PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
20/03/1998
Release Type:
Interview
Transcript ID:
10719
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP RADIO INTERVIEW WITH NEIL MITCHELL RADIO 3AW, MELBOURNE

MITCHELL:

Mr Howard, thank you for agreeing to this.

PRIME MINISTER:

It's a pleasure.

MITCHELL:

Mr Howard, the health system's a mess, what are you going

to do about it?

PRIME MINISTER:

Well, I don't agree it's a mess. I agree it could be

better. But health care in Australia is at a higher level than in

most other countries in the world.

MITCHELL:

Mr Kennett has just said that elderly people were scared witless

by your changes on nursing homes. He said this on AM - scared

witless. And now they're bearing the brunt of what amounts

to Federal incompetence on health.

PRIME MINISTER:

[10 SECOND TAPE BREAK]...recognised and been fixed and they won't

be repeated. But I don't think it helps very much for anybody

in authority to just slag the health system. The average Australian

has access to better quality, cheaper health care than does the

average British citizen or the average American citizen. If you

get sick in the United States and you're not well off, you

can be in real bother.

MITCHELL:

But I put it to you - people in Victoria tell me they are concerned

that if they get sick they won't get the sort of treatment

they need. The hospitals are dirty, they're under-staffed...

PRIME MINISTER:

Well, that is a combined responsibility of both the State and the

Federal governments...

MITCHELL:

But we [inaudible] do about it. Jeff Kennett says it's your

fault.

PRIME MINISTER:

Well, it doesn't help in a situation like this for a Premier

to try and heap all of the blame onto the Prime Minister or the

Federal Government or, indeed, for the Federal Government to heap

all of the blame onto the State government.

What are we doing? Well, to start with we put about $500 million

a year into trying to stop the catastrophic fall in the number of

people in private health insurance...

MITCHELL:

Well it's failed.

PRIME MINISTER:

Well it hasn't totally failed.

MITCHELL:

Well it's still going.

PRIME MINISTER:

Well, Neil, the rate of exiting from private health insurance has

slowed very markedly and it doesn't help for people in authority,

including State Premiers, to constantly publicly criticise the quality

of private health insurance. The other observation I would make

is that - you say, what are we doing - in the new Medicare agreement

we are offering the States an agreement that involves a three and

a half per cent increase, and that is in a climate of zero inflation.

On top of that, we are offering them a guarantee that for every

one per cent, if it were to happen, more people leaving private

health insurance, there will be another $83 million added to the

money that the Commonwealth pays to the States. On top of that,

we are giving them a further guarantee in relation to the operating

costs of hospitals.

We are offering them more money. We are prepared to play our part.

It doesn't help the patients of Victorian hospitals for the

Victorian Government to say: well, it's all the fault of the

Federal Government. That is the kind of mindless buck passing which

the Australian public is fed-up with. I would not insult a State

government by saying it is all their fault. I do not think it helps

the citizens of Victoria for the State Government to, in effect,

suggest it's all my fault. It's not and the Australian

public knows that. What they want the Premier and the Prime Minister

to do is to work together sensibly.

MITCHELL:

Well, hopefully that happens today at the Premiers' Conference.

PRIME MINISTER:

Well, we've made a very fair offer and we hope the Premiers

will accept it.

MITCHELL:

Well, they're already saying no, aren't they?

PRIME MINISTER:

Well, we'll wait and see.

MITCHELL:

Okay. Another issue - guns. And again, Jeff Kennett says Australia

went over the top at the time of Port Arthur. We went over the top.

PRIME MINISTER:

Well, I don't agree with that. I don't think Australia

went over the top at all. It was an appalling tragedy - an appalling

tragedy - and out of that disaster came the hope of a safer Australian

community. We had some uniform gun laws. I received the cooperation

of all Premiers, of the Leader of the Opposition federally, and

I always thank them for that. I did not go over the top in my own

language or my own handling of that. But I believe that the Australian

public wants a maintenance in full of that uniform...

MITCHELL:

Well is that threatened by what Victoria's doing?

PRIME MINISTER:

Well, we're going to talk about it today.

MITCHELL:

You know what they're doing.

PRIME MINISTER:

Well, I don't want any changes.

MITCHELL:

None at all.

PRIME MINISTER:

No, I don't. I don't want any changes to the agreement.

MITCHELL:

Well what Victoria's doing changes the agreement, does it

not?

PRIME MINISTER:

Well, I want to hear exactly what they're intending to do

because you sometimes get very mixed signals through the airwaves.

But my simple proposition is that I would like all of those at the

meeting today to reaffirm the commitment of their governments to

the uniform agreement.

MITCHELL:

Is it possible that there will be a financial penalty if Victoria

does change it?

PRIME MINISTER:

Well, I haven't raised the question of sanctions.

MITCHELL:

Would you?

PRIME MINISTER:

Well, I want to have a sensible talk.

MITCHELL:

Yeah, but you're taking a firm line and Victoria's taking

a firm line.

PRIME MINISTER:

I am certainly taking a firm line but it doesn't help on something

like this where I'm optimistic that people will cooperate and

see commonsense. It doesn't help to talk provocatively in advance.

MITCHELL:

Fair enough. Would you like the Federal Government, though, to

take over if the States are given a power over all gun laws, make

it a Federal responsibility?

PRIME MINISTER:

Well, I hope that doesn't become necessary.

MITCHELL:

Okay. Now...

PRIME MINISTER:

But can I just it make it very clear - my bottom line is, I am

against any watering down of the uniform agreement.

MITCHELL:

All right, now, hopefully that will be resolved today.

PRIME MINISTER:

I hope so.

MITCHELL:

Senator Parer, the Minister for Resources, should he sell his shares?

PRIME MINISTER:

Senator Parer, so far, has not been involved in any conflict of

interest. The question of whether his family trust disposes of shares

in a coal mining company is a matter that will have to be decided

by the people who run that trust.

MITCHELL:

Would you advise him to sell his shares?

PRIME MINISTER:

Well, I am in constant communication with Senator Parer regarding

the untrue allegations that have been made against him...

MITCHELL:

Well, is it true that the company's involved in a dispute

over native title?

PRIME MINISTER:

Well if it is, I don't know. That's not Senator Parer's

fault, is it?

MITCHELL:

Well, no. But his company and he's the Minister for Resources

and he's speaking on native title.

PRIME MINISTER:

But what is wrong, what is wrong with...

MITCHELL:

Because he benefits directly.

PRIME MINISTER:

I'm sorry, but that's the equivalent of saying that Peter

Costello should resign as Federal Treasurer when interest rates

came down because he has a housing mortgage and he benefited from

his action in bringing about cuts in interest rates.

MITCHELL:

But not it's not, with respect, Prime Minister...

PRIME MINISTER:

Why isn't it?

MITCHELL:

We're talking about $2 million worth of shares. We're

talking about discussions with Japanese companies as a share holder

when he's Minister. And we're talking about a native title

claim from which his company could benefit.

PRIME MINISTER:

Well, I don't think his company would benefit from the native

title claim. I think quite the reverse, in fact.

MITCHELL:

All right, I take your point.

PRIME MINISTER:

Yeah, I mean, for heaven's sake.

MITCHELL:

Which company would benefit [inaudible]...

PRIME MINISTER:

He didn't initiate the native title - but you see, Neil, with

respect, when something like this happens you get an hysteria and

you get allegations made that have absolutely no evidence of bad

faith or bad conduct. I mean, look at all the allegations that have

been made this week, that he played golf and spoke to his former

business partner who's his family lawyer. I mean, I defend

Senator Parer's right, I defend the right of any of my Ministers

to maintain social contact, to have meals with, of course. I mean,

how anybody could argue against that is beyond me.

MITCHELL:

But Mr Howard, he has spoken on the Native Title Act and

opposed it.

PRIME MINISTER:

What's wrong with that?

MITCHELL:

Well because his company will benefit if his stand goes through.

Surely that's a conflict of interest.

PRIME MINISTER:

No, it's not. That's the equivalent of saying that a

farmer can never be Minister for Primary Industry. What is the difference?

MITCHELL:

The difference is that the Minister should be declaring it and

hasn't.

PRIME MINISTER:

No, hang on, no, he has declared it to me.

MITCHELL:

When?

PRIME MINISTER:

He declared it to me ages ago.

MITCHELL:

And you've been comfortable with it all along.

PRIME MINISTER:

Well, no, I tell you what I did. I sent it all off to the Secretary

of my Department, as I've sent all the pecuniary interest forms

that have been given to me by my Ministers. And the Secretary of

my Department went through it and he certified in writing to me

that it was in order.

Senator Parer has behaved in good faith from the very beginning

on this. He made full disclosure to me of his family trust's

interest in this company. He made full disclosure to me of other

interests that he had. He had been checked. He believed in good

faith that he complied with the guidelines and until any evidence

is produced to me that he has been involved in an actual conflict

of interest - I mean, an actual conflict of interest would be if

Senator Parer as Minister for Resources took an act that specifically

benefited his company or a small group of companies in the resource

sector, in the same way that if a farmer is the Minister for Primary

Industry and takes action that specifically benefits his farm. But

if he's involved in a decision which benefits the generality

of farmers or the generality of coal producers or the generality

of mortgagees, as in the case of Peter Costello with falling interest

rates, to suggest that they should resign or there's a conflict

of interest would render it impossible to have anybody with any

business acumen to be a minister in your government. Australia would

be the loser as a result.

MITCHELL:

He says that he is considering selling the shares. Would you advise

him to do so?

PRIME MINISTER:

Well I am in discussion with him about a number of matters and

I don't care to say anything more than that except to repeat

that he has not done anything dishonest. He made full disclosure...

MITCHELL:

I don't think anybody's saying he's done anything

dishonest, there's a conflict of interest.

PRIME MINISTER:

Well, there isn't.

MITCHELL:

Yeah, but the Ministers you've sacked in the past didn't

do anything dishonest, they had a conflict.

PRIME MINISTER:

Well, can I go through the three that were affected by these guidelines.

In the case of both Brian Gibson and Jim Short, they took specific

action relating to a company in which they held shares. Now that

is different from Senator Parer's case. In the case of Mr Prosser,

claims were made that Mr Prosser was involved, however innocently

in his mind, he was involved in lobbying for and advocating the

cause of his business interests whilst being Minister. There is

no evidence, at all, that Senator Parer has done that.

MITCHELL:

What about his meeting with this Japanese...

PRIME MINISTER:

But that Japanese company has literally hundreds of millions of

dollars invested in the entire coal mining industry in Australia.

It would be extraordinary in the extreme if, on a ministerial visit

to Japan, he did not talk to the executives of that company. What

would have been wrong would have been for Senator Parer to have

said to the executives of that company: I would like you to do something

specific for the company in which my family trust has an interest.

Now isn't that a difference?

MITCHELL:

Yes it is.

PRIME MINISTER:

And that is the key difference. While he is acting generically

in the interest of the coal industry and that involves talking to

major investors in the industry in Australia, he is not doing anything

wrong.

MITCHELL:

Mr Howard, may we take a call?

PRIME MINISTER:

Sure.

MITCHELL:

Mark, go ahead please.

CALLER:

Good morning Neil, Prime Minister.

PRIME MINISTER:

Good morning.

CALLER:

I am an average Australian and I am a citizen and I suppose I'm

still undecided about the Telstra sale and I was wondering why should

I support it and why would I be better off if it is sold?

PRIME MINISTER:

Well, you could buy some shares in it and I don't know whether

you are in a position to do that. I don't know your financial

position on that, and that of course is your business. Another way

you would be better off, of course is, that we will be able to reduce,

by 40 per cent, the total Federal Government debt of Australia and

I will tell you how that will directly benefit you. That will help

to keep interest rates down and they, in fact, over time, with other

circumstances lead to a further reduction in interest rates.

MITCHELL:

Are you surprised that the poll done here in Victoria yesterday,

are you surprised that commentators said the Telstra thing was a

masterstroke, the public doesn't seem to be going along with

it overwhelmingly. I mean, in the polls you have seen so far.

PRIME MINISTER:

Well, it depends a bit Neil on the question that you ask. If you

say to people, are you in favour of selling Telstra, the natural

reaction of a lot of people is to say: no. If you say to them are

you in favour of allowing the men and women of Australia to buy

the remaining two-thirds of Telstra, the answer can be very different.

MITCHELL:

OK. But you appeal the public is with you on it, despite the polls..

PRIME MINISTER:

I do. I do.

MITCHELL:

Isn't it a bit risky. I think I have mentioned here before,

the calls that we get are very negative.

PRIME MINISTER:

Yes. You have got to take some risks in politics. I mean what is

the point of being a Prime Minister of this country if you never

take any risk, you just sit there and do nothing.

MITCHELL:

But I would have thought when you introduced, when you went this

way on Sunday that you would have thought, now this is what could

win the election for me. You might say it is the right thing to

do but this will popular. (Inaudible).

PRIME MINISTER:

We will wait and see.

MITCHELL:

That's fair enough. Speaking of an election. What criteria

will influence you in deciding on an election?

PRIME MINISTER:

Well I think it is, you make a political judgement as to the correct

time. You also take very much into account having it at a time which

will, sort of, not cause any disruption of the community. I mean,

normally elections don't cause disruption but you have got

to keep those things in mind but all Prime Ministers try and choose,

I guess a right time, not only in a political sense, but also in

the sense of the national interest.

[COMMERCIAL BREAK]

MITCHELL:

And we are with the Prime Minister of Australia, John Howard, we'll

take some more calls in a moment. Mr Howard the poll I mentioned

a moment ago, that same poll showed Kim Beazley ahead of you in

Victoria. Could you go into this election an underdog?

PRIME MINISTER:

Well I don't know. You see one of things that I try not to

do, as Prime Minister, is to double as a political commentator.

I mean naturally everybody likes to always read polls that are favourable.

Sometimes they are not so favourable and we live in a more volatile

political climate, and I have said repeatedly to my political colleagues

that they can't assume that we will automatically win the next

election with ease. I believed that from day one because we are

living in a different world. People bounce around in their political

affections a lot more freely and easily these days than they used

to.

MITCHELL:

Okay Doug, go ahead please for the Prime Minister.

CALLER:

Prime Minister, I am in favour of a GST like the John Hewson plan,

just before the last election, but I wonder why don't you market

it so laymen people, like myself can see the benefits. I am a sales

rep and when GST was last opposed I was talking to a lot of businesses

and they all said that they would hire between two to five people,

these are medium sized businesses.

MITCHELL:

That's an interesting point on marketing Prime Minister. I

have in fact been following a newsletter Peter Costello is sending

out to his electorate which is an introduction to it, which is all

about tax.

PRIME MINISTER:

We are sending that to as many electorates as possible around Australia

and it is building a case for tax reform. On Doug's point I

guess my answer, Doug, is just give us a go. When we release the

policy I believe the marketing of it will be superior to the marketing

of taxation changes in the past. I know it is always difficult to

embark upon major reform but I deep down believe we need a better

tax system because the present tax system is unfair and increasingly

unworkable and I am prepared to have a go. If the Australian people

reject me as a result, well I will accept that with the best of

grace. I will be disappointed but I believe I owe it to the Australian

people to try an implement a new, modern tax system for the 21st

Century.

MITCHELL:

While we are on tax, will be reviewing negative gearing?

PRIME MINISTER:

No. Negative gearing is not something that is on our agenda.

MITCHELL:

It is on the Labor Party agenda. It was reported today. There have

been rumours in the accounting community that you, the Liberal Government

would review negative gearing.

PRIME MINISTER:

Well I think. Look, the problem with getting rid of negative gearing

is that you would push rents up very sharply, very sharply indeed.

MITCHELL:

So it is not on the agenda for you?

PRIME MINISTER:

Well there are pretty good reasons for that. You push rents up

very sharply and you would also depress house prices and that would

have a very adverse affect on people, particularly in Sydney and

Melbourne. Could I just remind people, the Hawke Government tried

this in the mid 1980s and after 18 months they abandoned it because

rents went through the roof and it affected poor people more sharply

than anyone else.

MITCHELL:

Michelle, you are speaking to the Prime Minister. Go ahead please.

CALLER:

Good morning Neil, good morning Mr Prime Minister. I have a major

concern with the health insurance policies that are around. We're

a family on $35,000 a year. We have had top cover my whole life.

Last week I had to go in and lower it. In the last six months I

have had over $6,000 worth of medical bills, out of my own pocket,

and I can't afford my health insurance but at the same time

I can't afford to drop it, so I have had to lower it where

it is not enough to cover me.

PRIME MINISTER:

Michelle, you say you have had $6,000 of medical bills out of your

own pocket.

CALLER:

Yes.

PRIME MINISTER:

You or your family has obviously had some very serious operations?

CALLER:

No, I have IVF treatment which is not covered because your Government,

that I voted in, has dropped...

PRIME MINISTER:

I am sorry what treatment was that?

CALLER:

IVF.

PRIME MINISTER:

Oh yes, yes. Well I sympathise with your position but whilst it

is a very, very important treatment and absolutely precious for

your own personal situation - I am glad you mentioned what it was

because it is not something that is occurring to everybody everyday

- but I understand the particular circumstances of what...

MITCHELL:

But the story of people being able to afford health cover is fairly

common.

PRIME MINISTER:

Yeah I know, but I don't think you can say that that particular

case is typical of the whole situation.

MITCHELL:

Mr Howard, there is a report in the Financial Review today

of a foreign affairs report to the Government on Indonesia, are

you aware of that?

PRIME MINISTER:

Well, I have seen hundreds of reports on Indonesia across my desk

but that particular one, I am not sure.

MITCHELL:

It says Indonesia is breaching the IMF guidelines with expensive

family and cronie projects, now if that is the case why on earth

are we getting involved in helping them?

PRIME MINISTER:

Well, we of course are not giving them any money, we are lending

them money and it is repayable and we are doing that because we

have a vested national interest in doing it.

MITCHELL:

But do you believe they are doing this...

PRIME MINISTER:

Neil, I have to acknowledge that standards on these sorts of things

in other countries are different from what they are in Australia

and that applies no matter who is in office and I acknowledge that

but you have to look at the broader picture. Is it in Australia's

interests to see Indonesia sink further down into social dislocation

and poverty and economic collapse? The answer to that is no. We

have markets in Indonesia. We sell products in Indonesia. We sell

services to Indonesia and it is in our selfish national interest,

if I can put it that way, to make sure Indonesia doesn't fall

over, and that is why we take the broader view that we do.

MITCHELL:

[Inaudible]

PRIME MINISTER:

Do I support cronyism? Of course I don't but unfortunately,

there are different approaches to these things in different countries.

MITCHELL:

Is it cronyism in Indonesia?

PRIME MINISTER:

For a person in my position in a delicate situation like this,

as you know words are bullets.

MITCHELL:

Do you, on a broader point, do you expect that what is happening

in Indonesia will lead to a flood of refugees in this country?

PRIME MINISTER:

I hope not. I believe that if wiser counsel prevails and an agreement

can be made with the IMF and if the rest of the world is appropriately

demanding of Indonesia but not unreasonable, then the situation

can be stabilised and major social dislocation avoided. But it's

going to be very difficult.

MITCHELL:

Okay, Christine go ahead please for the Prime Minister.

CALLER:

Hello Neil, hello Mr Howard. I just wanted to say that I totally

support your stand on guns and I think it's terrific what you've

done so far. I totally disagree with the states who are trying to

weaken the gun laws. I don't want Australia to become like

the USA where every man, woman and child owns a gun. In fact...to

say on this one, Mr Howard, stick to your guns.

PRIME MINISTER:

Well thank you, I think you speak for the vast bulk of Australians

in saying we don't want to go down the American path. I am

sorry this issue has come up again. I don't want to have arguments

with the states about it but the Australian people demand the maintenance

of the tough gun laws we've got and I am personally very strongly

committed to them. I believe in what was done two years ago and

I feel quite emotionally committed to the maintenance of those laws.

MITCHELL:

Did you... I was going to ask you about that because I know you

followed the case of Walter Mikac very carefully and in fact I sent

you a tape of the speech he gave at the funeral. How did you feel

meeting him yesterday? Did you feel that he'd been let down?

PRIME MINISTER:

No, I don't think he's been. I am still optimistic that

we will maintain the integrity of those laws because everybody feels

pretty keenly about this and I am pretty optimistic about what can

be agreed today. He seemed in quite good spirits. I have met him

on a number of occasions over the years. You just can't even

begin, of course, to comprehend what a man like that has been through

and naturally, how strongly he would feel about this issue.

MITCHELL:

Okay, we will take one more call. I think we've got time. Brian,

go ahead please.

10719