Rita Panahi:
Okay. Joining me now is the Institute of Public Affairs Chief Economist, Adam Creighton, and Menzies Research Centre Senior Fellow Nick Cater. Nick, I’ll start with you. You’ll be happy to learn that any rationing measures will only happen if Chris Bowen advises the federal government and the governor general on the need to declare a national liquid fuel emergency. We essentially have Labor’s worst performing minister handling this crisis.
Nick Cater:
Well, of course, they’re heading towards a rationing plan. It’s obvious. They appointed a fuel czar. What can the fuel czar do? She can’t increase the supply of petroleum to our shores as decided by other people. She can’t change the price because that’s decided by the benchmark MOVGAS 95 price in Singapore, so what’s she going to do? The only lever she has and the government has is to ration energy, to limit supply, to control it on the… try and control the demand side of the equation because it can’t change supply. We’re heading for that point I think almost inevitably.
No doubt they’ll do it in a cack-handed way, like limiting what you can put in a tank from one pump and people will go around a numerous service stations and top it up even more, just make our lives more difficult. But I think inevitably that’s where we’re heading.
Rita Panahi:
Well, not if they instilled the controls that we saw during COVID where perhaps they will track your registration number. Once you’ve filled up once and that registration is registered as getting its $40 worth of fuel, then you won’t be able to fill up again. I don’t know what controls they can impose here, but I just can’t believe how ill-prepared we are for a crisis like this. It really is astonishing that they can’t even cope with the mildest disruption to fuel supply.
Adam Creighton:
Yeah, certainly, I think part of the government’s brand, if you like, would be happy they can blame everything on the Iran war now, the rate of inflation, et cetera. But look, I think the more sensible part would see this is a disaster. It’s going to remind voters every single day that the government has mishandled fuel supply. We only had 30 days or so before it started. That was the lowest in the Western world. The recommendation is 90 and we had 30. All the criticism of people so called hoarding, that’s perfectly rational behaviour when you know that the government only has 30 day supply. Of course, people will hoard. As for these restrictions, well, we saw what happened during COVID with the Australian government. They get very creative. I wouldn’t be surprised-
Rita Panahi:
Well, that’s when they could. That’s when they’re very competent in taking away your freedoms, including the freedom to fill up your car. Strange that they’ve got this dollar limit imposed, given that that dollar limit one day could mean 16 litres, another day could be 10 litres, 20 litres. That in itself seems a illogical way rather than giving people a certain amount of fuel per day.
Adam Creighton:
Well, look, I think Nick’s right. I think these are going to be a reality in maybe a week’s time also. If the petrol, the fuel price stays around $100. There’s no magic wand here. We’re a long way away from fuel supplies. The $40 could change to $30. It could change just as you suggest. We’ll have to wait and see. But it’s going to be very embarrassing. A real test of the administrative competence of the government to enforce stuff like this because the registration plates, maybe, but that’s a lot of work to try to keep track of who’s got what.
Rita Panahi:
They already are pushing the notion of people staying at home, working from home, coming up with all sorts of creative ways to actually deal meaningfully with the problem. Now we’ve got reports of farmers stockpiling fuel and selling off their cattle to deal with this crisis. Nick, farmers are the backbone of this country. If they’re having to sell off assets and cattle, that’s an asset just to survive. That’s a pretty grim situation.
Nick Cater:
This is developing into something very nasty indeed, isn’t it? Farmers are making rational decisions. They can get these things to market now at a reasonable price, but will they be able to in six weeks time? They’re making a decision and the cattle markets I gather are quite crowded at the moment. This flows right through. There’s a report in the Australian Today, you might have read that there’s going to be a shortage of resin, which is the stuff we use for plastics. I guess when you think about it, that’s obvious because it’s all a byproduct of petroleum. We’re not going to have any glad wrap left. These things develop in unpredictable ways as we found during COVID. I think we’re in for a rough ride.
Rita Panahi:
That’s why, Adam, a country like Australia should be energy independent. We are blessed with every natural resource under the sun you could want, whether it’s coal, gas, uranium. The fact that we are not refining our own oil, we have become so dependent on other countries, it’s an indictment on successive governments.
Adam Creighton:
Now, look, it certainly is. We only have two refineries now, which is pretty outrageous. The old Kurnell Refinery that I grew up next to and no longer exists, I believe, in Sydney. We also have oil ourselves. We choose not to mine or we certainly choose not to explore. Supposedly there’s a great deal in the Great Australian Bight, which we haven’t explored. I know the nationals are now calling for this. That seems a very sensible thing to do. I do notice the solar and wind people have been very quiet throughout this crisis because we realise-
Rita Panahi:
They should be our saviours.
Adam Creighton:
Well, that’s right. Fossil fuels are still extremely important and the whole country basically runs on diesel.
Rita Panahi:
Well, I think really those people are very quiet because we’ve seen a little preview of the net zero future that they want for us.
Adam Creighton:
Exactly.
Rita Panahi:
This is net zero. This is having rationing and shortages and prices exploding for fossil fuels. Now let’s talk about New South Wales opposition leader Kellie Sloane, who unlike her South Australian and Victorian colleagues is not ruling out a preference deal with one nation at the state election next year. Here was Sloane speaking earlier.
Kellie Sloane:
These are matters for the party. I’m very focused on policies in the here and now. People are telling us that they’re frustrated and part of that reason is because of the economy, because of the cost of living. It’s very important that that’s squarely what I’m focused on right now, not on deals at a sometime future date, for a hypothetical situation, for a party that at the moment doesn’t have a leader, doesn’t have a member of parliament in New South Wales.
Rita Panahi:
Well, she didn’t say much there, but Nick, she didn’t rule it out like some of her colleagues have. It seems the New South Wales leaders are a little more politically savvy than the folks here in Victoria and South Australia. One nation is no longer the teeny, tiny, minor party, are they? They’re not the redheaded stepchild in this relationship.
Nick Cater:
Well, it’s not. It would be wonderful if by some magic means the Liberal Party and the National Party could capture all the One Nation preferences. But because we know it’s much messier than that, that’s a problem with One Nation. They’re independently minded voters and they don’t tend to follow the how to vote card. The votes will, on historical trends, broke largely 60/40, probably in favour of the coalition. But even if they secure a cast iron deal, you’re not going to get much more than that. The only real preference deal would work, I think, is as secure as the one that the liberals have with the national party.
But that’s based on a relationship that’s more than a hundred years old and I very much doubt they’re going to be able to get that. I think Kellie Sloane is dead right not to rule it out at this stage. It’s a long way to go. She’s got Victorian election to go. Let’s see how things work out there. But it’s certainly not as some people seem to think the cure for all the liberals woes at the moment by any means.
Rita Panahi:
Adam, what lessons do we take out of the South Australian result? Can you see the Victorian Libs coming into some sort of an agreement with One Nation despite the fact that they’re saying right now they won’t be doing that? If they’re serious about forming government, it’s something they have to consider.
Adam Creighton:
Oh, look, they’re certainly going to have to. The performance of South Australia One Nation was very good. It went from 3% primary at the last state to 22, massive increase.
Rita Panahi:
Incredible.
Adam Creighton:
If you look at most of the polls, most of the polls say in Victoria it’s going to be 26%, 27% for One Nation. They’re going to be the more senior partner in this coalition. I think it’s a matter of survival for the Libs. They’re going to have to do some deal, whether they like it or not. We’re going to have to get used to maybe three-way coalition governments possibly on the right-
Rita Panahi:
German style.
Adam Creighton:
Exactly.
Rita Panahi:
Well, this is what they have to do. Otherwise, you’re handing the power to Labour pretty much permanently. If you’re going to have the conservative vote split and no preference deal, no preference discipline on the right, it’s a godsend for Labour. Now, let’s talk about Kyle Sandilands. Details of his mammoth deal with ARN have been released as the broadcaster prepares to take his former employer to court. Documents reveal that the breakfast radio star was entitled to in excess of 10 million in cash fees and allowances per year as part of his decade long deal that would have seen him remain on the airwaves up until the end of 2034.
Now, Kyle Sandilands’s lawyers contend that the host was encouraged to present a dominant and abrasive personality, and that his termination was illegal and should be rendered invalid. Nick, Kiss FM has used on air spats, on air fights between Kyle Sandilands and Jackie O to promote that programme. How can they now feign shock at that content and say, “This is misconduct that deserves a termination.”
Nick Cater:
I reckon there’s a point to arguing-
Rita Panahi:
Two terminations.
Nick Cater:
Exactly. There’s a very strong point to argue here in the courts, but I’m blown away with this, Rita, obviously. I’ve tried my entire career to develop my emotional intelligence and be polite and nice in the workplace. I could have gotten $10 million by being abrasive, rude, disgusting. But I think the interesting thing here is why Jackie O walked away from this. She’s getting paid 10 millions a year just to sit and lap this up for four hours. A lot of people would say, “Well, you’d put up with it.” But she hasn’t. I think that shows how the cumulative effect of this.
I think it came to a breaking point with, I gather, I don’t listen to the show, but Kyle Sandilands had been very personal and abusive about things including her weight and all sorts of things. She rode through that, but it’s when he criticised her professionalism on air that she came to a breaking point. I suppose this is a parallel terrible for our time.
Rita Panahi:
Yeah, but they appear, Adam, to have kissed and made up and they’re pretty much from what I understand on the same page. They’re both taking on ARN and Kiss FM. I don’t know exactly how Kiss are going to show that that little robust discussion about astrology of all things amounts to serious misconduct deserving of a sacking, when that’s the dynamic we’ve heard for what, more than 20 years. Not every show, but again, I’m not the target market. I don’t listen much because I don’t listen to FM radio much, but certainly that’s the vibe they’ve been promoting in their ads and all the promotion of this programme. It wasn’t too long ago they signed a $200 million contract with this pair.
Adam Creighton:
Yeah. Well, firstly, I think it’s a sad indictment on the nation that they get such high ratings. I don’t find them very entertaining, but look, very small violin for both of them, if they’re going to miss out on their previous 10 million a year. It’s a great deal of money. Look, I’m going to be very traditional and side with the employer to make a decision about who they fire for whatever reason they want.
Rita Panahi:
Yeah, but there’s a contract in place. You can’t sign a $200 million contract and then two years in change your mind and go, “Well, let’s manufacture perhaps a reason to-“
Adam Creighton:
Yeah, look at what we have.
Rita Panahi:
That’s the allegation from the Sandilands camp, that they’ve seized a little opportunity here to end this contract.
Adam Creighton:
Maybe they worry about some future drama and advertising drying up as has happened with other radio stars in the past.
Rita Panahi:
That can happen.
Adam Creighton:
Perhaps that’s what they’re concerned about. But look, I don’t know the details of the particular spat, but look, I just don’t feel sorry for the pair if they lose their jobs.
Rita Panahi:
Now, I want to go now to the UK quickly. You can see here the flag of Pakistan flying above Westminster Abbey, one of the oldest churches in all of England. In a social media post the Pakistan High Commission of London said, “On the occasion of Pakistan Day 2026, the historic Westminster Abbey hoisted the Pakistan flag on the North Tower. This is indeed a very proud moment for Pakistan and the Pakistani diaspora in the UK.” Nick, it might be a proud moment for Pakistan, but should the UK be doing this? Would Pakistan be flying the Union Jack above their most sacred mosque? I just think this is a questionable activity.
Nick Cater:
I’m just appalled at this, Rita, and somebody presumably must have sat there and authorised it, unless the guy who puts the flags up just did it for a joke or something.
Rita Panahi:
Adam Creighton, Nick Cater, thank you so much for your time tonight.
This transcript of Adam Creighton on The Rita Panahi Show Sky News Australia from 25 March 2026 has been edited for clarity.
