Subjects: Federal Budget : GST, Senator Harradine, job creation, education,
regional health centres, health, Alice to Darwin rail link, CrimTrac,
drugs rehabilitation, federal police..
E&OE....................................................................................................
PILKINGTON:
Joining us on the programme on this morning after the Federal Budget,
Prime Minister John Howard. Prime Minister, good morning.
PRIME MINISTER:
Good morning. Nice to talk to you both again.
McCLUSKY:
Prime Minister, can I ask you first off - this looks like a magnificent
budget, there's something in it for almost everybody, an extremely
healthy surplus - how much of it, though, is a wish list that is determined
on the passage of the GST and how much of it can we take as absolutely
guaranteed?
PRIME MINISTER:
Well, the GST doesn't start until the 1st of July
in the year 2000 and this is a budget for the next 12 months so the
idea that it's dependent on the GST is wrong. That is not to
say that we don't want the GST passed and that's not to
say that we don't have a mandate to have it passed and that it's
very important to Australia's long-term future. But this budget
is separate from the GST.
PILKINGTON:
Prime Minister, the earlier reaction of Senator Harradine, I mean,
from the bit we saw on television and heard on the radio last night
it didn't seem to be all that encouraging from your point of
view.
PRIME MINISTER:
Tony, I'm not going to conduct a dialogue with Senator Harradine
or, indeed, anybody else through a radio programme, even one as esteemed
as yours. If I have something to say to Senator Harradine then I'll
talk to him directly. I don't make a habit of responding to interpretations
of what he said or what he's said any more than he does to me.
So I'll just let that question pass.
PILKINGTON:
So, Prime Minister, when will you actually meet him face to face?
PRIME MINISTER:
Well, once again, I don't provide details of who I see. Everybody
knows that from time to time I talk to Senator Harradine, I talk to
other Senators and we'll just leave it at that.
McCLUSKY:
Now, Prime Minister, let's go through some of the initiatives.
And certainly I think in terms of extending the work-for-the-dole,
a lot of people would applaud that. On the other hand, exactly what
is there in this budget that creates jobs?
PRIME MINISTER:
Well, strong economic growth.
McCLUSKY:
So what areas are you suggesting we'll see that growth...?
PRIME MINISTER:
Well, we've seen strong economic growth in just about every sector
of the economy. And we have created 400,000 jobs in the last three
years. We do have an unemployment rate, which although it is still
much too high, is the lowest in 10 years. And if we can maintain strong
economic growth we can at least maintain the gains on the unemployment
front, perhaps have some more, but we could go a lot further on the
unemployment front if we could get the Senate to agree to our unfair
dismissal legislation, our proposals to entrench youth wages and further
liberalisation of the labour market. The Senate, the Labor Party and
the Democrats in the Senate have got to face the reality that you
can only go so far in reducing unemployment with economic growth.
There comes a point where the structural impediments in the labour
market stop you going further. And we are fast approaching that point.
We would like to go further but we are hamstrung and we've tried
and we'll keep trying. But the spotlight now is really on the
Senate if it wants further reductions in unemployment to pass that
unfair dismissal legislation which would be a boom to small business.
McCLUSKY:
So you're suggesting given [inaudible] and the strong economic
performance that we could see job creation across the board.
PRIME MINISTER:
Yes, I am, but we could see a lot more if we could get these other
reforms as well. I mean, the economy now is as strong as its been
for 30 years and we have a heaven sent opportunity if we can grasp
the reform nettle in areas like taxation and industrial relations
to make further reforms. The best time to reform something is when
you're doing well. And we're doing well now because we reformed
things a few years ago. There's a tendency for people to say,
gee, everything's going well, what do you need tax reform
for?'
McCLUSKY:
Well, certainly that's the Opposition's argument...
PRIME MINISTER:
But you need tax reform now so that everything will keep doing well.
Because if you just relax and say, righto, she'll be right
mate, we've fixed it all, we've got a decent surplus, we
won't worry about any more reform,' in a few years time
something will come along and our economy will be more vulnerable
than might otherwise have been the case and people will then say,
why didn't you protect us against this?' Now, we're
trying to protect Australia against some adverse development by undertaking
further reform. And we live in a global economy and you just have
to keep working away at making the country more competitive.
PILKINGTON:
Prime Minister, on the education issue, there's no new money
for government schools...
PRIME MINISTER:
Yes there is.
PILKINGTON:
There is.
PRIME MINISTER:
Yes there is. Yeah, well, there's new money for government schools
from two sources. The literacy and numeracy programmes provide you
money for both government and independent schools but on top of that
most of the money that goes to government schools comes from the States.
And people who just compare the amount of money the Federal Government
gives to government schools and the amount of money the Federal Government
gives to independent schools, that is really a dishonest comparison.
Because the arrangement in Australia is that the great bulk of the
funding in government schools comes from the States. The Federal Government
provides assistance on a basis, generally speaking, of need for independent
schools. And on then on top of that the Federal Government also provides
funds for both government and independent schools for general programmes
like literacy and numeracy, Asian language instruction and so forth.
Now, there have been increases in those latter areas for both government
and independent schools but the States are getting five per cent more
in general revenue grants from the Commonwealth this year and they
have more resources as a result of that to pour into government schools.
So, in no way are the government schools being short-changed by us.
McCLUSKY:
Prime Minister, talking about that literacy plan. I mean, how much
are you tipping in and effectively what will it mean, what would it
mean for primary school kids here in South Australia?
PRIME MINISTER:
It basically remedies a deficiency. There are too many children leaving
primary school education without basic literacy and numeracy.
McCLUSKY:
You're quite right.
PRIME MINISTER:
And it's designed to remedy that. And there are certain national
benchmarks that have been established and we hope that over a period
of time we'll be able to improve that. And the literacy and numeracy
that we promised in the election campaign an additional $131 million
over four years, we're going to put $84 million for the early
years that's the first four years of schooling
and $47 million for the middle years that's years five
to ten. And what this means is that over the four-year period, then
next quadrennial, you'll have a record $869 million coming from
the Federal Government for literacy and numeracy. Now, bear in mind
- and I do have, as Prime Minister and Leader of the Federal Government,
have to make this point that if the State government system
and the independent system have been fully doing its jobs you wouldn't
need this. And this is really additional money that the Federal Government
is providing over and above the money provided by the States to really
top up because we believe that literacy and numeracy is fundamental.
We're also providing money for teacher education to improve the
skills of teachers. That's not meant critically because, like
all of us, we have to update. Teachers are no different. And we're
putting about $78 million to update teachers' skills. And this,
of course, will be available to teachers in both the government and
independent sector.
PILKINGTON:
Prime Minister, from South Australia's point of view it would
seem that some of the big winners here would have to be the rural
communities. I notice there's been a package to help create jobs
and also assist some of the local communities.
PRIME MINISTER:
Well, all of the rural communities of Australia benefit. There's
the job creation schemes you spoke of. There are the 30 regional health
centres. Now, these are multipurpose establishments. They provide
normal GP facilities, some acute care beds. They provide some nursing
home capacity. In other words, they're a sort of a Joseph
coat' of medical services. And they are multipurpose care units
appropriate for small populations because small country towns often
can't support an entire nursing home or an entire general practice
but they can support a combined facility which brings all of these
services together. And we're going to fund the establishment
of 30 of them around Australia.
McCLUSKY:
Prime Minister, can I ask you - talking about health and those sorts
of issues, private health insurance - a bit of a hoary old chestnut.
A lot of people seem very concerned and on their first reading of
it they're saying, hang on, I was in - for example, somebody
in their early 50s - I was in private health insurance for 20 odd
years, unfortunately I couldn't afford it, I had to bail out.
For me to go back in now, are you saying effectively I'm going
to be penalised?
PRIME MINISTER:
No, you've got 12 months, if you're aged 50, you've
got 12 months period of grace to go back in at no penalty. And then
after that 12-month period the penalty begins to apply if you are
between 30 and 65. If you are 65 and over you can join at the normal
rate even if you have not been in before. But the purpose of this
is really to encourage people to join much earlier. And the reason
that they will be encouraged is that if they leave it then they will
have to pay a penalty. But that penalty doesn't begin to apply until
the elapsing of a 12-month grace period.
McCLUSKY:
Okay. So let's be clear on that if we can, Prime Minister, so 12 months
from when? 12 months from today do I have, for example?
PRIME MINISTER:
Yes.
McCLUSKY:
All right. So 12 months from today if I am in that bracket, anywhere
between 30 and 65, I can still go back into a health fund and not
be penalised. 12 months from today I will pay a premium if I make
that decision.
PRIME MINISTER:
Yes, if you are not over 65.
McCLUSKY:
And if you are over 65....
PRIME MINISTER:
Well, if you are over 65 you are in the clear.
McCLUSKY:
Okay.
PILKINGTON:
Prime Minister, we have had a lot of calls while we have been talking
to you about the Alice to Darwin rail link. How much money is in that
could be....
PRIME MINISTER:
Well, no less, it's the same amount, the $100 million that I promised.
PILKINGTON:
It's still there - still on the table.
PRIME MINISTER:
Oh, that is absolutely, that is absolutely still on the table. And
we have made, you know, absolutely no change to that and we remain
committed. And the...it's just one of those commitments that is
completely unaffected.
McCLUSKY:
Prime Minister, just on that, what's the timeframe on that, it seems
to have gone all very quiet?
PRIME MINISTER:
Well, we are waiting really for the bids. All the bids and the people
who are, you know, interested in supporting it.
McCLUSKY:
Right. In tendering for it.
PRIME MINISTER:
Tendering for it. But the Commonwealth Government's commitment remains
absolutely rock solid. We have absolutely no intention whatever of
walking away from that $100 million commitment. And, I mean, I...it's
not the sort of thing that would have been, in the natural order of
things, would have been mentioned in the...in a budget speech because
we are not altering a previous commitment that was made.
McCLUSKY:
Prime Minister, I think a lot of people would be pleased to see that
we are actually spending a significant amount of money updating our
computer systems in the fight against crime.
PRIME MINISTER:
Yes, that's a promise that was made in the election campaign, to establish
a national database, a DNA base. It's CrimTrac. It was, in fact, a
proposal that was originally raised directly with me by the Commissioner
of Police in New South Wales. I can remember him talking to me actually
at a football match about this. And we talked at some length about....
McCLUSKY:
It sort of makes sense doesn't it?
PRIME MINISTER:
Well, of course it makes sense. I mean, this country, I mean, we are
one jurisdiction, although we are six States and two Territories,
people flow freely across our State borders and you need a national
database, you need a capacity to trace people. And Peter Ryan said
to me that the experience of many of the English police forces had
been that the establishment of this database led to a very significant
reduction in crime because you could immediately trace people and
they needed an injection of money. Now, we could have argued about
whether it was a State responsibility or not but I decided in the
last election campaign to promise a Federal Government contribution
to get the thing going and we have honoured that. May I say that one
of the things that makes me particularly proud about this Budget is
that we have honoured all of the promises that were made at the time
of the last election. I mean, we have been able...I mean, I have
been able to say to the Australian public, we made all of these commitments
at the time of the last election and we are now able to say to the
Australian public that all of those commitments are going to be honoured
and they are going to be honoured in full.
Can I just, before we duck onto something else, can I just go back.
The answer I gave you earlier about when that grace period ran from
I was slightly in error. It runs from the 1st of July this
year, not from today. So that's really a bit longer but I wouldn't
want any of your listeners to be in any doubt. But what the situation
is, if you are in that age bracket, say 32 - 65, you have got a 12
month period during which you can join at the going rate without penalty.
And after that 12 months has elapsed you begin, if you then join after
that 12 month period from the 1st of July this year, you
then begin paying the two per cent penalty. Now, that is fair because
we are giving people more than 12 months notice. And if they then
don't take up the opportunity but later decide well they've been warned
I think it will help underpin public support for private health insurance.
Add it to the 30 per cent rebate, it will....
McCLUSKY:
That stays in place does it?
PRIME MINISTER:
Oh yes. Absolutely. Oh yes, we won't alter that.
PILKINGTON:
Prime Minister, in the battle against drugs and against major crime
and computer crime, is there anything in the Budget whereby we'll
be able to increase the number of Australian Federal Police?
PRIME MINISTER:
Yes. There are more resources going to the Federal Police. The question
of exactly how those additional resources are deployed are really
some degree operational matters for the police. But we have increased
the number of strike teams. We are providing more money for further
placement of AFP officers in South East Asian countries, close to
the source of drugs coming into Australia. We are spending $500 million
in our campaign against drugs. We are giving money to law enforcement.
We are giving money to education and we are also giving a lot more
money to treatment of addicts. When I was in Adelaide recently I went
to the Adelaide Central Mission and talked directly for some time
to a number of people who were being treated there. And the strongest
message I got from those people who were fighting the drug habit,
and a number of them successfully, was that there was a critical shortage
of health and immediate facilities for people who made the decision
to give up drugs. One person said to me, if you decide to kick the
habit you have got to be able to go somewhere and get immediate help
because you mightn't have the resolve in two weeks time when the help
is available.
Now, that made a lot of sense to me. It must be an extremely difficult
thing to break a habit. I mean, some people find it hard to give up
smoking. I mean, when I gave up smoking 20 years ago I had sort of
tried it a half a dozen times earlier and then finally did it. And
I mean, that's a relatively minor thing compared with, well it's a
totally minor thing, compared with breaking a heroin habit. It must
be horrific. And if somebody has the conviction and the urge to do
it they ought to be able to get immediate help.
Now, there has been a gap in this in the past. It has in the past
been predominantly a State responsibility but we are putting a lot
more money into that. And what we are saying to that States is, we'll
provide money for treatment and we want to set up a national diversion
approach whereby people who are, sort of, just on the edges of a criminal
justice system are effectively given the option. You have treatment
or you run the risk of getting into the criminal justice system. And
the States have reacted very well to this. By and large there is an
enormous common ground between the Commonwealth and all the States.
There is a lot of publicity in areas where there is some disagreement
like heroin trials and shooting galleries and so forth but that really
is not the major area of focus although it gets a lot of media attention.
McCLUSKY:
Prime Minister, can I ask you, I know the clock is against us this
morning and clearly you are very busy. I just want to be clear on
this because everything that we have been reading this morning and
I think that the public has been hearing has talked about the passage
of the GST. You are telling us that everything we are reading, all
of the promises which have been made will be delivered regardless
of whether or not that GST legislation...
PRIME MINISTER: