Joining me this morning is Senator Paul Scarr, the Liberal National Senator for Queensland. Good morning to you, Senator. Hard to believe it’s already the last day of January — it’s come around pretty quickly, hasn’t it?
Senator Scarr
It has, John. Great to be with you and your listeners. It’s amazing, really — we’re about to hit February, and so much has already happened. We’ve had the tragic events at Bondi back on 14 December, Parliament’s already returned for a week to deal with important matters, and we’re back again next week.
John Sertori
There’s a lot to cover — the economy, the future of the Coalition — but let’s start with cost of living. We’re still in the middle of a genuine cost‑of‑living crisis. Earlier today we talked about mortgages, inflation’s back up at 3.8%, and essentials like energy, rent and food are all rising in double digits. This crisis still needs attention.
Senator Scarr
Absolutely. It’s a major concern for families everywhere. In the area where my office is based, we’ve been helping a local charity that provides school supplies for families who are struggling. People are really doing it tough — rents are up, groceries are up, insurance is up, and electricity prices have gone through the roof. Times are very tough.
John Sertori
We were talking about energy prices before, and one caller asked why no one has seen a drop in their bills. Wasn’t that supposed to happen?
Senator Scarr
Exactly. That was the promise four years ago — that power bills under Labor would come down. Instead, they keep rising. Electricity is now nearly 40% higher than when Labor took office. There’s no sign of it easing.
John Sertori
And it’s not just power — food and other essentials are up in double digits as well. Government spending is now at its highest level outside a recession in 40 years, isn’t it?
Senator Scarr
That’s right. It’s sitting at about 27% of GDP, and there are no guardrails — nothing to rein in spending. The Labor government is spending like a drunken sailor, and that drives inflation, which then puts pressure on interest rates. And unfortunately, we’re very likely to see rates go up again when the Reserve Bank meets next week.
John Sertori
Mortgage holders are already paying around $21,000 more a year in interest. It raises the question: why should Australians believe Labor’s spending isn’t directly pushing up their bills?
Senator Scarr
Well, it is pushing up their bills — there’s no doubt about that. If the Reserve Bank increases rates by 25 basis points, as expected, that’s another $1,000 a year out of the pocket of the average mortgage holder — and that’s after tax. It’s a very tough environment.
John Sertori
The Treasurer and Treasury say they can’t explain the $60 billion deterioration in forecasts. That doesn’t inspire much confidence in transparency, does it?
Senator Scarr
No, it doesn’t. That $60 billion black hole means the government has locked in spending it can’t cover over the medium term. That adds to debt, which fuels inflation and pushes interest rates higher. It just becomes a vicious cycle.
John Sertori
What do you think is missing from the books?
Senator Scarr
There’s a lot of off‑budget spending — entities that have been set up by this government, in areas like manufacturing and renewable energy, go out and borrow. It might be technically off the budget papers, but it still has an impact — on the budget overall, on inflation, and on interest rates.
John Sertori
Another big topic lately is the future of the Coalition. Liberals say they remain committed, while Nationals have taken three different positions in Parliament. This needs to be resolved quickly, doesn’t it?
Senator Scarr
It does. My hope is that the Coalition can be rebuilt. Opposition Leader Sussan Ley has left the door open, and hopefully there’ll be constructive discussions over the next week. I’m from Queensland, and I’ve seen what happens when there’s division on the non‑Labor side — you end up with a bad Labor government for longer. In my view, we need to be back in Coalition and offer a strong alternative government. That’s what people expect.
John Sertori
To have a good government, you need a strong opposition — checks and balances.
Senator Scarr
Exactly. When we’re back in Canberra next week, our job is to hold the government to account every day and shine a light on areas — like rising rates — where their policies are failing Australians. That’s what an opposition is meant to do.
John Sertori
And it needs to be sorted quickly so everyone’s back on the same page. Without that unity, voters don’t have a viable alternative. It needs to be cleaned up so people can start looking toward the future. How did you feel watching everything that unfolded over the past few days?
Senator Scarr
I think the key is exactly what you’ve said — focusing on the future and on the issues affecting Australians right now. The Reserve Bank meets on Tuesday and will likely raise rates again. That will hit mortgage holders hard and make the cost‑of‑living crisis worse. That needs to be our priority. So I’m glad we’ve been able to talk about these issues this morning.
John Sertori
Senator Paul Scarr, thank you very much for your time this morning. We’ll talk again next Saturday. Have a great weekend.
Senator Scarr
Same to you, John, and to all your listeners.
