Subjects: Liberal Convention; Social policy; childcare
E&OE................................................................................................
PRESENTER:
The Prime Minister John Howard has signalled a major
shift in his government's approach to economic reform at the Liberal
Party's convention in Melbourne over the weekend. Instead of the
tough talk of rationalism it seems we'll now be hearing about the
human face of reform. The first tangible evidence of this is the $240
million family package announced at the weekend. The Prime Minister has
joined us in the AM Studio and he's speaking to Philip Williams in
Canberra.
WILLIAMS:
Good morning Prime Minister, first to the stock markets,
they're about to open and it looks like it's going to be blood
on the floor today. Are you worried about the effect on the Australian
economy?
PRIME MINISTER:
Well Phil, I don't think, or Philip, I don't
think I should start speculating about what might happen on the stock
market I'll leave that to the participants and the stock market analysts.
What I can say, and I think it's important that I do say it, that
the fundamentals of the Australian economy are rock solid and the world
economy, looked at in a generic way is now stronger and has been growing
at a very powerful rate now for longer than at any time for the last twenty
of thirty years. The American economy is very strong, our economy is equally
as strong. There has been a rebound within the Asian economies, Europe
is getting better, Japan is showing signs of recovery so if you look at
the economic fundamentals, economic growth, inflation rates, interest
rates, all of those things, they're all very positive. As to what
happens on the stock market particularly in relation to tech stocks well
that's a matter for the participants, I don't think it's
appropriate for prime ministers to start making predictions about that.
WILLIAMS:
But as you say we've had a great run in economic
growth, are you concerned about the effects, the combined effects of interest
rate rises not here but in the United States and the inflation figures
in the United States flowing on and are you worried that there might possibly
have to be adjustments to the budget projections here in Australia?
PRIME MINISTER:
Well I'm not going to get into to talk about the
Budget, it will be brought down on the 9th of May and that's
only three weeks tomorrow. But Philip the fundamentals are very strong.
Whilst I don't talk about future movements in interest rates I do
note that compared with four years ago the average home buyer in Australia
is $245 a month better off. You've had quarter after quarter after
quarter of strong economic growth. The latest IMF forecasts for both the
American economy, the other strong economies of the world and the Australian
economy is a very positive one so if you look around, you talk to private
sector economists, all of them remain quite positive about the Australian
economy. I don't get into quantitative predictions about the levels
of growth but the general direction is very strong and the best indicator,
the social indicator if you like of economic strength is job creation
and we've created 650,000 jobs or more over the last four years and
that is terrific news.
WILLIAMS:
Prime Minister talking about social things back to the
Liberal Convention. Why has it taken four years for your government to
try and explain why hard economics equals happy Australians in the end?
PRIME MINISTER:
Well Philip I've said those sorts of things before,
perhaps I said them better at the weekend than I've said them before
but I've certainly said them before and I have never seen this disconnect
between economic achievement and social happiness, the two are inextricably
linked. If you don't have a social dividend or a social bonus out
of your economic policies you shouldn't follow them. We don't
change the economy, bring in economic policies for some kind of intellectual
gratification we do it because it satisfies human need and provides families
with jobs and provides poorer people with social welfare support and encourages
people to take risks which are for the long term health and benefit of
the economy.
WILLIAMS:
Is there a danger though that people will see this new
warmer, shall we say cuddlier approach as a cynical rebadging of the party
image ahead of the next election which clearly, or the election campaign
has started judging by the atmosphere at the convention?
PRIME MINISTER:
Well Philip the warmth of 653,000 more jobs has been
there for a number of years, that's been building over the last four
years. The lower interest rates have been enjoyed progressively over the
last four years. The lower inflation, the increased choices through the
taxation system for Australian families, the benefits of a 30% tax rebate
for private health insurance. People are now flooding back into private
health insurance. Now that didn't start happening at the weekend
that's been happening now over a long period of time. But this idea
that we've suddenly decided to produce some social policies because
we think it's politically desirable to do so is wrong, we've
been producing these socially beneficial policies for four years.
WILLIAMS:
You haven't been explaining them though in the way
that you explained them on the weekend telling Australians that the rationalism
perhaps went a little too far, that it's all about creating human
happiness. I've never heard you talk like that.
PRIME MINISTER:
Well Philip perhaps I explain things in a way I haven't
before. I don't walk away from that. If people think that well let
them think that. The important thing is what we've done. And we have
from the moment we were elected, we have been trying to create jobs, we've
been trying to help families and we've done so. And when you have
a strong economy you have more people in work, you have lower taxes, you're
able to help more needy families and we've been very courageous in
an area like the Job Network. We copped a lot of flak over that but the
Job Network is outperforming the old Commonwealth Employment services
by a long way. So this government has been working on the social dimension
if I can put it that way ever since it came to office. It perhaps...
it received a greater focus and was put in a more articulate fashion at
the weekend, well so be it but the important thing I say to your listeners
this morning is that we haven't discovered at the weekend for the
first time the importance of the social dimension, it's been there
from the beginning.
WILLIAMS:
OK, childcare. What are these changes all about? What
are you aiming to do?
PRIME MINISTER:
Well it's really to provide Philip more flexibility.
We make a very big provision for childcare and in the tax plan coming
in on the 1st of July there'll be more choices available
for Australian families because there'll be more benefits for people
who choose for one parent to be at home when a child is very young as
well as continued strong support for childcare. Now in addition to that
we're going to generate several thousand more places for people who
might be shift workers, they might be in remote regional areas, they might
have a sick child or the pattern of working which the parent or parents
are involved may be such that the current childcare options are simply
not suitable.
WILLIAMS:Now this is in the home?
PRIME MINISTER:
In the home, yes. It's taking the carer to the home.
WILLIAMS:
Prime Minister thanks very much for your time.
PRIME MINISTER:
OK.
[ends]