ABC News Radio with Marius Benson
E&OE
Sandy Aloisi:
New figures being released today by the Federal Government will show it’s paying out more in unemployment benefits. The labour market figures show there’s been an increase of 44,000 people out of work, with the jobless total now at nearly 850,000. That’s the highest number since 1998.
To look at the latest dole queue figures, Marius Benson is speaking to Social Services Minister Kevin Andrews.
Marius Benson:
Kevin Andrews the official figures coming out today, are we now at a 15 year high?
Minister:
Yes we’ve now got more than 840,000 people receiving either the Newstart Allowance or the Youth Allowance; these are the highest figures we’ve seen since 1998.
Marius Benson:
And what’s driving it?
Minister:
Well there’s obviously a softening in terms of the economy itself and the labour market. This is also partly a result of the Labor Party putting around 82,000 Parenting Payment recipients onto Newstart and Youth Allowance rather than onto the Parenting Payment. So it’s a combination of both the economy and some of the changes which the Labor party made in government.
Marius Benson:
It’s nearly six months since the Abbott Government was elected and promised that Australia was open for business. Can this number on the unemployment queue now be taken as a fail mark for the government?
Minister:
No I think this is an indication of the inheritance we have received from the Labor Party. It is quite clear from these figures that there’s been an increase of about 44,000 over the course of the year, from January 2013-2014. This is an indication of the challenge we’ve got ahead of ourselves.
Marius Benson:
But when you say it’s the inheritance from the Labor Party you were elected on the promise that you would change the economic trajectory that Labor had set.
Minister:
Well you don’t turnaround a ship of state overnight. We are putting in place some measures, for example the measures that will enable people to be paid a Relocation Allowance, measures in relation to employers receiving over $3000 if they employ a mature job-seeker who’s off Newstart or Parenting Payment for at least six months. Now these are things we are putting in place to deal with the situation we find ourselves in.
Marius Benson:
Will the unemployment number grow; will it get worse before it gets better?
Minister:
Well on Labor’s own projections from last year the unemployment rate was due to grow, so that’s something which again I say we inherited from the previous government.
Marius Benson:
But they were Labor projections and you were elected as another government with other policies that you said would bring different results.
Minister:
And over time we will work towards bringing about those results for Australians. We want more people in work, not less people in work, but it’s going to take time to put those policies in place and have an impact in the context of what’s happening in the economy generally.
Marius Benson:
Given what is happening in the economy does it make you review the government policies which have not provided assistance to areas where some claim it could’ve saved jobs?
Minister:
Well we can’t spend good money after bad. If decisions are made, particularly decisions made by global corporations that they are going to transfer their business or their manufacturing from Australia to other parts of the world, it’s quite clear that those decisions are made in the broader context of the global economy and the impact upon those businesses. For us to spend more taxpayers’ money when a business ultimately was going to leave Australia would be wasting money rather than actually putting it to good use.
Marius Benson:
Qantas is expected to announce job losses with its half-yearly results tomorrow. Is Qantas a special case given that it’s subject to specific legislation?
Minister:
Well, obviously it’s a special case in the sense that it is subject to specific legislation. One of the things we’ll have to look at is the continuing relevance of that legislation given what’s happening in the global marketplace for aviation, and of course taking into account the long history and the way in which Qantas is regarded by Australians.
Marius Benson:
When you say that is something you will have to look at, you have been looking at it as a government, the Qantas Sale Act, which restricts foreign ownership of Qantas.
Minister:
Well, these are matter which no doubt the government will continue to look at and we’ll take into account all factors that are relevant.
Marius Benson:
Are you resigned to Qantas announcing something like 5000 jobs going tomorrow?
Minister:
Look I haven’t had any discussions myself with Qantas so I don’t know. I’ve read media reports like everybody else has, but until I see the actual details from Qantas I would just be speculating.
Marius Benson:
Tony Abbott was speaking to Liberal Party Members in a Party Room meeting yesterday warning of a tough budget ahead. Is this budget going to turn around the unemployment situation?
Minister:
Well, the job this budget has to do is to start to turn around the massive debt and the massive deficits we’ve inherited. The reality is if we do nothing about it we are looking at $123b worth of accumulated deficits, we’ve got a debt which is racing towards $667b. That is unsustainable if we allow that to continue and that’s the task which not just the Treasurer and Finance Minister have but indeed the entire government.
Marius Benson:
Kevin Andrews thank you very much.
Ends