PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
10/07/1998
Release Type:
Interview
Transcript ID:
10630
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP RADIO 4QR - BRISBANE

E&OE........................................................

TUCKER:

Welcome and thank you for your time.

PRIME MINISTER:

It's very nice to be here Carolyn.

TUCKER:

Could we start with Wik, you met with the Queensland Premier for

the first time yesterday. He's really saying that the issue

has not been solved it's just been dumped on the states.

PRIME MINISTER:

That wasn't the tenure of the private discussion we had. I

think we will be able to work together quite well on this issue.

It's obviously in the interests of Queensland that it have

the same approach as other resource states such as Western Australia.

It wouldn't help the mining industry in Queensland if there

were more rigid conditions in this state than prevailed in Western

Australia and it would be in the interests of the pastoral community

in Queensland that we have, throughout Australia, a uniform approach.

Now I understand that within the Labor Party there are differing

views on Native Title. I do acknowledge that but, in the end, I

believe there will be a uniform national system, and that Queensland

will probably adopt the state based approach which was contemplated

when we brought our Bill into the Parliament. That is an approach

that does not involve the right to negotiate but rather the replacement

for the right to negotiate that I agreed with Senator Harradine,

but that is a matter for Mr Beattie to...

TUCKER:

Has he indicated to you that's what he was after?

PRIME MINISTER:

Well, he and I had quite a positive, constructive discussion. We

may come from opposite sides of the political fence, but my responsibility

is to the Australians who live in Queensland. And I am concerned

about their future and the Native Title deal that I made with Senator

Harradine benefits them enormously because it brings to an end almost

five years of angst and dispute and difference and people are immensely

relieved and this deal will deliver security to the farmers of Queensland

and give hope to the mining industry and will deliver justice to

the Aboriginal people of this state. So it is a win, win, win for

the different interest groups in Queensland.

TUCKER:

So, you would support a national approach because of the concern

about cross boarder claims and so on, would you be willing to organise

that? To get the Ministers and Premiers together?

PRIME MINISTER:

I don't know that a meeting will be necessary, but if it is

I would be very happy to bring it together. I want this issue put

finally behind us. I want an effort to achieve future unity on this

issue. It has been divisive. It has been a disappointment to the

indigenous people. It's been a great source of frustration

and angst to the farming community. And also lost investment to

the mining industry. Now, none of that is good for Australia or

good for Queensland. So I am sure we can work it out. And I am sure

that common sense on both sides of the political fence, now that

the debate is over and the law has been changed, I think common

sense will prevail.

TUCKER:

If you have just joined us, you are with Carolyn Tucker and Prime

Minister, John Howard, on Brisbane 612 4QR and your local ABC. It's

coming up to twenty four to nine now. Mr Howard on to Telstra. Obviously

considerable amount of wrangling over that as well. Not all of your

National Party colleagues are convinced. Bob Katter,

De-Anne Kelly, Mal Colston is indicating that he might vote against

it. Brian Harradine seems pretty luke warm on the idea. How are

you going to convince all of these people?

PRIME MINISTER:

Well, you never know with the Senate until the vote is actually

taken. And I don't count any of my Senate chickens before they're

hatched, particularly as far as the independents are concerned.

Liberal and National Party Senators and Members approached the Government

for a better communications deal for the bush. This occurred some

time ago and it was always my intention that there be some additional

support for telecommunications in the bush coming out of the full

privatisation of Telstra. You may remember that when I announced

it in March, I said there would be a social bonus. The social bonus

is not something that has been dreamt up in the last few weeks and

it's not something that has been dreamt up since the Queensland

election. It was always the intention that something additional

be done to help communications in remote areas of Australia. And

that is what has happened. But it will only be possible to do a

lot of things if we have the full privatisation of Telstra. If you

don't have the full privatisation of Telstra you don't

have the money to do a lot of the additional things that we want

to do.

Now, Liberals and Nationals, and bear in mind that the Liberal

Party for example probably holds more rural seats than any other

party in Australia, those Members and Senators together have put

views on behalf of their constituents and we are responding. But

we always did intend that part of the social bonus would be in the

rural communications area.

TUCKER:

But there does seem to be some doubt about the measures that you

have announced already as to whether they will be enough? Do you

think they will be?

PRIME MINISTER:

Well, in a sense nothing is ever enough but it is a huge difference

if you have the capacity out of the sale of perhaps $40 billion

not only to reduce debt and give to the younger generations of the

twenty first century a debt free future, in a national sense, but

if you've got those resources you can afford to spend more

than if you don't have them. And it is as simple as that. If

you have got the proceeds of the sale you can do more. You can afford

to put a social bonus in the direction of additional communications

for rural areas. If you don't sell Telstra, you can't

do that. I mean it is in Australia's interests that we sell

the remaining two thirds of Telstra. And I am not doing it because

of some ideological commitment, I am doing it because I can use

the proceeds to reduce Australia's huge national debt. And

use some of the proceeds for good things like, further upgrading

the bush communications and other purposes that will at the appropriate

time, be announced.

TUCKER:

I was hoping this might be the appropriate time.

PRIME MINISTER:

No, no. We have a very important announcement from Mr Fischer and

Senator Alston on behalf of the Government today. And one significant

announcement a day is quite sufficient in this area. And it will

be something that is very beneficial for the remote areas of Australia

for people who feel that they have been left behind in the on-line

communications era in which people in the city now revel. And it's

giving them a life which was just undreamt of by the previous generation

and I do not want an Australia where you have communications haves

and communications have nots. That would bring a new barrier, a

new gap, a new distance between remote area Australians and the

rest of the Australian community. So having the proceeds of the

Telstra sale allows us to do a lot more. Without those proceeds

we can't do those additional things.

TUCKER:

Those additional things that you are planning to do. Will they

be sufficient to win back those disenchanted voters in the bush

that are casting around for someone else to vote for and thinking

about Pauline Hanson?

PRIME MINISTER:

Well, that is a matter for them. We live in a democracy.

TUCKER:

Surely it is a matter for you too?

PRIME MINISTER:

Well, no, it is a matter for me to say what is good for Australia.

To lay out a programme to talk to people. To explain, advocate,

argue and put my case. In the end the voters will decide who they

want as their government. And at the next federal election there

are only two possible outcomes. The one outcome is that the Coalition

led by me is returned. Another outcome is that the Labor Party led

by Mr Beazley becomes the government. Now, they are the two outcomes.

Now, of course I am conscious of what happened here in Queensland,

but I am also conscious that the worst way of responding to that

would be give up on doing those things that you believe are good

for Australia. I am not going to give away things that I believe

in. I am not going to give away things that I regard as important

to the future of Australia in the vain belief that that will win

back support. It won't. It will lose you more respect. What

people want from me as the Prime Minister of Australia is for me

to campaign and to argue for and to support those things that I

believe are good for the country. And I will take my outcome like

any other political leader at the ballot box. But I believe in tax

reform because I think it would be good for Australia to have a

fairer taxation system and I am not going to walk away from that.

I believe that privatising Telstra is good for Australia because

it will help us pay off debt and provide more communications facilities

for the bush and that's good for Australia. Not good for me

or good for the Coalition. It's good for the country. And that's

why I am going to continue to push it. I am not going to take the

advice of those who say that I should go away in a corner and do

nothing through fear of offending people. They don't want that

from their Government. They want me to get out there and argue the

things that I believe are good for the future of Australia.

TUCKER:

If you are doing the things that people want you to .....

(tape break)

Pauline Hanson continue to rise?

PRIME MINISTER:

Well Carolyn, I think you are drawing on opinion polls that do

bounce around. Let's wait and see. I mean, we are only a few

weeks away from the Queensland election. The ultimate test of all

of this is in the ballot box whenever the next federal election

is held and we are living in a more volatile political climate.

People do bounce around more. Their political allegiances are less

tribal and less rusted on. There are fewer people who say ‘I

always vote Labor because that's how Mum and Dad voted',

or vice versa with the Coalition. We are just living in a different

world now and you have to respond differently, but my approach is

to argue even the harder for those things that I believe are in

the interests of Australians, and I'm not going to be diverted

from that because that's your ultimate responsibility. Once

you stop doing that you might as well give the game away.

TUCKER:

Are we living in a world where life is simply not going to get

easier? We've been tightening our belts and waiting for life

to become simple and easy again. Is it just not going to happen?

PRIME MINISTER:

That's true in relation to a lot of things. We are living

in a very different world, and people understandably want to hang

on to the verities of the past. I'm no different from anybody

else. There are things about my past and there are things about

the Australia that I grew up in that I want to hang on to and part

of that is the bush. I mean, although I grew up in Sydney I had

an affectionate, almost romantic view about the bush. It's

part of Australia and I just can't envisage the Australia that

I grew up in without the bush, because it is part of our identity,

it is part of what we see in ourselves as Australians. Our lives

have changed, and one of the reasons why a party like One Nation

can come along and offer simplistic solutions and get a bit of support

is that a lot of people are suffering the consequences of economic

and social change. Now, my responsibility as Prime Minister is to

try and alleviate that change, that pain and difficulty, to try

and lessen it, but not to pretend to them that I've got some

magic wand solution, not to offer them false hope, and for example,

people say you've got to stop imports to save our industries.

Well, if we stop imports, other people will stop our exports and

we'll end up being a lot worse off.

TUCKER:

So the rural producers really stand to lose....

PRIME MINISTER:

No, they don't. Rural producers actually stand to gain from

a more open approach to trade.

TUCKER:

Yes, I meant by closing the doors.

PRIME MINISTER:

Absolutely. The worst thing that you could do for the rural producers

would be to put up the trade barriers because we would immediately

suffer retaliation. Our beef industry, our sugar industry, two great

Queensland industries would be knocked for six if we adopted a restrictive

approach to trade and thousands of people would lose their jobs

and the livelihoods of many people would be affected. And these

are the things that are not always easy to argue and get a speedy

response, but in the long run they represent the truth and I have

to argue that case. I also have to recognise though that if you

live in a remote part of Australia and you see people in the city

getting high class communications and you are not getting it, you

are going to feel envious and you are going to say this is not fair,

and that's why I want to use some of the proceeds of the sale

of Telstra to give to those people some benefits they would not

otherwise have.

TUCKER:

Tell us about your compensation package for workers in the textile

industry?

PRIME MINISTER:

Well, this was something that was promised at the time of the decision

to slow down the rate of tariff reduction in the TCF industry last

year. And the whole purpose of it is to provide more security and

predictability after the Year 2000, and it replaces and enhances

an existing scheme which is designed to provide incentives and security

of investment in the industry. Now, we've given to the textile

industry a far better deal than was recommended by the Productivity

Commission. If you like they wanted to administer a colder bath

to the industry than we did. I mean, we believe in greater competition

but we also understand that in many regional parts of Australia

the textile clothing and footwear industry employs a lot of people,

employs a lot of migrant people, employs a lot of women, and if

you just take the protection away overnight, you are going to cause

a lot of unnecessary hardships. So we have struck what I regard

as a happy medium. We've continued the process of greater competition

but we've slowed down the rate of change in the rate of tariff

reduction and that decision was widely welcomed and the announcement

that Mr Moore will make in Melbourne today will give the industry

a guide path in to the first years of the 21st Century.

TUCKER:

Would it be reasonable for our pork producers to look at that and

think why can't you organise something like that for us?

PRIME MINISTER:

Well, we have offered and we are implementing a programme that

gives export support to that industry.

TUCKER:

And that's all they are getting?

PRIME MINISTER:

Well, there are other things that are being considered in relation

to the pork industry as well as that. You've got to remember

that the changes that the pork industry is now operating on came

into force in 1990 and it is not something that has been changed

in the last few months. It's something that has been, that

was changed back in 1990 and the level of import penetration in

that industry is only about 5%. Now, they will argue that it's

quite high in one of the sensitive areas of the market but the import

penetration, the number of imports in the textile clothing and footwear

industry is much greater than five per cent. So you are dealing

with a situation where the total level of imports in the pork industry

is much lower than the total level of imports in the textile industry.

The problem with the pork industry Carolyn is that there is an over

supply, the world price of pork has been quite depressed. Some of

that is due to changed consumer habits. We are looking at different

ways through the programmes that have already been announced of

helping people to adjust and also to provide them with support while

they are going through that period of adjustment.

TUCKER:

A couple of quick questions before I let you go. Do you have a

timeframe that you are prepared to reveal on tax reform?

PRIME MINISTER:

Carolyn, I can say that it will be out soon. I don't want

to put weeks or months on that but Peter Costello and I have worked

very hard on this package. We've consulted a lot of people,

there's further consultation. It will be a good package for

Australia. It will give Australia a fairer tax system. We won't

be introducing a Goods and Services Tax on its own. We won't

be introducing a Goods and Services Tax on top of the existing system.

If we bring in a Goods and Services Tax, it will replace the wholesale

sales tax and other indirect taxes. It won't be there on top

of the existing system, and any suggestion that everything is going

to go up by ‘x' per cent or ‘y' per cent is

quite wrong. We'll also have personal tax cuts. It will be

a very good package for rural Australia, it will be a good package

for people with children and overall it is going to deliver a tax

system that is a lot fairer than the present one. Now, I know it

is hard. I know Mr Beazley will run a fear campaign. The Labor Party

will be very negative. They will run on fear and despondency and

I know that represents an electoral challenge.

TUCKER:

There's a fair bit of fear and despondency getting about at

the moment.

PRIME MINISTER:

But does Australia want from their Prime Minister in the face of

that fear and despondency further fear and despondency? Or do they

want their Prime Minister to say to them this is what I think is

good for the future of Australia, I believe in a fairer tax system.

I'll put it to you, I'll argue the case. If you reject

that case and you reject me well I will accept that with the best

of goodwill but at least I will have tried. At least I will have

tried to give to Australia a fairer taxation system. Now, I know

it is going to be hard, and there are plenty of people who are saying

to me, ‘John don't do it - be cautious, be careful'

but I've reached that stage where I don't want to be ultra-cautious

or ultra-careful. I've reached that stage where I believe the

best thing I can do for the Australians who elected my Government,

the Government, is to argue for what I think is good and if it is

rejected and I fail in that attempt, well, I will have tried and

the Australian people will have made a decision and I will accept

it. Now, I have a sneaking feeling that if we do it well, then they

may in fact support it, but that's a matter for them.

TUCKER:

And when do they get the opportunity to ....

PRIME MINISTER:

Well, at the right time. Like every other Prime Minister before

me I reserve the right to sort of go when it is appropriate. I want

people to have an opportunity of examining the tax package. I certainly

don't intend to drop it and go off to the Governor-General

asking for an election the next day. I want people to have a look

at it, to work out what is in it. It won't be over complicated,

and there will be plenty of effort made by the members of the Government

to explain it to people and to go around the country answering questions

about it, because it will be a terrific break from the past. It's

something we've needed for a long time. Deep down, most Australians

think the present taxation system is a bit unfair and it does need

to be changed, and I can't promise everybody will be happy,

but I do think the bulk of people will see it as a fair attempt

to deliver a fairer system, and particular sections who need a bit

of help and protection, I mean, pensioners have nothing to fear

from it.

TUCKER:

How about the unemployed?

PRIME MINISTER:

Well, the unemployed will benefit in that a fairer, more effective

taxation system will be more attractive to business and that will

improve their prospects of getting jobs. Once again, no simple way

overnight of responding to that, but if you have a tax system that

is more efficient and is easier for business to administer then

it leaves more room, more resources, more opportunity to employ

people.

TUCKER:

It is difficult times ahead for Australia though, the rest of the

year no question about it. Is there anything else you can do to

safeguard us against the effects of the region?

PRIME MINISTER:

We can go on doing what we've done for the last two-and-a-quarter

years and that is get our economic house in order. I mean, if we

had not cut our deficit, reduced the big debt we inherited from

Mr Beazley, if we had not turned a deficit of $10.5 billion into

a surplus, we'd now be more at the mercy of the forces that

are raging through the Asia-Pacific region. It is difficult and

although Australia has not been left unaffected, we would have been

more badly knocked around and hurt if we had not taken those remedial

steps and by taking those steps, we've given Australia an inner

strength and a protection that we would not otherwise have had and

that's the message I would deliver to your listeners, that

if we hadn't have done those things, we would have had higher

interest rates, higher inflation, a more vulnerable economy....

TUCKER:

I hate to use the expression, but is this ‘as good as it gets'?

PRIME MINISTER:

Now, well that is not an expression I use. You never see things

in terms of ‘as good as it ever gets'. You always strive

to do something better and that's why we are embracing taxation

reform. It's because we are potentially vulnerable that we

need to reform things like taxation. The Asian challenge makes tax

reform more and not less necessary. So the more pressure you are

under the m

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