E&OE....................................................................................................
LYNEHAM:
Prime Minister, welcome again to Nightline.
PRIME MINISTER:
Good evening.
LYNEHAM:
When leading economists suggest that the GST could destroy up to 100,000
jobs and erode average Australian living standards, wouldn't
any reasonable person start to have second thoughts about it all?
PRIME MINISTER:
Well, there are plenty of leading economists who think that the tax
reform we propose is the greatest next step in further boosting the
Australian economy that you could possibly get. Paul, we had a debate
about this before the election and we had all of these arguments about
its so-called job destroying effects then. Some of the leading economists
that you're no doubt alluding to include Peter Dixon who said...
LYNEHAM:
Very eminent...
PRIME MINISTER:
Very eminent. He said the short-term effects - 30,000 more jobs.
LYNEHAM:
But not from the GST, from your tax cuts.
PRIME MINISTER:
But they're a package. You can't have the one without the
other.
LYNEHAM:
And your Treasurer's right when he says he'd rather abandon
the whole thing than exempt food.
PRIME MINISTER:
Well, what the Treasurer is quite rightly saying is that it's
a whole package.
LYNEHAM:
But you're going to have to compromise in the end, surely.
PRIME MINISTER:
We are not going to take food out. I want that to be understood.
LYNEHAM:
Come hell or highwater.
PRIME MINISTER:
We are not taking food out because once you do that you're blowing
a $6 billion whole in the package.
LYNEHAM:
What about fresh food?
PRIME MINISTER:
Look, we're not taking food out full stop.
LYNEHAM:
How do you feel about the prospect of an independent East Timor?
PRIME MINISTER:
I would rather Timor be an autonomous part of Indonesia and we'll
continue to argue at a diplomatic level for that outcome because we
think that is the best outcome. An independent East Timor would be
vulnerable, it would be very dependent on outside help. There would
be considerable difficulties between an independent Timor and a formerly
metropolitan Indonesia. Overall it would be more desirable for everybody
if the outcome were autonomy with Indonesia. But in the end people
of that country and in Indonesia will decide that matter.
LYNEHAM:
Given that they did help our diggers so much in the war, we owe them
a great debt some would say, if they were a young, new, independent
nation, would Australia want to put out a helping hand?
PRIME MINISTER:
We know our responsibilities in this area. And I'm very conscious
of the history and that is one of the reasons why Australia played
quite a significant role recently in bringing about a change of policy
by the Indonesian Government. But I don't want to pre-empt the
outcome of ongoing discussions between the Indonesians and the East
Timorese or other efforts that may be made at a diplomatic level,
including by Australia, to get the best possible outcome.
LYNEHAM:
On the republic many republicans fear that having a second
referendum question about Aborigines could see, whatever your motives,
some sort of acrimonious race debate kick-off.
PRIME MINISTER:
Well, I think that's a fairly shallow argument. It really is.
And I think it's pretty patronising. Now, leaving aside the question
of whether or not we end up having a second question and that's
by no means resolved it is insulting to say to the Australian
people they can't think of two things at once. It really is very
insulting.
LYNEHAM:
But you're talking about recognising what you call an historical
fact, the prior occupation of this land. Already people are saying
there should be recognition of prior ownership and other concepts
that talk about ongoing rights.
PRIME MINISTER:
Well, my response to them is that if they want something achieved
in this area they will drop that line because I'm not going to
support it. What I will support is recognition of an historical truth
- an indisputable fact. And that is that the indigenous people were
the first Australians. Now, nobody can fair-mindedly dispute that
proposition. But once you start bringing other things into it, you'll
lose it and you lose middle Australia.
LYNEHAM:
Labor says you've watered down your code of conduct for ministers,
is that how you see it?
PRIME MINISTER:
No, I haven't. I think I've clarified it in a couple of
areas and made some sensible changes at the margin.
LYNEHAM:
It used to be the case that if you were a minister you had to divest
yourself of all shares and business interests related to your portfolio.
Now you can place them with an outside professional nominee or trust
or an independent adult son or daughter.
PRIME MINISTER:
Yeah, well what's wrong with that if you're completely at
arm's length?
LYNEHAM:
Yeah, but I become Minister for Resources. I put all my mining shares
with my adult son. I know they're all there. I can then do all
sorts of favours, can't I? They're all still waiting for
me when I get out of the job.
PRIME MINISTER:
But if you are allowed, if you are allowed to put them in the hands
of an independent controller and you are completely at arm's
length from that person. We've got to be realistic about it.
Do we really want to frighten away from parliamentary life a bloke
who's accumulated a few assets? Do you really want a Parliament
that is bereft of entrepreneurs? Do we want a Parliament that's
got no businessmen and women?
LYNEHAM:
Isn't there the balance, though, between watching worldly people,
people who know the market place and know what makes things tick,
and preserving that very perception of propriety in government?
PRIME MINISTER:
You need a balance, Paul, and at the moment we're heading towards
an imbalanced situation where anybody who's accumulated a few
bob, who's been successful in business is being scared out of
going into public life.
LYNEHAM:
And finally, Labor Senators this week are saying they'll be raising
the claim that your daughter, Melanie, is using a Commonwealth car
space in Sydney for her sports car.
PRIME MINISTER:
Well, let them raise it. Let them raise it...
LYNEHAM:
Very valuable, inner city parking spaces.
PRIME MINISTER:
Well, I have a response to that and if they want to raise matters
relating to...
LYNEHAM:
Well as I've raised it, what's your response?
PRIME MINISTER:
Well, my response is that everything has been done in an entirely
appropriate fashion and there was certain security advice tendered.
There's been no additional expense to the Government. And let
the Labor Party go down that path. I don't think they'll
win any marks by doing that because matters relating to the security
of the family of senior politicians I would have thought should be
free of political exchanges. And I would think that's a view
a lot of Labor people have. But let them go ahead and raise the matter.
I don't think it will enhance their reputation in the community.
LYNEHAM:
Thanks for your time.
PRIME MINISTER:
A pleasure.
[ends]