E&OE.............................................................................................
Good afternoon, ladies and gentlemen. The Prime Minister and I have
had almost an hour of very valuable talks and they will continue over
lunch.
The relationship between our two countries is close. It is built very
directly on people-to-people links. We have a lot of shared history.
And I've found the talk today with the Prime Minister to be extremely
positive and, as a result, the relationship between the two countries
has been further strengthened.
He naturally briefed me, the Prime Minister, on the circumstances
in his country following the tragic events of the Tsunami. And I will
have an opportunity at lunch to express to him, and also fortuitously,
because many of them will be there, to the Australian defence personnel
the way in which that tragedy affected the Australian people and the
way in which we were very pleased, in the tragic circumstances, to
respond in such an emphatic way. The spontaneous response of the Australian
community was evidence of the affection which is held in this country
for the people of Papua New Guinea.
I want to announce that apart from the relief activity which is already
being provided, about which I'll have something more to say in
my remarks at lunchtime, Australia will provide further assistance
for rehabilitation work. We will provide whatever extra is needed
to ensure two or three new schools, some facilities that are more
accessible for people who've been disabled as a result of the
tragedy, medical support for those with orthopedic injuries and amputations,
agriculture and fisheries programmes to rebuild the local economy,
assistance to churches and non-government organisations working on
rebuilding in new areas, upgrading and repairs to roads, support for
earthquake monitoring and geological survey work, advice to provincial
and district administration on planning, and assistance to Papua New
Guinea with disaster planning. And some of the aid programmes that
are already in operation will provide some relevant assistance. We'll
also provide some funding additional to the aid programme. That amount
will depend on needs and the funds already provided by Papua New Guinea
and other donors, but we envisage a sum of, in the order of, a million
dollars. Australia has already spent $2 million additional to the
aid programme on relief, not counting, of course, the contribution
of the Australian Defence Force.
On other matters, we were pleased a few moments ago to witness the
signing of the Memorandum of Understanding regarding the gas pipeline.
And that represents, if it comes to fruition, a total investment of
$3.1 billion and that will generate a large number of jobs in both
countries.
Both of us shared experiences in relation to the impact of the Asian
downturn on our two economies. I want to take this opportunity, as
I will at lunch, of congratulating Mr Skate for the role that he and
his government have played in bringing the possibility of a lasting
settlement in Bougainville closer to fruition. Bougainville has been
a source of concern to successive governments, both in Australia and
Papua New Guinea and the role that Mr Skate has played and, I might
also remark, the role that has been played by Australia's Foreign
Minister, Mr Alexander Downer, have played a very, very significant
part in giving us more hope in that area. We also re-emphasised and
agreed upon the importance of the defence cooperation between the
Australian Defence Force and the defence forces of Papua New Guinea.
On behalf of the Australian Government it's been a very positive
and very productive session. And I'm delighted this is Mr Skate's
first visit, not only to Canberra as Prime Minister but also his first
visit to Canberra, and I'm very happy to have him with me and
to re-affirm, as I will at lunch time, the very close and intimate
links between our two countries and our two societies.
PRIME MINISTER SKATE:
Firstly, Mr Prime Minister, I want to thank you, on behalf of the
people of Papua New Guinea, for inviting me to be here in Canberra.
And, secondly, is to thank all the Australians, the people of Australia,
for what they have done in assisting us in terms of the disaster that
we had faced in Aitape and, of course, over the periods when we had
problems in Bougainville and Rabaul, how the Australians were willing
to help.
It goes to show that the people of Australia do care about the people
of Papua New Guinea. It also shows that they have friends on the other
side, and that we valued, and it also reassures us that we have friends
and brothers on this part of the country, in this region. Secondly,
our objective to come over here is in two-fold. One is to establish
contact and promote understanding with Australian leadership. And
secondly is to reach an understanding on key issues affecting Papua
New Guinea in which Australia has an important role to play in Papua
New Guinea. And as the Prime Minister John Howard has rightly said,
there are four issues that we have touched on defence cooperation,
investment, trade and bilateral strength and our bilateral and multi-lateral
relationship. I am also pleased to note that the Prime Minister and
his Government and, of course, with the support of the Australian
people are willing to stand behind Papua New Guinea and show that
Papua New Guinea progress positively and becomes a prosperous country
to live in.
In terms of Bougainville, I think we are making headway. We have a
long way to go but I thank the Australians for the role they have
played in terms of peace monitoring group. . We have asked Australians
to support us to ensure that the United Nation, when it takes part
as an observer on the Island, recognises the sovereignty of Papua
New Guinea. And the Australian Prime Minister has given us that assurance
and respected that request. I also want to thank the Prime Minister
for the understanding he has with the currency crisis that Papua New
Guinea is facing. We have tried within our means to live within our
means. We are able to control our budget without much help from the
World Bank and the IMF but I am pleased to inform the people of Australia
that the World Bank has taken note of our performance in the last
12 months that I have been Prime Minister and they are very satisfied
as to how we have been able to control our budget.
On the Aitape, I have been down there. After 24 hours the Australian
supply arrived. I saw children, women, people dead but it's an
experience that I will never forget and that has made me much stronger
to look after my people and care for my people. I thank the Australians
for the supply and the swift way they moved in to assist and bring
normalcy on the devastated island. It was wonderful to know that Australians
flew in quickly, they were the first to land there, followed by New
Zealand and Japan. I want to thank the people of Australia and Prime
Minister yourself and your Government for that assistance.
The latest tally we have today is about 2,134 people are dead. There
are 9,483 in the care centres; 628 in the hospitals and they are still
searching for more dead bodies but we have, in fact, instructed people
not to move into devastated areas because it is contaminated and it
will be too dangerous for people to be living around there. Having
that Mr Prime Minister, when I make my speech I think the people of
Australia will have an opportunity to know who Bill Skate is and what
he stands for and where he comes from. And with the support of the
Australian brothers and sisters throughout Australia, I want to say
thank you very much for having me in your wonderful country. And I
hope Mr Prime Minister it is only fair in a Melanesian custom that
you should come down to my country and I will reciprocate the hospitality
that you have accorded me. Thank you very much.
JOURNALIST:
Prime Minister Howard, regarding the Australian aid, will that be
given through aid agencies that are already there and church groups
or will some of that money go through the central fund that the Papua
New Guinean governments.....
PRIME MINISTER HOWARD:
Well the design is that we would pay directly for those particular
projects. We think that is the most intelligent way of doing it. The
central fund has actually been quite successful, the response to that
has been tremendous and we just think the most beneficial, practical
way is to itemize some projects and pay for them directly.
JOURNALIST:
Prime Minister Skate, if I could ask you, what guarantees are there
that any donations of money that are coming from Australian people
will go to the source i.e. will go to helping those people?
PRIME MINISTER SKATE:
I have set up a committee and the committee is not made up of politicians
except me as the Chairman and patron. The funds will go into an account,
we'll open up a special account, and it's going to be managed
and audited by a company called Deloittes Chartered Accountants. We
have a bishop, a Catholic Bishop, Bishop Brian Barnes in the committee.
We have a bloke by the name of [inaudible] Bernhard Chulai representing
the international donors, and NGO representative, Janet Philoman.
That makes up the committee. I am not the signatory to the cheque,
it is the NGO or international donors, one of the representatives,
the Catholic Church and, of course, the Chairman of National Disaster.
Therefore, with Deloittes as chartered accountants, it's very
transparent, accountable and I think it will be put in the right place
for projects that will benefit the people of Papua New Guinea.
JOURNALIST:
Despite that, though, there are accusations though that you are siphoning
off some of that money. At least one provincial governor has said
it's a racket and a conspiracy and that you are trying to take
that money, what do you say to that?
PRIME MINISTER SKATE:
We have a very strong law, much, much better than, I think, some of
the laws in Australia. We have an ombudsman commissioned to investigate
leaders if they have bridged any law. We have a fraud squad and our
laws...if you are found once, under section 14 of the Leadership
Code, you don't hold public office. In politics, people accuse
leaders because they want to make noise, but they should investigate
the report substantiated before they report. I think character assassination
has truly destroyed my country and a lot of my leaders. I have no
time for leaders who speak like that because they have ulterior motives,
I don't.
JOURNALIST:
Prime Minister Skate, can I ask you, in relation to the recent sex
videos that have been an issue in front of your Parliament, Father
Lak was named as being involved in that, can you update us on what's
happening in your country about that issue?
PRIME MINISTER SKATE:
We have appropriate laws and those who complain should go and see
our institutions that should look into it. It is not for me to be
judging a person.
JOURNALIST:
What are you doing about it, are you going to have a full inquiry
into the allegations?
PRIME MINISTER SKATE:
The people have been told on the floor of parliament to refer that
matter to the Ombudsman Commission and appropriate authorities, it
is their job. I have a bigger problem, my problem is to manage my
country's affairs, run the economy properly and show that my
people are receiving the goods and services that has been denied for
a long, long time.
JOURNALIST:
But the allegations of nine million kina being involved in a bribe
over that incident, isn't that something that you should investigate?
PRIME MINISTER SKATE:
If you are to go to the bank and ask them about nine million kina,
there's been no nine million kina bribe. It is again politics
at its best, accusing leaders because we are making a difference in
this country. I am making a difference, that's why people are
worried.
JOURNALIST:
What about Father Lak, do you have confidence in him, do you deny
he's involved?
PRIME MINISTER SKATE:
I have a lot of confidence, I have a lot of confidence in the man.
I have a lot of confidence as one great Papuan New Guinean leader
and his name has been tarnished and I will stand by him until the
law finds him guilty.
JOURNALIST:
Do you deny that he was involved in this incident?
PRIME MINISTER SKATE:
I deny it totally because I've seen the tape, it's not very
clear.
JOURNALIST:
...deny those allegations.
PRIME MINISTER SKATE:
Well, they use parliament privileges. Why can't they use it outside
so he can take them to court? The man's not been given a fair
chance.
JOURNALIST:
In the wake of the Tsunami, nurses and medical staff are obviously
willing to volunteer to go to the area and help with the people up
there. They're saying that they're being told to pay their
own way, that they can't get there unless they pay their own
way. Will you release some money from that central fund so that medical
staff can go and help the injured?
PRIME MINISTER SKATE:
Of course, that's the reason why we are setting up this account.
JOURNALIST:
When will that happen, though?
PRIME MINISTER SKATE:
Well, we're receiving the money. I mean, to-date, we have 1.1
million kina in the account...
JOURNALIST:
[Inaudible]... assistance.
PRIME MINISTER SKATE:
Yeah but, look, people are sending us money. You know, it's only
seven days I start launching this and we have to have the accountants
who is managing the fund, not Bill Skate. I have accountants, it's
their job. I just call for...
JOURNALIST:
Will you tell them to release the money so these medical staff can
go...?
PRIME MINISTER SKATE:
Of course I will. I will. In fact, I have spoken to them, before I
left. And we have to do it properly. You don't release a fund
because a man says I want a fund. You have to prepare documents, have
it, you know, checked is it true, is it what they really want
or is it another request, a hand-out request. We want to check everything.
I'm an accountant by profession, therefore I want to see everything
done properly.
JOURNALIST:
How soon can the gas pipeline be built if this Memorandum of Understanding
comes off, if you get the agreement that you need?
PRIME MINISTER SKATE:
Well, it depends very much on Prime Minister Howard and his Government
and the people of Australia and those investors. I think it's
two countries, in fact, three governments, that's the Federal
Government, the Papua New Guinean Government and, of course, the Queensland
State Government and the investors. We have to have a look at it.
If my Minister for Petroleum and Gas, Sir Rabbie Namaliu, the former
Prime Minister, moves faster, I think we can get it going. And, you
know, if you question my credibility, I mean, one has to look at Sir
Rabbie Namaliu, the man with an impeccable reputation, you know, internationally,
and he's in my government and he's assisting me, therefore,
something must be wrong with other people - Bill Skate's okay.
JOURNALIST:
Prime Minister Howard, you were talking about goods and services before.
Your backbench seems to be worried about the prospect of trying to
sell a goods and services tax in Australia. Are you going to be able
to address their concerns?
PRIME MINISTER:
Well, we won't be selling a goods and services tax. We'll
be explaining a taxation reform plan which embraces a fundamental
reform of the whole Australian taxation system. I'll be notifying
my colleagues later today that there will be a joint party meeting
here in Canberra next Wednesday the 12th of August and
at that joint party meeting the colleagues will be asked to approve
the plan that has been developed. And I feel very confident that when
that plan is explained they will have considerable enthusiasm in promoting
it because it is and will be seen by the Australian public as a very
good plan, a plan for the 21st Century. We believe in reforming
the Australian taxation system, unlike our opponents who want to cling
to the existing wholesale tax system, so that if they happen to win
the next election they could do what they did in 1993 and increase
all the existing wholesale tax rates by two or three per cent, having
promised personal tax cuts. I mean, they are shaping up to do the
same thing this time as they did last time and that is to promise
tax cuts, don't deliver them, but put up the existing indirect
taxes.
JOURNALIST:
Is it conceivable that the party room may want to tinker with your
package?
PRIME MINISTER:
Well, we don't take anything for granted. We are going through
a process of genuine consultation. I don't take the partyroom
for granted but I feel very confident that when the plan is presented
the plan will appeal very warmly and very strongly and naturally it
takes a little time to get it all together. This is like a budget.
In fact in some respects it is bigger than a budget because it is
bringing about a very significant change in our taxation system, therefore
you do need a lead time between the taking of final decisions at an
executive government level and the final presentation of the document
for approval, and you have to have consultation and discussion along
the way. There seems to be Paul, a curious notion around that we are
sort of holding it back for some particular reason. We are not. I'd
be very happy if I were in a position to release it tomorrow, take
it to a party room meeting and release it tomorrow but I can't
because there are calculations to be done, there are documents to
be prepared, there are references to be cross-checked because it is
a plan, it is not just a policy, it is a plan for significant change
to Australia's taxation system.
I'm sorry Bill, that I went on at such length about something
which is of such great interest to the Australian press. I apologise
for that. Yes, Stephen?
JOURNALIST:
How long after that do you think it could be before you could make
the ....?
PRIME MINISTER:
Well, if it is approved, and that's if it is approved, we would
hope to release it immediately. If it is not approved, well, it might
take a day or two longer.
JOURNALIST:
...(inaudible)....
PRIME MINISTER:
Look, wait wait wait.
JOURNALIST:
Kim Beazley is expected to announce the details of Labor's immigration
policy today which have been reported. What's your reaction to
that?
PRIME MINISTER:
Well, I haven't heard it yet.
JOURNALIST:
It's on the front page of The Australian.
PRIME MINISTER:
I'm perfectly happy to say that we altered the immigration policy
we inherited from the Labor Party. We altered it in three ways : we
reduced it, we introduced a two year waiting period, which the Labor
Party is against, and the other thing we did was to we shifted
the emphasis away from family reunion in favour of skilled migration.
You can't have both. You can't simultaneously maintain the
previous level of family reunion and shift it in favour of skilled
migration. We are in favour of skilled migration, very strongly in
favour and we altered it, and we ended the imbalance that existed
under the former Labor Government's policy. As to what is in
Mr Beazley's announcement today, I don't know. I'll
have a look at it when it is released.