SARAH ABO, HOST: Joining us to discuss today's headlines is Northern Territory Senator Malarndirri McCarthy and WA Senator Michaelia Cash. Thank you both for your time this morning from Canberra. Malarndirri, let's start with you. Pagers yesterday. Walkie talkies today. Israel has not only managed to infiltrate Hezbollah's technology, but their supply network as well. It's extraordinary and chilling.
MALARNDIRRI McCARTHY, MINISTER FOR INDIGENOUS AUSTRALIANS: It's incredibly alarming in terms of the way it's occurring Sarah, you're absolutely correct on that. To hear the news yesterday of what occurred, now this morning we're hearing different news. Obviously, our concern as the Australian Government is to see a de-escalation of tension in the region. We certainly don't want to see any escalation there or any thoughts or plans for war. It's not something that we want to happen, and we're certainly making sure through our Foreign Minister, Penny Wong, in her discussions across the Middle East, ensuring that they know Australia's point.
HOST: I think that that's what's alarming, isn't it Michaelia, as well? Is what this might lead to. I mean, it's unconventional warfare. It is astonishing. And these developments in foreign intelligence, they are quite terrifying. Are we concerned about this now leading to that growing conflict that we know we've been on the verge of for a few months now, for more than a year?
MICHAELIA CASH, DEPUTY OPPOSITION SENATE LEADER: Well Sarah, let's be very clear here. What is Israel doing and saying? They're sending a very clear message to the terrorists, "just stop attacking us". Hezbollah ‑‑
SARAH ABO: But it's unlikely to work, is it?
MICHAELIA CASH: ‑‑ hold on. Hezbollah is a listed terrorist organisation. Sarah, I lived in Northern Israel 30 years ago. I lived up there, I experienced the Katyusha missiles coming over on a regular basis. That is life in Israel. They are a listed terrorist organisation who have been indiscriminately attacking Israel for decades in a demilitarised zone, but since October 7, they have been attacking them almost every single day. So, Israel is just sending a clear message, as distressing as that message must be, "just stop attacking us". The one thing I learnt when I lived there is they all ultimately wanted to live in peace. Well then, the terrorists need to stop attacking Israel.
SARAH ABO: I guess the point though, Michaelia, is that that's unlikely, isn't it? I mean Hezbollah will be humiliated by this attack and there will be retaliation; they've said that.
MICHAELIA CASH: Well, isn't that ‑ what an indictment on a terrorist organisation and what you just said, that that is unlikely because a terrorist organisation will be humiliated by Israel defending itself. Perhaps the terrorist organisation needs to have a bit of a think about what it does. Again though, Israel, all it's doing is sending a clear message, "just stop attacking us, we want to live in peace just like everybody else".
SARAH ABO: Yeah, I guess they're unlikely to listen. Anyway, let's move on now. And low-income families could soon get three free days of childcare following a major inquiry from the Federal Government. Malarndirri, the Productivity Commission report recommends all single child families earning $80,000 receive childcare for free for those three days. It's a step beyond your current proposal. Will the Government commit to this now?
MALARNDIRRI McCARTHY: Well, we've certainly focused on childcare, Sarah, as Australians know, 1 million Australians know at least, the work that we've done in that space to reduce the cost of childcare, but also to increase at 15 per cent the wages for those working in the childcare industry. So, we're very focused on this and we appreciate what the Productivity Commission has said. No doubt Jason Clare, the Education Minister in this space, and we'll take this forward to have a look at it, and I think we might see some good news, but I am pleased with where we stand at the moment with regards to our work in the childcare space, Sarah. It has been a tremendous amount of work by our government to ensure that families have cheaper childcare.
SARAH ABO: Yeah, and successive governments have obviously tried to tackle childcare, but it is an issue that doesn't seem to go away from election cycle to election cycle. Michaelia, this proposal could cost somewhere between around $17.4 billion a year. Would that be money well spent?
MICHAELIA CASH: Look, it is a huge report, it's over a thousand pages, and we're going through it. What the report does acknowledge is the work of the former Coalition Government in particular, in increasing the number of childcare places by 50 per cent, in increasing access for four‑year‑olds to childcare up to 90 per cent. It's interesting what Malarndirri just said though, because the reality though for parents is this, in the last 12 months under Labor, despite the big game that Labor and Malarndirri have just talked, childcare costs have actually increased by 8.4 per cent, and no additional places have actually been created. So, it's one thing to talk a big game, it's another thing to look at the reality that Australians are actually experiencing on the ground, and that is they are paying over the last 12 months, 8.4 per cent more. They're struggling under this government.
MALARNDIRRI McCARTHY: May I respond to that, Sarah?
SARAH ABO: Of course.
MALARNDIRRI McCARTHY: We have brought this to the Senate on many occasions to increase also the opportunities for childcare workers in terms of their pay, and at each turn the Opposition have rejected an increase in pay for workers in the childcare space. So, I think it's also a big game for the Coalition to try and call this when they know that our efforts in the childcare sector have been far greater than any work that they've done in this space.
MICHAELIA CASH: That's not what the report says, Malarndirri, and with all due respect I was talking about the cost ‑‑
MALARNDIRRI MCCARTHY: You've read the thousand pages?
MICHAELIA CASH: ‑‑ of childcare. And the cost of childcare ‑‑
MALARNDIRRI McCARTHY: I think we'll agree to disagree, Sarah.
MICHAELIA CASH: ‑‑ has actually gone up by 8.4 per cent.
SARAH ABO: Yeah. Well, look, I mean it sort of ‑ it is an issue that's plagued many governments and it's something ‑ it adds really to the cost‑of‑living pressures that a lot of people are under right now. And that brings us to the final point here, is that the US Central Bank that's cut its interest rates. Malarndirri, it was an aggressive move, 50 basis points instead of the expected 25. How long before we see a cut here then?
MALARNDIRRI McCARTHY: Well obviously in terms of the RBA decision, that will be entirely up to them, the decisions that they make. We all know that that has to be done in isolation to whatever the government's hopes and aspirations may be, Sarah.
SARAH ABO: I guess Australia has to play catch‑up though, don't we? I mean the US ‑ this cut in the US comes after several other western countries.
MALARNDIRRI McCARTHY: Yeah, correct. We're always having a look at what's happening overseas, but we also have to keep in context our situation, and our situation does differ to the US and to the UK.
SARAH ABO: Very quickly, Michaelia, from you.
MICHAELIA CASH: Good news for the US, bad news for Australians. It again confirms Australia is now at the back of the pack when it comes to tackling inflation, full stop, that's it. Look at the actual reasoning for what the Committee said. They believe that inflation is trending down in the US. The Reserve Bank have said the exact opposite in Australia. They've made it clear inflation is home grown, a problem of the Labor Government. There's no good news in sight for Australians. I think that's really sad.
SARAH ABO: Oh, I think it's a global issue. But anyway, let's park it there and see what happens. Thank you both so much for joining us, we really appreciate it.
MALARNDIRRI McCARTHY: Thanks Sarah.
MICHAELIA CASH: Great to be with you as always.