‘‘Don’t blame me’: Stoush over high airfares
Written by admin on September 10, 2024
Social Services Minister Amanda Rishworth has slammed calls for the consumer watchdog to be given powers to break up airline giants, claiming the government is “getting on with the job”.
Ms Rishworth had a fiery clash with opposition transport spokeswoman Bridget McKenzie on Tuesday morning following on from Ms McKenzie’s calls for more competition in the aviation industry.
“Australians want an airline sector where you have genuine choice, where your plane takes off and lands on time, and your bags arrive at your destination with you,” Senator McKenzie wrote in the Australian Financial Review on Monday.
“The Treasurer will have failed another reform opportunity unless he deals with divestiture as a measure to ensure consumers’ interests are protected and not at the mercy of the entrenched duopoly and the proper role of divestiture.”
However, Nationals Leader David Littleproud watered down the comments and said it was not Coalition policy but a “calm, methodical way of working through competition policy for airlines” and a “sensible look at competition to ensure we have cheaper airfares”.
When asked on Today whether the proposal was simply a “little McKenzie thought bubble”, Senator McKenzie said she, along with the Coalition, was “on the side of the Australian traveller”.
“We’ve got a policy we actually put forward last year in the Qantas inquiry, a set of recommendations, one of which included that we needed to do a competition review that was holistic, that actually looked at divestiture laws,” Senator McKenzie said.
“My opinion piece went to the fact that Jim Chalmers has done nothing in 2½ years while airfares have gone up 50 per cent.”
Senator McKenzie then pounced on Ms Rishworth, demanding to know what Treasurer Jim Chalmers is “doing about it”.
“Great deflection Bridget; from having announced a policy you’ve then walked away from it by lunchtime,” Ms Rishworth said.
“I mean, this is the kind of chaos policymaking that we have.”
Senator McKenzie said it was “on brand for Labor” to “play the woman, not the ball”, prompting Ms Rishworth to hit back.
“Don’t blame me Bridget for making a mistake,” Ms Rishworth said, with Senator McKenzie firing back she is “blaming (Ms Rishworth) for high airfares”.
“You’ve got to take some responsibility here, Bridget. But of course, what we are doing is we have launched our aviation white paper … which is about consumers, competition,” Ms Rishworth replied, referring to the aviation white paper report released earlier this month.
The report announced the creation of an Aviation Industry Ombuds Scheme, which would have powers to compel airlines and airports to resolve customer complaints and report on their conduct.
The watchdog will also have powers to administer and enforce penalties on both domestic and international airlines.
“We’ve already taken reform on (airline) slots, we’ve already taken reform on slot allocation, which you failed to do. Don’t get angry at me, Bridget, when you’ve made a mistake,” Ms Rishworth said.
Ms Rishworth added there had been “absolute chaos from the Coalition in terms of this policy”.
“This could actually not help with competition. We’re getting on with the job. We’ve got an aviation white paper which clearly sets out the rights for consumers,” Ms Rishworth said.
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“My focus is on the Australian people and the Australian air travellers. That’s what our government’s focused on and we’ve done slot reform as well to help with competition.”
However, Senator McKenzie claimed the white paper was “silent on competition”, with airfares “still going up”.
“Jim Chalmers now has to pick up what Catherine King has let go and do something, put a plan in place to increase competition and I’ll support it. I just haven’t seen anything yet,” Senator McKenzie said.
