Andrew Leigh

SPEECH

FAIRER, CLEANER: THE TRANSPARENT INVESTMENT REVOLUTION

CLIMATE INTEGRITY SUMMIT 2024, PARLIAMENT HOUSE

WEDNESDAY, 20 MARCH 2024

I acknowledge the Ngunnawal people on whose lands we meet and pay respects to all First Nations people present today.

Thank you to the Australia Institute for hosting this annual summit on climate integrity, and to Richard Dennis for the invitation to deliver this address today. I am delighted to be joining such a distinguished line-up of speakers, including their excellencies Mr Anote Tong, former President of the Republic of Kiribati, and Mr Enele Sopoaga, former Prime Minister of Tuvalu.

My focus this morning is on climate and tax transparency in our financial system so that we can drive down emissions and create a fairer society in the process.

Transparency at work

This time last year, news broke that global biotechnology company Amgen is being sued for hiding its $10.7 billion dollar tax bill from investors. The plaintiffs said that “Amgen’s share price fell 6.5 per cent in August 2021, and a further 4.3 per cent in April 2022, because the company waited until then to disclose its potential liabilities” (Stempel, 2023). The US Inland Revenue Service “accused Amgen of underreporting taxes from 2010-2015, mainly for attributing what should have been US taxable income to a Puerto Rico unit” (Stempel, 2023). It powerfully illustrates how shareholder value is intimately linked to what is known about a company.

Consumers and investors have long understood that what they buy, and the investment decisions they make, have the power to influence ‘grand’ social, economic, and environmental challenges. As far back as the 1700s, John Wesley advised his congregants against “any sinful trade” (Uberti, 2023). When the Methodist Church began investing in the stock market at the turn of the 20th century, they avoided companies involved in alcohol and gambling (Goff, 2006). When investors saw the destruction of the Vietnam War in the 1970s, they created the first ethical fund – the Pax World Fund – so they could avoid investing in weapons and weapons manufacturers (Uberti, 2023).

Meanwhile, debate has raged about what this all means for corporations, and how they balance their responsibilities to shareholders and to the public. We must create a financial system in which Environmental, Social and Governance (ESG) factors into shareholder value, as much as acquisitions or sales. Without transparency and robust public reporting, how will we know about the Environmental, Social and Governance factors faced by a company, and make decisions about where to invest our dollars accordingly?

The more that companies make regulatory or reputational risks they face transparent through data and metrics, the more that investors are empowered to vote with their feet on their values and make long-term, values-aligned sustainable investment decisions. With good ESG data, metrics and standards, people can move their capital with precision and thereby shape the world. “This is how values drive value”, as Mark Carney puts it (2020 & 2021).

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RADIO INTERVIEW
2CC BREAKFAST WITH STEPHEN CENATIEMPO
TUESDAY, 19 MARCH 2024

SUBJECTS: Airline competition, increasing paid parental leave, making sure multinationals pay their fair share, expansion of tax treaty network.

STEPHEN CENATIEMPO, HOST: All right, let's talk federal politics with the assistant Minister for Competition, Charities and Treasury and the Member for Fenner, Andrew Leigh. Andrew, good morning.

ASSISTANT MINISTER FOR CHARITIES, COMPETITION, TREASURY AND EMPLOYMENT ANDREW LEIGH: Morning, Stephen, great to be with you.

CENATIEMPO: You've talked about competition policy in the airline industry in a recent speech. I don't think anybody would disagree with the principles of what you're saying, but competition in the airline industry in Australia has been difficult because running an airline is not particularly profitable.

LEIGH: That's right, Stephen and as one person put it, we've basically got three big airlines in Australia, the trouble is two of them are owned by the same outlet, Qantas and Jetstar. That's meant that you've had less competition than you would have if you had three independently operated competitive airlines. We do have this evidence from the Competition Task Force that when you've got three airlines flying a route, then the price per kilometre is half what it is when you've got a monopoly carrier. And I think Canberrans have experienced that there's a range of routes where you've really just got one carrier flying. People in Darwin feel it, too. Sometimes it can be cheaper to fly from Darwin to Singapore than Darwin to Sydney, despite the fact that Sydney is closer. So, airline competition is a big issue for the Government and the Aviation White Paper that Catherine King is spearheading is really aimed at making sure that flyers get a better deal.

CENATIEMPO: But how do you do that? Because in the past when we have had three carriers the prices have been down for consumers, but that third carrier invariably ends up going broke.

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RADIO INTERVIEW
ABC CANBERRA BREAKFAST WITH ADAM SHIRLEY
TUESDAY, 19 MARCH 2024

SUBJECTS: Need to reform Parliament’s culture, role of factions, Government’s policies to encourage competition in the supermarket sector, proposals to break up the big supermarkets.

ADAM SHIRLEY, HOST: Dr Andrew Leigh had a life not in the political bubble at all until he entered it. He's now the Assistant Minister for Competition, Charities and Treasury and for some time, he's been the Federal Member for Fenner, Andrew Leigh, good morning to you.

ASSISTANT MINISTER FOR CHARITIES, COMPETITION, TREASURY AND EMPLOYMENT ANDREW LEIGH: Good morning, Adam.

SHIRLEY: Are you allowed, to be yourself, truly in the role you hold and the party you work with?

LEIGH: I think so, but probably one of the things that's worth throwing into the discussion is that politics is a team sport. So, that, for me, brings two obligations. In the locker room: you need to make an argument as to what you ought to do out in the field. Out in the field, you play the strategy you agreed in the locker room. So, that will have people having more robust conversations in the party room than will necessarily be reflected in the conversation in the broader society. Just as when the Raiders go out in the field, they don't play as individuals, they play as a team.

INAUGURATION OF THE CANBERRA BAPS SHRI

Swaminarayan Hindu Mandir

Taylor, ACT

Sunday, 17 March 2024

I acknowledge the Ngunnawal people, on whose lands we meet today, and all First Nations people present. 

Chief Minister Andrew Barr, Deputy Indian High Commissioner Suneet Mehta, the many visiting dignitaries from Sydney, Perth and New Zealand, ladies and gentlemen.

This is my third visit to this BAPS Hindu Mandir. On my first visit, only the bare bones of the structure had been completed. On my second visit, much of the internal work had been completed. This third visit, the building looks perfect, inside and out. At this rate, I can only imagine how good it will look when I am back here for my fourth visit!

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RADIO INTERVIEW
ABC CANBERRA DRIVE WITH ROSS SOLLY
THURSDAY, 14 MARCH 2024

SUBJECTS: Proposals to ban TikTok; benefits of four-year terms; John Howard’s belated backflip; case for fixed terms; teen mental health and social media.

ROSS SOLLY, HOST: Andrew Leigh is the member for Fenner and he joins us on the program this afternoon. Andrew Leigh, good to have you on the show.

​ASSISTANT MINISTER FOR CHARITIES, COMPETITION, TREASURY AND EMPLOYMENT ANDREW LEIGH: Great to be with you, Ross.

TAX TREATY EXPANSION CONSULTATIONS OPEN

The Albanese Government is working to expand Australia’s global relationships with consultations opening on the expansion of Australia’s tax treaties network.

The Government is entering into new tax treaty negotiations with Brazil, New Zealand, South Korea, Sweden and Ukraine as part an expansion of Australia’s tax treaty network. Submissions are sought on the key outcomes Australia should seek in negotiating these tax treaties and other issues related to Australia’s tax treaty network.

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RADIO INTERVIEW
MORNINGS ABC BRISBANE WITH STEVE AUSTIN
FRIDAY, 8 MARCH 2024

SUBJECTS: Pressure on Charitable Organisations; Employer Underpayments; Doubling Philanthropy; Competition Reform; Extraordinary Women in Economics.

STEVE AUSTIN, HOST: Well, as we heard in the news headlines, at a time when charitable organisations are facing unprecedented demand, some community service charities are closing their programs across the south east. You’ve heard the news today that one in particular has to repay $9 million in what turned out to be underpaid wages to current and former workers. Mercy Community estimates that 1,700 current and former staff have been affected by the underpayment.

Now, you’d be aware that here in Queensland it’s a criminal offence where you could face jail if you are found to have underpaid employees. As a result, they have to pay the former staff and current staff what they’re owed. To do that, they need to close their residential care, their transition services, their foster and kinship care, supported independent living services and an asylum seeker centre. You heard the details on the news.

As fate would have it, Australia’s Assistant Minister for Charities, Employment, Competition and Treasury is Andrew Leigh. He’s in Brisbane. Thanks for joining me in the studio.

ASSISTANT MINISTER FOR CHARITIES, COMPETITION, TREASURY AND EMPLOYMENT ANDREW LEIGH: A real pleasure, Steve. Great to be with you and your listeners.

AUSTIN: There seems to be an issue with not just this charity but others – Uniting Care here in Brisbane announced the sacking of 350 workers yesterday. Are charities under financial pressure at the moment?

LEIGH: Certainly charities are feeling the squeeze of the cost of living crisis, Steve. We’ve seen this particularly with food bank charities, which is why we gave an additional top-up funding to those food bank charities to get them through the year. Many Australians are feeling the pinch and for low and middle-income Australians often they’ll turn to charities for assistance.

We’re doing what we can both through the increases to the income support system in last year’s budget, the tax cuts which we’ve adjusted and so every taxpayer will get a tax cut on the 1st of July, and then supporting charities. The former government had an attitude of declaring a war on charities. The Albanese government wants to work with charities and engage with them to reduce the reporting challenges that they face and ensure that they’re able to thrive and grow.

But obviously, as you’ve said today with Mercy Community closing a number of services, paying your staff isn’t optional. Charities, like businesses, need to get that right. Mercy Community has a storied history in Brisbane going back to 1861. They’ll remain an important part of the social fabric here, and they’ve done the right thing in making sure they repay those staff who were underpaid.

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TV INTERVIEW
SKY NEWSDAY WITH KIERAN GILBERT
THURSDAY, 29 FEBRUARY 2024

SUBJECTS: Australian Competition and Consumer Commission inquiry into supermarkets; impact of Albanese Government’s bigger tax cuts for more Australians.

KIERAN GILBERT, HOST: Assistant Minister for Competition and Treasury, Andrew Leigh. Great to see you. This stunt yesterday by Andrew Wilkie and Bob Katter. They're calling for a divestment by the two major supermarkets. Is that possible? Can you force that?

ASSISTANT MINISTER FOR CHARITIES, COMPETITION, TREASURY AND EMPLOYMENT ANDREW LEIGH: We're not looking at divestment powers, Kieran. Where they exist in other countries, they're very rarely used. They're not one of the major tools you use for getting better prices for consumers. Instead, we're kicking off this supermarkets inquiry through the ACCC; the first such inquiry to be conducted in 16 years. The ACCC has just put out its issues paper looking at issues ranging from shrinkflation to discounting…

FRESH AND FAIR COMPETITION

National Farmers’ Federation Horticulture Council Roundtable

Wednesday, 28 February 2024

I acknowledge the Ngunnawal people, on whose lands we meet today, and pay respects to all First Nations people present.

Australia’s agriculture sector has hung its hat on technology to deliver a strong productivity performance over the past 20 years (Treasury 2023 p84).

As Australia’s third largest agricultural industry, horticulture is a significant part of the innovation story (DAFF n.d).

We are now seeing overhead cameras and artificial intelligence speeding up processing times by detecting and accurately determining the size of up to 5,000 pieces of fruit in the back of an open-top truck (AUSVEG 2023).

Researchers are testing drones – and the turbulent downdraft they create – as a possible way to pollinate glasshouse-grown strawberries and tomatoes (Jadhav 2023).

Growers are maximising their output by taking tonnes of otherwise wasted vegetables and turning them into nutrient-dense powders for supplements and our morning smoothies (AUSVEG 2023).

Governments are joining forces with industry to revamp pest-management datasets to further strengthen our arm at the trade negotiating table (Watt 2023).

GROCERY PRICES

Matter of Public Importance, House of Representatives
Wednesday, 28 February 2024

,It is a great thing in this House to be discussing the important issue of competition, and for that I thank the member for Kennedy for bringing forward this matter of public importance.

If you're a sports fan in Australia you have plenty of choices. If you're an AFL fan you've got 18 teams to choose from. If you're a fan of the Women's Big Bash League you've got eight teams to choose from. If you're a fan of the Australian Ice Hockey League you have 10 teams to choose from including the Canberra Brave, the Central Coast Rhinos, the Melbourne Mustangs and the Sydney Ice Dogs. If you're an A-League fan you have 12 teams to choose from. The fact is that many of these leagues are also growing new teams, so we've had the GWS Giants and the Tasmanian JackJumpers.