Source: Australian Attorney General’s Agencies
Kieran Gilbert, Host: Joining me live in the studio is the Minister for Trade and Tourism, Don Farrell. Thanks for your time. A lot to talk about. I will ask you about that issue that the Deputy Prime Minister finished on there in terms of productivity and the superannuation, but let’s start on trade. Will you get the deal done with the EU? We’re hearing that the talks will resume soon.
Trade Minister, Don Farrell: Yes. In fact, I’m going to be talking to my counterpart tomorrow. So, you might recall in the middle of the election, I had a conversation with Trade Minister Maroš. He’s from Slovakia. We hit it off pretty well, I think, in our first discussion. He sent me a very kind and warm message on election night when it was clear that we had won the election. I’ve subsequently had a meeting with the EU Ambassador and reaffirmed our commitment and heard from him his commitment.
Gilbert: Sounding good?
Trade Minister: Sounding good, yeah, yep. And as I said, I’ve got a conversation with him tomorrow. And of course, in the meantime, the Prime Minister has met President von der Leyen.
Gilbert: The sticking point was on the geographical indicators and also on agriculture. Is that right?
Trade Minister: Yeah.
GILBERT: So, will there be compromise there from the EU?
Trade Minister: Look, what – the politics have changed in two years. I think both Australia and Europe now realise that there’s a priority and an imperative to get a free trade agreement. If other countries don’t want to trade with you, well that’s fine, that’s their decision. But if there are countries such as Europe who do want to do trade with you, well then you’ve got to go that extra mile to get an agreement over the line.
Gilbert: And the things that changed, we know, Donald Trump.
Trade Minister: Yeah, yeah, well look, look. A whole lot of things have changed since we last had a conversation. But I think we share the same values as Europe. So, those geographical indicators are hard issues. On the one hand, the Europeans say, well look, you’re using all of our names. On the other hand, what I say to them is, look, after World War II, a whole lot of Europeans came to Australia. They bought their families, they bought their culture, more importantly, they bought their food and wine.
Gilbert: They sure did.
Trade Minister: Yeah. And for them, the link with Europe is not an economic link, it’s a way that they keep in contact with their European roots.
Gilbert: Would you like to see then, that trade deal, you know, if you are successful in landing that, also expand into a security relationship? Because that’s what von der Leyen has raised with the Prime Minister overnight, that we talk not just in trade terms, but security terms, like Japan and Korea have.
Trade Minister: Yeah, look, look. My space is trade. I’m going to be focused on the trade agenda. We’ve gone a long way down that path. We need to complete that process. What happens with defence and all of those other issues? The Prime Minister has addressed that today. He said, look, we’re happy to look at these things, but our immediate priority with the Europeans is all about trade.
Gilbert: When the PM went to the inauguration of Pope Leo XIV, why was it important in your view to be there? Is it something that, you know, a Prime Minister necessarily has to be at, the inauguration of a new Pope?
Trade Minister: Look, I think it was very important that the Prime Minister was there. As you know, he sent me to the funeral a couple of weeks ago. That was obviously, you know, a very solemn event. This was a very joyous event for Australia’s 5 million Catholics, of which the Prime Minister and myself are both adherents to the Catholic faith. I think it was very important that Australia be represented there and represented at the highest level.
Gilbert: Do you think it’s also important in a more secular world that the leadership does show respect to people of faith? Is this something, you know, in simple terms, that people of other faiths will respect?
Trade Minister: Well, look, I think that’s part of it. But this new pope, Pope Leo XIV, has come out very strongly on the issue of peace. That’s very important for Australia. We’ve been calling for peace in Ukraine. We want the Russians to withdraw from Ukraine. And we also want peace in the Middle East. So, I think we’re on board with the agenda for this new Pope to start talking about a more peaceful world. That’s good for Australia and it’s good for the world.
Gilbert: Ok. On some other issues, my colleague Andrew Clennell reported yesterday that state MPs and officials won’t be hit by the government’s super tax on funds upwards of $3 million. Is that viable? You’ve been around politics a long time. Do you think you can still sell that as a policy when people start to realise that some premiers and officials won’t have to pay it?
Trade Minister: Well, look, this tax applies to very, very few people. Less than 0.5 per cent of the population are going to be affected. And of course, it only applies to people on very, very high balances. There are some constitutional issues that relate to how superannuation is dealt with by state governments. But rest assured that the people who are going to be making this decision will themselves be covered by this tax, if they get to that high level of superannuation.
Gilbert: The $3 million fund, I mean, as you touched on, we did go to the election recently, but do you think people, when the details start to emerge about taxing unrealised gains and so on, that that’s going to be a bit complex to try and navigate for the government?
Trade Minister: Look, I hope not. We nailed our colours to the mast in respect to this tax. We tried to get it through the last Parliament, it wasn’t successful. We took it to the last election. So, nobody was in any doubt about what our policy was in respect of this tax. And we’ve received an overwhelming endorsement from the Australian people. So, I think in terms of honesty, if we didn’t proceed with this, then I think people would say, well, what’s going on? You said you were going to do this. We’ve built the savings from this new super tax into our future budgets. So, I think now, we’ve got the endorsement for the Australian people. It’s a very, very minor tax in the scheme of things, and I think the Australian people would now expect us to proceed with it.
Gilbert: And do you think the Treasurer can make it work just with all of those other complications?
Trade Minister: Well, he’s a very, very good Treasurer and I think-
Gilbert: There are those that say it’s just too complex in terms of tax structures and people’s superannuation. You might have an impact on productivity because people will pull out of the workforce before they hit that threshold.
Trade Minister: I think people are barking up the wrong tree. I doubt whether the relatively small impact of this tax is going to result in any of those sorts of things. But we’ve got a very good salesman in Jim Chalmers and of course, now he’s being assisted by Daniel Mulino, who’s a very good friend of mine. He’s got a, I think it’s a Master of Economics from Yale, very smart fellow, and I think that combination will be very successful.
Gilbert: I know you’ve got to go. Just quickly, what else is on your agenda? You’ve got that, the talks tomorrow with the EU.
Trade Minister: Yes, yes, and India.
Gilbert: What’s at the top of your agenda here?
Trade Minister: We were very close to a free trade agreement with India before the election was called. I’m now confident that we’ll get another agreement with them. And of course, in a few weeks’ time, the United Arab Emirates Free Trade Agreement comes into operation. The United Arab Emirates is like the Woollies warehouse of the Middle East. If you can get your product in there. And all of our products are going into the UAE tariff free. It’s a really good, really good agreement.
Gilbert: 93 seats for Labor, you must have said some pretty strong prayers when you were over in the Vatican. They seem like they’ve worked.
Trade Minister: I did. Look, we were the last people, I think, to touch the Pope’s coffin before we went out for the Mass. And I did say a little prayer for the Prime Minister and the Labor Party.
Gilbert: Certainly strengthened your favour. Don Farrell, thanks for your time. Appreciate it.
Trade Minister: Thanks, Kieran.