Treasurer Jim Chalmers (pictured with wife Laura) was forced to defend transport minister Catherine King on the Today show on Wednesday
Chalmers firmly stands by the minister’s decision.
‘I obviously don’t agree with you Karl, that won’t shock you,’ he hit back.
‘This decision was taken in the usual way, in the national interest by the minister. It’s happened before under our predecessors and it’s happened occasions.
‘My job and the government’s job is to make sure the aviation sector is as strong and competitive as it can be and that’s our focus.
The treasurer revealed he wasn’t aware of the decision until afterwards after Stefanovic asked if Ms King made the captain’s call on Qatar.
‘That’s the usual arrangements Karl,’ the treasurer insisted.
‘People can pretend that somehow it’s unusual for transport ministers to take these decisions.
‘Michael McCormack did that in the previous Liberal National government, Catherine King on this occasion.
‘It’s decisions that are taken in the national interest between governments.’
Stefanovic questioned whether Ms King’s job was on the line over the ‘bad decision’.
Chalmers disagreed and leapt to her defence.
‘The transport ministers take these decisions from time to time and they weigh up all of the various considerations, it’s not particularly unusual, he argued.
‘I think it’s important that ministers are empowered to make these kinds of decisions as we have here, not inconsistent with decisions taken in the past.’
Tensions increased after Stefanovic claimed the government has a transparency problem.
‘I’m sorry to keep arguing and it’s not your portfolio, but she (Ms King) made a decision based on protecting Qantas in a competitive way.
‘Everyday Aussies, hardworking Aussies are getting shafted by the company.’
Earlier in the program, Nationals senator Matt Canavan said the inquiry will force the government to explain its decision.
‘We need to get to the bottom of what’s gone on here,’ he said.
‘The Labor party seems to have a very cosy relationship with Qantas and it seems to be Australian consumers who are paying the price for it.’
As the scandal erupted, Qantas CEO Alan Joyce advised the board he was bringing forward his retirement by two months to ‘help the company accelerate its renewal’, the airline announced on Tuesday.
CEO-designate Vanessa Hudson will assume the role of managing director and group chief executive on Wednesday.
‘In the last few weeks, the focus on Qantas and events of the past make it clear to me that the company needs to move ahead with its renewal as a priority,’ Mr Joyce said.
‘The best thing I can do under these circumstances is to bring forward my retirement and hand over to Vanessa and the new management team now, knowing they will do an excellent job.’
His decision comes after a horror week for Qantas marked by a Senate grilling on delays, and warnings that the airline faces a possible $250 million fine.
The Australian Competition and Consumer Commission announced it was taking court action after Qantas allegedly advertised tickets for flights that had already been cancelled.
The company is reviewing the allegations made by the consumer watchdog and has acknowledged its standards ‘fell well short’ as the airline emerged from the COVID-19 pandemic.
Last month Qantas announced a record pre-tax profit of $2.47 billion for the past financial year, after recording a loss of almost $2 billion the previous year.
Soon after, it came under pressure to pay back the money it received from the federal government at the height of the pandemic.
It was given $2.7 billion from taxpayers, including $900 million from the JobKeeper program.
Transport Minister Catherine King said Mr Joyce’s decision marked the end of one era and the start of a new one, with both major Australian airlines led by women.
‘His decision to bring forward his retirement from Qantas provides an opportunity for new leadership,’ she said.
‘I wish Vanessa Hudson every success in her new role.’
Labor senator Tony Sheldon, who has led calls for Qantas to be more accountable, said Qantas chairman Richard Goyder ‘should go next’.
Shareholders will formally vote on the appointment of Ms Hudson as managing director at the company’s annual general meeting in November.
The Australian and International Pilots Association said the announcement would provide Qantas the ‘circuit breaker’ needed to allow the airline to move forward.
Karl Stefanovic clashed with treasurer Jim Chalmers throughout the fiery six minute interview
The government has maintained there was nothing out of the ordinary in its decision to refuse Qatar’s request
Chalmers disagreed and leapt to her defence.
‘The transport ministers take these decisions from time to time and they weigh up all of the various considerations, it’s not particularly unusual, he argued.
‘I think it’s important that ministers are empowered to make these kinds of decisions as we have here, not inconsistent with decisions taken in the past.’
Tensions increased after Stefanovic claimed the government has a transparency problem.
‘I’m sorry to keep arguing and it’s not your portfolio, but she (Ms King) made a decision based on protecting Qantas in a competitive way.
‘Everyday Aussies, hardworking Aussies are getting shafted by the company.’
Earlier in the program, Nationals senator Matt Canavan said the inquiry will force the government to explain its decision.
‘We need to get to the bottom of what’s gone on here,’ he said.
‘The Labor party seems to have a very cosy relationship with Qantas and it seems to be Australian consumers who are paying the price for it.’
Jim Chalmers insists transport minister Catherine King (pictured) made the decision to block additional Qatar Airways flights into Australia in the national interests