Fax from 18 October 1996 TRANSCRIPT OF THE PRIMEF MINISTER
THE HON JOHN HOWARD MP
PRJESS CONFERENCE WREST POINT HOTEL CASINO
E& OE
PRIME MINISTER:-
Well ladies and gentlemen I'm delighted in the presence of the Tasmanian Pemier, Mr Tony Rundle and
the Minister for [ Idustr1y, Sciea and Touism, John Moore, to announce * hat Peter Nixon, the former
Minister in the Fraser Government and senior mnember of the Rational Party has agreed to undertake, what
I thinkc can fairly be described as the 1996 version of the tndblazing inqu~ iry into the Tz-manian economy
by Sir Bede Callaghan back in 1977.
In 1977 the Fraser Government recognising some of the paricular competitive die advantages of Tasmania
established an inquiry into ways in which particular measures could be taken to respond to that competitive
disadvantage. And out of that inquiry came a number of measures that over The years have helped to
remove the disadvantage suffered by Tasynanianz through no fault of Their owi, but because of the
geographic isolation of Tasmartia from the mainland and so-ne of the other characieristics of the Tasmanian
economy. Peter Nixon has agreed to chair this inquiry and with the ntws release Fin putting out now the terms of
reference are amaehc& The inquiry will report to the Govcrnmcnts, thie two Government,-by June of nex
y~ ear. The Secretariat for the inquiry will be located here in Hobart within the Premier's Dep== rnr In
securing the services of Peter Nixon for this inquiry we have a person who not only has a wealth of
experience in politics but he also has a wealth of experience in business. And he'll bring to that inquiry' a
ver deep understaniding I think of what's possible to be done but equally the limits on Governmnt
intervention in areas of this nature and the purpose of the inquiry will be to revicw the economic and
compet ivt: positian of the State. 18/ 10/ 96 16: 51 Pg:
Fax from 18/ 10/ 96 16: 51 Pg: 2
The detision to conduct the inquiry follows representation by Tasmanian Coalition members during thc
election campaign and funding of it was announced by thie Treasurer in the recent Budget. Arnd the study
will provide advicc to both Tasmanian uad the redetal1 Governmuent on how Tasmania can best use its
reswiTCes. And the study is particularly enjoined to0 inquire into and report om industry development and
employment in Tasmania. it will be asked to draw on and update the pre~ ious study amiongst other things it
will identify' areas or sectrs in which the Tasmanian economy has or can develop a 3ustainable,
compedhive advantage and the resultant oportunities for an impetus tD sustainable employment growth.
There's little doubi that for some time Tasmanian has faced a particular challenge in the area of
employment especially amongst its young and the desire of the present Government of Tasminaa to address
some of those problems is another reason why the Federal Government has decided to announce this
inquiry. I believe that Peter Nixon will do an excellent job and I and L know the Premier will look forward
very warmly to the results of that inquiry.
JOURNALSTWhat will it cost Prime Minister
PIME MWISTER;
Well there's bee a sum of 5 150 000 allocated out of the reviews being fumnded from the Budget allocation
of $ 150 000. Obviously if it ends up costing more than that then we'll make additional funds available.
JOURNALIST: Could it lead to the reduction of any zxlsting subsidies of cqualisation schemes?
PRIE MiNISTER.
Well we're not into the business of = aking them away. But look I don't want to pre-empt I mean the
purpose of the inquiry I me= n it's not a Trojan horse to take something away I mean let me make that
very clear certainly nOt. We're in the business of trying to help but help within reasonable and proper
constraitts. Beyond saying that don't really want to pre-emrpt wha Nixon is going to have to say. I
unders ad that he's coming down here next week and there will be an opportunity for somo of you who
are hart today, based here in Ilobart. to have anoter talk to him about some of thim details of the inquiry.
JOURNALLST: Prime Minimte the AGE McNair Poll has Jackie Kelly well in the lead in Lindsay. You can't really keep
claiming to be the underdogs now can you?
PPLM MINISTER:
Well Russell I draw your attention to the history of by-ectinns. They normally comprise swings on
averge of four to five per cent against the incumbent Government Lindsay traditionally has been a Labor
seat. It was the third most spectacular victory an the 2nd of March; the swing there was exceeded only by
the swing in the neighbouring seat of Macaiur anid in tho seat of Bowman in Queenland.
I sin concerned That the Labor candidate will sneak back through courtey of the preferences of minor
parties such as the AAF1 and the Shooters ? mry. And I'd say to the people of Lindsay if you don't wat to
bring back the bloke you rejcted seven months ao, the most effective way of doing that is to vot duety
for Jackie Kelly and don't waste your votes through an independent otherwise your goal In denying the
reurn of N& Free will not be achieved&
Fax from 18/ 10/ 96 16: 51 Pg: 3
-3-
I've seen the polls but I also know the history of by-eleetions and I always back my own instinc= a lizzl bit
in these things. I'm coneemcd that the desire of a lot of people t0 give Jackie Kelly a tbi go and that's
what I think ought to happen. T mean she's only had seven months and she was knocked out on a
technicality. A lot of people fnd it rather strange that that exists, but it exist, It's the law, 3nd I think it has
affonted the fair go sensitivities of a lot of people and I just ask the people of Lindsay to Sive the lady a
fair go and put her backt, she's worked had and I hope they do. But I'm concerned abou those minor pary
preftrences. JOURNALTST
You're not suggestng Wr Howard that your private pollig is showing something different ftom % whts in
the published polls.
PRIME MMNSTER:
Well I think it's lI mean, my unzderstanding I haven't refrshed myself in the lagt couple of days but
tink our private polling shows a tighter result than what's in McNair. Look, I'm not saying that our
privatc polling shows the Labor Party is a mile in front, but my recollection is that the private polling
shows a xighrc situation, yes. I mean, I am saying that, yes a righter situation.
= o JOUR. NALTST:
Not a witnmn situation?
PRIM INISTER.
No. very, very close. Very close when you have a proper distribution of preferences see, you can't
allocate preferences fifty-fifty when you've got the anti-immigration p'oup saying give your prafmrnca to
Labor ahead of Liberal.
JOURNALIST: What impact, if any, do you expect after The week you've had in Parliament this, week over the ininistarial
shares to have on Lindsay,
PRIM MLSTER:
Well I suppose I could wnwer that ini a more educated fashion on Sunday morning. I don't know. I do
know that a lot of people have been ringing up my office in Sydne~ y mrd saying :" what's it all about, they
haven't done anything wrong, they haven't stolen any money, they haven't been dishonest, they haven't
been improper.-why can't you own a few share?" I mean, that is a bit of a reaction that's dcveloping in
theecommnity. Aridcan say on d ubject hat I fidiqute rzing thtthismoring the Leader of
the Opposition has made this rermarkble s= tceazn on radio. He said:-" you are not obliged to get out. of'
* your businesses or Set out of your shareholdings or whatever-" I repeat that " you arc not obliged to get
out of your buisinesses or get out of your shiarcholdings or whatever, wbat you're obliged to do is be carefi
when there is an apparent likelihood of a conflict of interest" I mean, if you're not obliged to get out of'
your shareholding3, you're not obliged to get out of your business, all you're obliged to do Is To worry
about potential conficts of ufltere^ t and if two days earlier he ackntowledges there's no evidence of
* impropriety, I me= n what's the fellow been going on about for the past few days. I Tnen, why did he
attack Timn Fiscer, why did he attack John Moore if he believes you're not obliged to get out of shares or
get our of businesses if it looked to conflict of' interet situations? Because every time ther was a
possibility of a conflict of interest t c= n toll you because I was there I mean, Thm Fischer just kept
saying BWT shares, I've got some.* I mean. it's a ridiculous situation. I mean, thin really is quite an
SWe've had four days of this and now you've got the Leader of the Opposition the chief
a : 7 =! 7
Fax from : 18/ 10/ 96 16: 51 Pg: 4
.4.
prosecutor saying in successive days, firstly, no improprity is being alleged and secondly, you are not
obliged to 0-etoeur of your businesses or get out of your shareholdings or whatever. What you're obliged to
do is be careful % hcn there is an apparent 11ikelihood of a conflict. Well, in those cfrcurnstnnces I say to Wr
Beazley, why did you attack the Deputy Prime Mintister? 0 Why did you attack the Minister for Tndustry?
Why havc you wasted so much time on this Issue? I mean, this man can't be taken seriously and I think
increasingly that may well filter through to the rest of the Australian community. But David, the answer to
your question will well we may or may not have it on Sunday but it's always very hard to make a
jadgcrnenL. I still thiink out there people are they're looking for thc substace and they don't see any
evidence of chicanery or impropriety, they don' 1 see anybody having becn dishontest, and they even have
the Leader of the Opposirion saying that thcy haven't been dishones and now that they shouldn't b~ ve got
rid ofthbeir businesses or their shame.
JOURNALIST: Andrew Robb says that it's been a bad week, and there seems to be a concession there at least that it could
make things mome difficult for the coalition in Lindsay. Would you concede that that this wyeek does
make PRIME MINISTER:
I say what I've said.
JO) URNALIST:
Prime Minister, do you in any sense though accept the by-election is a litmus test of bow your
Oovernment's going?
PIM MINISTER:
Ask me tha oii Sunday mrning~.
JOURNALIST: Mr Roward would you be nurrised ifthe reasons the voters of Lindsay tossed Labor our have dissipated so
quickly over six months and they're prepared toput Labor back into the seat?
PRIM MI1NISTER:
Nothing ever surprises me completely in politIcs. I will be very disappointed if Jackie doesn't win because
she deserves a fair go.
JOURNAIST; Prime Minister, in the context of the debame over race, if the Labor Party wins on Saturday on AAEI
prcfthres, what would be your view about the quality of that win?
PRIM MINISTER6.
Well, I have said what I've said about their deal with the AAFI and however they try and walk away from
it, theme was a I think It is a touch hypocritical to allege that we're not robust enough in condemning
those Australians who might have racist tendencies, which incidentally I don't think there are a large
nunbabut them re soueand thnin the ixttbreath do adeal with theAAF. 7 think Iwould rather
ith ; et into posailble responses to hypothetical outcomes. I'l wait and see what the result is and then [' ll
make a comment on the result. r can only again expmes the hope that people who don't warn m put back a
Fax from failed candidae of only seven months ago, that they don't waste their vote on an Independent and they
vote directly for the Liberal candidate.
JOURNALIST: Would you describe the Australians Against Further mmigration Party as a racist group?
PRIME MINISTER:
Well, I've secen somec of the material that the organisation's put out. I thInk it appeared in an article written
by one of my interrogators here and if that is a fair representation of its material, it's a pretty distasteful
organisatlon. JOURNALIST: But Prune Minister. Grueme Campbell says it was he who brokered the deal on preferences and not the
Labor Party, what do you say to that?
PRIME MINISTER:
Well you can't have a deal unless two people are in agreement.
JOURNALIST: Well he says it was he and the AAFI that organised...
PRIME MINISTER:
Yes, but hang on, they're not the two parties to the agreement.
JOURNALIST:
No. but he says he...
PRIME MINISTER:
Well who was he acting for? He knows a few people in the Labor Parry doesn't he?
JOURNALIST: Yes, he used to be a member of the Labor Party...
PRIME MINISTER:
Thaz's right and he has close associations with another member of the Labor Paty from his ow State
doesn't he?
JOURNALIST: And Pauline Hanson used to be a member of the Liberal Party. 18/ 10/ 96 16: 51 Pg:
Fax from -6.
PRLME MD'fSTER.
Well exactly I'm not denyin that, we're open about that, but we Backed her in three hours, he lasted 13
years. JOURNALISTOua the shares issue, hAve your previous actions and the actionls of this week made it practically impossible
for Ministers to hold shmue?
PRZZ~ i MINISTER:
Well I wvoold trust. not and I don't believe so. And now that I have the endorsement of the Leader of the
Opposition that it is not wrong to own sharm and you don't have to get rid of them or your business. I
mean, what he said here is you can bang on to your business and you cmn hang on to your shares, all you
have to worry about is a potential conflict of tnterest. I would have thought we've got the basis of a
bipartisan understanding.
JOURNALIST: Prime Minister. the words you just read out from Mr Betizley, didn't you say all you have to do is 6e
careful and isn't that your charge that you made the other day is that you were apologising to the
Australian people because some of your Ministers had been careless, is that the issue?
PUM MINISTER:
Look, obviously I would have rather -rie or two people read the guidelines marm closely but those people
have paid fairly dearly. But that hasn't altered the fact that you now have, at the end of the week in which
he spent time talking about nothing else, you've got the Leader of the Opposition sayingr two things: firstly,
& noim propriety by my min~ sers or former minist= s' and that of coums is the case; Qn secondly, he's not
saying you've got to got rid of your business or get out of your sh =. holdings or whatever, what you're
obliged to do is be careful when there is an apparent likeliood of a conflict. Now, I don't disagree with
that, I agree with that and tat's the whole thing, you've got to be, but I uin= I can say in relation to
peple like Tim Fischer, even in the rumotcst situation Tirn would say, ' look, you should understand I've
got some BHP shares, I may have a conflict of interest,' anid that is precisely what I'm tailking about.
JOURNALISTH-ow does his declaring that to Cabinet negate any potential conflict of interest?
PRIME MINSTER:
Well it's not wrong to have a conflict of inmeest, you've just got to make certain that people know about it
and that your behaviour in the light of that declaz'ation is judged against the background of that conflict of
interst In some circumnstaces you~ would excJso yourself from: malcinS the decision, or if you arm in n
Cabinet meeting people would rakc a decision in the full knowledge of your interest I mean, I can
remeiihber circumstances where I've heard Ministers in very remote situations say. ' look, I such and
such and that may involve a conflict of interest.' I mean, none of us can avoid some potentis conflict of
interetm, the Important tbing is to declare them and In appropriate circumstances niot to involve yourself in
the decision-making process. And in every caue that I can reca In the cuse certinly in relation to Mr
Fischer, he, if anything, he erred on the side of caution as you should, in declaig the interest and rm
absIutly certain that, in doing so, he complied in every partcular with thr. roquirvtontns.
AM Fa om18/ 10/ 96 16: 51 Pg: 6
Fax from Labor Prime Ministers stated coming to this very building some years ago and they never got struck by
lighbting on the way. What does that say about your visit?
PR MINISTER;
Well, I suppose you could say I was destined to finally get here, If my memory of Australian politics
serves me well, a not incredibly fortane Labor Opposition Leader once came to Hobart and attended a
Natioral Conference of the Australian Labor Party that lead to the great split. I think, in fact, it was in
1955 the Labor Party had its conference here which lead, a few months laWer, to the formation of the Anti.
Comnnunist Labor Parry that ultimately became the Democratic Labor Party. If you're asking me about
last night, it was what you might say a jolting end to the week.
JOURNALIST: Prime Minister, ean I just ask you about the damaSge to Parliament House? 7 Jcnn'e. Oeorge said today that
she believes the Federal Government has put the ACT up to this damages bill of S89,000 chat ' s gone to the
unions. Is there anything in that and what should happen?
PRIME MINISTER:
Well I pay my bills and so should the ACTU.
ends 18/ 18/ 96 16: 51 Pg: 7
* 7-
JOURNALIST: Has he ever followed that declaration with excusing himself from a vote?
PRIME MINISTER:
TIn some cases he may have. took, I'd have to go back and look at the record. I don't carry... you know. I
haven't got a photog aphic memory, but I do know he makes a regular habit whenever something comes
up, no matter how remotc the connection. So I mean, the law isn't the practice isn't that you mustn't ever
have a potential conflict of interest You must be mindful of it, you must declare it and you must take steps
to ensure that your conduct can't be criticised as having put private interesm ahead of public duty. Now
Kim Beazley), has endorsed that principle. I thank him for it warmly and we now have the bipartisan basis
for an intelligent approach To this matter. Thank you very much.
JOURNALIST: Prime Minister before you go.
PRTM MINISTER:
Yes Peter.
JOURNALIST: