Peter Stefanovic, Host: You are watching First Edition, and thank you for your company on this Monday morning, folks. Well, a little more discontent appears to be growing within the Liberal Party this morning with some demoted backbenchers arguing for changes to the government's plan to cut student debt by 20 per cent that hadn't been raised by the Opposition Leader, Sussan Ley. Sarah Henderson's leading the push and it was supported this morning by Jane Hume on this program who want the plan to be indexed. Joining us live, our Monday morning panel, the Assistant Foreign Minister, Matt Thistlethwaite, the Liberal Senator, Maria Kovacic. Good morning to you both. Maria, I'll start with you today. Do you support Sarah's public push here for a change to the government student debt plan?
Maria Kovacic, Liberal Senator for NSW: Good morning and thank you for having me again. I think one of the wonderful things about the Coalition party room is that our backbenchers have the opportunity to ventilate their policy ideas. And that's exactly what Senator Henderson is doing here. Like all matters of policy, it will go through our party room processes, led by our education team of Senator Duniam and Zoe McKenzie. I think it's important that we have these discussions around what good practice policy making looks like.
Stefanovic: Do you think it's a good idea or not that the change?
Kovacic: I haven't seen the detail of it, but again, I would say that I support the processes of our party room, which is for that broader discussion to occur and then we come to a policy position once we've seen the detail of the government's legislation.
Stefanovic: The fact, though, that it wasn't raised by the Opposition Leader first, is that a sign of a Liberal rebellion?
Kovacic: Not at all. It's a very common thing for backbenchers in the Coalition party room to discuss different topics and different matters and their own ideas. Our leader, Sussan Ley, has been very clear that she is interested to hear views from across the breadth of our party room. And she has been also very clear in stating that, you know, there is a great deal of talent there and she wants to hear the opinions of everybody in that room, which perhaps hasn't been the case historically.
Stefanovic: Even though it's come from a demoted backbencher who could have an axe to grind, do you see it that way?
Kovacic: Not at all.
Stefanovic: How do you feel about it, Matt? What's your read of that today?
Matt Thistlethwaite, Assistant Minister for Foreign Affairs and Trade: The Liberal Party is all over the shop on the issue of reductions in student debts, Pete. Before the election they said they opposed our policy of 20 per cent reduction in student debts. Last week, Sussan Ley was open to the idea, which we thought was quite positive. Now we don't know where they stand. Sarah Henderson's throwing this in. I think you're right, I think there is an element to a bit of jealousy from Sarah Henderson in being dumped from that portfolio. So, she's trying to stir a bit of trouble. Our position is very clear. Student debts will be reduced by 20 per cent. It's a cost of living measure to help some vulnerable Australians in what's been a difficult period.
Stefanovic: So, just, just on some of Sarah's argument here, let's just put this to you, Matt. So, if it's indexed, that puts the onus on the government to keep inflation low, meaning less money for the taxpayer to fork out. So, would this be entertained at all, I mean, I know this is big question for Jason Clare but would this, would this be entertained at all? Any kind of change?
Assistant Minister: No. We were very clear with our policy that we took to the last election. You had a dramatic increase in student debts because of inflation increases on the back of COVID and that put a large impost on students cost of living. We said we'd help them with that by reducing their debts by 20 per cent. We also, Pete, increased the repayment threshold from $54,000 to $67,000. So, that's another measure that assists people with their student debts. But our policy is very clear that reduction in student debts, increasing the threshold and the important thing is for the future that debts won't increase by as much because they're linked to inflation and the government's been very successful in getting inflation down. It's now within the RBA target band and it's much more reasonable.
Stefanovic: Ok, so just a final one, Maria, are the Liberals all over the shop, as Matt points out, on this student debt plan? Because I mean this, I put this question to the Opposition Leader last week. If there were any other issues she had with that plan and she said she didn't identify this one anyway?
Kovacic: Look, I understand why it's confusing for the Labor Party because they're not allowed to speak freely, so they are bound by the Caucus and if they have their own ideas, they can't share them or they're booted from the Party. We don't have that same premise. One thing I will say is one of the only reasons that this type of measure needed to come out is because this government was not able to manage inflation as it should. Inflation was higher for longer under this government and that's why a measure like this was necessary and that's why the government took it to the election. If they had been able to manage the economy in a better way, we wouldn't even be having this discussion.
Stefanovic: So, just on that point, though, I mean, the idea is it puts the onus on the government, Maria. So, if they're keeping, if they're keeping inflation low, that means the taxpayer doesn't have to fork out as much. Is there a point to that?
Kovacic: I think the reality of this whole context is that we have a scenario where we're having to assist Australians in measures because of this cost of living crisis that we have. We can't forget that this was of the government's own making. We can't continue to point to Covid. Treasury has been very clear that government spending needs to be cut. The inflationary crisis in this country was very much as a result of the highest level of government spending we've seen in a very long time from the Albanese Labor Government.
Stefanovic: All right, let's just switch issues before we go. Maria, I'll stay with you. The Prime Minister resisting a push to declare Palestinian statehood, so far. This comes days after the government was a signatory condemning the recent actions of Israel. How do you feel about that when the Prime Minister was asked about it yesterday?
Kovacic: So, the Coalition supports a two-state solution. We are very clear on the fact that the terrorist organisation, the listed terrorist organisation, Hamas, cannot have any, any part in any future state of governing Palestine at all.
Stefanovic: Will this still be the position of the Prime Minister when we're off to the UN next month, Matt?
Assistant Minister: Yes, it will, Pete. We've been very clear. We likewise support two states. That's the way we see lasting peace. But the conditions are not there at the moment. We've also said that Hamas cannot be involved. They're a listed terrorist organisation in Australia. The Palestinian Authority also have control of enclaves in the West Bank. They haven't had elections for a very long time. And importantly, the hostages need to be released. They're important factors that need to be in place before we consider it.
Stefanovic: Yes. So, that would be unlikely within the space of a month before we head off to the unlikely for our position to change. Because none of that will, to be honest, none of that will be sorted out, will it?
Assistant Minister: It is unlikely. And the Prime Minister made that very clear yesterday.
Stefanovic: Alright, we'll leave it there. Maria, Matt, we'll talk to you soon. Quick check of the weather with Rob.
Assistant Minister: Thanks, Pete.