Tuesday, 3 February 2026

Transcript – Interview with Peter Stefanovic, Sky News

Topics: Liberals, Nationals, rate rise

E&OE

Peter Stefanovic: We'll keep that conversation going now when it comes to the Opposition anyway with the Shadow IR Minister Tim Wilson. Good to see you this morning Tim. So let's just start off with the Coalition and the Opposition and whatever that is at the moment because you had a fair bit to say about that last week. Do you feel like you're heading in the direction of reunification at all?

Tim Wilson MP: Well there's obviously conversations that are ongoing and they're going to continue throughout today. Certainly, that's the objective, it seems, from both parties because what both parties want and what Australians are looking to us and expecting of us is to do better and to make sure that we are fighting for them, not each other.

Peter Stefanovic: Do you want that to happen?

Tim Wilson MP: I absolutely want the Liberal Party, the National Party, to be focused squarely on addressing the problems of persistent inflation driven by debt spending by this government, so that we can change the political conversation and stand up for Australians, because that's not just what I want, it's what Australians want too.

Peter Stefanovic: But doing that under the umbrella of a Coalition?

Tim Wilson MP: Well I'm going to be doing it regardless of whether a Liberal Party or part of a Coalition because central to what Australians are facing right now is deep concerns as we head towards the middle of the day, the Reserve Bank is going to increase interest rates. People are already struggling and when they know the government is responsible because of debt spending, what they want to see us is focused on that, not on ourselves.

Peter Stefanovic: Just one more on that though. What's the guarantee that you won't split up again? If you get back together, what's the guarantee that won't you split up down the track if one side becomes miffed at something?

Tim Wilson MP: Well it's about listening and engaging and being respectful as the basis for any partnership. And if we have that partnership and we're focused squarely on having an agenda that puts Australians first, there should be no reason for disagreement. And that's what it comes down to. Are we going to be the defining political force we need to be to fight for Australians and the future generations of Australians? Are we gonna put forward the agenda that Australians turn on and go, that's I want to see?

Peter Stefanovic: Let's get to the RBA today. There's a more than 60% chance that we see a rate increase today. So we'd become the first major central bank to reverse course and start lifting interest rates. Other nations are going the other way. Now I had a lengthy chat with the Treasurer a little bit earlier today and he said that the talk about excessive government spending is politics. He said that's what it is. I mean what's your response to that?

Tim Wilson MP: Well unfortunately Jim Chalmers just isn't in control of his portfolio. There are a number of drivers of inflation and they're all backed up by excessive government spending because he can't manage his budget. He's borrowing from the future to pay for today. What that's doing is driving inflation, whether it's energy costs, whether it is construction costs, to try and cover for their overall economic mismanagement. You just need to look at the employment data. Eight out of 10 jobs are created directly or indirectly by government expenditure, and that is what is driving the inflation, and that's why Australian households are at risk of a higher interest rate hike today.

Peter Stefanovic: Well, I mean, do we have one of the, if not the largest public sector in the world?

Tim Wilson MP: We have one of the largest public sectors in the world, particularly as proportion of the population. There's no productivity improvements, there's no efficiency improvements. Every time at a state and a federal level, Labor gets into power, they see how they can borrow from the future to increase the number of people who frankly will vote for them today. And that's what we're seeing at a state level and a federal level and Australian households paying their bills.

Peter Stefanovic: Yeah, also there was the pivot of the argument towards the private sector and so much of that jump in inflation last week was because of the private sector but do you think that argument washes given what you just said?

Tim Wilson MP: It doesn't wash at all. And this is where Jim Chalmers isn't in control of his job and his portfolio, because a lot of the expenditures, public money borrowed from the future to pay for today, they might send it through private businesses because the government can't deliver the projects or the services, but it's still inflationary. Jim Chalmers and Anthony Albanese are at the heart of Australia's inflation challenge. The only way it will change is if we change the government.

Peter Stefanovic: Okay, just a final one here. When you've got your own affairs to manage, how do you prosecute your argument against the government today?

Tim Wilson MP: Well we keep the focus squarely on Australians and what their needs are. You know, last week, millions of kids have gone back to school and parents have been hit with the costs of a new school year. There's one thing they can't afford right now, and it is an increase in interest rates, but that's potentially what they're staring down because the Albanese government can't control spending and because they're accruing debt from the future to pay for today, Australians are at risk.

Peter Stefanovic: Yeah and bad news often comes in twos with these sorts of things. It could well be a second rate rise throughout the course of the year as well. Tim Wilson we'll leave it there thank you.

ENDS