2 June 2026

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KG
(0:00) We’re up to question time 10 minutes away. (0:02) A bit of a political bomb earlier in the programme with Ed Husic saying he wants to rethink AUKUS. (0:10) Darren, first to you, he raised it in the caucus, he wouldn’t go into the details of what was said in the party room, but then he did make it clear to me and to our viewers about an hour ago that he believes Australia needs to rethink AUKUS given the changed arrangements of the deal.
(0:29) Is this just one now backbencher erring concerns or is this the tip of the iceberg within Labour when it comes to AUKUS and concerns around it, Darren?
Darrin Barnett – Partner Watson Advisory
(0:41) Look, I think there have been some concerns mainly from the left of the Labour Party and a lot of the left-wing unions have concerns about anything to do with nuclear full stop. (0:53) So it’s a bit of a surprise it’s come from the New South Wales right in Ed Husic. (0:58) They would generally be considered to be pro-nuclear, pro-AUKUS, the AWU are certainly pro-nuclear.
(1:06) So look, that part of it is surprising. (1:09) The fact that there might be a few different opinions, it’s not the end of the world. (1:13) I think raising them in caucus, national conference is coming up, it’s certainly going to be aired there.
(1:18) So I’m not overly surprised that this has been raised, but I’m not surprised by the attitude of leadership either. (1:27) I don’t think you’re going to see any substantial changes made by the senior members of Cabinet and Government. (1:34) So look, it is a changed deal and that does give pause to reflect, but I don’t think you’re going to see a change in direction from the Prime Minister and the Defence Minister.
KG
(1:46) No, there won’t be. (1:48) But Fi, from a political perspective, is this a little vulnerability that James Patterson and Angus Taylor can exploit?
Fiona Scott – Former Liberal Member of Parliament
(1:57) Yeah, look, I think so. (1:59) And if we’re to believe the Redbridge polling around, then I’m sure this is something that Pauline Hanson and One Nation will also exploit, because it’s pretty clear from their voting cohort that they don’t want to see Defence spending cut or relationships with countries like the United States either. (2:16) So it’s an interesting contribution by Ed Husic, particularly as you say, he is from the Labour right and this is more of a feeling and a thought that’s coming from the left of politics.
(2:28) But I’m not sure this is going to get the traction in the right places that the Australian public are wanting to see, or where I guess the political threat against the big major parties is actually coming from.
KG
(2:40) Okay. (2:41) Darren Barnett, how are you seeing the debate post-budget now? (2:45) Parliament is back.
(2:46) Question time just a few minutes away now. (2:49) What’s your read on where the economic and budget debate is at right now?
Darrin Barnett – Partner Watson Advisory
(2:55) Well, firstly, I think today’s question time will probably be dominated by AUKUS, which will be the first time since the budget that it hasn’t been about what we can reasonably describe as contentious changes. (3:06) The Government has to stick to its guns. (3:08) The Government has to focus on policy, not on personalities, whether it be Tony Abbott now being in a senior role in the Liberal Party or Pauline Hanson rising in the polls.
(3:21) Still two years to an election and Labour needs to hammer down the key elements of the budget and convince voters, particularly younger voters who are likely to view favourably changes to housing rules that might see more of own their own home, that there’s a lot of people out there who don’t follow the bouncing ball day by day. (3:42) And the more of those people that Labour can reach with positive messages about the budget and about things that they are doing to make their lives easier, that’s where Labour has to put its focus for the medium term. (3:55) Because as I say, it’s still two years to an election.
KG
(3:59) Yeah. (3:59) And I think that that’s the message that talking to those in the Liberal Party as you do every day, Fee, as the Federal Vice President of the Liberal Party, the main thing is that everyone, I guess, they’ve got to try and stay measured and just methodical about the way they respond to this, because it is still two years away.
Fiona Scott – Former Liberal Member of Parliament
(4:23) Yeah, look, the Liberal Party does need to stay measured and methodical and need to demonstrate, you know, being a party of government. (4:29) I thought comments earlier in the day by Peter Kelly were really important, and that can Pauline Hanson actually form government. (4:41) So you still have to, the Liberal Party doesn’t, must be seen as a party of government.
(4:47) But there’s also a big question out there, Kieran, where the Australian public right now are not happy with what they have seen coming out of Canberra, and they’re wanting to see something different as well. (4:58) So straddling that line of still being able to be the adults in the room that can be government, that can have a Prime Minister, that can have a Treasurer, whilst also delivering on the genuine challenges that the Australian people are seeing every day of the week.