Emma Rebellato, Host: Foreign Minister Penny Wong joins us now. Minister, thanks for joining us.
Penny Wong, Foreign Minister: Good to be with you.
Rebellato: I will ask you about the Donald Trump comments in a little while, but first I want to start with, of course, the story we're all talking about, which is the halving of the fuel excise and the decision to reduce the Heavy Vehicle Road User tax. Why were these decisions? Why is this the right move?
Foreign Minister: We recognise the pain that Australians are feeling as a consequence of high energy prices, due of course to the conflict in the Middle East and what that's doing to global markets. And so, this is some temporary and targeted relief for Australians for the next three months. As you said, 26.3 cents off the excise rate, which will reduce what are very high prices at the bowser.
Rebellato: Economists are worried that this will only increase demand and put pressure on inflation. Is this a risk the government should be taking now?
Foreign Minister: This is one of a number of things we're doing in relation to fuel. You've seen over these last weeks, as this fuel crisis has intensified, the Government doing a lot more on supply. So, releasing some of our stockpile, making sure we change the flashpoint requirement, as it's called, so that more fuel can be used here in Australia. And of course, the announcement on Saturday, which is the Government underwriting private sector purchases to bring more fuel into Australia. So, we're doing work on supply, but we also recognise that price is one of the things that Australians are contending with and which is why we've taken the measures that we are taking.
Rebellato: Senator, Donald Trump overnight has threatened to blow up Iran's energy infrastructure, including the fuel hub of Kharg Island, if negotiations to end the war are not successful. What's your reaction to that?
Foreign Minister: We'd like to see the talks lead to de-escalation and the resolution of this conflict. There's obviously been a lot of military objectives the President has achieved in terms of Iranian air force, Iranian navy, Iran's military-industrial base and its capacity to launch missiles. We believe that it would be a good thing for the global economy and for Australians and certainly for the world if we could see de-escalation and these talks lead to a cessation of the conflict.
Rebellato: Ok, well, let's talk about objectives, which you just mentioned there. The Prime Minister yesterday says he wants to see more certainty in what the objectives of the war are. Do you know what they are?
Foreign Minister: Secretary Rubio overnight reiterated what US objectives were in terms of their military objectives, and I've just outlined them. The point about regime change the Prime Minister was making is the same point I have been making for some weeks, and that is it's very hard to see historically where anyone has achieved regime change externally. That ultimately regime change has to come from the people of the country. You might have heard me even on this program saying this is ultimately a matter that is in the hands of the people of Iran. So, you know, the Prime Minister, I think made quite clear last night, we have concerns if the objective is regime change, because we have said all along this is ultimately a matter for the people of Iran.
Rebellato: But does Donald Trump know exactly what's going on here, the effects and the consequences this is having on Australians here?
Foreign Minister: I can't speak for the President, but I certainly know that he has made many comments and as have other US officials about the impact on energy markets. I mean, no one is immune. This is the largest shock on global energy markets since the 1970's. And of course it's having an impact throughout the world. 20% of the world's oil passes through the Strait of Hormuz. Tehran has chosen to seek to hold the Strait hostage. And of course, 70% of the oil that comes to Asia, which is where we get our refined fuels from, comes through the Strait. So that explains why we're seeing the impact at the petrol bowser.
Rebellato: Senator, given the rhetoric overnight, given the fact that the Prime Minister has asked, he wants to have clarification over the objectives here, are you pretty much just having to do guesswork as to what happens?
Foreign Minister: Well, this certainly is an unpredictable conflict. No one would have predicted that Iran would react in the way it did, bringing within the first three days some 12 countries into the conflict or striking 12 countries. That is unprecedented. So, this conflict has spread more widely than anyone would have wanted. And now we have a situation where Iran is effectively holding 20% of the world's oil hostage. So, of course, this is an unpredictable conflict. War is unpredictable. And the question is, how do the parties, how does the US navigate a landing point out of this conflict that is acceptable to it and to the Iranians? And I think that is what the US is seeking to do.
Rebellato: Foreign Minister Penny Wong, we appreciate your time this morning. Thank you.
Foreign Minister: Good to speak with you.