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Transcripts
October 2, 2025
Thursday, 02 October 2025
Topics: China puts pressure on Australian iron ore, Gaza flotilla, Labor’s reckless first home buyer scheme
E&OE…………………………………………………………………………………………
KENNY HEATLEY: Well, joining me live now is Shadow Finance Minister, James Paterson. Good to see you, James. Thanks for coming on the program this morning. This dispute between China and BHP, are you worried about any long-term impacts on the budget?
SENATOR JAMES PATERSON: Yes, I'm very concerned. Iron ore is obviously Australia's largest export and one of the single biggest contributors to the federal budget bottom line. Nothing is more important, in fact, for a surplus and deficit in some financial years than the iron ore price. And so if our Chinese partners are using attempted leverage to try and drive down the price and underneath a competitive international market price, then that would be very concerning. And I don't think it's good enough for the federal government to take a hands-off attitude. We should remember that the counterparties that BHP are dealing with are not strictly commercial in the sense that they would be in a free-market country like Australia. They're either state-owned entities or heavily influenced by the Chinese government. And I think we have to back BHP in this fight.
KENNY HEATLEY: Right, so you want the government to get involved. So exactly what response do you want?
SENATOR JAMES PATERSON: Well, the Albanese government has made much of their success in the bilateral relationship between China and Australia. So events like this should not be occurring if they are indeed successful in restoring normal relations between Australia and China. And they should use the access that they so often boast about to intervene and ensure that a fair negotiation on commercial terms occurs. I'm concerned that this isn't a strictly fair commercial negotiation, that leverage is being applied. And the Australian government should back Australian companies and Australian exporters if there is that kind of untoward coercion happening.
KENNY HEATLEY: We're being told that this is purely a negotiation tactic by China in trying to influence the price it pays for iron ore. But do you think it has anything to do with Anthony Albanese's recent overseas trip, where, in a series of bilateral discussions with allies, the Prime Minister lobbied to create a supply line to counter China's critical minerals dominance? Or is it just about driving down prices?
SENATOR JAMES PATERSON: Well, I would certainly hope that that's not the case, but just going purely on the past behaviour of the Chinese government, we can't absolutely rule out that possibility. The Chinese government has, in the past, used the economic relationship for political leverage. They've attempted to economically coerce Australia to change our public policy settings. And so we should always be alive to the possibility that an authoritarian government like China, which sees trade and politics as linked, as inseparable, would be willing to use that to try and secure concessions or outcomes from the Australian government. Now, if that is the case, then we should be absolutely steadfast in saying that we will not back down in our national interest, and we will allow those tactics to work against us.
KENNY HEATLEY: Hoping to just get your reaction to this while I've got you, there are six Australians on board the Gaza aid flotilla. It's just been intercepted by Israel's Navy. These are live pictures on screen right now. There have been arrests, including activist Greta Thunberg, and some have been taken to an Israeli port. Do you have any concerns for those Australians?
SENATOR JAMES PATERSON: Look, I hope this can come to a peaceful and safe conclusion for everyone involved. I of course respect the sincere concerns that I'm sure many of the people involved in the flotilla have about the humanitarian situation in Gaza. It is concerning to all decent people around the world. But to say that it is unwise to sail a flotilla towards a war zone, which is in part controlled by a terrorist organisation, would be a massive understatement. And I think the people who've got on these boats and sailed towards Gaza are engaging in very clearly a political stunt. If it is the delivery of aid to Gaza, the IDF has provided them with an alternative and safe pathway through which they can do that and ensure that aid does make it to Gaza. But, of course, I don't think that's their primary motivation. Their primary motivation is to manufacture a clash with the IDF for the purposes of publicity, to put pressure on Israel in relation to its war aims. And that is a reckless and dangerous thing to do.
KENNY HEATLEY: Just while I've got you as well, Treasury advice points to a 0.5% uptick in national house prices over six years as a result of Labor's first home buyers deposit scheme. But that's been disputed by some economists who say the impact on house prices, at least for the affordable segment of the market under the caps of the scheme, will be much more significant. What do you think?
SENATOR JAMES PATERSON: Well, that's self-evidently true. This is a sleight of hand from the Albanese government, where they take the entire housing market and say that the impact over a long period of time won't be that great. But, of course, the impact on homes which are eligible for this program will be far greater, and particularly over the next few months, as significant demand is brought forward. This was a good scheme that started under the Morrison government that has helped first home buyers get into the market, but the Albanese government has completely bastardised it by removing all means testing so that, in theory, a millionaire or billionaire could get a subsidised loan to buy their first home, which is obviously an absolute absurdity. It would have been much better if the Albanese government had kept in those reasonable means testing and income caps to make sure that it is people who genuinely could not save for a deposit for a home for themselves that have got access to it.
KENNY HEATLEY: I've got to say, though, would a billionaire be buying a first home, when you think about it?
SENATOR JAMES PATERSON: Obviously not. I'm using an extreme example to illustrate the point that, maybe not a billionaire, but does someone who earns $500,000 a year need access to an Australian government-subsidised loan to buy their first home? I don't think so. There should be reasonable means tests on this program.
KENNY HEATLEY: OK, James Paterson, appreciate your time, as always. Thanks for joining us.
ENDS