PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
12/05/1999
Release Type:
Interview
Transcript ID:
11020
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP TELEVISION INTERVIEW WITH PAUL LYNEHAM

Subjects: Budget – youth allowance, unemployment, private health

insurance, medical research

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

LYNEHAM:

Prime Minister, welcome to the programme.

PRIME MINISTER:

Pleasure.

LYNEHAM:

Well you could hardly complain about the headlines today. You couldn't

have written them better yourself.

PRIME MINISTER:

Well they were good, but they were deserved. This is a good budget

but we're not complacent.

LYNEHAM:

Brian Harradine didn't think you were too clever. He says the

compensation for the youth allowance in the budget was too little

too late, and improperly tied to his vote for the GST.

PRIME MINISTER:

Well I'm not going to conduct any public dialogue with Senator

Harradine on your programme, or any other programme. When I have things

to say to Senator Harradine I always pay him the courtesy of saying

them to him privately intervening public comment.

LYNEHAM:

But we have the political reality that the man who's so essential

to getting this tax plan thorough the Senate is now very bitter. Says

he's ashamed, says he had a deal with you and you welshed on

it.

PRIME MINISTER:

Well I haven't welshed on a deal with anybody. But beyond saying

that I'm not going to get into any commentary about any discussions

I have had or might have with Brian Harradine.

LYNEHAM:

On unemployment, ACOSS says the budget has failed to take decisive

action to tackle our top national problem. Your own forecasts suggest

the best you can hope for next financial year is to stabalise the

problem of around 7.5%.

PRIME MINISTER:

Well I think ACOSS is quite wrong. Unemployment now is lower than

it's been for ten years. There are two ways that you reduce unemployment:

you maintain strong economic growth and we've certainly done

that, and you also make changes to the way the labour market operates

to remove disincentives to the employment of people. We're trying

to do that and we're being stopped by the Labor Party and the

Democrats in the Senate. If they pass our laws on unfair dismissals

and youth wages, and Mr Reith's foreshadowed industrial relations

reforms we'll see further cuts in unemployment.

LYNEHAM:

But aren't the critics right when they say where was the plan

for jobs here?

PRIME MINISTER:

But Paul they're not right because the greatest plan you can

have for jobs is to run a strong economy.

LYNEHAM:

The number of unemployed people getting intensive assistance is to

be reduced by 25,000 a year. The same number is going to added onto

work for the dole which may be popular but no one could argue it's

very effective in putting people into work.

PRIME MINISTER:

Well I don't agree with that. No scheme is 100% effective from

getting people.....

LYNEHAM:

[inaudible] 32%.

PRIME MINISTER:

Well that's a damn sight more effective than many of the old

Working Nation programmes. And the contact with work skills, and the

work ethic that work for the dole provides is extremely valuable.

There are of course many more apprenticeships under this government.

There are 70,000 more apprenticeships under this government than under

the former government. And if anything provides people with skills

it's apprenticeships.

LYNEHAM:

The health insurance measures Prime Minister, aren't you forcing

people to buy a product that they think is poor value? Too expensive,

the gap's still there. They've walked away from it and now

you're sort of herding them back to the funds.

PRIME MINISTER:

Well we're not herding them back but we are, I suppose encouraging

them to see whether their priorities might be wrong by saying to them:

okay, you can put off joining a private health fund until you need

it, but you may find then that it's dearer than it would otherwise

be. And if that results in more people joining private health funds

when they're young and healthy, all for the better. And that

will take pressure off Medicare, it will take pressure off the public

hospital system, and it will boost private health insurance. And we

don't make any apologies for doing that. We think it will underpin

the 30% tax rebate.

LYNEHAM:

But as you deliver the funds with ever increasing captive market,

how much responsibility are you reminding them that they would have

to offer better products, better service, and more price restraint?

PRIME MINISTER:

Well there will be obviously, with other changes there'll be

increased competition for the funds. The very nature of lifetime health

cover is that it sets up a more competitive market. Of course they

carry responsibilities. They continue to be tightly regulated and

so they should be.

LYNEHAM:

But look, inflation, I mean haven't you ever thought how come

inflation has been so low for so long, every time I turn around there's

another fund knocking on the door wanting to crank up its prices.

PRIME MINISTER:

I understand that, but you've also got to understand that until

we brought in the 30% there had been an almost continuous haemorrhaging

of people out of the funds over the period of 8 or 10 years. A lot

of the premium rises of the last few years have been a direct consequence

of people simply deserting the funds, and something had to be done

to reverse that. And we've done it with our 30% rebate and now

lifetime health cover.

LYNEHAM:

And finally, with all this talk of a decade of prosperity, plus this

big boost for medical research, you're not planning to stay in

the Lodge forever are you?

PRIME MINISTER:

Well I certainly am concerned to ensure that the next decade is a

decade where the intellectual and the resources of our nation are

used wisely and in a visionary way. And we have wonderful doctors,

we have great scientists and I think the first part of the 21st

Century is going to be very much about the nation that does best in

using its intellectual capital and I'm very keen to be part of

that.

LYNEHAM:

Thanks for your time.

PRIME MINISTER:

Pleasure.

[Ends]

11020