Television Interview, ABC News Breakfast

SUBJECTS: US Midterm Elections; Middle East Conflict; Cost of Living; Data Centres; David Jones.

JAMES GLENDAY, HOST: Well, let's get some more reaction from a News Breakfast regular. Richard Marles is the Acting Prime Minister and he's the Defence Minister as well. He joins us now from beautiful Geelong. Richard, welcome back to the program.

RICHARD MARLES, DEPUTY PRIME MINISTER: Good morning, James. How are you?

GLENDAY: I'm very well, thank you. Now, you and other senior government Ministers have been very reluctant to publicly criticise the Trump administration, even when it's done some really, frankly, bizarre things. Will the US midterms results change the way you deal with the US President?

MARLES: Well, we will work with the American government to maintain and uphold the Alliance, because the Alliance today is as important as it has ever been and whoever's in the White House, and frankly, whoever's governing Australia, it's profoundly important that we are the custodians of the Alliance for this period of time. And that's very much how we see it as a government, and we'll continue to do that. I mean, we live in a world today where we face a very challenging strategic landscape and in that context, our Alliance with the United States is critically important. So, you know, it's our job to manage it.

GLENDAY: So, it sounds like no change. Even if Donald Trump starts talking about public executions again, renaming geographic landmarks, seizing land held by other nations, threatening new trade wars – your approach, which, I think is being described as softly, softly, is going to continue in that direction? 

MARLES: Well, I mean, we articulate Australia's national interest and, you know, on a number of those issues we actually have articulated positions. Obviously, we are a country which does not support the death penalty and we've made that completely clear. We’ve made our position clear in respect of the war in Iran. We want to see a de-escalation there and we want to see a return to normality in terms of the global fuel supply chain, because what that is doing is driving an inflationary environment around the world and we are seeing that. So, you know, we articulate Australia's national interest. But it is really important that we manage our relationship with the United States and manage the Alliance relationship, because the Alliance is profoundly important to Australia. When you look at our strategic settings, when you look at how we manage the defence of this country, the Alliance is very central to that. And we live in a very challenging strategic environment and it is our job to manage that, irrespective of whoever is in the White House, and to try and build the best possible relationship we can with the American government. And that's what we've been doing.

GLENDAY: Just on the war with Iran, what do you think the next step is for the United States?

MARLES: Well, I mean, they will work that through, but our position has been very consistent here. We really do need to see a return to normality in terms of the global fuel supply chain and what that means is that the Strait of Hormuz needs to be open and there needs to be freedom of navigation there. Of course, you know, Iran is the country which is seeking to prevent that, and that is utterly unacceptable. But it really matters that we are getting fuel supplies and oil supplies operating in a normal way so that we can take that pressure off the global economy and see that return to normal. Because what we are seeing around the world is an inflationary environment as a result of this. We’ve had our own interest rates decision this week, but we're seeing interest rates go up in countries around the world and the sooner we get to some normality in terms of global fuel supply chains, the better for the global economy. And that will be better for the Australian economy.

GLENDAY: Yeah, they did go up in England overnight. I know you're going to be reluctant to engage in political punditry. I do wonder if you'll indulge viewers at all on a Friday morning. I'm curious as to your thoughts as to how much of this vote in the US was driven by dislike of Donald Trump versus how much was simply a vote against the rising cost of living and dissatisfaction with falling living standards?

MARLES: Well look, you're right, I'm not going to go far down that path. I mean, obviously, who the American people choose is a matter for them and it's really important that we respect that– 

GLENDAY: Sure. Sorry to jump in then, Richard. I mean, do you think there are– are there any lessons for your government at the moment, given what's happened in the United States? Is there anything you're going to be looking at this result and thinking, yeah, we need to get on top of that here?

MARLES: Well, I think– I mean, in terms of cost of living, it's to state the obvious that cost of living is a factor literally in every election in history, and that's completely understandable. And what we are seeing around the world is this inflationary environment. Cost of living and challenges in respect of cost of living are being experienced in North America as they are in Europe, and so we're obviously mindful of that. From our perspective, we are focused on what we can contribute to that and that's the management of our own budget, which we do in a very prudent way, and also looking at making sure that we are putting in place cost of living measures where we can. But we obviously understand that Australians are doing it tough in relation to this as well. I mean, one of the other issues that you've been talking about is in relation to data centres and tech. You know, this is an issue that we face as well. It's actually a real opportunity for the country. What we are very mindful about here is that you've got to get the social licence right in respect of data centres; where they're built, and the place where they shouldn't be built is in suburbs; and also making sure that the right power and the right water is brought to these data centres, that the companies building them are bringing the power and water to supply them. And so that is exactly why the Prime Minister spoke about AI standards, why we're working on putting those in place, so that as we walk down this path in Australia, we are doing so in a way which builds that social licence. Where data centres are in the right places, not the wrong places, and where those companies are bringing their own power and water to that equation.

GLENDAY: Yeah, just on that, I was going to go to that next. We've seen these big sell offs, particularly on the Nasdaq, but US markets more broadly, because of fears that there's going to be a slowdown in data center rollout given how much of an issue this was in quite a lot of parts of the United States. Are we getting our decisions right in this country at the moment? Do we have the right policies in place to build data centres?

MARLES: Well, we are putting in place those policies and I think there are important lessons to be learned here and we certainly intend to learn them. You've got to get the social licence right here. But, you know, the Prime Minister's speech in the middle of the year, I think, was a really important one and will be seen to be such as we walk down this path. You know, at the very outset, making sure that we get it right in terms of those standards and that is certainly our intention in terms of the laws that we establish here. And it is about making sure that data centres, the opportunity that they are, but that they are built in the right places, not the wrong places. Building them in suburbs is the wrong place. You know, you can build them a long way from where people are. But also making sure that the companies building them bring to the equation their own power and water. If you do that, they can actually contribute to the power grid, not take power out of the power grid. That side of the equation needs to be gotten right as well and we're very focused on that. But getting these standards right from the start, which was very much at the heart of what the Prime Minister was saying in the middle of the year and that very important speech and the work that we are doing right now, I think is fundamental to making sure that we get this right and that we can take the advantage of what, in that context, can then be a really good opportunity for the country.

GLENDAY: Richard, we are almost out of time but before I let you go, we're asking our audience this morning for their memories of big department stores, of course, in the wake of what is happening with David Jones. Do you have any fond memories of going to a big city, doing your Christmas shopping, perhaps in a department store?

MARLES: Well, I was thinking about DJs and I mean the first thing to say is this is obviously a really unsettling moment for everyone who works at DJs and their family and as this plays out, their interest needs to be front and centre. I think the DJs food section for me has always been an attraction. Getting those picnic lunches, going to DJs and getting the nice cheeses and sun dried tomatoes and the desserts, that's always been a favourite for me. So, that's been a little bit of a mecca for me when I've been in Melbourne to go to that particular part of the David Jones store.

GLENDAY: It was, it was a great part of the David Jones store. And maybe will still continue to be in the future. Let's see what happens. 

MARLES: Indeed. Absolutely.

GLENDAY: Acting Prime Minister Richard Marles, thanks for joining us this morning.

MARLES: Thanks James.

ENDS