| No images? Click here Quote to note“Matt Canavan is becoming like the Japanese intelligence officer who refused to accept World War II was over and hid in the Philippines jungle for 30 years" Nationals MP Darren Chester reckons his colleague needs to accept he’s lost the argument on net zero. The Coalition’s been out in force promoting its commitment to the policy after Senator Canavan did the rounds of the media declaring the policy was “dead”. Making news this morning1. Our 21-year high 5.1% annual headline inflation rate is down to prevailing economic headwinds, Treasurer Josh Frydenberg says. He’s urged voters to trust the ‘‘strength and stability’’ of the Coalition’s economic management. Meanwhile, Labor’s Jim Chalmers slammed the government for the ‘‘triple whammy’’ of high inflation, looming rate rises and falling real wages. 2. There are raised expectations that the Reserve Bank will interest rates next week, so during the election campaign. Reserve Bank Governor Philip Lowe had planned to wait for wages data in mid-May and the national accounts in early June before making that call, the Financial Review says (PW). 3. Labor delivered its economic statement yesterday. Chalmers says Labor will crackdown on multinational companies not paying enough tax in Australia, review the public service and reduce outsourcing, and find $5 billion in savings if it wins government. 4. Pauline Hanson says One Nation will preference Labor over the Coalition in some key seats (PW). It’s punishment for the Liberals giving their preferences to the Jacqui Lambie Network ahead of One Nation in the Tasmanian Senate race. 5. Mayo Centre Alliance MP Rebekha Sharkie says she would negotiate with the Coalition first if there is a hung parliament. "I do not believe it is a single person’s job to change the government,” she said yesterday. Going deeper: Inflation explodes into the election campaignIt’s at least 15 years since one number landed in the middle of a campaign with such a thud. Yesterday’s announcement that we have an annual inflation rate of 5.1% was well above market expectations and confirmed what most Australians were experiencing – that the supermarket shop, petrol fill-up, and many other things got more expensive really quickly. (Note: grocery prices are up 4% in the past 3 months alone.) ● Labor responded to the news with Anthony Albanese tweeting a key campaign line: "the cost of everything is going up, but your wages aren’t." Wage growth is sitting at 2.3%, so it’s really not keeping up with price rises. ● PM Scott Morrison used a graph (PW) to show Australia’s doing better on inflation than NZ, the US and UK. He also pointed to the fact the Government’s already helping people deal with price rises with a 22c a-litre fuel excise cut and a $250 handout, which started flowing yesterday. What it means: Cost of living has just been turbo-charged as an election issue. And it’s made it more complicated for Morrison to run a campaign around being the better economic manager. What’s next: More economists now think the Reserve Bank will lift rates next week even though it signalled earlier in the month it could hold off until June. Both sides really will be holding their breath at 2.30om AEST next Tuesday. The Climate Wars never go out of fashion in Australian politics Every federal election since 2007 has had a battle royale over climate policy. Neither side has wanted to make it front and centre in 2022 – but it has reared its head and is causing issues for the Coalition and Labor. ● Queensland Nats Senator Matt Canavan’s comment that net zero emissions by 2050 is effectively “dead” has made his colleagues pretty cranky. Former Nats Leader Michael McCormack says regional Australia just wants the issue settled, and fellow Queenslander Michelle Landry wants Canavan to “pull his head in”. ● Labor is feeling its own climate pain. Morrison is invoking themes from the 2010 and 2013 campaigns accusing Labor of planning a “sneaky carbon tax” after leading coal mine Whitehaven expressed concern about how much the biggest 215 emitters would have to pay under Labor’s policy. What it means: Both sides have got their own uncomfortable history with climate change policy. It took serious skin off John Howard… Julia Gillard… Kevin Rudd… Tony Abbott… Bill Shorten… Malcolm Turnbull. What’s next: Morrison and Albanese will be doing all they can not to add their name to that (ahem…) honour roll. Putin’s health and the big white table back in the spotlightOver the past few months, there has been a lot of speculation that Russian President Vladamir Putin has cancer or Parkinson’s disease… or something else entirely. Because of the pandemic, very few people have gotten anywhere near him, and it’s a tricky task for Western intelligence agencies to assess his physical or mental state. ● He’s been keeping world leaders and his own cabinet ministers at a pretty eye-popping distance. UN Secretary-General António Guterres is the latest Kremlin visitor to be kept at the pointy end of a long, white table. ● It’s not known if these measures are simply an extreme attempt to stay COVID-free (note: the New York Times reports he’s had ‘disinfection tunnels’ installed in the Kremlin) or if it’s driven by the fact he’s seriously ill/ immune-suppressed. Why does it matter: Given his iron grip on Russia, the course of the Ukraine war would likely change if Putin wasn’t in power. The readout: Leading Russia analyst Fiona Hill is one whole thinks Putin is operating on an accelerated time frame in Ukraine, perhaps motivated by his own mortality. The US is under some pressure to release intelligence on his health, given how many unsourced theories are circulating. Quick shotsPM Scott Morrison has “all but ruled out” federal funding for the proposed Collinsville coal-fired power station in North Queensland. Shine Energy CEO Ashley Dodd says there is no certainty for the project (PW) 3 years on from receiving federal funding for the feasibility case. It’s a project Nats coal enthusiast Matt Canavan is vocal about. There have been systemic cultural failings within Victorian Labor that led to a rotten culture and encouraged the serious misuse of public resources, according to the state’s anti-corruption commission. Victorian Premier Daniel Andrews has been “secretly grilled” by investigators, The Age says this morning. Teachers have walked out of a school ahead of a visit from the NSW Premier Dominic Perrottet. The action is part of a pay dispute, and the state’s teachers are planning to strike next Wednesday. Dieticians want a national nutrition policy in the wake of increased food prices. Dietitians Australia says 10 chicken nuggets from Hungry Jacks are currently cheaper than an iceberg lettuce, and that’s a problem for healthy eating (PW). Close to 2 million Aussie passports expired during the pandemic, triggering an avalanche of renewals (PW). The Department of Foreign Affairs and Trade says nearly 400,000 have been issued since 1 January – more than double the number delivered in the same period last year. Kamala has COVID… The US Vice President is the latest member of the Biden administration to test positive. She hasn’t been in close contact with the President since the Easter egg roll at the White House. French President Emmanuel Macron had a boisterous first public outing since his re-election on Sunday. A disgruntled onlooker has targetted him (but missed) with a bag of cherry tomatoes. Map of the day Vladimir Putin’s health had us thinking about pollies keeping fit and active. Nats leader Barnaby Joyce surprised us with a campaign run in Rockhampton on Tuesday, Scott Morrison is fond of a swimming selfie, and Anthony Albanese’s pre-campaign weight loss got a lot of media attention. But for sheer consistency, no one could challenge John Winston Howard with his daily power walk. Questacon even dedicated a ‘Walk of Wonder’ in Canberra to him in 2015… What’s on todayScott Morrison starts his days in Cairns And Anthony Albanese remains in COVID isolation… but that ends tonight Deputy Prime Minister Barnaby Joyce will be in the Brisbane area United Australia Party leader Craig Kelly is campaigning in Torquay, Geelong and Ballarat 8.30am – Anglicare Australia releases its Rental Affordability Snapshot report – Canberra 11.00am – Foreign Minister Marise Payne delivers an address to the United States Studies Centre – Canberra ABS Data Releases – Household Income and Wealth, 2019-2020; International Trade Price Indexes, March Coles releases its 3rd quarter results this morning, which is notable given the cost of living/inflation issue *All times in AEST unless noted And today’s quote for the subject line comes from American’s founding father Thomas Jefferson. |
