Posts

Reserve Bank Governor Michelle Bullock was appointed to the position after a 20-year career in the Reserve Bank, including being the recipient of subsidised housing loans despite her substantial salary. Her early comments were reflective of her being “a long time in the public service bubble” and were out of touch with the hardships faced by everyday Australians due to past Reserve Bank policies causing high inflation and interest rates.

Her recent comments, however, appear to be much more in tune with understanding everyday Australians’ concerns.

At Senate Estimates, my questions were aimed firstly at getting updates on less reported projects and secondly, I wanted to know whether the Governor realised her role is about people not spreadsheets.

I found her responses encouraging and look forward to more people-oriented management from the Governor going forward.

Transcript

CHAIR: Thanks. Senator Roberts.  

Senator ROBERTS: Thank you for appearing. I missed you last time because I couldn’t get on the schedule. I want to get a quick update on as many things as possible. Part of the Reserve Bank’s process is to review inflation data and unemployment data. Do you use data from the ABS and, if so, do you use that data exclusively, or do you have other sources for unemployment and inflation data?  

Ms Bullock: We use ABS data obviously for inflation and unemployment. We use a variety of other sources of information, though, because we don’t just focus on the unemployment rate itself; we focus on a variety of measures that the ABS put out. We also focus on things like vacancies and advertisements. There’s information we get from our business liaison program, where we talk to businesses about what they’re doing with their labour forces: are they demanding more labour or not? So we use the ABS data, but we have a wealth of other information that we look at as well.  

Senator ROBERTS: Thank you. Business-to-business payment defaults and business bankruptcies, to the third quarter of 2024, are at a record. I’m sure you know that. Are you watching these metrics? And would these record figures act to reduce the appetite in the Reserve Bank for another interest rate rise?  

Ms Bullock: We do watch the business insolvencies data. My understanding is that they haven’t actually returned to the trend that they were prior to the pandemic. In the pandemic, with low interest rates and government assistance, insolvencies were actually at a record low. They have popped up, but they haven’t popped up to where the trend was going prior to the pandemic. So I think that’s important perspective to put it in. We do look at it and we look at it from a couple of perspectives. We look at it from the perspective of how monetary policy is impacting businesses, but we also look at it from the perspective of financial stability and the potential impact on banks, banks’ arrears and banks’ balance sheets.  

Senator ROBERTS: Thank you. Suicide Prevention Australia’s community tracker, also to the third quarter of 2024, shows a huge rise in the number of calls to help services, in suicidal behaviour and in clinical presentations. This is an independent and accurate barometer of how everyday Australians are doing. Are you aware of that tracker?  

Ms Bullock: Yes, I am. In fact I have regular meetings with various organisations—for example, Beyond Blue. They talk to us a lot about this sort of data. We also talk to ACOSS regularly, we talk to other charities in our business liaison program and we hear a lot about the fact that charities are seeing people come in who they haven’t seen before. So this is obviously an indication that they’re stressed. So, yes, we do keep in touch with that stuff. 

Senator ROBERTS: Can you update me on the state of the central bank digital currency, please? The last word we had was I think when Mr Debelle was deputy governor. I understand you’re developing a standard, not an actual currency itself? Is that correct?  

Ms Bullock: We’ve done a couple of things. We ran a pilot program with a real claim on the central bank last year. 

Senator ROBERTS: Is that what’s known as a ‘sandbox’?  

Ms Bullock: It was sort of like a sandbox, if you like. We had a number of different use cases. Various businesses came in with their use cases to use the central bank digital currency. From that information, what we took away was that probably the most fruitful piece of research we could continue with was the use of a central bank digital currency in a wholesale sense. By that I mean there’s a lot of discussion about putting assets on the ledger—for example, having a distributed ledger of financial assets—and then you could have a central bank digital currency which is used to make settlements of those financial instruments, or they might be physical instruments, physical assets. That’s the most fruitful work and that’s where we’re going at the moment. We’re in the process of standing up a project that looks at how a central bank currency could be used in the atomic settlement of assets. That’s where we’re going at the moment.  

Senator ROBERTS: So you’re not developing a standard?  

Ms Bullock: No. Basically, we’re looking at what the business case might look for. We’re not so interested in the technology and we’re not so interested in standards. What we’re interested in is: is there a business for this?  

Senator ROBERTS: Would that allow other parties, including each of the banks, to develop their own cryptocurrency?  

Ms Bullock: The banks themselves can develop what some people call ‘stable coins’, and some banks have developed stable coins. Central bank digital currency, if it were to be developed, would be something that everyone could potentially use—not literally every Australian, because, if we’re focusing on business, then it might be that some businesses can use it. Individual banks can, in theory, at the moment—and some of them have experimented with it—develop stable coins, which are effectively cryptocurrency. CHAIR: It’s your last question, Senator Roberts.  

Senator ROBERTS: This would not exclude existing cryptocurrencies, such as bitcoin?  

Ms Bullock: No. The central bank digital currencies would not have a relationship with bitcoin, no.  

Senator ROBERTS: But it wouldn’t exclude bitcoin?  

Ms Bullock: What do you mean by ‘exclude bitcoin’?  

Senator ROBERTS: To sideline them or remove them.  

Ms Bullock: No, bitcoin would continue to exist, but central bank digital currencies offer a different business proposition than bitcoin. Bitcoin has particular uses; central bank digital currencies would not be encroaching on that space, I suspect. 

Real wages have gone backwards, erasing a decade of pay rises since this government took office. This data is up to March, so it doesn’t reflect the current inflation rise.  So, if Australians feel they’re working harder and getting less, it’s because they are. 

Net zero policies are driving up electricity prices, which in turn affect the entire economy. Every sector—whether farming, manufacturing, or retail—uses power, and rising energy costs inevitably get passed on. In the March quarter, business bankruptcies reached record levels, with the construction sector hit particularly hard. Housing construction is declining, yet the government continues to bring in more immigrants. 

This government has clearly failed in its economic management—there is no trust left.

Transcript

The Reserve Bank has just announced the inflation rate for May as four per cent, which is above the expected rate of 3.8 per cent. What’s even worse is that the underlying inflation rate, which had been trending downward, has now increased to 4.4 per cent. Inflation is surging, and it’s entirely the fault of the Albanese Labor government. Today we heard Finance Minister Gallagher again bragging about this government’s track record on protecting wages. The data does not support that statement. 

According to the Australia Institute, real wages of everyday Australians have fallen from $52,900 to $52,080 since this government came to power. That figure has been calculated to March this year, so it doesn’t take into account what is now rising inflation. If everyday Australians feel like they’re working harder and going backwards, it’s because you are. The inflation spike was entirely predictable. Net zero measures continue to force up electricity prices, which cascade throughout our entire economy. Every business, from farming to manufacturing to retailing, uses power. Any increase in power has to be passed on, and this is what we’re now seeing. 

One Nation calls on the government to abandon the insane net zero transition before the economy falls apart entirely, catastrophically. In the March quarter, business bankruptcies were at record levels. Bankruptcies in the building sector were especially high. Housing construction is not rising; it’s falling. Yet this government continues to bring in more new-arrival immigrants, which is inherently inflationary. The economy as a whole is just barely staying out of recession, with GDP growth at 0.2 per cent, a figure that shows the destruction that net zero is causing to our entire economy. I hope the Reserve Bank holds its nerve and doesn’t raise interest rates. If it raises rates, everyday Australians will be doing it even tougher. What a mess. This government is not fit to govern—no trust. 

Australians have never been asked what they think is a fair amount of immigration. The Lib-Lab parties both advocate for high immigration and as there are many different issues that go towards deciding the party to vote for on polling day, elections simply don’t provide a way for the public to express their opinion on migration.

The Plebiscite (Future Migration Level) Bill 2018 aims to give Australians a say on immigration levels through a plebiscite. Senator Hanson argues that high immigration is causing a per capita recession and is detrimental to Australians’ standard of living.

Current immigration policies favouring high numbers of immigrants are driving up housing costs, leading to catastrophic homelessness among Australians. The Morrison government and now the Albanese government have failed to address this issue.

Australians deserve to have a voice on immigration levels that are impacting their security, lifestyle and their ability to provide for their future.

Transcript

The Plebiscite (Future Migration Level) Bill 2018 is simply saying, ‘Give Australians a say.’ That’s all we want. We want to listen to the people and let the people decide. Give the people a say—a ‘voice’, if you like. Senator Hanson is driven to do what’s in the national interest. That means protecting Australians and protecting Australians’ lifestyle. This is simply a voice—give Australians a say. 

Make no mistake; the figures show that we are in a per capita recession. I’ve said that in the past in the Senate and I continue to say it. Labor lies and policies are hiding that because you, as a government, do not want to be blamed for putting the place in recession. This is something that’s been carried through from the Morrison government to the Albanese government. Australia is in a per capita recession, and you’re hiding it with high immigration numbers. They raise artificially the GDP, making sure that we don’t have two quarters with negative growth.  

Without high immigration, this country would be in recession. You are doing the people a disservice and you are hiding the fact that we are in recession. You’re doing the people a disservice because they’re now sleeping in cars, under bridges, in tents and in caravans. They’re being moved to showgrounds—moved along from parks—in Bundaberg, Gladstone, Townsville, Cairns, Logan, Ipswich and Brisbane. I can step out of the CBD in Brisbane and within minutes of walking I can find people living in tents. Through the chair: Senator Watt and Senator Ciccone, are you aware that in our state, which is so fundamentally wealthy, we have thousands of people living on the streets? They are being moved on daily because they can’t be kept in one place any more than three days. Some of these people have got jobs—and that’s where they live! We’re creating and exporting our wealth to the world—5½ million Queenslanders are creating wealth for the world and our own Queenslanders are living in tents and living in cars. Some of them are being picked on by rangers, and as they’re moved on their kids are confiscated. These are working people.  

The key issue here is trust. We cannot trust the Albanese Labor government, just like we could not trust the Morrison Liberal-National government. Another key issue is serving the people. Senator Hanson mentioned it. I mentioned it. As servants to the people of Queensland and Australia, we are raising this issue because it is fundamental to Australians’ lifestyle, security and productivity.  

Senator Hanson raised immigration many years ago. She’s famous for it. Three of her four grandparents were immigrants. She’s not against immigration; she’s against overimmigration. She’s making sure that the quality of migrants is suitable for our culture, our laws and our values. This, though, has nothing to do with Senator Hanson. It’s simply a plebiscite to give people a say. You wanted it for gay marriage, homosexual marriage, and now you won’t let the people have a say in something even more fundamental. Senator Hanson has a very simple approach to politics. She hasn’t an elaborate political philosophy. She has a simple approach: do what’s right for the national interest—that’s it. That means doing what’s right for the standard of living.  

Senator Hanson and I are proud to support this bill because it is about propping up and restoring our standard of living. I raised immigration, particularly in connection with housing, starting a couple of years ago and I’ve been bashing it ever since. Have a look at my Facebook page, my Instagram page and my Twitter page. This has been a sincere and genuine concern of mine for years now. We have, as I said, people living in cars, tents and caravans and getting moved around in showgrounds. We had in January, just two months ago, record immigration. We had 125,000 new arrivals in January alone. I haven’t done the maths, but that’s around about 1½ million a year. After removing the number of people who left Australia that left 55,375 net migration into our country in one month. That was 40 per cent above the previous record for January way back in 2009. We have returned to the days of very high immigration, but we have gone way beyond that. We have 2.3 million people on working visas in this country, meaning 2.3 million beds and 2.3 million roofs over beds are needed. We have 600,000 students. We only have beds for 100,000 university students. So the university students we are bringing in to give us income are taking beds off Australians who need beds. 

Politicians in this country, the Liberal-Nationals and the Labor-Greens, follow a ‘big Australia’ policy—a ‘massive Australia’ policy. The people do not. The people want a ‘fair Australia’ policy. Trust, as I raised a minute ago, has been languishing in this place, and trust in the Albanese government has plummeted. Trust is made up of two components basically: integrity or honesty and competence. The Albanese Labor government is showing neither. 

As a servant to the people of Queensland and Australia, let me tell you about a phone call I had just yesterday. I had a New South Wales truckie call me. This man was looking for a job. He admires the way our office runs and he wanted a job. He’s a truckie. I’ve met him in the past. He’s a wonderful man with a wonderful family. He’s on the Central Coast of New South Wales. He helped out during the fires. It cost him a lot of money to help out during the fires of 2019. He stood up to the COVID injection mandates in 2021. He’s a really decent person, who was making sure that he stood up because the COVID injections killed his aunty. This is a man who’s got the same genetics as his aunty, and he knew that the COVID injections would kill him. As a result of the COVID mandates which Scott Morrison’s government put in place and drove, and as a result of the economic policies that Anthony Albanese’s government is driving, he lost his business, a vibrant business employing seven people. 

Let’s look at housing. As I’ve talked about many times in the Senate and outside, we have a critical shortage of houses in this country. How do you respond as a government? You jack up the bureaucracy. You call it a $10 billion investment in housing when we know that that is just the fund and it’s only the returns from that fund which will be invested in housing—a few hundred million dollars a year. But you’ve added three new bureaucracies. They build bugger-all. What we need to do in this country is to stop the castration of property rights and to free up land. We need to free up tradies from overregulation and get on with the job of letting our tradies build the houses. People can’t find rental homes at the moment. The vacancy rate is 0.7 per cent—a record low. There are no bloody houses. And there are foreigners who own a lot of our houses and lock them up. But, no, you don’t want to do anything about that either. You turn a blind eye to that. 

My mother was born in this country. My grandparents were born overseas. They were immigrants. My father was an immigrant. So I’m half immigrant and I’m proud of that. I’m proud of being Australian, but I’m ashamed that the people in this chamber and the people in this parliamentary building want Australians to suffer. When you’re in Queensland, one of the wealthiest places in the world, and you cannot get a house, so you sleep in a tent or in a car with your family, and you do it because they’re covering up a per capita recession, that is cruel and that is inhuman. It’s not just un-Australian. It is inhuman—the bureaucracy; the regulations; the United Nations World Economic Forum alliance; policies restricting land; big immigration policy; energy; inflation caused by the people in this chamber, the previous Morrison government and now the Anthony Albanese government; and energy prices. Our country is the largest exporter of hydrocarbon fuels in the world. When you add up our coal and our gas, we are the largest exporters of energy, but we can’t use it here. We drive up inflation. We drive up energy prices. We drive up housing costs, and then we see people living in the streets in tents in Queensland. 

We see that the Liberals and Nationals are waking up to this issue. Senator David Sharma last night mentioned housing and immigration. We’ve been talking about it for several years now. He also mentioned that we need to do something about bracket creep. Recently, the Liberals and Nationals had a perfect opportunity to vote for my amendment on tax changes that would have ended bracket creep. You said no. Instead, you’re going to help the Labor Party steal $38 billion in the next four years from Australians because of bracket creep. You both want bracket creep. That’s the truth. You say that you don’t want it but, when the time comes to have a vote, you don’t vote for ending bracket creep. You vote for bracket creep because that’s how you steal more money from Australians, just like you’re stealing their livelihoods and their accommodation. 

I proudly speak about people’s wants and needs. Australians have very simple wants and needs. They want security, they want a good Aussie lifestyle and they want a fair government that looks after them—not one that steals from them. They want people in this place and in the House of Representatives to put the national interest first —not to bring in 2,000 Gazan immigrants with just one hour of processing. 

Only One Nation wants to give Australians a say. Under Senator Hanson as our leader—we’re the only party with a female leader, I might add, and proudly so—we’ve had a policy of a citizen initiated referendum for 10 or so years or perhaps even more, because One Nation is about giving the people a voice. One Nation is about holding Labor-Greens coalitions and Liberal-National coalitions accountable. A plebiscite is very, very simple. There’s only one question in it: should we reduce immigration? What are you afraid of? Should we reduce immigration? Let’s hear from the people: yes or no. That’s all we want. We want to put the people first in this country. That’s what we’ve been doing and that’s what we will continue to do. That’s why we have our energy policies and our immigration policies. We want to stop the mess that is unfolding in this country. 

Australia used to have the highest per capita income in the world; that was 120 years ago. We’re now slipping below many other countries. We’re heading for 20th. Yet, according to the United Nations, we have the richest resources in the world. You and you are squandering those resources. You’re stealing from the Australian people and now you’re making sure that they don’t get a house and that they don’t get a rental. They’ll keep sleeping in parks. All Senator Hanson and I want is to put the people first, to serve the people and to give the people a say. Should we reduce immigration? It’s over to the people of Australia. 

The ACTING DEPUTY PRESIDENT (Senator Allman-Payne): The question is that the bill be read a second time. 

The Senate divided. [10:03]  

(The Acting Deputy President—Senator Allman-Payne)  

Hundreds of thousands of Australians are homeless with more added every day.

The Defence Force is the most unprepared to defend Australia it’s been in 50 years.

Inflation has cancelled out all of the wage growth of the last ten years.

Let’s have a look at what Liberal and Labor are doing about it.