PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
20/02/1998
Release Type:
Interview
Transcript ID:
10717
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP JOINT PRESS CONFERENCE WITH THE NEW ZEALAND PRIME MINISTER THE HON JENNY SHIPLEY MP PHILLIP STREET, SYDNEY

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

PRIME MINISTER HOWARD:

Ladies and gentlemen, I'd like to start this news conference

by saying how delighted I am to have had the opportunity of welcoming

Mrs Shipley on her first visit overseas and her first visit to Australia

as New Zealand Prime Minister.

The relationship between our two countries is longstanding. It's

extremely close. It's very important to my Government. It's

very important to me, as I know it is to Mrs Shipley and her Government.

The bilateral relationship is in exceptionally fine fettle. In recent

days we've had a number of discussions, both personally and over

the telephone, regarding the contribution that each of our countries

is making to the possible coalition military operation in the Middle

East. We're working together very closely.

The goal would be for the closest possible cooperation between the

two countries in the ANZAC tradition. The practicalities of that,

of course, are things that need to be fully worked out and resolved

by ourselves and each of us in discussion with the United States.

There can be little doubt that, from both our perspectives, we hope

that a peaceful settlement at this late hour is still possible. And

we certainly hope that the peace mission of the United Nation's

Secretary-General achieves results.

On the economic front, of course, New Zealand is a very important

trading partner for Australia. The economic relationship embodied

in CER, which will be 15 years old this year, has been very valuable

to both Australia and New Zealand. The cultural and social and human

links between our two countries are also exceptionally close. And

I know that this visit has made a very important contribution to reinforcing

the strength of the bilateral relationship. I particularly have welcomed

the opportunity of meeting Jenny Shipley so early in her prime ministership.

We've had the opportunity, as well as dealing with the political

and economic issues that I've canvassed, we've also had

the chance of comparing some of our approaches to social policy, particularly

in the area of what I call, mutual obligation, and what is called

in New Zealand by another title, and in other countries, by other

titles again. But I couldn't emphasise too strongly the importance

of the association. The Trans-Tasman link is in very good shape. The

relationship, both politically and at a human level, is very warm.

And I know that all Australians and all New Zealanders will want both

governments to work together very closely in the years ahead.

PRIME MINISTER SHIPLEY:

Well, I too have welcomed the opportunity to meet Prime Minister Howard.

As he has said, there is no closer relationship or more special relationship,

from New Zealand's point of view, than with our Australian Trans-Tasman

partner. We have much in common. And the CER has been a highly successful

mutual relationship for 15 years now and we've had useful discussions

as to what we can do together to extend the advantages that that has

offered both of us.

On the issue of our international and regional responsibilities, while

New Zealand is a small country, it is one that has always sought to

do its share. And the recent decision to deploy troops to Iraq is

something that has been important to New Zealand and, in my view,

to New Zealanders.

It is our hope that we will be able to work as an ANZAC force. New

Zealanders and Australians have had a great history of being extremely

successful. And I'm pleased to say that our defence people are

working through to see if that is actually possible. And perhaps we'll

be in a position, in a few days, to confirm one way or another if

that's able to be achieved.

There are many things that can be done to progress our advantages

in a regional sense and I valued the opportunity to speak with the

Prime Minister on those issues. I also valued the opportunity to get

his update on the impact of the Asian economic circumstance, not only

on the Australian economy, but to try and make an assessment as to

the flow-on effects for the New Zealand economy. And that's been

a useful aspect of my trip to Australia.

I look forward to this ongoing relationship. While New Zealand looks

outwardly toward the world economies, we seek to be competitive. Australia

will, as far as I can tell, continue to be our most important partner

in both human and in trading terms. And I look forward to advancing

that relationship.

QUESTION:

Mr Howard, General Baker said on Wednesday that he had concerns about

the ability of New Zealand [inaudible] defence terms. Was that discussed

today and do you agree with those claims?

PRIME MINISTER HOWARD:

Well, the defence aspect of our relationship was discussed. New Zealand's

defence contribution is a matter, of course, to be determined by the

New Zealand Government, as Australia's defence contribution is

something to be determined by the Australian Government. And we had

a very candid discussion about this issue. But what New Zealand does

in relation to defence matters is a matter for the Government of that

country.

QUESTION:

Do you agree with General Baker, Prime Minister?

PRIME MINISTER HOWARD:

Well, I've said that what New Zealand does is a matter for New

Zealand.

QUESTION:

Mrs Shipley, did you think the General's comments were, perhaps

[inaudible]...

PRIME MINISTER SHIPLEY:

I do not intend to take them either personally, from our country's

point of view, or allow them to be taken out of context. I don't

believe anyone is questioning New Zealand's competency in defence

terms. Our forces are as professional as any you would find worldwide,

within the capacities that they have. I accept that there will be

a debate about our capacity as a nation to contribute regionally.

And the Government made clear, prior to last year, that we were to

expand our investment in our Defence Force. There is an additional

$72 million per annum for each of the next five years, in operational

terms, plus $300 million of capital going into our defence forces.

And for a little country, with the population the size of Sydney,

we think that is a reasonably significant reflection of both our ability

to contribute and also the necessity from our own point of view. I

accept that this will be a matter that will be discussed on an ongoing

basis between our colleagues here in Australia, but New Zealand does

understand that we must do our share regionally. And we believe our

White Paper on defence is a very significant change of direction,

from New Zealand's point of view, that can only be viewed as

positive.

QUESTION:

Mr Howard, given Mrs Shipley's saying there will be a debate

on New Zealand's capacity, do you think an ANZAC force in the

Gulf is desirable from Australia's point of view?

PRIME MINISTER HOWARD:

If we can achieve it, yes.

QUESTION:

What is the achievement?

PRIME MINISTER HOWARD:

Well, there's just some practical, logistical things involved

that the objective of working together very closely is a very desirable

one and we both want to achieve it. But there need to be things worked

out with the Americans and ourselves at a practical level. And could

I just take the opportunity of saying, as the Prime Minister of Australia,

that the personal competence and the fighting capacity of the New

Zealand defence forces is something that Australians have long admired.

QUESTION:

With the troubles in Indonesia, do you think Australia should possibly

concentrate more on that than [inaudible] so far away [inaudible]...

PRIME MINISTER HOWARD:

It is quite possible to keep your eye on a number of games at the

same time. It is quite possible to deal with different situations.

We are paying very close attention to what's happening in Indonesia.

We have a close relationship with Indonesia and I have a lot of regard

for what President Soeharto has achieved in that country. And I don't

think anybody should jump to conclusions either about his authority

within Indonesia or the fact that the country still, in the medium

and longer term, has very bright prospects. It would be a huge mistake

for people to allow what is now happening in Indonesia to cloud their

medium longer term view of what that country can achieve. It is going

through a fearful economic hammering at the present time. And that

is an occasion for friends of Indonesia, like Australia, to be understanding,

to be comprehending, to contribute the knowledge of our relationship

with Indonesia to the understanding of other countries. Australia's

understanding of Indonesia is special because of where we are and

the way in which the history of that relationship has evolved. And

we can bring insights and provide advice to others larger than ourselves

which they themselves cannot draw from their own sources.

QUESTION:

Mr Howard, have you given any thought to giving any help, on a military

basis, to the Indonesians and what sort of help that might be?

PRIME MINISTER HOWARD:

Well, we certainly haven't discussed the appointment of any forces,

no. Such an eventuality simply hasn't arisen. Of course not.

QUESTION:

Given the bilateral agreement you have with Indonesia...

PRIME MINISTER HOWARD:

Well, that issue has not come across my desk. It has not come to my

attention. It has not been discussed by me with anybody.

QUESTION:

Mrs Shipley, when do you expect to have some sort of a feeling for

what process has to be gone through for this [inaudible] are we talking

days, weeks?

PRIME MINISTER SHIPLEY:

No, no, days. And it will be much clearer very soon. As soon as there

is something to announce, I'm sure that that will be made clear.

Can I say, beyond that it is very unlikely that we will be commenting

from a New Zealand point of view. Once those arrangements are established,

I think, we need to allow the forces to get on and do what they've

been sent there to do. And we will not be speculating everyday on

either what they are doing or where they are.

QUESTION:

So this places New Zealand troops under Australian command?

PRIME MINISTER SHIPLEY:

Those matters are most certainly not clarified yet and as soon as

they we will let you know.

QUESTION:

Prime Minister, did Mr Howard raise with the [inaudible]...?

PRIME MINISTER SHIPLEY:

We discussed the frigate issues. I actually raised it because I know

it's a matter of interest to the Australians. And I've made

it very clear that the New Zealand Government reserves the right to

make this decision when it's appropriate. As you'll be aware,

the Minister of Defence was in Australia two weeks ago talking both

with the Minister and the companies involved. They are likely to bring

further information to New Zealand later this year. And if it warrants

further consideration, then that is when the Cabinet will consider

it.

QUESTION:

Mrs Shipley, did you discuss issues like - I know that [inaudible]

work-for-the-dole scheme - did you talk about that?

PRIME MINISTER SHIPLEY:

We certainly have. As the Prime Minister has said, western countries,

like our own, are grappling with how we'll get the best out of

our people, create the best opportunities and deliver social programmes

in a fair way that doesn't make things worse for folk but rather

better. I was very interested in what the Australian Government has

done with the 18 to 21 and 24 year olds, equally, I think there's

some interest in some of the things we are doing. And we've agreed

that we will keep an open dialogue on both what we're doing and

how we can mutually benefit from that work.

QUESTION:

Could you see a work-for-the-dole scheme coming in to New Zealand?

PRIME MINISTER HOWARD:

We are already planning, as part of the coalition agreement, a work-for-income

support strategy, both looking at people's work capacity rather

than the fact that they are simply unemployed or sick is a new focus

of New Zealand's work. And certainly work for payments and community

contribution are actively under consideration, indeed, they've

been announced to be implemented this year.

QUESTION:

Had you discussed the health of the Coalition Government in New Zealand

with...

PRIME MINISTER SHIPLEY:

With Prime Minister Howard?

QUESTION:

With Mr Howard?

PRIME MINISTER SHIPLEY:

We certainly discussed the political environment, but not in detail.

I am very confident that the New Zealand Coalition is going to survive

well. We announced our programme for the year on Tuesday. I think

it's as ambitious a programme as we've seen from a New Zealand

government in both economic and social terms. And we're both

committed as parties to deliver it.

QUESTION:

Prime Minister, you said the discussion on defence was robust. Did

you make...

PRIME MINISTER HOWARD:

No, I don't think I used the word robust. That's yours Catherine.

I think I said frank or candid, but...

QUESTION:

Did you actually discuss General Baker's comments? Did you seek

to clarify them and did you talk directly about New Zealand's

defence funding?

PRIME MINISTER HOWARD:

We had a discussion within the parameters that I've already described.

And the view I have is that what New Zealand does in the area of defence

is a matter, of course, for the New Zealand Government.

QUESTION:

Well, in that case, did General Baker go too far?

PRIME MINISTER HOWARD:

Well my answer is that I've given it.

QUESTION:

Mrs Shipley, given your discussions with Mr Howard today on the economic

effects of the Asian events, what do you think the Asian crisis will

do for New Zealand and the growth of the region?

PRIME MINISTER SHIPLEY:

At the moment the best advice we've got is that we're still

expecting around 2.7 per cent growth in our country. I think it's

very soon to try and make an actual assessment and the Cabinet is

looking at contingency plans for if the growth tracks and tax tracks

alter dramatically. It's very likely, in our opinion, that the

secondary effects of this may not be seen until next year rather than

this year. But the New Zealand Government has been kept very well

informed. At this stage, because of some other domestic activity including

tax cuts and a de-mutualisation of AMP, we believe that domestic economic

growth will still be strong in New Zealand which, in fact, will allow

us to ride-out some of the pressure that the Asian change will impose.

QUESTION:

Mrs Shipley, the Australian Federal Treasury now believes that the

Asian downturn will knock 0.5 per cent off Australia's GDP growth

in the next financial year. Will this have an on-flow impact to New

Zealand?

PRIME MINISTER SHIPLEY:

We have a range of contingency plans both ways, in terms of 0.5 or

one per cent. And as I said to you, the Ministers are being kept well

briefed on this matter and we do have contingency plans for spending

tracks if they are required. The Government does intend to keep the

New Zealand books in surplus and we have plans at foot that, if necessary,

can be implemented in order to achieve that.

PRIME MINISTER HOWARD:

And I don't think, just the sake of complete accuracy, the Australian

Federal Treasury did say that. I think what the Australian Federal

Treasury said was a number of things and that was the interpretation

put on it by the Sydney Morning Herald if I'm correct.

Thank you.

[Ends]

10717