Look, I think it was always going to take some time. Obviously, we went through a lot of upheaval following the last federal election. Angus, Jane and Matt Canavan, leading the Nationals, have had a number of months to build the foundations, and I think we’ve built some really good foundations, especially in the Budget Reply speech. But it is going to take some time, and I think we’ve just got to concentrate on that core business in terms of holding the government to account, as we have done following the budget, and putting forward a positive policy platform.
Host: Do you worry it could get to a level where the perception is you’re so far off forming government it’s not relevant to vote for you anymore?
Senator Paul Scarr: Look, that could be a question, but I really do think that most Australians would see the Coalition as the natural alternative to the Labor Party. One Nation is polling extremely well, but again, we’ve just got to focus on our own game. One of my colleagues said some wise words this week. He said when you’re in a football match, you don’t spend your time looking at the scoreboard, you’ve just got to focus on your own game and taking the ball forward. I think that’s what we need to do.
Host: But when you’re eight goals down, you change the game plan sometimes. Take more risks.
Senator Paul Scarr: Well, I think there was a change in the game plan, Tom, and I think everyone’s united behind Angus, Jane and Matt. That’s the Coalition.
Host: A new coach halfway through the game, but the game plan itself — usually you take more risks if you’re further behind. Do you need to take policy risks, get more out there than you usually would?
Senator Paul Scarr: Well, I think we probably need to positively assert what we believe in perhaps more strongly.
Host: And does that mean not being reactive, in particular to Pauline Hanson, but proactive? Because there is a sense she says things and you react at the moment.
Senator Paul Scarr: Well, I do think we need to really focus on our own game. Absolutely agree with that. We need to put out positive policy platforms, and I think Angus’ policy idea, which has absolute support — indexation of taxation thresholds — is an example of getting on the front foot and not worrying so much about others in the game, but really concentrating on our own game.
Host: One thing, with your old head of citizenship on, was Pauline Hanson’s speech at the Press Club. There was talk of monoculturalism, and Angus Taylor was asked afterwards and sort of danced around the word multiculturalism. Was that an example of needing to address this head-on, have your values, stick by them and not be spooked?
Senator Paul Scarr: Well, I think Angus has made it clear, in terms of multiculturalism, that the starting point is those Australian values which actually act as an umbrella for our community — respect for the rule of law, respecting the rights and liberties of all Australians. Under that, we have that diversity in terms of culture. We need to empower people in our community. There can’t be any discrimination against people. I think Angus has put forward that package pretty clearly now.
Host: On falling house prices, the polling we had today suggests half of voters in Australia think that would be good for the country. Another 26% think prices going sideways would be good. Does it surprise you? And I should say that’s not people saying it would work for them personally, but overall. So affordability clearly matters. People need to be able to buy a home without tanking the economy. Does it surprise you that three-quarters of the nation are saying, “Geez, enough of the house price increases”?
Senator Paul Scarr: No, it doesn’t surprise me, Tom. I think everyone’s concerned about access to the housing market, especially first home buyers. People have children and grandchildren who are trying to enter the market, and they’re aware of the frustrations.
Host: And that’s the thing. It used to be that older people would say, “I’ve got a house, I hope it rises.” Now they go, “Well, that’s fine for me, but I’ll have to help buy one for the grandkids if this doesn’t ease.”
Senator Paul Scarr: Well, I think there is a concern. What really does concern me is the lack of confidence in the market, and we’re hearing that in terms of those terrible auction clearance rates coming out of the weekend and in terms of people not investing more in new builds. That’s the concern I have coming out of the last budget.
Host: So we’re in the maelstrom right now and we’ll see how it settles. If over a year there’s a correction of 10% — last year alone prices went up 9% when affordability was already an issue — that wouldn’t be dramatic, would it? Obviously, huge falls in a month could hurt confidence, but—
Senator Paul Scarr: That’s right.
Host: Economists say a correction of 10%, give or take, if it’s not more than that, wouldn’t be bad for the nation.
Senator Paul Scarr: Well, that’s okay from a macro level, but the issue is at a micro level. Those new home buyers who bought under the 5% government guarantee scheme may have bought in at the beginning of the year. To what extent are they underwater in terms of negative equity?
Host: I mean, you don’t buy a house and sell it a year later as a first home buyer unless you’re forced to.
Senator Paul Scarr: High interest rates — and that’s where the cost-of-living pressure and high interest rates can have an impact.
Host: Stress-tested to 2%. I mean, we’re not going to get eight rate rises — well, we’d better not get eight rate rises. I might be selling if that happens.
Senator Paul Scarr: Tom, I hope not. But we continue to see government spending increase. Jane Hume made a good point during Senate Question Time that tax as a percentage of GDP keeps increasing. So we keep getting bigger government, and that keeps pressure on inflation, which can lead to pressure on interest rates.
Host: Yeah, and I guess to that, when I spoke before about taking a risk, not just saying you’ll be better at the budget, but if the Coalition is actually willing to say, “Here are the things we will cut.”
Senator Paul Scarr: Sure.
Host: Here’s how we bring the budget under control. This is what a responsible alternative government looks like. That’s a risk worth taking.
Senator Paul Scarr: Oh, absolutely. And I think indexing those taxation thresholds is a really positive proposal.
Host: That’s different. That’s foregoing revenue. The other side?
Senator Paul Scarr: Correct.
Host: If you’re going to tame inflation, there’s a whole lot you’ve got to get right on the other side.
Senator Paul Scarr: Correct.
Host: And saying exactly what it is — public servants, whatever it might be.
Senator Paul Scarr: Well, we’ve already spoken out about some of the massive funds that the government established since it was first elected, including the National Reconstruction Fund, because the government sees itself at the centre of everything, and that’s not our philosophy.
Host: All right. So that specificity is something the Coalition needs to be willing to do?
Senator Paul Scarr: Absolutely. I’ve absolutely agreed with that.
Host: Line item by line item, and maybe a bit earlier than it would normally happen?
Senator Paul Scarr: Oh, absolutely.
Host: All right. Paul Scarr, appreciate your time today. Thank you.
Senator Paul Scarr: Thank you.
