Interview with Peter Stefanovic, Sky News

Peter Stefanovic: Well, let's go to Canberra now. Joining us live is the Trade Minister, Don Farrell. Minister, it is good to see you this morning. Just before we start, I just want to ask, on that story that we just referred to re India and Pakistan, have you managed to get a word in with your Indian counterparts about this conflict and what repercussions might come?

Minister Farrell: Look, I haven't personally, Peter, but of course this is an issue for the Foreign Minister to deal with. Obviously, from an Australian government point of view, we don't want to see any conflict in our region and we would be cautioning for a de-escalation. There's already too many wars around the world - Middle East, Ukraine, Russia. We don't want any more, particularly not in our own region.

Peter Stefanovic: That is true. Ok, let's get on to local matters. Labor Caucus meets up tomorrow. Don, firstly, you staying as Trade Minister?

Minister Farrell: That question has to be directed to the Prime Minister. I'll be putting myself forward for the Ministry and I hope I'm elected by my colleagues tomorrow. I certainly enjoy the job of Trade Minister. I'd like to continue to do it, but I'm happy to serve in any capacity that the Prime Minister wants me to. I want to make sure that we have another successful term of this government. The Prime Minister has run a flawless campaign and I'm looking forward to working with him to continue the program that we've presented to the Australian people at the election.

Peter Stefanovic: Ok. On frontbench changes, there is jockeying going on, particularly from Victoria's Labor, right. They want more, which could come at the expense of some high profile members or at least one in Sydney. I guess the question is, what fresh blood would you like to see in what's been a fairly consistent team?

Minister Farrell: Look, these are decisions for all my colleagues. It's a bit like the conclave that's going on in Rome at the moment. Peter, there'll be discussions going on in the next 24 hours and hopefully there'll be some white smoke coming out of the Parliament House tomorrow, with a successful new team. I'm sure my colleagues will make the right decision. I'm pleased to say, we're flush with talent in the Labor Party and there are a lot of people to choose from and I'm sure my colleagues will make the right decisions.

Peter Stefanovic: All right, let's get into your wheelhouse then. On trade, starting with the EU, is a luxury car tax on the chopping block so we can get more ag products sent the other way?

Minister Farrell: We'll make a sensible offer to the Europeans. On election night, I got a very warm and positive message from my counterpart, Trade Minister Maros. I've already had one discussion with him. We've indicated that we think it's important for those countries in the world that believe in free and fair trade, those countries that want tariffs removed, work together and I'm very keen to restart negotiations. I have a sense that the mood has changed, certainly in Australia, but also in Europe, that we have to find friends who believe in free trade. I'm very confident that with sensible discussions with the EU that we can make some progress and very quickly come to a settlement on a free trade agreement.

Peter Stefanovic: Well, over in the U.S. now, Kevin Rudd has fought back overnight against the Hollywood tariffs, using Bluey as a threat. How do you plan to fight back against Trump on that one?

Minister Farrell: Look, we are throwing everything at it, Peter. Ambassador Rudd is doing a terrific job over there representing Australia's interests. None of these tariffs make any sense. Prosperity in Australia and prosperity in the United States relies on the removal of tariffs, not the introduction of tariffs. And the message we have to give to President Trump and to his officials is that the direction that they're heading in is the wrong direction. Free and fair trade is what creates prosperity in both our countries and in our region. And that's what we want to support.

Peter Stefanovic: What do you want from the US China trade talks?

Minister Farrell: Look, very simple. It's in absolutely nobody's interest to impose these tariffs. The United States, what these tariffs are going to mean is higher inflation, higher unemployment and a drop in the share market. None of those outcomes are good for the United States. They're no good for China. They're certainly no good for, for Australia. China is our largest trading partner. Last year we did $330 billion worth of trade with China. It's a very important country to us. If they get affected by tariffs, well then that affects Australia. So, the argument that we will be prosecuting to the United States is look, these tariffs are heading in the wrong direction. I'm hopeful that now that I think discussions have started already in Switzerland, I'm hopeful that there'll be a successful outcome and both countries will see that it's in their mutual interest to remove these tariffs.

Peter Stefanovic: Ok, just, I know you have to go Don. But just a final note. If it's Sussan Ley and Dan Tehan across the aisle as the next leadership team for the libs, how would you feel about that?

Minister Farrell: Look, I will leave the leadership of the Liberal Party to the Liberals. I'm happy to focus on our little conclave and I'll leave the Liberals to sort out their own issues.

Peter Stefanovic: Ok, what about a final one here in The Greens? They've been depleted in the lower house, but they're still there in the Senate. Would you be expecting them to vote for your policies going forward?

Minister Farrell: Look, I think hopefully The Greens have learnt a message out of this election result. Nobody wants to see anybody lose their job and, you know, I'm not happy about Adam Bandt losing his job. But the fact of the matter is they paid a political price for blocking sensible policies, progressive policies, particularly in the housing space in the last Parliament. And I'm hopeful that as a result of this, the Greens will learn a lesson and that they'll support sensible, constructive policies from the incoming Albanese government.

Peter Stefanovic: That is the Trade Minister, Don Farrell, speaking to us live this morning. Thank you, Don. Talk again.