Politics latest: Labor to work with Rex administrators to keep regional flights in air

Transport Minister Catherine King says Rex continuing to fly 'is in the best interest of regional Australians', as Qantas joins Virgin in offering stranded Rex passengers intercity flights at no extra cost.

Minister for Infrastructure, Transport and Regional Development Catherine King. Picture: NCA NewsWire / Martin Ollman

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3:28 pm July 31, 2024

Government should 'prop Rex up' and save the regional carrier

Staff writers

Rex customers getting ready to board their regional flights at Melbourne Airport have called on the government to step in and support the airline, after it entered voluntary administration.

Rees Campbell from Tasmania said Rex was “absolutely essential” for regional areas.

Ms Campbell, who was flying to Burnie Airport in Wynyard on the Apple Isle's north west coast, said she and her family always made the effort to fly Rex.

“We actually live within a couple of kilometres of the airport and we very much make an effort to fly Rex so that we are patronising it because I think it’s absolutely essential for regional areas,” she said.

Ms Campbell said while other airlines had come and gone from Burnie Airport, Rex had remained.

“My children all live on the mainland and so they all come home, we all fly Rex across the ditch,” she said.

“Our family, between us, would probably fly half a dozen times a year.”

Ms Campbell said the government should "prop Rex up".

“It’s a bit like the freight equalisation service that is on the ferry coming across. There should be a subsidy for those small airlines,” she said.

“Regional airports can’t be really economical, so to be cutting out the small airline that does provide that service, I think is a real loss."

Ms Campbell said the airline was important for those who lived in the regions, and that if she couldn't fly from Burnie Airport, she would need to fly from Launceston, which is a two and a half hour drive away.

“We like Rex, we need it, we love it,” Mr Meyers said.

Kenneth Bown, who was also travelling to Burnie to visit his parents, said he had flown Rex seven times already this year.

“It’s an Australian company and it should stay that way,” the Melbourne local said.

“Small companies like this that will travel to remote places… is helpful.

“They definitely should stay around and if the government’s got an option to help save them, they should.”

– Lily McCaffrey

2:28 pm July 31, 2024

Chalmers 'out of his depth' to beat inflation: Taylor

Noah Yim

Opposition deputy leader Sussan Ley and Treasury spokesman Angus Taylor are speaking in Sydney following the latest inflation figures which showed year-on-year inflation had risen to 3.8 per cent from 3.6 per cent.

“What concerns me, particularly as I look at the retail numbers, is that this data shows that people are buying less, but they’re actually paying more,” Ms Ley said. “Those retail numbers demonstrate that.

“There’s real pain in small businesses, there’s real pain out there, and they’re copping it. We’ve got the highest number of insolvencies ever – under this government.

“Jim Chalmers keeps repeating that he’s taken the edge off inflation. Show me one Australian that feels that they’ve had the edge taken off their household budget, their cost of living pressure, their anxiety for themselves and their families and their future.”

Mr Taylor said today’s figures were a “terrible set of numbers for Australian households”.

“We see that headline inflation is up, core inflation is stuck around 4 per cent, well above target, and in particular, it’s very clear this is home-grown inflation,” Mr Taylor said. “This is Labor’s home-grown inflation, inflicting pain on every Australian household. Non-tradable inflation – that’s domestic inflation – is running at 5 per cent and tradable at only 1.5 per cent.

“It’s very clear here that this is Labor’s home-grown inflation. It’s important to note that this inflation is above the forecast in particular of Treasury, well above the Treasury headline forecast, which the Treasurer was crowing about some time back.

“The truth of the matter is that this is a treasurer who’s out of touch and out of his depth when it comes to beating inflation in this country.

“This is Labor’s failure to tame the inflation which is inflicting so much pain on Australians.

“Australians are losing hope, they’re increasingly demoralised, they cannot see a pathway back to the restoration of their standard of living which is taking such a hit under Labor.”

1:50 pm July 31, 2024

NT schooling system the first to take up public school funding deal

Noah Yim

Education Minister Jason Clare is in the Northern Territory spruiking a deal on public school funding. He has challenged other jurisdictions to take up his offer.

“What we’re announcing today is a big deal,” Mr Clare told Sky News. “It’s a billion dollar agreement with the NT to fully and properly fund all the public schools here in the NT.

“We’re talking about the most underfunded schools in the country and this $1bn deal will make those schools the best funded schools in the country and it’s part of a $16bn deal that I’ve got on the table for all the states and territories.

“We’ve got to fix the funding of our public schools but we’ve also got to make sure that we make that money work. That we direct that money to the sort of things that are going to help kids who fall behind when they’re little to catch up and make sure that more kids finish school and that’s what the agreement that I’m releasing today and that the NT is signing today is all about.

“Non-government schools are funded at that level now – or they’re on a trajectory to get there by the end of the decade. Public schools aren’t. The deal I'm signing with the NT fixes that here. The deal I’ll do with WA will do that in WA as well. But I want to do that work with the states and territories to fully fund public schools across the country.”

1:43 pm July 31, 2024

Unions urge RBA board to rule out further rate hikes

Ewin Hannan

Unions have urged the Reserve Bank board to rule out a further interest rate increase next week, warning a further rise would hurt workers, pushing up rents and mortgages and risking higher unemployment.

The Australian Council of Trades Unions said further interest rate hikes would penalise workers who have recently received the Albanese Government’s tax cuts, energy relief and finally, some real wage growth.

The ACTU said a rate increase also risked being counterproductive as while rents were continuing to drive inflation, a further rate hike would only lift rent higher.

“A rate rise next week would be unnecessary pain for no gain,” ACTU president Michele O’Neil said.

“It would hurt working people who are already doing it tough when it comes to paying rents or mortgages, and who have done nothing to cause this cost-of-living crisis.

“It would also risk pushing up unemployment and do little to tackle the underlying causes of current price pressures.

Ms O’Neil said current inflation was driven by supply challenges, such as housing and petrol costs, and steep increases in insurance linked to price gouging.

“A rate increase would only make housing costs harder to meet for working families,” she said.

“The Board next week should put today’s figures in perspective: inflation has more than halved since the start of last year and is now very close to its target range.”

She said the RBA board should heed the New Zealand experience where rates were raised higher than Australia but the economy went into technical recession and did not reduce inflation any faster.

“A rate rise would push up rents and mortgages even higher, when working people and households are struggling, and it won’t fix the underlying inflation problems in the economy,” he said.

1:39 pm July 31, 2024

'Underlying inflation continues to go down': Chalmers

Noah Yim

Jim Chalmers has defended the Albanese government’s economic management following the latest inflation figures which increased from 3.6 per cent year-on-year to 3.8 per cent.

“Underlying inflation in our economy continues to go down. Underlying inflation is going down in annual terms and in quarterly terms and this is the sixth consecutive quarter that we have seen underlying inflation in our economy moderate and we welcome that development,” the Treasurer said.

“The headline inflation of 3.8 per cent is consistent with the Reserve Bank's forecasts for the June quarter as well. Non-tradable inflation – which some call home-grown inflation – actually halved in the quarter in the starter.

“Inflation is sticky and stubborn in our economy but it is much, much lower than what we inherited when we came to office.

“By turning those big, Liberal deficits into big, Labor surpluses, we are helping in the fight against inflation.

“The ABS has once again been incredibly clear about the positive and meaningful impact of our cost-of-living policies. The ABS has made it clear today: without our policies, inflation would be another 0.5 per cent higher than what we saw.

"We will continue to manage our economy in a responsible way, continue to roll out this cost-of-living relief in a meaningful way and the two surpluses that we have delivered, having inherited an absolute mess of a budget, chock-full of wasteful spending and higher inflation."

Dr Chalmers preempted criticism from the Coalition.

"When it comes to our political opponents, remember, [shadow Treasury spokesman] Angus Taylor has said it is underlying inflation that matters most, it moderated again in these figures," he said. "He said it is non-tradable, home-grown inflation which matters most, well in a quarterly sense, those numbers have halved in the new data today.

"This is why nobody takes Angus Taylor very seriously, the Liberals can't even agree what the job of the Reserve Bank is. Angus Taylor said it is not the Reserve Bank's job to care about inflation, [opposition finance spokeswoman] Jane Hume says it is their only job to carry about inflation. They are both wrong.

"They should check out the responsibilities that are given to the Reserve Bank. Nobody takes them seriously, he has said the number one focus needs to be underlying inflation and we have seen underlying inflation moderate for the sixth consecutive time."

11:43 am July 31, 2024 Highlight

Qantas joins Virgin to come to rescue of stranded Rex passengers

Noah Yim

Transport Minister Catherine King is holding a press conference as regional airline Rex yesterday evening entered voluntary administration. She said that Qantas has joined Virgin in offering Rex passengers alternative intercity flights at no additional cost.

Ms King also said that the government will “work very closely with administrators” and that Rex’s “continuation is the best interest of regional Australians”.

“This morning I have also spoken to Vanessa Hudson, the CEO of Qantas, they are also offering passengers impacted by these events the ability to rebook on their services at no additional cost where seats are available on those intercity routes,” she said.

“In terms of Rex regional fleet, these flights are continuing to operate as scheduled and that is a relief I know for many in regional communities given the importance of those routes.

“Rex’s continuation is in the best interest of regional Australians, the travelling public, its workers, and the aviation sector more broadly.

“The government will work very closely with the administrators to ensure a strong regional aviation presence in the future.

“My department has already met with the administrators today and will continue to engage with those, the administrators are also briefing state and territory governments today and my department will do the same through transport portfolios as well.

“The government will act expeditiously but we will also be acting carefully in this space.

“It is a complex situation with multiple commercial arrangements in place but we do stand ready to work very closely with the administrators because that regional presence is absolutely vital.”

11:38 am July 31, 2024 Highlight

Inflation accelerates to 3.8pc as RBA decision looms

Patrick Commins

David Rogers

Inflation has risen to 3.8pc from 3.6 per cent in the year to March, the first rise in inflation in 18 months, is a worrying sign that the Reserve Bank may have to raise interest rates again as early as next Tuesday.

Australia's core inflation data undershot estimates for the June quarter.

Headline 2Q CPI rose 1.0 per cent on-quarter and 3.8 per cent on-year versus consensus expectations of 1.0 per cent and 3.8 per cent respectively.

Trimmed mean 2Q CPI rose 0.8 per cent on-quarter and 3.9 per cent on-year versus consensus expectations of 1.0 per cent and 4.0 per cent respectively.

The most significant contributors to the June quarter rise were housing (+1.1 per cent) and food and non-alcoholic beverages (+1.2 per cent).

The quarterly growth in housing was driven by rents (+2.0 per cent) and new dwellings purchased by owner-occupiers (+1.1 per cent).

“The continuing tight rental market and low vacancy rates caused rental prices to go up 2.0 per cent for the quarter, following a 2.1 per cent rise in the March 2024 quarter,” the ABS says.

"Higher labour and material costs drove the 1.1 per cent rise this quarter for construction of new dwellings. The increase follows a 1.1 per cent rise in the previous quarter.

The rise in food and non-alcoholic beverage prices was driven by fruit and vegetables (+6.3 per cent), meals out and take away food (+0.6 per cent), and meat and seafood (+1.3 per cent).

"Fruit and vegetable prices rose this quarter as unfavourable growing conditions drove higher prices for grapes, strawberries, blueberries, tomatoes and capsicums. This was the highest quarterly rise for Fruit and vegetables since 2016,” the ABS adds.

The monthly CPI indicator for June rises 3.8 per cent on-year versus 3.8 per cent expected.

Separately June retail sales rise 0.5 per cent versus 0.2 per cent expected.

10:47 am July 31, 2024

SA Premier hails 'community service' Rex's regional flights provide

Staff writers

South Australia Premier Peter Malinauskas said he was greatly concerned by Rex's woes and the threat it posed to long term travel for rural residents after the ailing airline went into administration this week.

"We are very grateful that (regional) routes will continue to be serviced during this initial period of administration but it's the long term that has us concerned." he told Sky TV.

'We are a big state, bigger than France and Germany combined and we have a lot of people in remote areas who rely on this airline. It is a big concern and we'll have to monitor it very closely.

"We have been kept abreast of the situation via Rex and the Adelaide airport. We want to acknowledge Virgin stepping up to service customers on metropolitan routes.

"But in the long term, let's be frank, it's not ideal for governments to have to find themselves subsidising commercial operations, I think that should be avoided as best as possible.

"I do think it's important we acknowledge that what Rex does on some routes is a genuine community service."

10:30 am July 31, 2024

Rishworth outlines four key planks of disability probe response

Noah Yim

Social Services Minister Amanda Rishworth, Health Minister Mark Butler, and NDIS Minister Bill Shorten are holding a press conference to announce the government’s response to the disability royal commission.

“All governments – commonwealth, state and territory – have taken seriously and responded to all 222 recommendations,” Ms Rishworth said.

“In addition to the commonwealth's initial response, there is also a joint response with states and territories along with individual state and territory responses.

“Governments, both commonwealth and state and territory, have worked together in most cases to form a common position on recommendations where there's joint responsibility. And we are absolutely committed to continuing this work in order to sustain long term meaningful change for people with disabilities.”

Ms Rishworth laid out four key planks of the government’s response.

“Better safeguarding, promoting inclusion and accessibility, upholding human rights and recognising the unique perspectives and experiences of First Nations people with disability,” she said.

“These are all areas that people with disabilities have continuously highlighted as important. And will drive the focus of our government as we progress reform towards a more inclusive Australia. We know improving the lives of Australians with disability and preventing harm, neglect, and discrimination requires financial investment along with policy and legislative reform. To support the commonwealth's initial response, we are making significant new financial investments, but we're also committing to policy and legislative reform.”

10:17 am July 31, 2024

610 Rex job losses flagged: TWU

Valerina Changarathil

Rex workers have now been briefed by administrators on 610 job losses across the Rex Airlines (RAL) and Regional Express Holdings (REX) businesses, the Transport Workers Union says, pushing again for the government to step in with an equity deal.

The RAL business, which services 737 flights in capital cities, will cease to operate, with 360 jobs to be made redundant. The voluntary administration process for Rex, which operates regional routes, will continue, though 250 job losses have also been indicated.

A consultation process on job losses has commenced but will conclude on Wednesday, at which point the total job losses will be confirmed, the TWU said.

The TWU earlier on Wednesday called on the Federal Government to look into an equity stake in Rex to maximise remaining jobs, protect worker entitlements and ensure a seat at the table to protect regional Australia.