Thursday, 6 November 2025

E&OE

Michael McLaren:

Tim Wilson is the Shadow Minister for Employment. He wanted to come on and have a chat about these. He's in between divisions as you can hear the bells ring. Like Quasimodo, he's going to have to skedaddle but he's with us. G'day Tim.

Tim Wilson MP:

G'day Michael and the bells are ringing so I've got two minutes but yes it's good to chat about these things because while there are small businesses collapsing all over the country, we have 8 out of 10 jobs being given by public sector growth, only two are being grown by private sector investment. It's party time in Canberra where people are getting big pay rises and public service is expanding. 

Michael McLaren: 

Why all these extra jobs?

Tim Wilson MP: 

Well that's an excellent question because public services aren't improving but the bigger issue is that so long as we have a massive expansion of public service it's being fuelled by debt spending that's pushing up inflation and pushing up interest rates so we're all paying the price for the measures that are being taken in Canberra through the increased size of the public service.

Michael McLaren: 

I want to ask you about that connection to inflation, just tell me when you've got to go, because we've had those numbers out last week, obviously we didn't get the rate cut on Melbourne Cup days, some were hoping for, the economy is running hot. The percentage of that heat that is being generated by federal expenditure though, hasn't I don't think been fully explained to the public?

Tim Wilson MP: 

Well that's right and so because we've had a big increase in state and federal government expenditure what it's meant is people are borrowing from the future, spending more money today and in practise that keeps the price, the upward pressure on interest rates which is why they're sustaining. Until you get public expenditure under control you're not going to get a reduction in inflation and therefore you're not going get a reduction in interest rates.

Michael McLaren: 

The other side the Labor Party would say, yes, we've had to hire all of these people though because when the Coalition were in for 10 years, they didn't hire too many. In fact, they did a lot of things through consultancies and the like. We weren't getting a great bang for buck there. There is some truth to that argument though, isn't there Tim, that at some point as the economy grows, the public sector will have to grow with it to meet demand and additional services and all the rest.

Tim Wilson MP: 

I don't accept that because you actually get efficiency dividends by actually, through the use of technology, but also making maximum advantage of delivery. And so this is just a justification, but we're all going to continue to pay the price through higher inflation, higher interest rates. And I do apologise. I need to step into the chamber, so I have to get off the phone.

Michael McLaren: 

Well, you do that. You've got to go. Parliament takes precedence. I know you wanted to come on and have a chat, so we've got a few minutes. Thank you. Tim Wilson there, the Minister for Employment. The bell's ringing in the background. He can't do much about that.


ENDS