PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
18/05/1999
Release Type:
Speech
Transcript ID:
11346
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP OPENING ADDRESS TO THE NATIONAL FARMERS’ FEDERATION CONFERENCE 20TH ANNIVERSARY CIVIC CENTRE, LONGREACH

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

Well thank you very much Ian. To the Mayor of Longreach, Joan Maloney,

to Vaughan Johnson, to my many parliamentary colleagues who are here

today and members of the National Farmers' Federation, ladies

and gentlemen.

This is the first occasion, I think, in history that the Federal Cabinet

has met at Longreach. It is also, as you said, the 20th

anniversary gathering of the National Farmers' Federation and

it is also 25 years ago today that I was elected in the middle of

the three year term of the Whitlam Government to Federal Parliament

as the member for Bennelong.

I want to say how pleased I am as part of a programme since we were

elected of taking Cabinet around the country and out of the larger

population centres, how pleased I am that we are having this meeting

in Longreach and that it coincides with the National Farmers'

Federation special 20th anniversary gathering. The Party

I lead, the Coalition Government I lead has had a long association

with the National Farmers' Federation and its predecessor organisations.

And as I look around the room I am reminded of the many discussions

we have had on very important issues. And your organisation has been

an outstandingly clear and loud voice for the interests of farmers

all around Australia.

And as I look back over the last 20 years I can recall that the National

Farmers' Federation has been in the forefront of arguing for

necessary change and reform. The National Farmers' Federation

was one of the first organisations at a national level to articulate

the need for a floating exchange rate. And to argue the cause that

attempts to regulate the value of the Australian dollar in an increasingly

globalised world market were doomed to failure. And, of course, I

am very conscious of the great campaign that the National Farmers'

Federation waged in favour of industrial relations reform. Something

that has been very close to my heart most of the time that I have

been in Parliament and one of the most fundamental reforms that this

country has needed to embrace over the years if we are to become a

more competitive nation and a more effective player on the world stage.

I am very conscious as I address this gathering of something of a

paradox in the Australian economy. On the one hand, the general economic

conditions in our country are better now than they have been at any

time since the late 1960s. We grew stronger last year than any country

in the industrialised world. We have low inflation, low interest rates,

in fact, the lowest for more than 30 years, we have high levels of

business investment, we have turned a budget deficit of $10.5 billion

into a strong surplus, we are repaying debt. And if indeed we can

implement all of our commitments out of the last election then we

can by the year 2003 be completely free of any Commonwealth Government

debt. And we can in effect begin the next century, the third millennium,

as essentially a debt free nation.

That is the general situation but I am also deeply conscious that

in many parts of rural Australia the scene is starkly different. There

are still areas of massive economic and social difficulty. There are

still many communities which are steadily losing services, there are

many parts of rural Australia where the population drift either to

larger regional centres or to the cities goes on unabated. I am also

most conscious that Australian farmers on world markets are still

being severely disadvantaged by the corrupt trading practices of many

of the major players. And I know how important the upcoming discussions

at a world trade organisation level are to the future of Australian

agriculture and Australian farmers. So as I address you, of course

I talk of the strong national economic conditions but I do recognise

that those strong economic conditions nationally are not universally

shared and are certainly not shared in areas of the Australian bush.

And that we have sought in a sensitive and intelligent way to address

many of those areas of particular disadvantage.

You will be aware that in our first term out of the proceeds of the

privatisation of 30 per cent of Telstra we were able to fund a natural

heritage trust and many of the programmes funded out of the natural

heritage trust are of particular benefit to rural and regional Australia.

You will be pleased to know, of course, that in the recent Federal

Budget we committed $31.8 million over five years to rehabilitate

elements of the great Artesian Basin. And I am delighted to say that

a little way from here in Longreach later today my wife will be capping,

as it is, capping the first bore as part of that programme which over

a period of five years will provide very important support and very

important repair to something that is of tremendous importance and

significance to rural Australia.

Two years ago John Anderson and I announced the $515 million AAA programme

to boost farm businesses provide a new start for many and aid planning

for the future. Out of the most recent budget we have begun to address

what I know and accept and recognise and will continue with my Health

Minister to try and remedy and that is the legitimate complaint of

people in rural Australia about the inadequate number of rural general

practitioners. And we're investing $43.1 million this financial

year for rural GP retention grants. We are going to establish 30 regional

health service centres and we are also going to put over $50 million

into creating more rural apprenticeships and we hope to create up

to 30,000 more of those in rural and regional areas. And if we can

secure through the Senate approval for the sale of another 16 per

cent of Telstra to take it up to just under 50 per cent privatisation

we hope to establish out of that second tranche of the sale of Telstra

500 rural transaction centres which are designed to address the deficiency

of services in many parts of rural and regional Australia.

But, ladies and gentlemen, these are particular issues which are designed

to attack areas of special disadvantage and areas where people have

a right to expect, indeed a right to demand, the maintenance and the

provision of adequate basic services.

I can't, of course, address this gathering and open this conference

today without saying something about the issue of taxation reform.

Last year the National Farmers' Federation gave very strong and

effective support to the Government's policy to reform the Australian

taxation system. You will be aware that we took a detailed policy

to the last election. We didn't fudge anything, we didn't

obfuscate, we didn't hide anything, we didn't deceive about

anything, we put all of it on the table. And in a manner unparalleled

in the experience of any other government since Federation we explained

in great detail what we intended to do with the Australian taxation

system if we were returned to Government. We said that we would sweep

away all the existing indirect taxes such as the wholesales sales

tax and many of those inefficient State taxes, financial institutions

duties, stamp duty on share transfers and other transactions. That

we would get rid of all of those and replace that with a single rate

broad-based indirect tax, a goods and services tax which would be

fully rebatable in relation to business expenses. We also proposed

major initiatives to reduce the cost of fuel. A very critical item

in the operating costs of people on the land in this very vast country

of ours.

Our reforms if they are implemented will reduce general business costs

in Australia by $10.5 billion a year. They will reduce export costs

by $4.5 billion, they will reduce fuel costs by $3.5 billion, they

involve personal income tax cuts of $13 billion and very importantly

they will underwrite for the first time through a growth tax the financial

position of the Australian States.

Now, the Senate was meant in the federation compact to be a States

house. You will all know that the federation compact represented a

compromise between single member constituencies in the House of Representatives

where the predominance would inevitably be held by people elected

from the major population centres of Australia, that is the major

cities such as Sydney and Melbourne. The compromise was that you would

have a Senate with equal representation from the States, the idea

being that the Senate would look to the interest of the States. Over

the years, of course, that has become a joke. The Senate is no longer

a States house, the Senate is even more politicised and even more

partisan in its political poses than in fact the House of Representatives.

Because if the Senate were now a States house the Senate would be

rushing to pass our taxation legislation because the States will benefit

enormously from our taxation reform.

Under our taxation reform after the transitional period, the States

of Australia will be significantly better off and that is why, at

the special Premiers' conference meeting a few weeks ago, all of the

States of Australia were very happy through their Premiers to sign

the agreement carving up the proceeds of the GST, every last dollar

of the GST will go to the states. Every Premier, Beattie, Peter Beattie

or Jeff Kennett, irrespective of their politics they were all very

happy to sign on the dotted line. And so they should be. And instead

of having another Premiers' conference the Premiers should be

convening conferences of Senators from their various States, irrespective

of their party allegiance and telling those people that they ought

to be supporting the Government's taxation package. Because if

this package goes down the best opportunity we have had since World

War II to reform Commonwealth / State financial relations will have

been lost.

I have been involved in probably a dozen or more Premiers' conferences

in the twenty five years that I have been in Parliament. Few of them

have been satisfactory. They are normally forums for grandstanding

by Premiers, attacking Prime Ministers, irrespective of the political

stripe of either. It happened when Malcolm Fraser was Prime Minister

and I was Treasurer. When a Premier from this State, I think his name

was Joh Bjelke-Peterson, used to come along and used to attack us.

I can remember Charlie Court doing exactly the same thing, I can remember

Neville Wran doing it. The script is almost the same, only the names

of the players were altered. And it used to go on year after year.

Now, the last Premiers' Conference we had there was a difference.

And the difference that was, ladies and gentlemen, that every person

participating in that conference knew that we were making a bit of

history. That we were changing the methodology. We were ending the

annual farce of the Premiers' Conference. We were getting rid

of this forum where people played games rather than made serious decisions

about the national interest. And if that opportunity is lost, and

it will be because if this package does not go through, we will go

back to the old nonsense of Peter Beattie, or Bob Carr or Jeff Kennett

doing his doorstop as they walk in and saying, you know, we want more

money otherwise we will have to sack teachers and police and nurses

and we on the other hand will be forced to respond to that and the

Australian peoples estimation and the Australian peoples esteem for

the political processes of this country will go down further.

We have come a long way in this country over the last few years. There

have been reforms undertaken on both sides of politics over the last

few years that have been to the benefit of this country. And over

the last three years because of the way we got the budget back into

order, because of our willingness to tackle industrial relations reform,

because of our willingness to undertake all sorts of other reforms,

we have delivered the Australian economy in general terms to a position

of strength none of us thought possible when we came to office a little

over three years ago. And we did it because we didn't play games

with the country's future. But what we are witnessing at the

moment in relation to taxation is game playing. Everybody who has

had any serious association with politics and public policy in this

nation over the last twenty years knows that we have got to reform

our taxation system. My predecessor, Paul Keating, knew it in the

middle 1980s and he campaigned passionately for it until the rug was

pulled under his feat by his then Prime Minister. Bob Hawke knew it

because he supported Keating's original campaign. Kim Beazley

knows it because he was one of the strongest advocates of option C

when the Cabinet discussed the matter in 1985. Privately, Labor people

will agree with you that taxation reform is necessary. Everybody knows

we can't go on forever with this system, but what are we witnessing

at the moment? We are witnessing game playing. People are fiddling

around with partisan politics while the national interest is being

sacrificed. We are strong at the moment because of reforms we took

earlier. We will be strong in the future because of reforms we take

now. The idea that a country can sit still and automatically reap

the benefit of past reform forever is wrong.

When I became Prime Minister of this country in 1996 I felt Australia

was the anxious outsider in the Asian Pacific region, knocking on

the door seeking admission. In reality over the last three years,

that has all changed. We are seen with new respect and afforded a

new dignity in our region because we have performed well. And we haven't

played games. And those who are frustrating what the people voted

for in October of last year are fiddling and playing with Australia's

economic future and are not looking to the national interest.

Can I go to something that is of very direction interest to you and

that is the question of the place of the commitments we made concerning

fuel in the tax package. We are having some discussions with the Australian

Democrats on Thursday and I want to make it perfectly clear to you

that we are not going to trade away the commitments we have given

to the farm sector. We remain strongly committed to ensuring that

the farm sector is significantly advantaged out of any taxation reform.

And as far as we are concerned the entitlements of the Australian

farm community are not negotiable and you have a perfect right to

expect that we will stand by the commitments we have made. And I want

the Australian people to understand that, I want the people that you

represent to understand that.

We are not in the business of trading away the relative advantages

that you have got out of the taxation package. We will be talking

to the Australian Democrats to see if there is any proper basis for

an agreement consistent with the things that we regard as important.

But people should not make assumptions about automatic compromises

just because a meeting is taking place between myself, the Treasurer

and the Leader of the Australian Democrats.

Ladies and gentlemen, can I just say one or two other things about

the importance of international trade before I formally open this

conference and wish you well in your deliberations. All of your know,

I don't think there is a group of people in Australia who are

more conscious, of the importance of winning greater access to world

markets than are Australian farmers. And can I, at this conference,

pay an absolutely genuine and heart felt tribute to the work of Tim

Fischer as Deputy Prime Minister, Leader of the National Party and

as Trade Minister for Australia over the last three years. I could

not have a had a better Deputy. This country could not have had a

better Trade Minister and the National Party could not have had a

finer leader than Tim Fischer. He has fought for the interests of

Australian farmers. He is respected overseas in a way that I find

constantly impressive in the discussions I have with world leaders.

Today, as I speak, he is in Beijing, talking directly to the Chinese

Government about negotiations for the admission to China to the World

Trade Organisation. He has spent large parts of the last three years

vigorously and successfully promoting the interests of Australia abroad.

And as a result of his interest we have won access to world markets

that we didn't think possible a few years ago.

A key challenge, of course, ahead of us will be to obtain agreement

to a further World Trade Organisation round at the World Trade Organisation

Ministerial Meeting later this year in Seattle. This, of course, as

past experience as taught us, will not be easy. Building momentum

for an ambitious mandate to the WTO agriculture negotiations and a

new World Trade Organisation round will be difficult. We want to work

very closely with the industry to prepare for these important negotiations.

We have appointed trade facilitators for agriculture and for processed

foods and beverages. And we have financially supported Graham Blight's

work as agricultural trade representative of the Australian farming

industry.

And today, I want to announce that the Federal Government will contribute

a further sum of a half a million dollars to ABARE to further promote

the dissemination amongst developing countries of the advantages of

trade liberalisation. And also to further promote the results of research

that we have carried out into trade barriers and trade blockages which

if removed will be of enormous advantage, not only to Australia, but

to other countries which are members of the Cairns Group.

Ladies and gentlemen, we continue to work very hard through the Cairns

Group and through APEC to achieve our goals. And there will be a meeting

of the Cairns Groups of countries on the 27th and 28th

of August in order to prepare for the Ministerial Meeting which will

take place in Seattle.

As Prime Minister, I will go to the APEC meeting which this year is

being held in New Zealand in September and we will maintain at that

APEC meeting the strongest possible push towards the momentum that

was originally behind the formation of APEC and the goal of achieving

within the region free trade by the year 2010 for developed countries

and the year 2020 for developing countries.

Can I conclude, Mr President, by congratulating the National Farmers'

Federation on twenty years of representing the rural community of

Australia. Can I, on behalf of the Coalition Government, thank you

for the very constructive relationship that we have developed over

the last three years. Can I take the opportunity in this forum of

particularly thanking my three Ministers who have interacted so much

with the farming community during that period of time, Tim Fischer,

John Anderson and Mark Vaile. Of course, many others such as Richard

Alston in the area of communications and of course Peter Reith in

the area of industrial relations and as always, because of the importance

of the health of the economy generally, Peter Costello as Treasurer.

But I want to pay a particular tribute to the three Ministers whose

more constant responsibility is to interact with the rural sector

and to thank them for the work they have done.

I declare this conference open, I thank the National Farmers'

Federation for the work it does for Australia and I wish it and all

its members and supporter organisations a very successful next twenty

years.

Thank you.

[ends]

11346