Government ‘can’t solve everything’: Anthony Albanese admits amid soaring cost of living

Prime Minister Anthony Albanese has made a staggering admission in the face of a major issue affecting Australian families.

Anthony Albanese has conceded he “can’t solve everything” when it comes to the soaring cost of living, saying many of the key drivers are out of his control.

Prices of food, gas, petrol and rent have skyrocketed in the last six months, with the inflation rate rising to a 21-year high of 6.1 per cent in June.

The Reserve Bank and Treasury expects that figure to peak at around 7.75 per cent towards the end of this year.

But wages during that period have only grown 2.7 per cent, falling well short of matching the rising cost of living.

Prime Minister Anthony Albanese says he “can’t solve everything” on cost of living pressures. Picture: NCA NewsWire / Gary Ramage

The Prime Minister hammered the Coalition at the election with the promise to get wages moving, but speaking with Sydney radio on Wednesday, he conceded there was only so much he could do.

“Some things beyond our control, for example, the Russian invasion of Ukraine had an enormous impact on energy prices and on supply chains around the world,” Mr Albanese told 2GB.

“And we‘ve seen inflation rise to double digits in the UK, for example, in North America it is much higher than it is here.”

Treasurer Jim Chalmers will deliver his first budget in October.

Mr Albanese said its focus would be on the price of medicine and enacting Labor’s cheaper childcare promise.

“We want to make sure that we deal with putting downward pressure on inflation by dealing with supply-side issues,” he said.

“There are things that the government can do. It can‘t solve everything, of course, but we’re very focused because we understand the pressures that families are on out there.”

Prime Minister Anthony Albanese says he was lower inflation by dealing with supply issues. Picture: NCA NewsWire / Gary Ramage

After spending the better part of the last week focused on the secret ministries scandal, Mr Albanese was keen to switch gears on Wednesday, leaving the attack on Scott Morrison to his ministers.

With his anticipated jobs and skills summit drawing closer, Mr Albanese’s renewed focus on the cost of living comes amid criticism he was using his predecessor’s saga as cover.

“At times, Anthony Albanese sounded like he has enjoyed being the opposition leader again,” Coalition frontbench senator Simon Birmingham said.

“The government should be getting on with focusing on helping Australians with the cost of living, of ensuring that they respond to the many different challenges, both domestically and internationally we face.

“They certainly shouldn‘t be distracted by continuing to try to drag over the former prime minister’s actions when there are many pressing issues that Australians face day to day at present.”

‘WITCH HUNT’: SCOMO ALLY BITES BACK

A longtime friend and political ally of Scott Morrison has sensationally claimed the government’s pursuit of the former prime minister is a “witch hunt”.

Mr Morrison’s political future is in question after Anthony Albanese announced cabinet had agreed an inquiry into the secret ministry saga.

In his advice released on Tuesday, Solicitor-General Stephen Donaghue QC was scathing in his assessment of Mr Morrison’s decision to secretly appoint himself to five portfolios over 2020 and 2021.

Attorney-General Mark Dreyfus wholly backed the fast tracked inquiry, which he said the Prime Minister would announce the terms for soon.

Attorney-General Mark Dreyfus welcomed the independent inquiry as necessary to prevent further scandal. Picture: Sean Davey.

“This is a serious breach of convention, deeply alarming advice from the solicitor-general (and) that‘s why we’re going to have a further inquiry,” he told The Today Show.

“As the Prime Minister said yesterday, we'll make sure on our watch that every single appointment to the ministry is published and the inquiry is going to look at what we can do to change the law to make sure it never happens again.”

But senior Coalition frontbencher, and friend of Mr Morrison, Stuart Robert has hit back at the federal government.

He singled out the call for the deputy Prime Minister Richard Marles, who on Tuesday said Mr Morrison should face “severe consequences”.

“You start to wonder what the government’s intent is. If it’s to ensure open, transparent, accountable government, then you’ll get every bit of support,” Mr Robert told ABC Radio.

“But Mr Marles has come in … it sounds like a political witch hunt. When you start to hear someone of that seniority say this is about a high political price being paid … that’s when people start to question motives.”

His comments came after the Attorney-General revealed Mr Morrison could be called upon to testify as to how the appointments happened and who knew about them.

Former prime minister Scott Morrison secretly appointed himself to five ministerial roles during the pandemic. Picture: Steven Saphore / AFP

“We need to hear from him and the other ministers in the former government to get to the bottom of what happened,” he told the ABC’s News Breakfast.

In a post on social media, Mr Morrison cautiously conceded lessons could be learned from the inquiry and indicated he would participate in the process.

However, he indicated it should focus on the pandemic response in the states and territories as well. Mr Dreyfus accused the former Prime Minister of trying to “hide behind the pandemic”.

“This had nothing to do with the pandemic,” he told The Today Show.

“This was a power grab by Mr Morrison, appointing himself to five ministries. It is deeply concerning.”

Prime Minister Anthony Albanese has strongly condemned Scott Morrison’s secret appointments. Picture: NCA NewsWire / Gary Ramage

The inquiry was supported by former prime minister Tony Abbott, who said it would provide the best forum for determining what occurred.

“I’m just not gonna [sic] defend what was done,” he told Sky News on Tuesday.

“On the other hand, we’ve got a report from the solicitor-general. It clearly says that there was nothing illegal done, but it also clearly indicates that it is just highly unconventional, highly unorthodox and shouldn’t have happened.”

Originally published as Government ‘can’t solve everything’: Anthony Albanese admits amid soaring cost of living