, but I'm using eco on my car that has it and really just trying to avoid trips where I can and walk where I can. But you know, every family's having to do that. The costs are driving a lot of that for people as well.
JAMES GLENDAY: Has there been any discussions within the Albanese Government about maybe getting politicians to travel less? Are we at that point yet?
CATHERINE KING: Certainly I think we're all thinking about what- you know, as the ad campaign says, every little bit helps and all of us, we're all in this together, we're all experiencing this. I think it's important that we all do what we can and I think that certainly every individual, every family is trying to do that and politicians are no different in that regard.
JAMES GLENDAY: Yeah, well, we won't be hypocrites here at News Breakfast. Minister, we're actually going to Perth on Friday to meet a lot of people and then we're going to be coming to your hometown of Ballarat as well. Are you going to come and say hello?
CATHERINE KING: I will say hello, but I will be in Canberra because we have cabinet meetings on Monday. So of all the times to come, I will warn you, it is cold, but it's beautiful here at the moment. But it is a bit cool. Winter has come a little earlier to Ballarat than usual. Usually it's ANZAC Day when the weather turns, but it's a bit cold at the moment. But I hope you enjoy your time in my beautiful home.
JAMES GLENDAY: It is a beautiful part of the world, no doubt. Minister, thank you very much for joining us.
CATHERINE KING: Great to be with you.
