PM Canberra Busine ity Dinner, 13.12.96 http:// www. nlIa. gov. au/ pmc/ presre/ cbc. html
MEDIA TRANSCRIPT
Prime Minister the Hon. John Howard MP, ADDRESS AT CANBERRA
BUSINESS COMMUNITY DINNER
13 December 1996
E& OE T hank you very much Mr Denis Paige, the Chairman of the Canberra Business Council; to
Mrs Kate Carnell, the Chief Minister of the ACT; to my ministerial colleague Warwick
Smith; Andrew Whitecross, the Leader of the Opposition; Ministers in the ACT
Government, Tony Dedomenico, Gary Humphries and Bill Woods; to my parliamentary
colleague Gary Nairn, the federal member for Eden Monaro; to the mayor of the Tumut
Shire Council, Mr Geoff Pritchard and to David Evans, the recently appointed and new
Chairman of the National Capital Authority, ladies and gentlemen.
I am particularly pleased to be here tonight to acknowledge the presence of such a big
cross section of the community of the Canberra region and to take the opportunity of
saying very directly to you a few things about the attitude of the Federal Government
towards the Canberra region.
I amn releasing tonight a vision or mission statement about the attitude of the federal
Government to the Canberra region and my remarks will be built around some of the
things that are contained in that statement but will also contain some specific
announcements which are not canvassed is such detail in the statement. 1 want to say very
directly to you that the Federal Government remains absolutely committed to the special
role of Canberra and the Canberra region as the location of the national capital of our
nation, and because of that there are a number of particular things which we regard as
ongoing commitments and obligations. And I speak as a Coalition Prime Minister,
conscious, and I don't say this in any carping sense, of the contributions of Labor
Governments to Canberra but I am very conscious of the history of Coalition
Governments and their contribution to the development of Canberra. The particular role
played by Sir Robert Menzies as a Coalition Prime Minister in really laying the
foundations of modern Canberra, the establishment of the forerunner of the national
Capital Authority by the Fraser Government, the establishment also of the Australian
Institute of Sport;, the Australian Defence Academy; the High Court building and the
National Gallery, all of those projects were essentially initiated by and established under
Coalition Governments.
I don't come as a political pauper in any sort of you know descended sense, so far as the
Coalition is concerned it is an Australian gathering, I come as somebody who is in a
particular tradition. Now I recognise that the decisions that we have taken have had a
disproportionately large impact on the Canberra community. I know that, I acknowledge
that, I don't mince words on that, I'm sorry about that, and it is important that it be
understood that those decisions weren't taken in any punitive sense against the Canberra
community. They weren't taken because the Federal Government dislikes public servants
that's nonsense. Anybody who pokes fun at the public service doesn't understand the
important role the public service plays in the fabric of our country and particularly in the
life of the Canberra community.
But we did have a problem, I don't want to go over all of that, you've heard the debate,
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but I want you to understand the context in which those decisions were taken. We do
attach particular importance to the role of the private sector in the Canberra community.
It is true that 48% of employment in the Canberra area is in the public sector which is of
course the highest anywhere in Australia, but that does leave 52% in the private sector
and one of the emphasises as the Chairman said of the new Government has been on the
role of small business. And I think it will only be over the next 12 months that the entire
Australian community and particularly the small business community of Australia will
begin to understand the scale of the changes and begin to experience the benefits of the
changes that we are making in the area of small business. The changes under our
industrial relations legislation for example don't come into operation until the first of
January. As I speak now that silly unfair dismissal law which has discouraged so many
men and women in small business around Australia from taking on new staff, that is still
with us, and it won't be until the first of January that the new and better and fairer law
comes into operation. It won't be until the first of January that small business has greater
freedom and flexibility to arrange workplace bargains that suit their circumstances and the
circumstances of their employees.
And it won't be until July 1 st next year that an absolute tax revolution so far as the
application of the Capital Gains Tax to small business will come into operation and I don't
want anybody in this audience to misunderstand the scale of what we have decided to do
in that area. We've not simply said that you can roll over the proceeds of the sale of one
business into the purchase of another business of a like kind. We've said that up to a limit
of $ 5 million you can roll it over into the purchase now of any kind of business, any other
kind of business without incurring Capital Gains Tax liability, and the impact of that when
it spreads through the community and particularly through the small business community,
and the new law will come into operation on the first of July of next year, we can't afford
to run it any earlier than that because it will be quite an expensive item so far as the
revenue is concerned. I think it will be very popular and I think it will have quite a
liberating effect on small business. And there are many other things that we've done for
small business. We altered the provisional tax uplift factor. I had a report from Mr Charlie
Bell, the Managing Director of McDonalds on cutting red tape on small business, and he
has put forward a number of very in fact 62 specific recomnmendations and I've
promised him a definitive and positive response by the middle of February.
So when you add all those things up, when you add up the knock-on effect for small
business of I believe a rise in investment and investor confidence. I'm appointing to my
staff a major projects facilitator whose role will be to clear away unnecessary hurdles to
government approvals for major projects in Australia. Now, major projects are important
in themselves but they also have great effects for small business. Now, I stress the small
business changes because they are a very important part of our long term strategy and
they have very important affects for the Canberra region and they have particular
relevance to the many people who are in this audience. So, part of our vision, indeed the
fundamental part of our vision for this region is of course an invigoration and expansion
and liberation of the opportunities for small business. And the growth of the private
sector in the region is tremendously important.
Now yesterday Warwick Smith announced the appointment of David Evans as
Chairman of the National Capital Authority and he brings a wealth of experience to the
job, he brings particular knowledge of the area, his administrative and leadership role in
the RAAF ideally suits him for this kind of job and Warwick Smith has confirmed that the
Coalition will amend the ACT planning and land management act during our current term
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The final decision on if and when to introduce the new lease hold system is of course
something that rests with Mrs Carnell's government, and that decision will be a particular
benefit I believe to Canberra's business community as it will improve investor confidence
and therefore lead I hope to more jobs in Canberra. Now, the public service will remain a
major part of the life and the economy of Canberra and although there has been a
downsizing the federal public service, which I have to say in a sense matches the
downsizing that has occurred some years earlier in a number of the State public services
and perhaps we've done it in a rather more overt fashion than some of the actions of our
predecessors because there was a significant reduction in the number of people employed
in the federal public service under the actions of our predecessors.
We are increasing opportunities for the outsourcing of services to Government and they
will be a particular benefit to small business, It's been estimated for example that
initiatives in the administrative services portfolio alone could generate up to 2,500 jobs in
the private sector. And right at the moment we are examining ways to facilitate greater
access for small business to outsourcing opportunities. And as a result of the round table
with local business and Government officials yesterday it's been agreed that the business
community will be connected in the preparation and development of guidelines to deal
with the outsourcing of Government services.
That brings me, Mr Chairman, to the issue of the National Museum. You will remember
that during the election campaign I made a commitment to the establishment of the
National Museum of Australia and the Australian Institute of Aboriginal and Torres Strait
Islander studies. I made that commitment during the Canberra by-election in 1995. It was
reaffirmed by me during the Federal election campaign and tonight I say that the
Government stands solidly behind that commitment. As a first step we provided
million in the 1996-97 Budget for the National Museum Committee to investigate side
options. The committee has reported and has recommended that the Museum be located
at Acton Peninsula. And I announce tonight that the Commonwealth will accept the
Committee's recommendation. The National Museum and the Institute will be major
national cultural institutions which will service permanent repositories of Australia's rich
heritage and culture. Now, I recognise that there's been some debate in the community
about where the Museum should be located and not everybody will agree with the
recommendation of the Committee nor with the Government's decision. But I think the
essence here is to get on with it. The essence here is to make decisions and to move
forward. Now we're going to announce, as we probably should, funding details in the next budget.
But as a down payment on further work and as a earnest of where we stand and what we
think, the Commonwealth will allocate three quarters of a million dollars for a
development brief to commence in January 1997. Can I also say that we will continue
with the refurbishment of the Old Parliament House, the Australian War Memorial, as
well as the extension for the National Gallery.
Now, we recognise the great importance of infrastructure for this region. And it is for that
reason that I announced last week that the Commonwealth, the New South Wales and the
ACT Government's will shortly call for expressions of interest in the provision of the high
speed train service between Canberra and Sydney. We take a positive attitude to the
private sector development of this proposal. There will be a competitive tender process
and the Commonwealth will play its role as a member of the Project Control Study
Group. We will facilitate a commercially viable rail service. They know that this project
holds out very positive signs for many people in the region and I hope that the response 01/ 17/ 97 10: 58: 46
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of the private sector is a very fulsome and positive one.
We also recognise the potential for expanding the role of Canberra airport so that it can
better serve the needs of the region. The Federal Airports' Corporation is examining the
feasibility of upgrading Canberra airport to international status which could, for example,
facilitate direct flights between the region and major export markets into the Asia-Pacific
area. This could be of particular benefit to local primary producers who want to develop
niche markets in the Asia-Pacific region. I believe very strongly that the future of the
region will be assured once major stakeholders accept that a new model of development is
needed to guide it into the next century.
I want to commend the Canberra business community for responding in a positive, even
aggressive fashion to the challenges that have been presented over the past few months,
and exploring ways of embracing a new approach. The way in which the various members
of the Canberra business community have come together at such short notice tonight, the
evident commitment of so many of the people involved in that community to Canberra's
future; a desire not to look back over the shoulder in recrimination about what may have
gone before but rather to recognise that changed circumstances present new opportunities
as well as new challenges is a very encouraging development.
As I said at the beginning of my remarks, I am very cognisant of the impact of some of
our decisions on this region. Those decisions were necessary in the national interest, they
were not taken lightly. I regret the personal difficulty that some of them have caused to
many of my fellow Australians. I do not lead a Government which is a public service
basher. I lead a Government that believes very strongly in the private sector, particularly
in the small business sector. I have a deep personal and philosophical commitment to
small business. I believe it is the engine room offu ture economic growth in Australia. I
believe it is the sector which over time and I stress over time can provide the answer to
our employment difficulties. But there is an important role for a professional and highly
motivated and highly committed public service in Australia and it has a special role here in
Canberra. And there is also a special place for Canberra in the life of Australia as its
National Capital. It is a source of very great pride to me, the city of Canberra. It is a
source of very great pride to all Australians. There is obviously debate around Australia
about the size, the role and the shape of federal vis a vis State and municipal government.
But that is part and parcel of the normal ebb and flow of political debate.
But I do want to assure all of you that my Government remains, as former Coalition
governments have been and demonstrated, very deeply committed to the welfare of the
Canberra region, very deeply committed to the people of Canberra. Anid I've endeavored
tonight, with some of thle announcements that I have made, to indicate thle measure of
that commitment. I can't promise that I will agree with everything that is put to me by the
ACT Government or by the Canberra business community. But I can promise both the
Government and the business community a very frank and regular communication and
dialogue, a willingness to listen, a willingness to accede to reasonable requests that are
clearly in the interests of the region and consistent with Government policy. And I hope
that the announcements that I've made in relation to the speed rail project, to the possible
extension of Canberra airport and in relation to the National Museum, coupled those
things with our very strong generic commitment to small business, will represent a
demnonstration of our commitment to you and our desire to see a very bright and
prosperous future for the people of the Canberra region.
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