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Australia news LIVE: Rate rise risks recession, economists warn; Cabinet reshuffle rumours escalate

July 24, 2024
in News
Australia news LIVE: Rate rise risks recession, economists warn; Cabinet reshuffle rumours escalate
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7.43am

Dutton stokes flames of cabinet reshuffle rumours

By Josefine Ganko

As rumours of a cabinet reshuffle surge, Opposition Leader Peter Dutton is pushing on with his calls for Immigration Minister Andrew Giles to be sacked.

Dutton was asked about the anticipated shake-up on Sydney’s 2GB, which is also expected to include the retirements of two senior ministers.

“If he’s got any backbone, he would send Giles to the backbench and let it be a very clear message to other ministers, that if you underperform in the way that Andrew Giles has, don’t expect to be in the ministry of his government.”

Host Ben Fordham asked Dutton if Home Affairs Minister Clare O’Neil’s job should also be at risk, given she was also involved in the Direction 99 immigration saga.

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“She was out giving a big speech last week which I think was sort of a ‘please look at me, I’m doing okay’ type speech, but she deserves to go as well because we’ve got boats arriving, people landing on Australian soil we don’t know anything about.”

Finally, Dutton responded to rumours that Indigenous Affairs Minister Linda Burney will announce her retirement.

He said he thinks Burney’s “a very nice person” but that the job has been “beyond her”.

“The voice was a debacle for our country. It was a $450 million waste of taxpayers money, it divided the country,” Dutton said.

“And even to this very day, Minister Linda Burney can’t tell you whether they’re still in favor of Makarrata, or truth-telling, they’ve got money in the budget for it, but they don’t want to talk about it.”

7.32am

Penny Wong says Gaza is facing ‘catastrophic humanitarian circumstances’

By Olivia Ireland

Foreign Minister Penny Wong says Australia is deeply worried and distressed about what is happening in Gaza, after Israeli Prime Minister Benjamin Netanyahu told the US Congress his country is aiming for total victory and nothing less.

During Netanyahu’s hour-long address to Congress, the Israeli prime minister also called pro-Palestine protesters “Iran’s useful idiots”.

Foreign Affairs Minister Penny Wong.

Foreign Affairs Minister Penny Wong.Credit: AAP

Asked for her reaction to the Israeli PM’s speech on ABC Radio National, Wong referred to Australia’s support of a ceasefire.

“What I would say is, our support and Australia supports UN Security Council’s ceasefire resolution which was endorsed by all members or not vetoed by any members of the UN Security Council,” she said.

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“We consider the situation in Gaza now is catastrophic. And we really, we are deeply, deeply worried and distressed by what we are seeing in Gaza in relation to the humanitarian situation.”

The United Nations International Children’s Emergency Fund recently reported traces of polio are beginning to be detected in the region, which Wong said adds to the “catastrophic” circumstances in Gaza.

“I met with the chief of UNICEF earlier this week, Catherine Russell, we spoke about this and she informed me about this fact. As I said it goes to catastrophic humanitarian circumstances facing people in Gaza,” Wong said.

6.55am

Netanyahu vows ‘total victory’, denounces protesters in fiery speech to US Congress

Israeli Prime Minister Benjamin Netanyahu vowed “total victory” against Hamas and condemned American opponents of the war in Gaza on Wednesday in a scathing speech to Congress boycotted by dozens of Democratic lawmakers and protested by thousands seeking an end to the war and the humanitarian crisis created by it.

Netanyahu’s combative speech offered no sign that his visit to the United States — his first trip abroad since the war started — could bring some progress in months of US-led mediation for a cease fire and hostage release, as the Biden administration has hoped.

Israeli Prime Minister Benjamin Netanyahu speaks to a joint meeting of Congress at the Capitol in Washington.

Israeli Prime Minister Benjamin Netanyahu speaks to a joint meeting of Congress at the Capitol in Washington.Credit: AP

Speaking for nearly an hour to frequent applause from US lawmakers, as well as stony silence from many leading Democrats in the chamber, Netanyahu said the US has a shared interest in his country’s fight against Hamas and other Iran-backed armed groups.

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“America and Israel must stand together. When we stand together something really simple happens: We win, they lose,” said Netanyahu, who wore a yellow pin expressing solidarity with the Israeli hostages held by Hamas.

But the Israeli leader soon pivoted to a darker tone as he derided those protesting the war on college campuses and elsewhere in the US, gesturing to demonstrations happening on the streets outside the Capitol. He called protesters “useful idiots” for Israel’s adversaries.

Some hostages freed from Gaza and families of those still in captivity listened in the House chamber. Security removed protesters in the gallery who rose to display T-shirts with slogans demanding an end to the war and the freeing of remaining hostages.

AAP

6.48am

Economists warn August rate rise could tip Australia into recession

By Rachel Clun

The Reserve Bank risks tipping Australia into a recession if it makes a “knee-jerk” reaction to potentially higher-than-expected inflation at its August meeting, economists warn, as households continue to struggle with rising cost-of-living pressures.

If it weren’t for the federal government’s stage 3 tax cuts, a new Deloitte Access Economics report argues, the economy would already be on its way to a recession within the next 12 months, regardless of the central bank’s future moves.

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The Australian Bureau of Statistics will publish the June quarter inflation figures next week, the key data release before the RBA board’s next meeting on August 5 and 6.

Deloitte said the economy is at a fork in the road: down one road, higher-than-expected inflation could force the central bank to lift the cash rate from its current 12-year high of 4.35 per cent; down the other, Deloitte said, “more benign” inflation figures would allow the bank to keep rates steady and keep Australia on the narrow path of low unemployment and economic recovery.

6.35am

Welcome

By Josefine Ganko

Good morning and welcome to today’s national news live blog. My name is Josefine Ganko, I’ll lead our coverage through the morning.

It’s Thursday, July 25.

Here’s what’s making news.

The Reserve Bank risks tipping Australia into a recession if it makes a “knee-jerk” reaction to potentially higher-than-expected inflation at its August meeting, economists warn.The expected retirements of two senior Labor ministers would clear the way for Anthony Albanese to finally announce a frontbench reshuffle in a matter of days.Overseas, Israeli Prime Minister Benjamin Netanyahu vowed “total victory” against Hamas and condemned American opponents of the war in Gaza on Wednesday in a scathing speech to Congress boycotted by dozens of Democratic lawmakers and protested by thousands.From beach volleyball at the Eiffel Tower to equestrian at Versailles, Paris 2024 will be staged at some of the most famous landmarks in the world. Age readers click here, and Herald readers click here for your ultimate guide to the Olympic venues.

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