PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
14/11/1999
Release Type:
Interview
Transcript ID:
11043
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP PRESS CONFERENCE THE ROYAL HOTEL - DURBAN, SOUTH AFRICA

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

Ladies and Gentlemen, the retreat finished this afternoon and you have a

copy of the declaration that was issued out of it. There's a very strong

emphasis in that Declaration on the importance of improving access for all

countries in the forthcoming World Trade Organisation discussions in Seattle

and the generation of any new round, particularly greater access for developing

countries and that, of course, is very much what Australia wants. It remains

our very strong view that the forthcoming Ministerial meeting in Seattle

must produce a new round, where everything's on the table, agriculture as

well as industrial products and services, and we'll continue to push very

strongly for that between now and at the Ministerial meeting in Seattle.

The rest of the discussion today revolved around a number of, I guess, constitutional

things. There was a very lengthy discussion on Pakistan and there's a very

great level of concern about the military coup d'etat in that country and

the suspension of Pakistan from the Councils of the Commonwealth continues

with a monitoring of the situation by the CEMAG group, that is the Commonwealth

Ministerial Action Group, with a view to further steps being taken in relation

to Pakistan's membership of the Commonwealth if the situation does not alter.

I should also mention that Australia will become consequent upon Mr McKinnon's

election as Secretary-General, the Commonwealth of Australia will become

in the person of Mr Downer, a member of CEMAG. Mr Downer will replace Mr

McKinnon. It was also decided today that there would be a review - given

that it's 10 years since a similar review took place - of the workings of

the Commonwealth and Australia is going to be one of the members of the

group of nations that will be undertaking a review of the operations of

the Commonwealth.

There are, I think, ten members out of the total membership of the Commonwealth

on that review group and Australia along with countries from - reflecting

a proper geographical spread of the Commonwealth membership - will be on

that group.

The retreat, of course, provides as always at these meetings an opportunity

for, as well as the formal session, a number of bilateral discussions in

an informal atmosphere. I should mention that I had the opportunity of a

discussion with

President Mbeki about the progress that South Africa is making in its new

and improved dispensation and I expressed the view to him that considering

the enormous challenges that the country faces that a great deal of progress

is being made. I have to say that he impresses me as an extremely intelligent,

committed, able leader of this country and someone who is following very

effectively in the footsteps of Nelson Mandela. - necessarily a different

person, coming with different gifts and from a different vantage point,

but I found him to be a highly intelligent and effective chairman of the

group and given the enormous challenges that South Africa necessarily faces,

given her history, he presents, I think, a very reassuring presence not

only to his own country, but also to the rest of the world.

I would be happy to answer any questions.

JOURNALIST:

Prime Minister, would you claim the trade outcome as a win and what did

you have to do to get the States that were less keen on open trade to come

across on it?

PRIME MINISTER:

Well, I think the clinching argument for anybody on this is that it's all

about access and the only way in which poverty will be alleviated in any

country or any group of countries is through a number of steps, one of which

is to get the greatest amount of access for the products of that country

in the markets of the world. If globalisation is to mean anything to the

poor countries of the world, it must mean that those countries have greater

access for their products in the markets of the richer countries and it

seems to me to be elementary and basic that if you want to improve the living

standards of the least developed countries in the world, you must improve

access. No matter what else you do, and necessarily of course, the right

domestic economic policies have got to be followed and I found it very reassuring

to hear for example from the President of Uganda, a country that has gone

through incredible pain, both politically, socially and economically over

the last 20 years, speak eloquently at the conference of the importance

of private sector investment and of the tragedy of many of the Asian businessmen

and women being chased out of that country by Idi Amin and what grievous

damage the loss of entrepreneurial flair and skill did to the economy and

the social structure of that country and that was to me very reassuring

that there is such a stark recognition of the importance of the private

sector, the importance of capital investment, the importance of getting

ones domestic house in order. He made the point that in 1965 Uganda was

only that far behind South Korea as far as per capita GDP was concerned,

but in the 34 years that have gone by since then an absolute chasm has opened

between those two countries and he was candid and realistic enough to say

that was largely due to domestic mistakes that his country had made. And

what I guess I'm saying is to lift countries like Uganda and many of the

poorer and less developed nations of Africa and the rest of the Commonwealth,

you need two things - you need the right domestic policies and that is in

the control of the leaders of those countries, but you also need to give

them access. And I guess if the World Trade ministerial meeting cares at

all about the less developed countries they'll give them access.

JOURNALIST:

Prime Minister, do you think that because of their relative lack of power

the developing nations do have more problems in terms of gaining market

access than a country like Australia and if so, are there concrete steps

that can be taken to assist them in their plight?

PRIME MINISTER:

Well, Jim, as you know everything's relative. We might have more clout than,

in terms of economic strength, than many other countries but that hasn't

bent the common agricultural policy as much as I would have liked it bent

over the last 20 or 30 years. But I think the advantage of a meeting like

this is to drive home to a country like Australia and also to the less developed

countries that are also like Australia wanting to export things like agricultural

produce that we have a common cause. And the Cairns group is, in another

context, is a manifestation of that and we do have a common cause.

JOURNALIST:

So, Mr Howard, isn't the problem less the developing countries and more

the European countries therefore what was Britain's attitude on the question

of more access and especially on agriculture?

PRIME MINISTER:

Well, they didn't raise any objections. I didn't hear any objections from

Mr Blair.

JOURNALIST:

Are you hopeful then that Britain having put its name to this declaration

that Britain will work behind the scenes to convince Europe to open up the

trade barriers?

PRIME MINISTER:

Well, I am not saying that. I mean, I am an old campaigner when it comes

to access into the European Union. You have heard my remarks on that. But,

look, we got a declaration. I think it's good, I really do think it's a

good declaration. And if you can get a group of nations as broadly based

and as diverse as the Commonwealth countries including, you know, four or

five nations which by any measure are amongst the better off nations of

the world and that, of course, includes Australia, going right through to

some of the very poorest. If you can get them all agreeing on some principles

I hope that will help to make a difference. But the sharp end of it all,

the business end of it will be when we get to the ministerial meeting and

a lot, of course, will depend as it always does at these gatherings on the

determination of the United States and the attitude of the European Union

and also the attitude of the Japanese.

JOURNALIST:

So Mr Blair didn't make any contribution on this at all?

PRIME MINISTER:

Well, Mr Blair made.I mean, he can speak for himself but all I am saying

is that the declaration was not, sort of, rung out of anybody, the declaration

was quite formally supported by everybody.

JOURNALIST:

Does that mean the Commonwealth will now speak as one voice.

PRIME MINISTER:

No, I don't think it means that, it just means that at this particular meeting

the leaders of the 54, is it, members of the Commonwealth were willing to

put their name to some broad principles about trade and I think that is

a help. I mean, everything helps a bit in something like trying to get greater

access to world markets. It's been a long struggle, I don't expect everything

to be achieved at Seattle but it's very important that we keep the momentum

going.

JOURNALIST:

Were there any proposals for specific internal or intra Commonwealth trade?

PRIME MINISTER:

No.

JOURNALIST:

Prime Minister, you foreshadowed an initiative of some sort at the end of

the retreat, are you in a position to tell us what it is?

PRIME MINISTER:

Well, I'll be announcing tomorrow a number of measures in relation to our

financial contribution to a number of the Commonwealth agencies that we

are going to increase by 10 per cent a year our contribution to the Commonwealth

fund for technical development. We are also going to renew our three year

commitment to the fund that we established at the Edinburgh meeting and

we'll also be providing some additional financial support for the training

of people in trade negotiations which will be of particular value to some

of the less developed countries.

JOURNALIST:

And what sort of dollars are involved here?

PRIME MINISTER:

Well, I think you are looking in relation to the first an increase of something

like $7.2 million to almost $10 million. And the second about $1.5 million

and the third a lesser sum than that, less than half a million.

JOURNALIST:

Mr Howard, did President Mbeke take up your invitation to visit Australia?

PRIME MINISTER:

Well, my understanding is that it's, sort of, under active consideration.

I think there's some discussions going on about an appropriate time.

JOURNALIST:

Did you put it to him though?

PRIME MINISTER:

Well, I put it to him earlier.

JOURNALIST:

Mr Howard, you mentioned the absence of Chief Anyaoku as perhaps a problem

for Australia in its window to Africa..

PRIME MINISTER:

Absence of.

JOURNALIST:

His departure as Commonwealth Secretary-General as being a problem for Australia

getting access to Africa.

PRIME MINISTER:

No, I don't remember, when did I say that?

JOURNALIST:

Oh, you just indicated that having an African as Commonwealth Secretary-General.

PRIME MINISTER:

Well, I don't think I said that. I mean, if I did say that I shouldn't have

but I don't think I did. And I don't think I have said anything that was

meant to convey that. I mean, he has done a very good job. I think what

I was trying to say, Dennis, the other day was that one of the great advantages

of the Commonwealth is that it gives Australia a window into Africa that

we wouldn't otherwise have. My recollection is that that is what I said.

But I think the Chief has done a great job.

JOURNALIST:

Prime Minister, why did the Government decide to impose the GST on premium

tickets to the Olympics?

PRIME MINISTER:

Well, because the original basis of the GST rebate was that SOCOG had no

flexibility in relation to the pricing. I mean, the reason they came to

us and said we have got a problem with the GST is that they said they were

locked in internationally by the IOC, they had to charge a certain amount,

they had no capacity to absorb it. Now, what I have said to the Premier

of New South Wales is that we weren't told about the premium. See, when

we agreed to provide, what, $50 million. I mean, it's no small matter. We

weren't told about the premium tickets and clearly there's a capacity to

absorb the GST in relation to premiums. I mean, what I have said to the

Premier of New South Wales is that in relation to the ordinarily priced

tickets our commitment remains that there will be a GST rebate. But in relation

to the premium tickets we see no reason why it can't be recouped from the

people who buy the tickets. It seems to me to be an unreasonable imposition

on the rest of the Australian taxpayers. And can I just clear one other

thing up, this decision was taken before the referendum. I saw in a clipping.

JOURNALIST:

So you wrote to the Premier before the referendum?

PRIME MINISTER:

Well, the decision was taken. I forget when I was signed the letter. It

may have been the day before or the day of, I just don't know, but the decision

was taken. And any suggestion that there's some kind of payback in relation

to people raising the question of my opening the Olympic Games that is nonsense,

absolute nonsense. This decision was taken on a matter of principle. I mean,

we were misled.

JOURNALIST:

Why didn't you announce it?

PRIME MINISTER:

Why didn't I announce it? Well, I am trying to maintain, you know, a reasonable

cooperation with the New South Wales Government.

JOURNALIST:

What about claims that it's payback for the SOCOG ticket fiasco?

PRIME MINISTER:

Why would it be a payback? I mean, the fiasco, the difficulties that are

being encountered by SOCOG, I mean, that's not something that is specifically

directed at the Federal Government.

JOURNALIST:

You have been critical of the way SOCOG's handled it.

PRIME MINISTER:

Well, I think everybody has been, I mean, you can't not be critical of it.

For heaven's sake. It is a very unfortunate situation. But, Fleur, there's

a very simple principle involved. We were asked by SOCOG to rebate to them

the GST or to pick up, effectively pick up the cost of the GST so they wouldn't

be out of pocket. And the argument they used when they approached us was

that they were obliged by the International Olympic Committee to charge

a certain price and that they had no flexibility. We now find that in relation

to a significant number of tickets they have a hell of a lot of flexibility.

In those circumstances I can't for the life of me see why the rest of us

should carry the responsibility of the GST in relation to that segment of

the tickets for which they are charging a premium.

JOURNALIST:

Apparently the case is that it's going to cost, that these premium ticket

holders now can't be charged the extra so SOCOG is going to have to pick

up the tab.

PRIME MINISTER:

Well, look, we are perfectly happy to talk to SOCOG. But the principle is,

and nobody should imply from that that we're changing our mind, I mean,

I don't know what.if they want to talk to us we'll be very happy to talk

to them.

JOURNALIST:

Would you be happy to meet some of the costs if they.

PRIME MINISTER:

Well, look, no, no, I am not saying.no, we are not. Look, our position is

that we were misled.

JOURNALIST:

Isn't there a danger though that.or a possibility that the taxpayers get

hit again because if SOCOG has a shortfall it'll come back onto the taxpayers

of New South Wales?

PRIME MINISTER:

Yes, but there has to be a point at which the people organising the Olympic

Games accept responsibility for prudent financial management and it's a

good start when you ask a Federal Government to relieve you of the burden

of the GST to tell them the full story. I mean, we are not happy that we

were not told the full story and, I mean, we have a responsibility to the

rest of the Australian community to ensure that where the GST can properly

apply, can properly apply and be properly collected from people then it

ought to be. I mean, we have no right in terms of our responsibility to

the rest of the Australian community to say, well, it doesn't matter what

price some people are paying for tickets even though we were told one thing

and another thing has happened we'll just forget about that.. I mean, there

has to be a point where the people who are organising this have got to accept

responsibility and it's not good enough, as far as I am concerned, to say,

oh well, look, there's nothing we can do about it, you know, we'll have

to hit the taxpayer again. I mean, I just don't accept that first blush.

If they want to talk to us well they can talk to Jackie Kelly or one of

my Ministers about it, or the Treasurer. But what I said to Mr Carr was

very simple. The basis of our commitment was that you, SOCOG, had no flexibility

because the International Olympic Committee required you to charge a certain

price and you had no flexibility. We now find, although we weren't told

of it at the time, that in relation to a chunk of tickets there's a lot

of flexibility. Now, I think we'd be a pretty negligent Federal Government

if we just said, oh, that doesn't matter.

JOURNALIST:

The decision, just to get this clear, the decision to inform the New South

Wales Government.

PRIME MINISTER:

That decision was taken.

JOURNALIST:

. that Cabinet.

PRIME MINISTER:

It was discussed at Cabinet and the decision was taken before the referendum.

Now, I can't remember the exact date the letter was signed, I think it may

have been.I think I may have signed it the day before. I saw some suggestion

in the paper that I signed it the day of, I don't think I signed it the

day.I don't remember signing any letters the day of the referendum.

JOURNALIST:

Do you think this is symptomatic of a wider pattern of bad behaviour and

deceptive behaviour by SOCOG..

PRIME MINISTER:

Oh look, I am not going to extrapolate in the general from the particular.

I am dealing with a very precise situation and I remain, as I have said

repeatedly before, as somebody who wants to see these Olympic Games be a

tremendous success. And that is in a sense one of the reasons I didn't make

a huge song and dance about it when I wrote to the Premier. And it's not

payback, it's in no way related to other matters. And my actions in relation

to other matters were designed to take any political heat out of the conduct

of the Games. But you are talking about $50 million and you are talking

about perceptions of fairness about the application of the GST.

JOURNALIST:

Why did you write the letter and not the Treasurer, I mean, it's obviously

a tax matter? What ,you were government to government leader or something?

PRIME MINISTER:

Well, you know, the normal method of communication between the Commonwealth

and the States is the Prime Minister to the Premier, that's the normal method

of.that's the generic method of communication and then it gets a bit more

specific, then others deal with some of the details. But that's the normal

way of doing it.

JOURNALIST:

On another SOCOG matter, Mr Howard what do you think of the treatment of

General McCaffrey?

PRIME MINISTER:

Well, he is a guest of Australia and he should be extended all courtesies.

And he should be, in my view, be given all the courtesies that are properly

due to a senior person in the American Administration. I don't know anything

other than the story that was in The Australian on Saturday

about a letter that Mr Coates, I think it is, has allegedly written. Now,

I don't.I haven't seen that letter but I think the man should be given all

courtesies. He's a guest.

JOURNALIST:

But you issued the invitation.

PRIME MINISTER:

Yes, well, of course, I understand that. That's all the more reason why

he should be treated courteously.

JOURNALIST:

Mr Howard, could.

PRIME MINISTER:

This is the very last one because you have got to feed haven't you?

JOURNALIST:

Could I just get your reaction to the release of James Peng, how much credit

does the Government take for his release?

PRIME MINISTER:

Well, I am very pleased that it's happened. We campaigned long and hard

in the framework of the human rights dialogue that we have established with

the Chinese Government. You may remember a couple of years ago we decided

to establish a human rights dialogue and framework for discussing particular

issues and this was one of them. And, I am pleased it's happened, I don't

know that I want to say much more than that. But I am glad that he is back

with his family and it does demonstrate that there is a lot of constructive

goodwill in the relationship between Australia and China recognising as

I always say when I talk about relationship that we approach a lot of things

from a different vantage point but it doesn't prevent us finding common

points of agreement on certain issues and agreeing on a framework to work

out some of our problems. Thank you.

[ends]

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