PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
24/06/1999
Release Type:
Interview
Transcript ID:
11114
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP INTERVIEW WITH JEREMY CORDEAUX – RADIO 5DN

Subjects: Warren Entsch, taxation reform, self-employed retirees,

pre-wedding counselling, Kosovar refugees, Kirribilli House security

incident

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

CORDEAUX:

It's with a great deal of pleasure that I welcome the Prime Minister,

John Howard. Sir, good morning.

PRIME MINISTER:

Good morning, how are you?

CORDEAUX:

I was just musing about the trouble that people seem to have with

the guidelines that you've set down to look after conflicts of

interest. Why do people find it so hard to just follow them?

PRIME MINISTER:

Well, I don't think anybody has established that there's

been any actual conflicts of interest. There have been some examples

where people have, through inadvertence or otherwise, neglected to

complete to the last detail the declaration of members' interests.

And it's fair to say that that's occurred on both sides

and is probably still occurring on both sides of the House. But that

does not, of itself, constitute what I call a hanging offence. I mean,

anybody can inadvertently leave out a reference to a directorship.

What really is the purpose of these declarations both to the Parliament

and in the case of Ministers to me is to put the public and me in

particular, in relation to my Ministers, in full possession of people's

assets or the knowledge of those assets so that the judgement can

be made whether there's a conflict of interest. Now, in the case

of Warren Entsch, nobody's been able to demonstrate yet that

he's done anything wrong. I mean, he did lobby, he did publicly

argue for something to be done about some contaminated land in his

electorate but that was his job. And this has been a difficult problem

in the Cairns area for a long time. And the fact that he owns some

property some, what, eight, nine, ten kilometres away and it's

remotely possible that some time in the future, if a whole lot of

other things happen over which he's got no control, that his

land in common with the land of a lot of other people might increase

in value if the first mentioned land is developed, to suggest that

that in any common sense meaning of the word, and the expression is

a conflict of interest, is the equivalent of saying that a rural member

who argues for a highway upgrading which if granted might improve

the value of all of the properties including his own farm, that that

man's involved in a conflict of interest. I mean, you are pushing

the meaning of that expression to absolutely demented lengths.

CORDEAUX:

Yeah, yeah, but these people must know how important it is to you.

I'm surprised they don't err on the extreme side of caution

just so that you're not put in this position where you have to

defend them.

PRIME MINISTER:

Well, we live in a very nit picking, adversarial world of politics

and Oppositions grab hold of anything, particularly when they don't

have alternative policies. I mean, right at the moment we are changing

the tax system. We're privatising Telstra. We're changing

the environmental laws. We're launching new initiatives in relation

to families. We're getting on with the job of governing the country.

Our opponents don't have alternative policies so I suppose if

you can throw a bit of mud, you can make some allegations, you can

nit-pick. It is true that in relation to some examples that have been

brought forward that people have not completed to the last letter

the forms that they should have. And that, may I say, there's

evidence of that on both sides. But that of itself does not constitute

a hanging offence. These are guidelines. They're not meant to

be death sentences. And if you have a situation where you throw a

person out of a responsible position because he neglected, for example,

to declare a directorship of a property that can't possibly be

in any kind of political contention or can't involve any kind

of suggestion of a conflict of interest then – I just think we're

wasting our time on trivia. Now, if somebody could come along and

demonstrate to me that either of these people have been guilty of

fraud – I mean, if the allegations being made against Entsch

or Heffernan were that they've been guilty of fraud, well, that

would be a very serious matter. If the allegations were that they

had actually gained in direct and personal sense from the use of their

parliamentary position in a wrongful way, well, that's a different

matter. But nobody's suggesting that. I mean, to suggest that

a bloke who takes up the cudgels for his own constituents, and because

there's the remote connection I described a moment ago, what,

is he not meant to do that? Is he meant to sell the property he had

when he became a Parliamentary Secretary? Do we want people in Parliament

who know nothing about business, who own no assets, who have none

of life's experience? I mean, we won't have any of these

allegations but I think we'll have a greatly deprived Parliament.

CORDEAUX:

Well, I was going to say to you that maybe the guidelines if I play

devil's advocate, maybe the guidelines are such that they will

prevent the very people you want in Parliament from getting there.

PRIME MINISTER:

Well, not if they're looked at in a common sense way. If you

look at the guidelines as being guidelines and not death sentences

which are required to provide information so that proper assessments

can be made about conflicts of interest, if both sides of politics

recognise that from time to time their political opponents are going

to make inadvertent errors about recording information and I think

it's fair to say that in the past, probably our side of politics,

nit picked on this too.

CORDEAUX:

Yep.

PRIME MINISTER:

And we've both been guilty of it and I think the whole situation

now is reaching a position where nit picking is not helping either

side. If there's any genuine allegation of fraud or conflict

of interest, something of substance, well of course that should be

investigated. And if people in positions of executive responsibility

are guilty on either side they ought to be stood down. But nobody's

established any fraud or conflict of interest in relation to either

Entsch or Heffernan. I mean, it's just sheer nit picking.

CORDEAUX:

Prime Minister, this High Court decision with regard to Heather Hill.

Now, how do you see that, is that good news for the republicans or

good news for the monarchists? I mean, how could it possibly be that

we need a referendum?

PRIME MINISTER:

Well, I think it's irrelevant to the debate on the republic.

Australia has legally been independent of Britain for a long time,

emotionally and politically, and in terms of our national identity

we have been independent of the British for much longer than that.

That's not really the case at point. The decision didn't

surprise me in the slightest. I'm surprised at the surprise and

the interest being expressed by some in the media about it being a

landmark decision. I don't think it's a landmark decision

at all. I've always operated under the view that legally Australia

was independent of the United Kingdom and it's been so for decades.

CORDEAUX:

Well, there we are, I mean, wouldn't that save us a lot of money?

We're independent, it's a foreign country, why do we need

to go through a referendum to...?

PRIME MINISTER:

Well, as you know, I am against an Australian republic and I will

be voting no in November.

CORDEAUX:

Will you be campaigning for the ‘no' vote?

PRIME MINISTER:

Oh, well I won't be campaigning in a day-to-day sense, I've

made that clear, but people know my view and if I'm asked it

I'll express it. And I guess when we get to the campaign I will

explain why, in more detail, why I'm against a republic. I mean,

we are an independent country. We have a marvellously stable system

and through an historical accident, which I think is beneficial, we

have a way of delivering a non-political Head of State and for practical

purposes that is the Governor-General. I mean, why disturb something

that works so superbly well...

CORDEAUX:

It's a dash into darkness and the unknown if you ask me.

PRIME MINISTER:

Well, there's just no point. I mean, I don't think anybody

in Australia today could possibly feel that this country is lacking

in self-respect or self-esteem or a sense of its own worth and decency

and importance and capacity and achievement. And, anyway, it's

a democracy and I know there are many of my fellow Australians who

have a different view. And you say why are we having a referendum

– we're having a referendum I guess to, for the time being,

resolve the matter because there are a lot of people who believe we

should become a republic and the fair and decent thing to do, and

a thing I promised to do before the 1996 election was to have a convention

and then if the model emerged then to put that to the people. Now,

I'm doing that. I promised to do it. I'm keeping my word.

But for my own part I'll be voting no.

CORDEAUX:

Well, as you say, it's a democracy and everyone has the right

to speak out. I see the Victorian Premier, Mr Kennett, is speaking

out and in fairly harsh terms about the compromises made on the GST.

What's your feeling?

PRIME MINISTER:

Well, I think he's being very negative and I think he's

looking backwards. It's easy to be critical if you don't

get 100 per cent of what you want but few people get 100 per cent

of what they want in this world, particularly if you're a government

that doesn't control both Houses of Parliament and we don't.

We got 85 per cent of what we wanted and that is infinitely better

than zero and it's a lot better than the present system. And

those who criticise and nit pick and try and undermine the compromise

that's been agreed are really arguing for a maintenance of the

status quo. You can't, in a sense, have it both ways because

the option of 100 per cent of what we want just isn't available

because the votes aren't there for that. Therefore I've

got to decide, do I stick with the present system or do I try and

achieve a compromise. Now, it's much better to have a compromise

when it delivers 85 per cent of what you originally wanted.

CORDEAUX:

You know that original plan of a 10 per cent GST, 30 per cent rate

for the majority of people at personal income tax and a 30 per cent

corporate rate, I mean, how achievable is that corporate rate now

of 30 per cent?

PRIME MINISTER:

Well, we haven't set that in quite the same cement as we set

the other things. It's an option. How achievable – I think

I'll be better able to answer that when I get John Ralph's

report in a few weeks time. There are arguments that you should have

a 30 per cent corporate rate and you pay for that by removing the

accelerated depreciation benefits that a lot of companies, particularly

miners and manufacturers and farmers have at the moment. Some of them

support that, others say no, we'd rather pay 36 or be liable

for the 36, a lot of them don't pay it because they have bona

fide concessions that reduce their tax bills and keep our accelerated

depreciation. Now, it will be a very interesting debate. As far as

the personal tax is concerned our commitment that 80 per cent of the

community would be on a top marginal rate of no more than 30 cents

in the dollar. That has been preserved in full and from the 1st

of July next year there will be $12 million in personal tax cuts and

another $2 to $2.5 billion of family benefits over and above those

$12 million of tax cuts. And that, I think, will increasingly be seen

as the real face of tax reform. The debate about the minutiae of the

GST will now fade an agreement having been reached on the assumption

it all goes through Parliament in the next few days which I believe

it will but we have to wait and see. I never take Parliament for granted

but I am confident it will go through. I think the focus then will

be on the personal tax cuts on the upside, the pluses, the good things

that come out of the tax plan rather than the nit-picking about salads

and thermometers and chickens, hot, cold or lukewarm.

CORDEAUX:

Something that came up on the programme the other day, it's just an

anomaly, do you know when people have said, well let's not have people

retiring at 65 let them go on working if they want to and many of

those people go on to being self-employed. Now, somebody who left

the workforce at the age of 65 set up his own handyman business, it

was going fine until he realised that he couldn't go and get from

anyone any accident and sickness insurance. They won't touch you once

you are over 65 and that, of course, restricts anything that a person

can do in starting up his small business. Is there anything you can

do about that because it really is discriminating against people just

because they are 65?

PRIME MINISTER:

Well, there's not a lot you can do about that. You can't force people

in a free enterprise system to provide a business service if they

don't want to. I mean,....

CORDEAUX:

It just seems like they have colluded to....

PRIME MINISTER:

Well, I don't...well, I understand why people would say that. But

this is an example of what is called market failure that there's not

a market for this because people don't think there's a good enough

risk to provide the insurance. Or if they do provide the insurance

the premium they charge is so high that nobody would want to take

it out. Now, the only alternative that a government has got there

is for the Government to provide some kind of scheme but, gee, where

does government start and finish? Are we....I think a lot of people

are saying to us, well, we don't want the Government getting involved

in everything and every time the Government provides a service it

means that it has got to find the revenue to pay for that service.

And that means it can either increase taxation or not reduce it as

much as it would like to.

CORDEAUX:

But shouldn't Government jump in there where the private sector doesn't

or can't do something?

PRIME MINISTER:

Well, it can but I am not sure that it always should because if it

doesn't, if it keeps plugging every gap well there is no end to what

you are asking the Government to do. This is the difficulty.

CORDEAUX:

Well, here's somebody who is at the age of 65 who is now looking to

going on social security. It'd be far better to have him as a taxpayer.

PRIME MINISTER:

Well, it would be better to have him as a taxpayer but it's not just

a simple question of expressing our preference, it's also a question

of what is involved in the Government scheme to provide insurance.

And once you provide a Government scheme you will then have a lot

of people in the private insurance sector saying to the Government,

well, we would like you to underwrite the more difficult risks we

have. If you are prepared to intervene and fill this gap therefore

you accept that some underwriting is more risky than others why don't

you extend your guarantee and your underpinning into some of the more

risky areas of our business and before long you'll have the potential

for the Government to really control the insurance industry. And I

think it's a difficult issue but there are limits beyond which governments

shouldn't go if you basically believe that this is a free enterprise

community.

CORDEAUX:

Well, the public servants have to retire at 65 don't they?

PRIME MINISTER:

Well, I am not sure about what the situation is in all of the States

but that age limit is being removed at a federal level. And I understand

it has been or it's in the process of being removed at a State level

although I am not sure of the progress in each individual State.

CORDEAUX:

By the way, thank you for following through on that other anomaly,

the business of the bone density drugs being free to women and not

to men. Thanks for that.

PRIME MINISTER:

Yes, well I remember that very well and I am glad you have got the

information.

CORDEAUX:

Yes, absolutely. Engaged couples will receive vouchers for free pre-wedding

counselling in an effort to slash the $3 billion a year cost of marriage

break-up. Why not just scrap the family court because that's the main

problem, people just walking out of their relationships?

PRIME MINISTER:

I understand the emotion, and I understand the view of life that would

lead me to say that and I've got a lot of sympathy for it. I

don't think it's realistic though to get rid of the family

court because most of the disputes the family court deals with of

course are disputes relating to property and custody, and when marriages

break-up decisions do have to be made about the division of property

and the custody of children and you do need somebody to make that

judgement. And I say that as somebody who way back in 1975 did not

vote in favour of all the major provisions in the family law act when

it was brought in. I mean I had some reservations about some aspects

of the changes but that's a long time ago now and that's

history and I'm dealing with the here and now. But we don't

pretend that what we announced yesterday is going to make a dramatic

impact but it will make a contribution and it's a recognition

that although governments can't legislate to make people be nice

to each other and to support each other, we can recognise that maybe

if people had a little better understanding of the character of relationships,

the obligations they bring, the obligations of marriage and so forth

they might enter those associations more carefully and some of them

might last longer and they might be a lot more positive. And that

is why we're going to trial this voucher system and see how it

works. I think there's a greater willingness on the part of Australians

now to talk more openly about their relationships in an appropriate

environment, particularly on the part of men. I think that's

a very welcome thing and if we can perhaps encourage people to think

a little more carefully then the costs down the track could be reduced.

Now our ambitions are modest but our commitment is very genuine in

this area and it's part of a, I think a strategic approach to

marriages in our community recognising that really marriage is one

of those core enduring institutions of Australian society and that

we should be prepared to go an extra mile and provide an extra margin

for marriage within our society because it is still the cornerstone

of the most important relationships we develop and it's something

that where appropriate and in a practical way should be supported.

CORDEAUX:

Prime Minister, just quickly, what are you going to do if a large

percentage of the Kosovar refugees want to stay? Have you thought

about that?

PRIME MINISTER:

Yes I have thought about that. Our belief is that the great bulk of

them will want to go home. We of course have the right legally to

require all of them to go back at sometime in the future. They are

here under special safe haven temporary arrangements and none of them

has any automatic right to stay in Australia and no right to sort

of go to court to establish a right to stay here. However we're

not going to send them back in circumstances where they would be....there

lives would be at risk. The circumstances of Kosovo are changing but

it will still be some time before it's safe for refugees to return.

There are some horrific stories of people losing their limbs and their

lives because of bombs exploding and land mines that have been left

behind by the retreating Serbian army. So it will be some time yet.

I think we just have to handle that Jeremy in a practical compassionate

way when the challenge, if it is to come does in fact come. I suspect

in the end most of them, if not all them will go home. But let's

deal with that down the track.

CORDEAUX:

Thank you for your time sir. Just a couple of minutes before the news.

Let me ask you about security. The people looking after you were found,

well, not exactly on the job the other day, and somebody managed to

get in and throw a pie in

11114