St John’s, Antigua and Barbuda: Prime Minister Anthony Albanese has hit back at critics of his overseas travel as he joined leaders at a Commonwealth summit in the Caribbean, citing former leader John Howard to argue the visit is key to his job.
Albanese acknowledged the pressure on Australians over the cost of living amid predictions of another interest rate rise on Tuesday afternoon, and insisted the government was working “each and every day” to lift living standards.
But he sharply rebuked Opposition Leader Angus Taylor and others in the Coalition for saying he should not go to the summit – known as the Commonwealth Heads of Government Meeting (CHOGM) – because of economic news at home.
“They often quote John Howard as their oracle, and on this John Howard is right,” Albanese said.
“Australia is a participant in the Commonwealth, and at the personal invitation of King Charles, of His Majesty, I agreed to come to this meeting.
“And it’s important that we engage in the world. The world is complicated, is complex, is turbulent, and in these uncertain times, it’s important [to be here] for Australia’s national interest.”
Albanese is due to meet British counterpart Andy Burnham and Canadian leader Mark Carney at the summit, discussing how national economies deal with the energy price shocks from the wars in the Middle East and Ukraine.
At a press conference in Antigua on Monday, Albanese spoke of “middle powers” working together – a major theme in an address by Carney to the World Economic Forum in Davos. Switzerland earlier this year.
While Carney argued that middle powers needed to help each other when US President Donald Trump was imposing tariffs and other penalties on allies, Albanese used the term without any direct criticism of the US.
“This is an opportunity to engage with the countries in our region to show leadership on behalf of the Pacific, but also to engage with middle powers and to strengthen Australia’s economic position,” he said.
“And it’s never been more important to connect with the world because the world has never been more interconnected.”
He named trade, the global economy and the development of artificial intelligence as some of the issues to be discussed with other world leaders.
Howard attended each meeting of the Commonwealth Heads of Government during his time as prime minister.
Taylor argued on Sunday that Albanese should not go to CHOGM because of the economic conditions at home, despite Howard’s example.
“The reality is in a normal set of circumstances, of course, the prime minister should go to CHOGM – and John Howard is right on that,” Taylor said on 2GB on Sunday.
“The problem is this is not a normal set of circumstances. We are going to have the seventeenth interest rate rise under Labor if the Reserve Bank moves on Tuesday, as is widely expected, and this is on the government’s watch.”
Taylor argued the government did not have spending under control and was not putting downward pressure on inflation and interest rates.
The federal government’s gross debt is forecast to surpass $1 trillion this financial year. The budget papers do not forecast a surplus or specify a timeframe to paying off the debt, while interest payments continue to rise.
Gross debt was $542 billion before the pandemic and rose to $895 billion under the former Coalition government before Labor took office in 2022.
While Treasurer Jim Chalmers claimed the budget in May delivered $26.1 billion in savings over several years, the budget deficit is tipped to deteriorate. It is forecast to be $28.2 billion this year and $31.5 billion next year.
Asked whether the government was making enough savings in the budget to ease pressure on inflation, Albanese insisted he and the cabinet were acting on the economy.
“My message to Australians is that we’ll continue to work each and every day to keep our economy stronger, and that includes engaging in global trade and engaging in the world,” Albanese said.
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