E&OE....................................................................................................
MITCHELL:
On the line in our Canberra studio, facing an extraordinarily busy
day, the Prime Minister, Mr John Howard. Good morning.
PRIME MINISTER:
Hello, Neil. I'm very pleased to hear what you're going
to do over the next couple of weeks. I wish you luck. I think it's
probably the best demonstration of the journalistic professionalism
that you should be doing something like that. I think many Australian
journalists in both the print and the electronic media are doing an
outstanding job at the present time with the reports they're
sending back from the border that I wanted to take the opportunity
occasioned by what you said of expressing my admiration for the work
that those journalists are doing. It's not easy. It's dangerous.
But they're there and they're there in large numbers. And
they're bringing to Australian viewers Australian reports of
these disastrous events so that we don't have to rely exclusively
on American or British television and radio people, although they're
doing a very good job too but I think it's always good to have
our own reporters on the ground.
MITCHELL:
Well yes, I agree. There are dozens of Australian aid workers in this
area too. I mean, two of them are still missing.
PRIME MINISTER:
They are.
MITCHELL:
I'm meeting at least five of the aid workers from Skopje with
a bit of luck. Is there any message I should take?
PRIME MINISTER:
Well, yes. I want to say that all of the Australian people respect
very much what they're doing. It's difficult, distressing,
dangerous work. For people to put their lives on the line, which clearly
is involved here, to help suffering humanity is a great thing to do.
And they have the respect and the admiration of the people of Australia
for the work that they're doing and I'm very proud of them
and I know that all Australians are very proud of the humanitarian
task that they're undertaking.
MITCHELL:
Do we know yet when the refugees will arrive in this country?
PRIME MINISTER:
The latest information I had a few moments ago when I spoke to the
Immigration Minister was possibly as early as late next week. Philip
Ruddock will be making a detailed statement around midday today and
I'll be briefing the Premiers on the arrangements. But they have
been fairly carefully prepared now. The people will all come in to
a reception area probably near Holsworthy in Sydney and then they
will be distributed to different parts of Australia. There will be
clearance procedures and health checks carried out at their point
of first arrival. And we have been able to secure arrangements in
a variety of facilities and there aren't any that can be categorised
as completely remote. Some are a little further from population centres
than others but by and large any reasonable person will be very satisfied
with the arrangements that have been made. And I want to thank the
Immigration Department. I want to thank the Defence Force. I want
to thank the people in Emergency Australia. And I want to thank Philip
Ruddock for the speedy way in which they've reacted. I mean,
remember it was only last Monday morning that the world first got
word that NATO countries were going to take refugees and here I am,
as Prime Minister of Australia, talking on Friday morning about the
likelihood of the first batch arriving late next week. Now, that's
not bad. And I thank all of those people who have been responsible
for organising the Australian response once the Government's
decision to take 4,000 people was made.
MITCHELL:
Will they be cut in all States, I mean, is there likely to be some
in Victoria as well?
PRIME MINISTER:
Oh yes, yes. There will be some in Victoria. There will be some in
Tasmania. I think there will be people going to all States. I had
the list read to me very quickly this morning and my recollection
is certainly there are some in Victoria, yes.
MITCHELL:
The reports today this could cost the Australian people $15
million. Do you know what it will cost?
PRIME MINISTER:
At the moment no. It will obviously cost us some money. The airlift
alone, if you bring out 4,000, you're looking at $4 million to
$5 million and then you're looking at accommodation, food, basic
medical, other necessities of life. So you are looking at a significant
amount of money. And, of course, over and above that we are giving
$6 million in aid to various organisations including CARE, the organisation
you mentioned a moment ago. It's not a small amount but it's
justified. It's a huge tragedy and a country like Australia must
be warm-hearted and must be generous and we are both.
MITCHELL:
We still don't know what's going to happen, do we? Three
months time, they might have to stay on. We just don't know.
This looks like being a long war.
PRIME MINISTER:
It could be, Neil. You're right. I don't know where it's
going to end. I'd be less than frank with the Australian people
if I pretended that I did. What I say to them is that we want to provide
these people with a safe haven and protection and as much security
as we can give until we see how things unfold. We don't want
them to be given permanent residence. We want them to be here on a
temporary visa basis because the idea and the hope is that they will
ultimately return to their own homes in Kosovo. Now, we don't
know how the military engagement is going to unfold. It's very
hard for me to predict and I don't think President Clinton knows.
I don't think the other NATO heads of government know. But in
the meantime we can play our part, although we are a long way away
and we're not part of NATO but we are a nation that has always
been open-hearted to people who've been expelled from their own
homelands. And, once again, the Australian tradition of helping people
in those circumstances has asserted itself.
MITCHELL:
Is there a possibility that some will have to be offered permanent
residence, for example, we could have children born here in that time?
PRIME MINISTER:
Neil, I can understand that question being asked. All I would be doing
if I responded would be to be speculating. At the moment we're
saying for an initial period of three months. Those visas, special
visas, are obviously renewable at the instance of the Minister, we
are clearly not going to push people out into the sea. You can understand
that. We're not going to treat them other than humanely and compassionately
but I don't want to be speculating about any lengths of extensions
after three months. We have a diplomatic position to maintain as well
as political support for what NATO is doing and we want to maintain
the maximum pressure that we can and the NATO countries can on Milosevic.
And if you start signalling, at this point, that you might do this
or do that you weaken the pressure that is being maintained on him.
MITCHELL:
Do you recall from what you've been told where in Victoria the
refugees will be housed?
PRIME MINISTER:
Well I think Point Cook was a name that was mentioned but there were
a number of names mentioned and I think it might be better if I leave
that to Philip Ruddock to announce further.
MITCHELL:
Is it correct that Australia has privately criticised the NATO action
with the United States, raised some objections with the United States?
PRIME MINISTER:
No, not criticised. No no. I'm certainly not aware of that.
MITCHELL:
Has it been raised privately?
PRIME MINISTER:
Well I've not have any personal discussions with the President,
and I'm not aware of any personal exchanges. Bear in mind that
we have not been asked to provide any military assistance, and we're
not providing and military assistance. This is a NATO action and Australia
is not part of NATO. It's a NATO responsibility. So the question
of military involvement has not arisen.
MITCHELL:
While the focus is on the Balkans, we must be increasingly uneasy
about Timor. We've got claims of a massacre, Dili as many as,
well the estimates are 5...between 5 and 25 perhaps more people
massacred. Are you becoming concerned, more concerned about East Timor?
PRIME MINISTER:
I've been concerned about East Timor now for quite a long time,
and you'll remember that before Christmas we urged the Indonesian
Government to change its policy and we think those urgings had an
impact. It's a difficult situation. We need the involvement of
Indonesia, we need the involvement of the United Nations, we need
the involvement of Portugal in a peaceful transition either to autonomy,
ultimately leading to independence or to independence first up. But
the tensions inside Timor are great and it is disturbing. That is
why I'm not making any general in-principle commitments of Australian
involvement. I will never agree to a situation where Australian people,
personnel, military or otherwise, are exposed to unreasonable levels
of danger. But clearly Australia has a big role to play in Timor and
the rest of the world will look to Australia to discharge its responsibility.
But equally we would expect if a number of nations have got to be
involved in some kind of transitional arrangement we would hope that
there'd be assistance forthcoming from some of the countries
in Europe other than Portugal.
MITCHELL:
Mr Howard, you've got the Premiers' Conference today, and
various things there. The GST, now the argument being put, and I know
by Treasury officials it seems, and the modelling, that pensioners
will not be protected from the effect of the GST. As I said there's
a simple way of addressing this. Do you stand by the guarantee nobody
will be worse off other than tax cheats.
PRIME MINISTER:
The guarantee I gave stands completely. See what we said about pensioners
was that they would always be 1.5% better off than the ordinary cost
of living adjustments. Now that remains. Nothing that was said yesterday
alters that in any way. Nothing at all.
MITCHELL:
But if there are price rises and not wage rises surely it catches
up with them. That seems to be the modelling argument....
PRIME MINISTER:
Well if over time you have a situation where because of wage rises
being greater than price rises pensioners are even better off. They
have even higher pensions. Well that doesn't in any way undercut
the promise that we made that they would always be at least the CPI
plus 1.5%.
MITCHELL:
Well what about a erosion? I mean there is the possibility of erosion
as your very own modelling points out.
PRIME MINISTER:
Well that won't erode. I mean the pension....the CPI increases
plus 1.5% will not erode, will not erode. And nothing that was said
yesterday suggested that. It didn't suggest it all. And there
was nothing particularly new about what was said yesterday.
MITCHELL:
But the way I read it and the way I've read is that it is not
that. The way I read it is that the modelling shows that the modelling
show the possibility of the erosion of the 1.5%. So in fact [inaudible]
so pensioners lose their benefit.
PRIME MINISTER:
Well the only way your 1.5% can erode is if in some way over a period
of time the 1.5% becomes 1.25% or 1% or 0.5%. Well that's not
going to happen because it will be legislated and we have said all
along that that will be the case.
MITCHELL:
Okay. So as I say the simple bottom line....
PRIME MINISTER:
The guarantee that I gave, the promise that I made to pensioners in
the election campaign was that your pension would always be CPI plus
1.5%. In other words in real terms 1.5% ahead of the CPI adjustment.
MITCHELL:
Okay. So in simple terms....
PRIME MINISTER:
Well that's as simple as I can put it.
MITCHELL:
But putting it simply, the guarantee that nobody would be worse off
under a GST other than tax cheats.
PRIME MINISTER:
Yes. That remains our position and indeed the modelling that was put,
the modelling that was put by.....I'm sorry, not the modelling.
The evidence, the written evidence that was given by Professor Warren
and by Ms Harding yesterday said that except in extreme cases they
could not identify people who were going to be worse off. In other
words they could not identify losers under plausible assumptions.
That was actually the language that was used.
MITCHELL:
Isn't Professor Harding arguing that the 1.5% guarantee sort
of clashes with the pegging of pensions at 25% of male average earnings?
And if it's pegged it can be eroded.
PRIME MINISTER:
Well, I don't know how it can be eroded if it's always 1.5%.
I mean is it being suggested that if as a consequence of the male
average weekly earnings peg, the pension rises at a greater rate than
our guarantee, surely in those circumstances pensioners are not going
to be worse off.
MITCHELL:
The States today and the meeting....well I mean that's a simple
point isn't it. The guarantee from you that pensioners won't
be worse off.
PRIME MINISTER:
Yeah. The guarantee that we gave at the election was that they would
get the CPI adjustment plus always they'd be at least 1.5% ahead
over and above the price impact of the GST.
MITCHELL:
The other aspect of the GST is the States wanting extra money, and
some saying that they might not support the GST. We will get the extra
money?
PRIME MINISTER:
Well I'll be going to meet them in about ten minutes, and you
always have a bit of this before a Premiers' Conference. Life
would be dull at a Premiers' Conference without it I can tell
you but in the medium to longer term the GST is a huge bonanza for
the States. Any State that turns its back on this tax package is letting
down the interests of the people in that State because after a few
years the States of Australia, all of them, will be hundreds and then
several....hundreds of millions and then several billion dollars
better off because the GST revenue that they are going to get will
rise at a much faster rate and build at a much faster rate than the
existing guarantee under the financial agreement. So, I can't
for the life of me believe that in his or her right mind any Premier
of Australia would turn their back on this offer because it's
much better. And I say to their constituents, if any of your Premiers
are trying to bring this plan down they are not serving you well.
MITCHELL:
Mr Howard, if you don't mind we'll take a couple of quick
calls. There's a few pensioners calling through who are concerned
about what they have read about the GST, particularly today. Hello
Valerie.
CALLER:
Hello Neil, how are you?
MITCHELL:
Go ahead.
CALLER:
Mr Howard, What the hell do you think the pension is all about. My
husband and I have nothing behind us, we are paying $750 a month rent.
We won't be able to exist with the GST. I wish you would just
wake up to yourself.
PRIME MINISTER:
Well, Valerie doesn't like the GST and I understand that but
I don't think her submission, and I respect it, but I disagree
with it and I reject it, does, you know, really bears upon the point
that you were raising.
MITCHELL:
Doris, hello.
CALLER:
Yes. Mr Howard, I'd like to ask you one little question. I am
a part pensioner, I get a little bit of superannuation. I just fall
into a tax bracket and I am paying tax but what gets me, I live in
a retirement village, every time we get a pension rise our maintenance
fees go up. Now, when is that going to stop? Is the sky the limit?
PRIME MINISTER:
Well, that's not directly related to the GST and without knowing
all of the circumstances and the understandings that you have in relation
to your retirement village I can't say whether it's fair
or unfair. I can tell you that you'll get a tax benefit from
our plan, you'll get, if you are not paying any tax now, you'll
have a greater buffer against paying tax because the threshold will
go up, you will get a pension adjustment in the manner that I described
earlier. There will also be some relief for the earning limits if
you are over the age of 60 and you have some you'll get a savings
compensation benefit depending on how much savings you have. So there
are quite a number of other benefits that you will get and you will
certainly not be worse off.
MITCHELL:
Mr Howard, I know you have to get away, just quickly the drugs issue
which I believe you are going to discuss this afternoon, can you tell
us specifically what will be put to the Premiers?
PRIME MINISTER:
Well, what I am going to put is a plan which basically involves the
compulsory diversion of people into treatment rather than them possibly
falling into the criminal justice system. It will not be unlike the
diversion approach that is being trialed in Victoria. There are many
elements of that that I think are very good. It will not be on all
fores with the drug court system that is operating in New South Wales.
Both of those....
MITCHELL:
This would be for users would it rather than, well obviously not sellers....
PRIME MINISTER:
No, obviously. I mean, the whole idea is there are a very large number
of people who have a problem. They may technically be in breach of
the law. It is clearly not desirable that those people go to jail,
it is clearly desirable though that they get treatment. And I think
most people would feel that if they were in different ways compelled
to have treatment as an alternative to them slipping into the criminal
justice system that would be an extremely good outcome. And the Commonwealth
is prepared to make quite a bit of money available to the States over
and above the $290 million that we have already made available in
the last couple of years and I'll be announcing the full details
of this to the Premiers early this afternoon. But I stress that what
I am putting on the table is over and above the $290 million we have
already put in. And it will not only cover the compulsory diversion