The Sauce: Andrew Charlton’s inflation essay says cuts need to hit household budgets

Measures that ‘bite into’ household budgets are essential to curb inflation, according to an essay written by Parramatta ALP candidate Andrew Charlton.

Prime Minister Scott Morrison had the drama of the controversial — and since deleted — posts of biological sex campaigner and Warringah candidate Katherine Deves being dug up mid-campaign.

Now, Labor has to grapple with an old essay written by one of its star candidates, Parramatta hopeful Andrew Charlton, in which he appears to advocate for household budget cuts in order to tackle inflation.

Written in 2008 for Robert Manne’s Dear Mr Rudd: Ideas for a Better Australia, Charlton argues that “to successfully reduce inflation” governments “have to make sure that spending cuts follow three principles”.

He outlined the principles as timely fiscal policy, noting: “There is no point making changes to a budget that won’t actually bite into household accounts for months or even years after they are announced. By then the inflation horse will be well off and running.”

Charlton explained the fiscal initiatives needed to be “targeted” to ensure that budget cuts “actually influence household consumption patterns”.

Labor candidate for Parramatta Andrew Charlton. Picture: Britta Campion

“Cuts to government bureaucracies are contractionary in the technical sense that there is less money rippling through the economy, but in practice it will take a long time for the effect to be seen in the consumption patterns of average shoppers,” he wrote.

The essay has been seized upon by Finance Minister Simon Birmingham, who cheekily urged Labor leader Anthony Albanese to declare whether he agreed with his candidate’s views.

“Having hand-picked this candidate, Mr Albanese needs to come clean and tell voters whether he agrees with Mr Charlton’s views,” Birmingham said.

“When Mr Charlton suggests Labor needs to ‘bite into household accounts’, that’s really code for higher taxes.

“Are higher taxes to bite households really Labor’s secret plan?”

We think not, but it’s a nice gotcha.

NEXT QUESTION

Labor leader Albanese was clearly not briefed when he was grilled by journalists about the “oversight” over Charlton’s place of residence on the electoral roll.

Charlton, a former economic adviser to then-prime minister Kevin Rudd, had listed a rental in Woollahra, owned by his wife, as his place of residence.

Andrew Charlton and his wife's three homes, at (clockwise, from left), Woollahra, Parramatta and Bellevue Hill.

He labelled the error an oversight and — after being quizzed by The Saturday Telegraph — declared that he and his wife had updated their enrolment details.

Given Labor had been calling for the scalp of Liberal National Party candidate Vivian Lobo for having incorrect enrolment details (he claimed to be living in Lilley while allegedly residing outside the electorate), the Coalition was of course going to demand the same of Charlton.

But asked about the hullabaloo on Saturday, Albanese appeared to be in the dark.

“What?” he replied when asked about the issue.

When given some detail, Albanese declared he was unaware of the issue “so I can’t comment”.

Clearly not the most pressing issue.

NOT ME

Secret polling being circulated among senior NSW Liberals two weeks ago painted a grim picture for the Coalition.

Treasurer Josh Frydenberg would lose his seat of Kooyong, and it would be down to the wire for his Victorian colleague Tim Wilson in Goldstein, according to the polling.

In NSW, it was even more dire.

While former Berejiklian government minster Andrew Constance would claim the seat of Gilmore — just — Reid would fall, and Robertson, Bennelong and Hughes would also all be in trouble.

Liberal Senator Andrew Bragg in his office at Parliament House in Canberra. Picture: NCA NewsWire / Gary Ramage

Asked about the poll, a party insider claimed it was “wrong” and that only “a handful of people” had access to the official “internal polls”.

A week later, even more grim polling emerged.

This time, Constance would not be winning Gilmore while Bennelong would also fall.

The latter polling, which was made public in the media, was also dismissed by senior Liberal types, who pointed the finger at Senator Andrew Bragg as not only being behind the poll — word was he outed himself by claiming back the cost — but also the one who leaked it out. When The Sauce contacted Bragg, he confirmed he had been conducting polling.

And while he had claimed the cost, it was from almost $400,000 he had donated to the campaign for the Coalition’s re-election.

As for leaking it, it was a firm “no”. “Why would I leak against the party?” he said.

“Yes, of course I want to know how we’re going … But that was not my poll.”

NEW RECRUIT

She has been likened to Peta Credlin — the former chief-of-staff to Tony Abbott — and it’s a comparison the new senior staffer in the office of NSW Regional Transport and Roads.

Larissa Mallinson is minister Sam Farraway’s new deputy chief-of-staff.

Minister Sam Farraway is understood to find “amusing”.

However, The Sauce has learned Larissa Mallinson is known as a straight-talker.

Mallinson, who has taken on the roll of deputy chief-of-staff in Farraway’s office, was previously chief-of-staff to South Australian Sports Minister Corey Wingard.

During her time in the office, she — along with Wingard — had to endure being the subject of what has been described as a Labor “stitch-up” when the pair were accused of bullying and misconduct following a meeting about funding.

Both were cleared by an independent investigation, which found “opposing views” rather than “bullying” occurred.

Given Mr Farraway himself is facing accusations of being “missing in action” by some of his Coalition colleagues with regard to the last few weeks of rail negotiations — claims he vehemently denies — he will no doubt welcome a heavy-hitter like Mallinson.

REPORT WHISPERS

2GB radio host Ben Fordham recently slammed the NSW Independent Commission Against Corruption for the time it was taking to finalise the report into former sports minster John Sidoti.

Now, The Sauce has heard whispers Sidoti may actually have a draft submission.

Some of his colleagues have also noted how Sidoti recently voted against the state government — a move they read as “positioning to run as an independent”.

“Voting against the government suggests to me that he can say to his constituents how he is a true independent,” a Liberal source said.

Stay tuned.

Got some Sauce? Contact [e-mail]