PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
22/02/1999
Release Type:
Interview
Transcript ID:
11102
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP AND THE PRIME MINISTER OF NEW ZEALAND THE RT HON JENNY SHIPLEY JOINT PRESS CONFERENCE PARLIAMENT HOUSE, WELLINGTON, NEW ZEALAND

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

PRIME MINISTER SHIPLEY:

It's been our great pleasure to welcome Prime Minister Howard

to New Zealand for, what I think he established as a tradition of

these bilateral meetings each year in the respective countries. As

we mentioned in Queenstown the discussions have been wide-ranging,

they've been extremely useful from my own point of view and from

the point of view of my ministers. I'm pleased to report that

the CER relationship is in extremely good heart and there were no

major outstanding issues that required the intense attention of the

prime ministers.

But one of the very useful suggestions that Prime Minister Howard

has come up with, and our government has agreed, in order to pick

up some of the ideas that have come through the weekend's discussions,

is that we should establish or explore how we can establish a prime

ministerial taskforce that deals with the minor outstanding matters

to do with CER. And also investigate the strategic steps forward as

to where CER might go, beyond where we are today. I think that's

an extremely useful idea and is perhaps a good way of taking the next

step on what is a very important relationship, certainly from New

Zealand's point of view.

So Prime Minister welcome again to New Zealand. I valued your insights

on your own economy and its performance, on Timor and on the many

other issues that we've been able to discuss and in particular

the drug issue in relation to New Zealand and Australia and again

I appreciate your willingness for us to continue to collaborate and

talk about and share our knowledge on this matter.

PRIME MINISTER HOWARD:

Well thank you very much. Can I say for my part how much my wife and

I and other members of the party have enjoyed the hospitality of New

Zealand and New Zealanders, Jenny. It's been a very enjoyable,

a very productive few days. It is a very close relationship, but like

all close friendships it needs to be kept in good repair, and the

best way of doing that is for us to have this regular kind of contact,

to share experiences. I agree very much with the emphasis you have

placed during the weekend on not only CER but also optimising the

opportunity that the APEC meeting here in New Zealand this year presents.

We do need, in the interests of both of our countries, a broadly based

WTO round. In the long run that's the best trade outcome for

Australia and New Zealand. We will bend all of our efforts to achieve

that particular goal. Timor will be the number one foreign policy

challenge for Australia and of particular importance to the entire

region over the next year or two and it was good to have the opportunity

of discussing those things over the last couple of days.

But what I found particularly useful again, as I did two years ago,

was the chance of talking to virtually the entire New Zealand Cabinet

and to have the opportunity at a face-to-face level of exchanging

our experiences. I've noted the significant improvement and very,

very strong performance of the New Zealand economy over the past few

months. I am of course a long-time admirer of many of the economic

reforms that have been undertaken in this country and particularly

of course the labour market reforms and in the 1980s taxation reform,

of which I have a passing acquaintance in Australia. And therefore

we have a lot of experiences to share. I should say that during the

whole time that I've been here nobody has complained to me about

the GST. And I say that for the consumption of the Australian audience

present. Everybody seems very comfortable and relaxed about the GST

here in New Zealand, and not surprisingly. It was a very, very intelligent

economic reform in the 1980s for New Zealand, as it is in the 1990s

for Australia.

JOURNALIST:

Prime Minister [inaudible]

PRIME MINISTER SHIPLEY:

Our own foreign policy position is of course our own. The discussions

over the weekend were how the transition that may occur over the coming

months might be managed and what role New Zealand might play in assisting.

I don't want any confusion to be had about the two issues. New

Zealand always has its own foreign policy position. My comments in

relation to taking advice from Australia is on what particular involvement

might be required to assist in managing any issues that emerge. The

question that was put was about peacekeeping assistance. Both prime

ministers made it clear, it's very premature to be speculating

on that matter, but because Australia is so much closer to the real

issues that may emerge, we would look to them for advice on how we

might logistically assist. On the issue of foreign policy of course

New Zealand makes its own decision, and has its own position.

JOURNALIST:

Do you accept that the Australian [inaudible] and has had in the past

different attitudes to ......

PRIME MINISTER SHIPLEY:

Of course. But there's an emerging situation that now requires

a response, and that was the focus of the two prime ministers'

discussions over the weekend.

JOURNALIST:

Mr Howard, on the drugs issue, how do you plan to take advice from

the FBI?

PRIME MINISTER HOWARD:

Well I'm going to take the opportunity of the visit to Australia

of the Director of the FBI, I think he's seeing me on Friday,

to explore a number of areas. Greater international cooperation between

law enforcement agencies - and one of the benefits that have already

flowed from the extra resources we have put into law enforcement is

that we've had more AFP presence in source countries and that

has aided the process of interception. We obviously want to share

the experiences of the FBI in relation to the role of federal agencies

in combating the drug menace. Many of the programmes that have been

undertaken in the United States in recent years in relation to law

enforcement and rehabilitation have been similar, not identical to,

but similar to many of the things we're endeavouring to do and

there is a story to be told about some of the successes in that area,

which I think is relevant to the debate in this country, I think we

can in Australia, and indeed in New Zealand, all countries are concerned

about the drug menace and we need to share our information and share

our understanding.

JOURNALIST:

Mr Howard you indicated you're putting more resources into fighting

drugs [inaudible].

PRIME MINISTER HOWARD:

Well it is not necessarily such an indication, but I don't rule

that out. But I want to make it clear that we have put a lot more

resources into this issue than any other national government. But

having said that, I do not want to politicise it in a party political

sense. I'm happy to cooperate with a Labor premier anywhere in

Australia, with a Coalition premier, with the law enforcement agencies

of Australia. This is something that ought to be above and beyond

party politics. It's something that ought to be, as far as possible,

separate from the heat and burden and hurly burly of election campaigns

because it is something that we need to work together very closely

on and that is the aim I have and I'll sit down as readily with

Mr Carr as I will with Mr Kennett or Mr Court to try and work to solve

this problem.

JOURNALIST:

Prime Minister when you've got the prime ministerial taskforce

on CER set up, will it be, who will comprise it, will there be business

representatives on the taskforce and would it be right to interpret

this as a [inaudible].

PRIME MINISTER SHIPLEY:

I think on the latter point they were both very small issues, I can't

make this clear enough for you. The issues outstanding in CER are

minor but need to be solved and both prime ministers I think felt

that this meeting this year was not dominated by major things that

were causing a huge conflict but there are a few things that basically

come up every year and it seems that we need to think in a different

way. Having spoken about it over the weekend, the Prime Minister suggested

this approach and we both agreed that we would look at it. We also

agreed that that same group of both ministers and perhaps officials

can look strategically ahead and take this concept of where to next

for CER. We've only agreed less than half an hour ago that this

should be investigated as to how we can establish it and we will of

course come back to you when we get the framework and the agenda issues

fixed.

JOURNALIST:

[inaudible]

PRIME MINISTER SHIPLEY:

Again, I don't think we should speculate until we've had

an opportunity to design this commitment. We agreed, we think this

is a better way to deal with the final issues to do with CER and the

future opportunities and we're going to work our way through

how that might be done.

JOURNALIST:

Mr Howard what were the issues, the minor issues that Prime Minister

Shipley [inaudible]

PRIME MINISTER HOWARD:

Well there's still debate about the Social Security agreement,

there's debate about the cost to business of the foreign investment

approval processes of the two countries. I don't think a New

Zealand investment proposal in Australia has been rejected for a decade

or more and I don't think one coming in the other direction has

been rejected for a long time either. There are some associated considerations

for Australia in relation to that in terms of our foreign investment

association with other countries, particularly Japan. I am in favour

where possible of getting rid of regulatory approval processes. I

have an inbuilt prejudice against them unless there's a clear

national benefit in having them, and that's one of the issues

you have a look at. We'd like to see just a tad more progress

on the social security discussions, but look there aren't big

issues.

But the other point that the New Zealand Prime Minister makes and

I think is very important, is how do you broaden the horizons of CER.

And we talked about that over the weekend and that is something also

that this group could have a look at and if you have a prime ministerial

focus on it, it goes above and beyond the sort of one by one exchange

at a particular portfolio level.

JOURNALIST:

Mr Howard, you say that East Timor will be Australia's number

one foreign policy issue over the next 12 months or so. How concerned

are you that East Timor could disintegrate and what would that mean

for Australia?

PRIME MINISTER HOWARD:

Well Alison, I think the most important thing for me to do at the

moment on East Timor is to remind all of those who have responsibilities

of their responsibilities. To explain to the Australian people what

is at stake, to encourage the Indonesians in particular to an orderly

handling of the problem, and also to try and persuade the leaders

of the East Timorese people of the advantages of a progressive handling

of the issue and not a precipitive one. I don't want to start

talking in the language of disintegration and fragmentation, that's

not helpful. What we want is of course the will of the East Timorese

people to be respected, but we also believe that we have a responsibility

to urge upon everybody the desirability of having a period of autonomy

before independence, and that's what I've been doing now

for several weeks.

I've never said, and I never will say that independence should

be denied if that is clearly what they want. But I will point out

the consequences of that if it occurs precipitively. And I am conscious

of our responsibilities. Not in a sense that I don't want Australia

to shoulder those responsibilities, I do. And I will advocate them

and I will advocate the commitment of the resources needed to discharge

those responsibilities.

But I think it's very important when you're dealing with

a foreign policy issue like this, it's very important to explain

above and beyond the rhetoric of the issue what is involved if a certain

development occurs. I mean it's all very well for people to make

speeches about independence. It's necessary for prime ministers

to explain what that means if it happens too quickly and what the

responsibilities of the Australian population may be if its occurs

too quickly. We have a long association with East Timor, stretching

back to before World War II and it's an issue that's occupied

a lot of column inches in our newspapers and so forth over the years.

Now we're getting to a situation where the circumstances are

unfolding in front of our eyes and I want the Australian people to

understand what is involved, not because I'm going to be begrudging

in our response but because I want people to understand what's

involved.

JOURNALIST:

Mrs Shipley, would you like to [inaudible]in East Timor ...

PRIME MINISTER SHIPLEY:

It's premature to speculate on this and I don't think that

we should try and beat history. I mean, this is an extraordinary set

of circumstances that currently prevail. I think we must wait and

see what occurs. Of course we hope for the best outcome so that no

peacekeeping force or any other type of intervention will be required.

And I don't think we can get ahead of ourselves until these events

unfold.

JOURNALIST:

Mrs Shipley, what do you think is the most valuable thing you've

learned from Mr Howard about the drug issue and how Australia has

dealt with that?

PRIME MINISTER SHIPLEY:

Well, it's been a very broad ranging discussion. I think what

it's confirmed for me is that there are no soft options here.

Prime Minister Howard and I share the view that just because you've

got a problem, the way to solve it is not necessarily becoming more

liberal but rather trying to find ways that both educate, treat people

who are clearly ill and deny access where that's possible. That's

consistent with my own view and generally consistent with the public

policy position in New Zealand. I've been very interested in

the phenomena of whether the heroin market's growing because

whether we like it or not New Zealand often follows Australia. At

this stage there's not a major heroin market in New Zealand but

there are issues, obviously, that I want to be aware of so that if

they emerge we know what they look like and we also know what to do.

JOURNALIST:

Prime Minister, in the past much has been made of trans-Tasman rivalry

and that certainly was apparent to many of us in the early days of

prime ministerial relationships. Now, you Mr Howard with Jim Bolger

seemed to get on quite well and now you're getting on quite well,

what's [inaudible]....

PRIME MINISTER HOWARD:

I'm just an easy going bloke. I think both of us have recognised,

as I did with Jim Bolger, that – this is a relationship that

has not only a wonderful past but it also has a very special future.

And both of us have a responsibility, whatever our political beliefs

may be, and of course as you're aware Mrs Shipley and I, as I

did with Mr Bolger, share a broad coincidence of political belief

on the centre right of politics and we're both very proud of

that and of the common political philosophy and values that we have.

But irrespective of that, it's a very important relationship

and I don't see it ever in terms of rivalry, I see it in terms

of working together to achieve common goals and common outcomes. One

of the things that has struck me over the weekend is the reminder

that over the next two or three years New Zealand will be hosting

APEC, New Zealand will be hosting the President's Cup –

I'm sorry, the America's Cup – we hosted the President's

Cup last year, that's right. We will be having the Olympic Games,

the Centenary of Federation, the Darvos meeting in Melbourne in the

year 2000 and in the year 2001 we'll be hosting CHOGM. Now what

you see there will be a common world focus on our two nations, on

our two societies and that is a contemporary reminder that the relationship

is not all in the past. Important and treasured and valued and emotional

though that may be, and long may it always remain so, but it's

also the future of the relationship is a very important one. And I

see it is as a prime responsibility of an Australian Prime Minister

to work in a cooperative way and I've never seen the relationship

in other than a friendly fashion. And may I say I have, on a personal

level, enjoyed immensely the friendship I developed with Jim Bolger

and I have, I hope, with Jenny Shipley.

JOURNALIST:

Why do you think your predecessor's made [inaudible]

PRIME MINISTER HOWARD:

Go and ask them.

JOURNALIST:

How would you sum up CER now?

PRIME MINISTER HOWARD:

Well, I think CER has been a great success. I mean, we have been able

to negotiate through difficulty where it's occurred but overall

I think it has been a huge success. I think it's been beneficial

to both countries. In retrospect, I give tremendous credit to Doug

Anthony, the Australian Deputy Prime Minister who argued long and

hard in Australia to win acceptance of it against the opposition of

some people who were being rather short-sighted at the time. And I

think it has been a great success and I think it will continue.

JOURNALIST:

What strategy have you come up with for making sure that APEC works

and that you can achieve [inaudible]

PRIME MINISTER HOWARD:

What are my – I'm sorry, directed at me – what are

my hopes about, how do I feel we'll go?

JOURNALIST:

The strategy.

PRIME MINISTER HOWARD:

The strategy?

JOURNALIST:

For APEC.

PRIME MINISTER HOWARD:

Well, the most important thing is to get the member countries of APEC

focused on the importance of maintaining the ultimate goals of APEC.

It was hardly surprising at the last meeting that you should have

some nervousness given what countries like Indonesia and Thailand

and Korea had gone through. And I'm hopeful that at the next

meeting there'll be more of a focus on the future rather than

the present in APEC. Mrs Shipley will be in the Chair and we'll

be there to help in any way we can to achieve the goals of APEC. And

I will, for Australia's part, be putting the view to the member

countries of APEC leading up to it that we need to focus on the benefits

of freer trade, as I prefer to put it, within the region and within

the grouping because there are great benefits in freer trade. And

we've found that in Australia. New Zealand has certainly found

it. I mean, New Zealand has been a trailblazer in freer trade around

the world and deserves a lot of credit for it.

JOURNALIST:

Mr Howard, there's a report out today on business tax which includes

a proposal on capital gains and a threshold [inaudible]

PRIME MINISTER HOWARD:

Is this the Ralph Report?

JOURNALIST:

Yes, it is.

PRIME MINISTER HOWARD:

I've heard of it but I've not read it.

JOURNALIST:

[Inaudible] how comfortable would you be [inaudible]

PRIME MINISTER HOWARD:

Well, Tony, I would strongly support a review of the capital gains

tax designed to ensure that Australia remained a country where it

was very attractive to invest, where small investors were encouraged

to take risks and those at the leading edge of technology in particular

were encouraged to take risks. One of the things that countries like

Australia and New Zealand must always do is to ensure that the brightest

and the best of the people with intellectual capital, that they are

not prevented from realising the full potential of their intellectual

capacity and their inventions and the product of their research for

want of a more encouraging taxation climate. Now, they're the

sorts of things that I would like. But can I also say, I'm not

going to support a capital gains tax

11102