It was the reshuffle the Prime Minister had to have, and this week his new-look frontbench were straight back to work, with the countdown to the election growing ever louder.
After announcing the ministry changes over the weekend, the PM had a relatively quiet week in Sydney after a big couple of weeks of regional travel. The countdown to next week’s interest rate decision has surely become a little more comfortable after this week’s inflation data release – we’ll take a look at what that means – as well as dissecting the week’s other big story which was of course Rex Airlines entering voluntary administration.
Let’s start with a look at what made headlines this week:
- Surveillance flights drop as people smugglers ramp up, posing challenge for Burke
- CFMEU will take years to rebuild: Watt
- Aussie swimmers dominate pool at Paris Olympics
- Donald Trump suggests Kamala Harris suddenly ‘become a black person’
- Cross River Rail worker blames CFMEU for pre-dawn assault
- Inquest into Wieambilla police shooting gets underway in Brisbane
- Accused 9/11 plotters avoid death penalty in the US
Politics
Ministry reshuffle
On Sunday, the Prime Minister announced his first ministry reshuffle of the 47th Parliament. While the retirement of two senior cabinet ministers prompted the reshuffle, Albanese seized the opportunity to make broader changes, particularly for those who were considered to be underperforming.
Home Affairs experienced the biggest change with senior Labor minister Tony Burke moving from Employment and Workplace Relations into the portfolio. He also inherited Cyber Security and retained the Arts portfolio, along with his Leader of the House role.
The change comes after months of intense criticism of Clare O’Neil and Andrew Giles for their handling of the immigration detainee saga. O’Neil remains in Cabinet with the Housing portfolio while Giles was shifted sideways into Skills and Training, which has been dropped from Cabinet.
In a surprising move, the Defence Industry and Capability Delivery portfolio was elevated back into Cabinet with NSW MP Pat Conroy retaining the portfolio but being promoted to Cabinet. This elevation is perhaps a reflection of the importance of Australia’s defence capability, particularly as tensions in the Indo Pacific region continue to escalate.
Queensland Senator Murray Watt moves from the agriculture portfolio into Employment and Workplace Relations. Watt is considered a standout performer for the government, and he will need to be as he deals with the fallout of the CFMEU mess.
Albanese has prided himself on the stability of his ministry so don’t expect to see another reshuffle before the next election.
Inflation up but not running as hot as expected
They were the long-awaited figures with huge potential ramifications for the economy and the government, and when Wednesday’s quaterly inflation data was released you could just about hear the sigh of relief from Jim Chalmers.
The data confirmed headline inflation did indeed trend upwards in the June quarter to 3.8% from 3.6% – the first time it’s headed in the wrong direction since the December 2022 quarter. If that sounds like bad news, you’re not wrong, but the number both the government and RBA look at more closely is core inflation, or the ‘trimmed mean’ and that number was just slightly lower than expectations. Core inflation is calculated after ‘trimming’ away the most volatile sectors with huge price fluctuations either way – giving the RBA a more accurate picture of the trend.
Markets moved pretty much immediately to adopt the assumption that softer than expected figures will be enough for the RBA to leave rates on hold when they meet next week, although that’s far from guaranteed. The RBA would certainly have wanted to see inflation trending down at a much faster rate by now if we are to reach the target inflation band by mid-2026.
But while the government might be (privately) relieved, it definitely doesn’t mean Australians struggling with cost of living can breathe easy. Prices are still trending up, and more importantly, are not trending down. That means rate relief is still a long way off, just at the time we’re starting to see the effects of 13 interest rate rises in the economy.
Rex .. will the government bail them out again?
Regional airline Rex went into voluntary administration this week after reportedly losing a million dollars a week for the last six months. The collapse comes just three months after budget airline Bonza went into liquidation.
Former competition watchdog Rod Sims has blamed a failure of public policy for Rex’s demise and highlighted the problems with Australia’s slot allocation system. He said the current system is set up for a duopoly with Qantas and Virgin controlling the slots.
The Coalition’s transport spokesperson Bridget McKenzie shared a similar sentiment to Sims but of course went further in her criticism. She agreed the current slots system is largely to blame but she also basically accused the Prime Minister of running a protection racket for Qantas. She said he could’ve changed the system and claimed he has had a report on the issue on his desk for two years.
However, former Deputy Prime Minister and aviation minister who propped up Rex during the pandemic Michael McCormack claims the airline’s expansion into capital cities, rather than just focusing on the regions, is partly to blame for the current situation.
The government hasn’t decided on how they will assist Rex but have repeatedly said all options are on the table. Options include taking an equity stake in the airline or providing a cash bailout, however the Prime Minister has been clear that whatever assistance they provide will include the government having a say in the airline’s future.
Governments release response to Disability Royal Commission
After four and a half years of inquiry and nearly a year after the final report was released, the Australian Government, states and territories this week issued their inital response to the Disability Royal Commission’s findings.
‘Deeply disappointing’ and ‘insulting’ were some of the reactions from the country’s disability advocates and organisations on Wednesday, with the government accepting in full just 13 of the 222 recommendations. 117 recommendations were accepted in principle.
Advocates were dismayed the government chose not to implement the signature reform recommendations from the Royal Commission – the introduction of a disability rights act, working to eliminate segregation in education and housing and appointing a federal minister for disability inclusion.
Many of the recommendations governments said needed more examination, and progress towards reform will be monitored by six-monthly progress reports.
The Australian Government announced investments into disability advocacy, a review of Australia’s Disability Discrimination Act and frameworks for better safety and protections for people living with disability.
Queensland
Estimates continued
Queensland Ministers continued to be grilled by the Opposition this week as Estimates continued for another week. All eyes were on Youth Justice, Child Safety, Transport and Energy.
However, it was questioning of the education minister that made headlines for an unexpected reason. Minister Di Farmer came under fire for attending the Pink concert with her department’s Director-General and 18 department “stakeholders” rather than attending a meeting with parents and staff from Rochedale State School. The snap meeting was held on 19 March to allow parents to ask department of health and education representatives questions after asbestos was found in ceiling tiles in 12 classrooms, however the minister attended the concert instead.
The energy portfolio also garnered media attention after it was revealed the multi-year investigation into the 2021 explosion at Callide C power station, which triggered mass blackouts, cost taxpayers $10.4 million. Energy Minister Mick de Brenni tried to shift the blame to CS Energy representatives explaining they were responsible for commissioning the report, setting the scope of the investigation and inevitably paying for the report. Shadow Minister Deb Frecklington zeroed in on figures showing CS Energy had also spent $38.9 million on external legal fees in two years and questioned if this included the cost of trying to keep the Brady Report from being made public.
No doubt the government is glad estimates are over.
CFMEU
Shocking footage emerged this week showing two non-union construction workers involved in a violent clash with CFMEU members in May this year, just outside the Dutton Park site of the Cross River Rail project. Then on Wednesday morning, one of the alleged victims of the May incident was allegedly attacked by two men outside his Logan Reserve home as he was leaving for work.
Police have confirmed they are investigating the alleged incident, and a security guard has been placed outside the house.
The CFMEU has rejected any knowledge of, or involvement in, the alleged assault, with Queensland secretary Michael Ravbar declaring that he was confident the police investigation would prove that to be the case.
When asked about the alleged incidents, Premier Miles confirmed he was aware of the alleged assault and the matter was “being taken incredibly seriously”. While the CFMEU has rejected any knowledge of the alleged attack on Wednesday, Mr Miles said he would do whatever it took to stamp out union-linked violence and intimidation.
Olympics Games
The federal infrastructure minister flew to Queensland this week to join with Premier Miles to announce an expansion of the Moreton Bay Indoor Sports Centre for the 2032 Brisbane Olympic and Paralympic Games.
The new $205m facility, spread across two separate halls, will provide the flexibility to host sports including basketball, netball, boxing, volleyball, badminton, futsal, wheelchair rugby, pickleball before and after the Games. It will have a temporary capacity of 10,000 seats and is expected to be built by 2028 so that it can be used by the community before the Games.
Global
Hamas chief killed
The conflict in Gaza now extends well beyond the disputed strip and into the wider Middle East.
Earlier this week, terror group Hamas confirmed their political leader Ismail Haniyeh had been killed in the Iranian capital Tehran. Haniyeh was killed after attending the inauguration ceremony of the new president of Iran and his death marks the highest-ranking death of a Hamas political leader since the conflict began.
It’s been reported that Haniyeh was killed by a bomb that assailants were able to get into his heavily guarded room at an Islamic Revolutionary Guard Corps guesthouse. The attack represents a major failure of Iranian security who were expected to protect Haniyeh during his time in Tehran.
Haniyeh’s death came just hours after Israel claimed to have killed a senior Hezbollah leader in Beirut. Israel is claiming to have killed top Hezbollah commander Fuad Shukr. These deaths intensify already heightened tensions with Iran and Hamas vowing to seek revenge on Israel for the deaths.
The escalation of conflict in the region has sparked warnings from the Australian Government for any citizens currently in Lebanon. There is an estimated 15,000 Australians in Lebanon and the Prime Minister has urged Aussies to leave now as there is a risk the Beirut airport might close for commercial flights.
Largest East-West prisoner swap since the Cold War
On Thursday, the US, Russia and Germany carried out the largest prisoner swap since the Cold War. More than a dozen prisoners being held by the Kremlin were exchanged for Russians being held in the US and Europe.
Amongst others, the US were desperate to see Wall Street Journalist Evan Gershkovich released, who was being detained in Russia after being wrongfully convicted of espionage. While Russian President Vladimir Putin had personally demanded the return of Vadim Krasikov believed to be a Russian hit man and former intelligence office.
Krasikov was serving a life sentence in Germany after being convicted of murdering an enemy of Russia in a park in Berlin in 2019. In broad daylight, he gunned down a ‘rebel leader’ in a park in the heart of the German capital. He is believed to be responsible for a number of other killings and crimes across Europe.
The deal involves 24 prisoners across at least six countries. Those released by Russia include former Marine Paul Whelan, journalist Alsu Kurmashev and Pulitzer Prize-winner Vladimir Kara-Murza.
The exchange comes after months and months of hard work and negotiation. Commentators have noted that we are in a new era of state-sponsored hostage-taking by autocratic governments seeking leverage over their rivals. The US State Department classifies Russia and North Korea as posing a serious risk of detention and discourages Americans from visiting.
Sport and pop culture
Aussies excel at the Olympics
After a week of competition in Paris, Australia is sitting fourth on the medal tally with eight gold medals – the same as France and just shy of the USA with nine. China holds the lead with 11 gold medals.
While there was disappointment for our Matildas, bowing out of the Games without a medal, our swimmers once again proved they’re among the best in the world with some impressive and memorable victories this week. Golden girls Mollie O’callaghan (a proud Queenslander!) and Ariane Titmus produced Australia’s first 1-2 victory since Ian Thorpe and Grant Hackett in Athens, 2004.
Flag bearer and much-loved Aussie canoeist Jess Fox bagged two gold medals in four days to become canoeing’s greatest athlete and Australia’s most successful individual medallist.
But the Olympics wouldn’t be the Olympics without a bit of controversy, and this time it’s the ugly debate about gender in sport. Italian boxer Angela Carini abandoned her match with Imane Khelif after just 46 seconds this morning, retiring hurt after claiming she ‘had never felt a punch like this’. Algeria’s Khelif is one of two boxers fighting at the Olympics this year despite being disqualified from the women’s world championships last year for failing gender eligibility tests. The tests found she had competitive advantages over other women athletes, but Paris’ entry requirements only dictate that an athlete’s gender on their passport must match the category they’re competing in.