Prime Minister the Labor Party Central Politics with Dennis Shanahan, National Editor of the Australian newspaper Dennis Shanahan, how are you, my friend?
I'm fine, Thank you, Luke. And I can tell you it's sunny that I can see the snow on the mountains.
Ooh ooh, there you are, there, you are. As Albo makes his first post election trip to North America, a US and Canada, the unfolding war between Israel and Iran is overshadowed and complicated Australia's position on both defense spending and orcas and BABS, even our recognition of Palestine. This is fascinating from a commentator's point of view. What do you make of it all?
Yeah, Look, the trip to the US to attend the G seven was going to be a big moment for Anthony Albert. He was scheduled or were hoping to meet Donald Trump face to face for the first time, and this was going to be the big post election trip. It was going to be about trades and tariffs and we had all the arguments lined up. Unfortunately, the Israeli attack on Iran and the response against what is now
an unfolding war missiles, drones and planes. Has actually changed his agenda completely for the G seven and for the President of the United States. What is now going to be top of his agenda is the fact that the US has been asking that Australia lift its defense spending to three point five percent of GDP repeatedly said that Anthony Alpinezi has said that he could not agree to a number, hasn't agreed to your numbers. Is rather he'd look at how we spent the money so that we've
got a better result. But added to that was the announcement this week or the revelation this week that the US is reviewing the UCUS Nuclear Submarine Agreement and what they are saying is it has to actually amount to being in America's interest first and what this could physically mean. And this is looking at the problem, the long term problem that can the US actually produce enough nuclear submarines for its own use and in addition to giving them
to Australia selling them to Australia. So this is a really major problem for Australia wherein this is our biggest, biggest investment defense ever. And now the US is saying we're going to have a second look at this. So the agenda for the Prime Minister if he does get to meet a President Trump, and given the war in Israel and Iran, the problems in Los Angeles, the Prime the President's or indicated is cutting short his time at
the G seven in Canada. And so there's already a suggestion that the Prime Minister may not even be.
You know, you know what made this doesn't pass a test for me. There's JD Vance and so many others, and this is this is a huge issue for Australia, but not just trade but UCAS and our own position on defense spending. Now, Abbi likes to play tough man and say we won't be dictated to about what we should or shouldn't spend. We're bloodgers, We're not fair. They
can in this space. We rely on the American relationship dating back to WW two that if things get really tough, because if Americas said, you know what, this is going to be too hard and too expensive for us, then you know we're up for grads. And I just think it's so important that someone like the Prime Minister Strata
should say, listen, this relationship means a lot. I'm going over there and I'm talking to someone and I'm letting the Americans know that this means a lot, and I'm in the room with whoever is available, and i want to known that this means a lot. He's not fair income.
It's interesting you say that because previously, at the Pope's inauguration in Rome, the Prime Minister said he wasn't able to have a meeting with I'm sorry. At the Pope's funeral in Rome, the Prime ministers said he hadn't sought a meeting with Vice President Javid Vance because he was the leader of the nation. He only met with the leader of the nation. And this is a point though, and the US's complaining. The Defense Secretary Hess has made
this point. He has said sorely the Allies, Australia included, can't care more about their own defense than we do. And this goes back for decade centuries when at the First World War Australia supplied money directly to the British for their navy. There were public donations from Australians to go directly to the British Navy so that they could help defend Australia because we couldn't do it ourselves. We've done it since with the US the World War II
and beyond, and yet we can't send a message. And one of the complaints from the US again about Antony Alpins is that he will not say explicitly why he is actually investing in Orcus. We all know it's about China and the threat of China presents in the region and the world, and Antony Orphanegi will not say it because he doesn't want to get China offside.
Now.
It's a difficult position to be in. But one of the things the US is saying is simply tell the Australian people because what we're happening now is a pushback. MPs are starting to say we should spend this money.
Independent MPs, we shouldn't spend this money. There is an opposition within the Labor Party and what we could actually see if there is a failure from the Prime Minister and the government to actually go out and really strongly sell Orcus and the importance of UCUS and the reason for the nuclear submarines, then the public will will shift and the government may give way that you're dead right.
There is a need for a real prosecution of the case publicly and politically for August and we need to have it from the top leadership.
Brilliant. Couldn't agree more right, I will take a break back with more of Dennis in Justice. It's accorded a ten hour regular weekly chat with Dennis Shanahan from the OHS the National Editor. Now, Palestine Mate Palestine, Penny Wang's hard stand on recognizing Palestine. How does that go down in America? Do you think is this another problem that we'll have with Trump?
It certainly is, and it's the timing. It couldn't be worse. This week Penny Wong came out with a very hard line, saying Australia had joined literally with Canada and Norway to say that we had decided that a recognition of Palestine depart state. It had to be part of the peace process for a two state settlement in the Middle East. Now, she also at a press conference makes some very strong
remarks about Israel and Palestine. Now, this was all before Israel launched and attack on Iran and to destroy Iran's ability to create a nuclear bomb, which even the UN has said was getting close, and that the a Iran was in breach of the international non Peripheration non proliferation treating now Penny Wong is a very strong supporter of
non proliferation as his Australia. And yet at the very time we were saying Israel was doing the wrong thing, the US was saying they were standing by Israel on this issue. They didn't support the demand for the recognition of Palestine. So we were being completely separate on this issue to the US. And then on the way to Seattle and Canada, the Prime Minister stopped in Fiji and had to actively say.
Yes, we saw we were aware or are aware of what the risk of an Iran nuclear bomb would have on peace for the world.
So the Prime Minister yesterday said yes, we recognize Australia recognize the danger of what's happening. He has been very careful. It was a very carefully controlled two question doorstop, not even a press conference in Fiji, so he has been very careful what he said. But what he was saying was two days after the Foreign Minister had said we were taking a very hard line against Israel, opposite to
the US. He was then the Prime Minister was then saying, yes, we can see the problem with Iran having a nuclear bomb. We can see why Israel has done what it has, and that the US was while it didn't partake in the attacks or provide assistance, it did know they were coming.
So once again Australia has been caught out here on a policy very different to the US when the strategic circumstances literally changed overnight, and we are now in a position where Donald Trump supporting Israel, the rest of the world is supporting Israel on the attacks on Iran. We've seen comments coming out of Germany saying, yes, they knew exactly what they were doing and they had to do it.
There is a general feeling no one, including the UN or the International Energy Agreement, want anything to do with Iran having a nuclear bomb. Everyone agreed it was very close, and so our policy position, which is perfectly perfectly entitled to take the timing of it, couldn't be worse as far as our relations with the US concern.
Yeah, I've got about ninety seconds here. How significant is it that a significant labor figure like Bill Keilty has declared this tax on unrealized capital gains in super bad policy? It is significant, isn't it?
It is very significant, and it is bad policy. I think Bill Kelty along with Paul Keating, who hasn't yet said anything publicly about the superannuation tax, that is, the taxing of unrealized paperal gains and the non indexation of the threshold, the three million dollars threshold. These are principles which are bad policy. They will spread throughout the other areas of tax and they undermined. This is Bill Kelton's point, one of the fathers of labor superanulation scheme, says it
will undermine superanulation. These are very significant points from one of the grandfathers of the ALP and I think that what we're seeing is more and more opposition, more and more isolation of gin charmers on this and I wouldn't be surprised in the next few months to see a bit of a shift in the government away from unrealized capital gains tax.
Greg di Chad Dennis have a terrific weekend.
Cheers mate,