PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
03/11/1999
Release Type:
Interview
Transcript ID:
11164
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP RADIO INTERVIEW WITH JOHN LAWS, RADIO 2UE Subject: Republic Referendum, interest rate increase

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

LAWS:

Prime Minister good morning and welcome.

PRIME MINISTER:

Good morning John. Good to be on your program.

LAWS:

Thank you. That's nice of you. Has this whole debate helped shape the succession

of the Liberal Party leadership?

PRIME MINISTER:

It's not really had any impact on that. We're having a free vote. I decided

that 19 months ago at the Constitutional Convention. I announced there that

if there were a referendum then I would allow members of the parliamentary

Liberal Party a free vote. And we've stuck to that. And given that there's

a range of views in our party on this subject as there is in the community,

the differences have been handled with a great deal of stability. And all

that's happening is that the free vote ends at 6:00pm eastern daylight time

on Saturday when the polling booths close, and we go back to having a government

position on all of these things. That doesn't mean to say that inside the

forums of the government, around the Cabinet table, in the party room, people

won't continue to put their respective points of view. But you won't after

the weekend have one person saying well I think this is how we should handle

the constitution, and another person saying this is a different way that

I'd handle the constitution. All that's going to happen is that the government

will again be speaking on constitutional matters with one voice because

the free vote will have been over. And I think we will have been enhanced

and strengthened and dignified as a party as a consequence. It's a sign

of strength and self-assurance that a party can allow a free vote on something

like this. It's a sign of weakness and concern that you have to try and

railroad everybody into singing from the same hymn sheet.

LAWS:

Yeah. Well I think most people would agree with that. And you require unity

to have a government that can run the place properly.

PRIME MINISTER:

Well exactly. I mean we allow a free vote on a few things. We allow a free

vote on what are traditionally called moral or conscious issues like euthanasia,

abortion and those sorts of things. And we did have quite a vigorous debate

on free lines in relation to the overturning of the Northern Territory euthanasia

law. Remember that, it was a couple of years ago. Now we allowed a free

vote on that. We emerged from that unscathed. Likewise I decided on this

issue that it was best to let people because it's an unusual issue, it doesn't

come along all that often, I thought the best thing to do was to allow people

a free vote. And that's been taken up.

LAWS:

Will it ever come along again?

PRIME MINISTER:

Well I don't know. All I can say is that I think if whatever the outcome,

I mean let's deal with the two scenarios, and I think it's, can I say, I

think it's going to be closer.

LAWS:

I think it's going to be closer than most people think.

PRIME MINISTER:

I do. I think, I mean I've learnt to expect the unexpected in politics,

and so has Jeff Kennett and a lot of us in the Liberal Party. I mean you've

just got to be realistic. And I think over the next few days the television

and radio advertising campaign by the yes side will be of avalanche proportions.

They have a lot more money I understand from private sources than does the

no campaign. I think on Saturday what people are forgetting is that the

Labor Party is campaigning nationally as a party for the yes vote and therefore

the Labor Party organisation will mobilise its members and the trade unionists

to work on the polling booths on Saturday. By contrast on the Coalition

side, although the National Party is by and large campaigning as a party

that is restricted to the rural areas of Australia, the Liberal Party of

course does not have an official position. And whereas I know that a lot

of individual members of the Liberal Party will be working for the no case

on polling booths and some for the yes case, which may I say is their right

if that is their view. And I make it very clear to members of the Liberal

Party that they are free on Saturday irrespective of the attitude of the

members in their own constituencies..

LAWS:

Until six o'clock.

PRIME MINISTER:

Yeah, well, I'm talking about the ordinary members of the party. Well.

LAWS:

But I think it's a very good idea.

PRIME MINISTER:

And I'm just saying to people that I think this thing is going to be a lot

closer. I do not believe that, you know, the inevitability which people

are starting to say out of the polls. The polls have been badly wrong in

the past. So, I think when you add all of those things up I think it is

going to be close. But I think if the yes vote wins then that will be it.

You won't, in my opinion, have another referendum for direct election of

the President. Interesting what Bob Carr said.

LAWS:

Yes, very.

PRIME MINISTER:

I thought Carr's intervention was fascinating and what Carr has done is

to undercut the Beazley play. The Beazley play is 'yes and more'. What Beazley's

saying is, vote yes on Saturday even if you are a direct electionist and

then I'll give you another vote.

LAWS:

Yeah, well Bob Carr's rejected that.

PRIME MINISTER:

Well, he has. And Bob Carr, after all, has won a couple of elections and

he's the most powerful and the most successful Labor leader in Australia.

He is the politically successfully face of Labor.

LAWS:

Yeah, Prime Minister you wouldn't be saying these nice things about him

if he'd not said what he said about that.

PRIME MINISTER:

No, I'm being realistic. I mean, he is.

LAWS:

You're being very political too and cleverly political because he did reject

it.

PRIME MINISTER:

Well, he did. I mean, he said, no way. He said that he would rather stick

with the present system of constitutional monarchy than have a directly

elected presidency. Now, I don't believe in a directly elected presidency.

I mean, I am a conservative on this issue. I'm an undisguised conservative.

I've always said that. I've been utterly consistent. I don't feel we need

a change. I don't think Australians feel we need - well, they don't feel

passionately that we need a change and I don't know in the end what they're

going to do. But I thought Carr really undercut the Beazley play. And what

Carr was really - Carr was calling it as it is. If the yes vote wins on

Saturday there will be overwhelming opposition within both the Labor Party

and the Coalition to have another referendum for a directly elected presidency.

LAWS:

Rupert Murdoch's had a bit to say on the republic issue today. He thinks

that we'd suffer a loss of self respect if the no case wins. Would we?

PRIME MINISTER:

No. I think this is the weakest argument of the lot, this sort of international

independence argument. I've just gone through, in relation to East Timor,

the most intense and comprehensive series of high level negotiations that

any Australian Prime Minister's been involved in since World War II. And

I didn't at any moment, for a nano-second, feel as though I was other than

the elected, democratically elected leader of a fully independent nation.

To suggest that there would have been a different outcome in relation to

East Timor if we'd been a republic, to suggest that our constitutional status

in any way influenced the receptivity of our point of view, either negatively

or positively, in any part of the world is patently absurd. That, incidentally,

is the view of Lee Kuan Yew, the elder Statesman of Asia, who made the observation

a few years ago, couldn't understand what all this debate was about. Look,

we'll decide our own constitutional forms. We don't seek the leave or permission

of any foreign country or any foreigner to decide our own constitutional

arrangements.

LAWS:

Okay, could I ask you this question that I ask everybody, republicans and

monarchists, how would the place be different if it became a republic, how

would our day-to-day lives be different?

PRIME MINISTER:

Well, our day-to-day lives would not be altered. And to be fair to them

I don't think some of the more sensible republicans are saying that our

day-to-day lives are going to be altered. I think our constitution would

be less effective. I believe that a President in a republic would, in a

crisis, be more vulnerable than is the current Governor-General. Day-to-day,

no improvement, no change, however, the effectiveness of a constitution

is measured by how it copes in a crisis. Any old constitutional will do

when everything's going swimmingly, won't it? But it's when you put the

thing under stress and strain that you find out whether it works. Now, my

concern is that a President would be more vulnerable on balance under a

republic, the model we're being asked to support on Saturday, than would

the Governor-General under the present system. And there are flaws in this

model. I don't know whether you saw that excellent article by Mr Justice

Ken Handley, the Judge of the Court of Appeal in New South Wales in the

Financial Review yesterday. A very eloquent exposure of the possibility

of sort of litigation over cross dismissals with the Prime Minister, you

know, with the signed dismissal in his pocket. Now, I'm not suggesting and

nobody suggests that these things are going to happen everyday, of course

they don't, but what I am saying is that you measure a constitution by its

durability through crisis and strain and stress and we've had 100 years

to measure the current constitution and it worked.

The one time it was put under real stress was in 1975. And whatever may

now be retrospectively said by both Gough Whitlam and Malcolm Fraser about

1975 what the late Governor-General then did was to remit the matter to

the Australian people. And within a few weeks the Australian people could

decide whether or not they agreed or disagreed with Mr Whitlam or Mr Fraser.

Now, that is the essence of a democracy and it worked on that occasion.

And, of course, the other irony about 1975 is that the republicans are supporting

a model which they say would still allow the future Australian president

to do what John Kerr did. So, I mean, I am lost as to quite what they are

getting at. I thought for some of the Labor republicans maintaining the

rage was the only thing that mattered in life yet they are now purporting

to carry forward into a new republican constitution the reserve powers of

the Crown, it's like having a monarchy without the monarch which is an interesting

proposition within itself. But that's for them to answer. I thought what

Sir John Kerr did in 1975 at least provided a democratic outcome. I mean,

if you look back on 1975 the last person who, in my view, should be criticised

is the late Governor-General. I think if people felt strongly about 1975

they should direct their criticism either against Mr Fraser or Mr Whitlam.

LAWS:

Just tell me briefly why you believe people should vote no on Saturday?

PRIME MINISTER:

I think they should vote no because we know the present system works, it's

very safe. I don't believe in changing something which has manifestly worked

and contributed to making this one of the most democratic societies in the

world. That's the main reason why I ask people to vote no. The second and

less important, but nonetheless important reason, is that I think the model

being proposed is flawed. I think there's too much power for arbitrary dismissal

in the hands of the Prime Minister. I also think that the nomination process

will result in less qualified people making themselves available to be president

than is now the case with the governor-generalship. See this public nomination

process will scare away a lot of eminent people.

LAWS:

Do you think a lot of people are confused, just generally confused about

the entire issue?

PRIME MINISTER:

Well, people are confused but, you know, I am not.you know, I understand

that although I don't think people are as confused as some others would

allege. I think deep down there is a feeling in the community that well,

yeah but, I mean, why do we want to change something that works.

LAWS:

Yes, I think that's.but I think there is a lot of confusion nonetheless

and..

PRIME MINISTER:

Well, there is confusion but that always happens. That's democracy. People

have a right to put their point of view. I mean, I have tried to put a measured,

conservative case on this. I have never been reluctant to nail my colours

to the mask on this issue but I said the people would have a vote and the

people are having a vote. But my main pitch is to people simply that look,

there are some things in this country that need changing and improving because

they don't work. But we do know that our Constitution works. We do know

that we are one of fewer than 10 nations that have been continuously democratic

through the 20th Century. Now, I am not saying all of that is

due to the arrangements we have for a head of state but they have made a

contribution, those arrangements, to the stability. And I just don't think

you should change something unless it's clearly demonstrated that it needs

changing.

LAWS:

Okay. Now, the Reserve Bank has just announced that expected quarter of

a point increase in interest rates so the official rate is up .25 of a per

cent. Not unexpected, but that's the first rise in five years, does that

mean it's some kind of blow to your economic policies or not?

PRIME MINISTER:

No. I see it very much as a piece of fine-tuning by the Reserve Bank. The

bank, of course, has independent control of interest rates and monetary

policy. Bear in mind that we had a long succession of reductions in interest

rates at a time when the world economy was in significant recession or certainly

growth was very slow. The view is now apparently being taken by the Reserve

Bank similar to the view being taken by the federal reserve system in the

United States, the American Central Bank, that now that the world economy

is recovering there is a case for making monetary policy slightly less expansionary.

And it's a tiny adjustment and whilst as in the past I am not going to speculate

about the future path of interest rates it is a small adjustment. And I

refer you to the remarks made by the Governor of the Reserve Bank last week

when he spoke of the likelihood of less sharp adjustments in the future.

It's very much a pre-emptive adjustment to make a contribution to constraining

any inflationary pressures.

LAWS:

Look, it will add about $16 a month to the average mortgage so what's your

message to home owners?

PRIME MINISTER:

Well, the message is that we don't like any increase. On the other hand,

we don't like inflation picking up again and if this makes a contribution

to holding it back in the long run you'll be better off. And in any event,

mortgage interest rates are dramatically lower now by still more than $300

a month than what they were three and a half years ago.

LAWS:

Okay. Prime Minister, thank you very much for your time. It's going to be

interesting on Saturday to see what does come about and I am with you, I

think it's going to be a good deal closer than a lot of people think.

PRIME MINISTER:

Thank you John.

[ends]

11164