PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
24/02/2000
Release Type:
Interview
Transcript ID:
11496
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP RADIO INTERVIEW WITH LIAM BARTLETT, 6WF

Subjects: Regional areas, election, Richard Court, mandatory

sentencing, GST, wine tax and tobacco industry, return of INTERFET troops

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

BARTLETT:

Prime Minister Howard, thanks for coming in this morning.

Good morning to you.

PRIME MINISTER:

Well, very good to be with you and it's good to

be back in Perth again.

BARTLETT:

I know you are here for a couple of days . . .

PRIME MINISTER:

Mmmm.

BARTLETT:

Three days all up, but do you have any plans to tour

country WA as you did last week in other states?

PRIME MINISTER:

Not on this visit, but I have visited country WA quite

a lot already. I was the first Prime Minister to visit Kalgoorlie for

almost twenty years. I've been up to Port Hedland and I'll be

visiting country WA again in the course of visits later this year. You

can't go everywhere in a state as big as Western Australia on every

visit. But I have in fact, as I say, spent a lot of time in country areas

of WA and I'll be spending time in country areas of other states

as well as the time I spent in New South Wales and South Australia a couple

of weeks ago. But it's a big country to use that old clich. And

the suburbs of the big cities are important. I was in the outer suburbs

of Perth last night, Joondalup and that's the second, or first ,

it's either the fastest growing or the second growing area in Australia.

It competes with the Albert Shire in Queensland. So, the challenges and

the needs and the concerns of people in the outer suburbs are also important.

I try and make a fair and equitable distribution of my time, I don't

try and focus on one area of the country to the detriment of the other.

I take great care to see that I visit representative areas of the country

as regularly as I possibly can.

BARTLETT:

The reason I ask that question, a lot of pundits are

saying that the next election will be won and lost in the bush. Do you

agree with that?

PRIME MINISTER:

Well, I think the bush is important irrespective of the

election. I think there are problems and challenges and difficulties in

the small country towns and in areas of Australia that have been heavily

dependent on wool and wheat and beef, the traditional commodity exporters.

And they need understanding and help quite separately from any electoral

or political considerations. I don't go to the bush for political

reasons. I go to the bush because I am concerned about some of the problems

Australians living in the bush are facing.

BARTLETT:

Prime Minister do you think on the electoral subject,

do you think Richard Court has anything to fear electorally from the introduction

of the GST on July 1?

PRIME MINISTER:

No, I don't. To start with of course it is a, it's

a federal measure. It's been driven by the Federal Coalition and

people do decide federal elections on federal issues, and state elections

on state issues. But more importantly than that, the GST is very good

news for Western Australia. It is very good news for state services, because

for the first time ever, the state of Western Australia will have a growth

tax, and this is something that the current Premier and his predecessors

both Labor and Liberal have always wanted. All the GST goes to the states.

A lot of people lose sight of this fact, they think all the GST is going

to be collected by the Federal Government. In fact, every last dollar

of the GST will be dedicated to the states and the states will have over

time more money for public hospitals, for government schools, for police

services and so forth.

BARTLETT:

When will the confusion stop about the GST? When will

we stop talking about things like used car prices and tampons and such

like?

PRIME MINISTER:

Well, there's no confusion about tampons. Tampons

are going to be included in the GST. But of course people buying them

will have tax cuts.

BARTLETT:

Will cars be cheaper or dearer.

PRIME MINISTER:

Well, cars will be cheaper than they would otherwise

have been without the introduction of the GST. That's always been

the case, there is no confusion about that. That was the case, that was

the case when I announced the tax policy in September of 1998, it's

still the case. As a result of the GST, cars will be cheaper than they

would otherwise have been without the GST, because you will have a 10%

GST replacing a 22% wholesale sales tax. And therefore the end price to

the consumer, if you replace a 22% wholesale sales tax with a 10% GST

must be cheaper than it would otherwise have been.

BARTLETT:

The Australian Taxation Office has admitted today that

less than 20% of Australian businesses have so far registered in the lead

up to the GST. How confident are you that there won't be mass confusion

come July the 1st?

PRIME MINISTER:

Well, people always put things off. It is human nature

and Australians are no different. They say, oh new tax system, that's

next July I'll get around to that after Christmas. And . . .

BARTLETT:

You think that's all it is?

PRIME MINISTER:

I do, I do. We're starting a major advertising campaign

tomorrow, to encourage people to register to get their Australian business

number and it is very important that any business that's going to

be caught by the GST and that's ones with a turnover of more than

$50,000 have got to register. Then really you should, you should do it,

otherwise you will not really be part of the system and you'll find

carrying on business a lot more burdensome. But I believe that as we get

closer that that number of people who've registered will rise very

sharply.

BARTLETT:

Have you had any discussions with Richard Court about

how to handle the electorate strategically after the 1st of

July?

PRIME MINISTER:

Not particularly, because I mean he is a seasoned politician

and he knows that the next state election will be determined on whether

or not the West Australian people want his Government to continue or they

want a return of Labor which has a terrible record in Western Australia.

BARTLETT:

But you've talked about it with him obviously?

PRIME MINISTER:

Not in great detail no.

BARTLETT:

Just informally?

PRIME MINISTER:

Well, I don't think we've had a discussion

about this for some weeks, I mean we talk a lot about general political

issues. But Richard is a strong supporter of tax reform. The other reason

why it's good for Western Australia is that Western Australia is

a great export state and GST is very good for exporters. Exports will

be cheaper under the GST to the tune of about 4, 3 to $4 billion a year

at least. Because you take all of those embedded wholesale sales tax out

of the cost of preparing goods and services for exports.

BARTLETT:

The input costs.

PRIME MINISTER:

The input costs. Now I know a lot of people, exporters

say I've got a wholesale sales tax exemption, but that doesn't

cover the embedded taxes and of course fuel will be cheaper. Not only

are we going to cut the price of diesel, for the mining industry and for

many others, but on top of that you will be able to get, you'll be

able to get a rebate of the GST paid on any fuel that you buy for a business

reason.

BARTLETT:

It would want to be cheaper though, wouldn't it?

I mean today it's hit a dollar. And for the . . .

PRIME MINISTER:

Yes, yes.

BARTLETT:

And in a couple of north west town of Western Australia

it's hit a dollar a litre.

PRIME MINISTER:

Yes but Liam that's got nothing to do with the GST.

That is due to the world price.

BARTLETT:

Yes, but there's understandably nervousness about

what is going to happen to the price.

PRIME MINISTER:

Well, there is. We made a commitment that the price of

petrol need not rise as a result of the introduction of the GST. And we

intend to honour that commitment. But world oil prices going up or down

are in no way related to the goods and services tax.

BARTLETT:

Prime Minister, ten days ago, if we can just move onto

something else. Ten days ago, your Government indicated they would be

writing to the Northern Territory Government and also the WA Government

to request that they review mandatory sentencing laws. Now those letters

have still not be sent. How serious are you about intervening?

PRIME MINISTER:

Well, we take the view that traditionally sentencing

and criminal law matters are matters for state governments. And there

would have to be a very exceptional circumstance to use the external affairs

power, foreign affairs power to intervene. And, I mean there are a lot

of things that state governments do that I may as an individual disagree

with. There are probably things that I, that my government does that the

people in state governments disagree with, but we do run a federation

in this country and criminal law is one of those fundamentally state issues.

BARTLETT:

Well were you just filibusting when you talked about

. . .

PRIME MINISTER:

No, I wasn't filibusting and the Attorney-General

is writing. There's no filibuster. But you have to understand that,

a couple of things, that traditionally this is a state area of state responsibility

and the other thing that seems to have been overlooked is that there has

been no formal finding that the mandatory sentencing laws of Western Australia

or the Northern Territory are in breach of Australia's international

obligations. There seems to have been an assumption made that they are

in breach. Now some people are alleging they're in breach, but I

sought advice on this from the Attorney-General's Department. And

there has been no formal determination. The UN body which sort of adjudicates

on the compliance by party states to international conventions, has not

made a finding that these laws are in breach. Now they may, people may

not like them, there may be people in the UN who have reservations about

some aspects of them but there seems to have been an assumption that there

is an open and shut case on legal grounds for federal intervention, quite

apart from any of the other considerations. Now . . .

BARTLETT:

So, can we just clear that up? Will you still be asking

them to review it?

PRIME MINISTER:

Yeah. The Attorney-General will be expressing some concerns

about the application, in particular, the application of it to people

under the age of 18. But . . .

BARTLETT:

But it was said with much fanfare. Ten days is a long

time to send a letter.

PRIME MINISTER:

I don't think, I think it was said very calmly and

very logically. Look this is a difficult issue and I think most Australians

take the view as I do that these are matters to be resolved by Australia

inside Australia. And can I just make the point that the Secretary General

of the United Nations spent an hour with me and he didn't raise the

matter. And he made it very clear, very clear indeed in his speech to

the National Press Club that he did not regard Australia as being in any

way out of line . . .

BARTLETT:

But you did launch a pre-emptive strike a few days before

. . .

PRIME MINISTER:

Well . . .

BARTLETT:

And told him basically to butt out of it anyway.

PRIME MINISTER:

But hang on, I mean hang on if we are clearly in breach

of, irrespective of what I said, he would have, he would have put a view.

But he actually said that Australia was a model member of the United Nations.

Now I think this whole thing has got out of proportion. I know there is

a concern about the application of these laws to people under the age

of 18. I know everybody is justifiably very distressed about the death

of that young man in the Northern Territory. But, you have deaths in custody,

you have suicides of young people quite separately and apart from the

application of any sentencing laws and I don't think it can be credibly

argued that that was the only cause in the, of that very, very tragic

incident. And I don't know that you can make the leap that because

it occurred than automatically mandatory sentencing laws should go.

Now I have views on a lot of things states do. I mean

I don't for example agree with heroin injecting rooms, but I do accept

that ultimately that is something that is going to be decided by the states.

And if states decide to go ahead with it, unless they're going ahead

with it is in direct breach of a federal law, and I am not aware at this

stage that it would be, then it's not really the sort of thing that

you intervene in. I mean we've got a federation in this country,

and if people don't like what the Western Australian Government is

doing, it should vote accordingly. If they don't like what my government

is doing, they should vote accordingly. But I think this constant call

on the federal government to get involved in every single issue that occurs,

and to use the foreign affairs powers to do so, I think that is bringing

an imbalance into our system of government that most Australians don't

want.

BARTLETT:

Let's move on to the phones and take some calls.

Hello Kevin.

CALLER:

Good morning.

BARTLETT:

Morning.

CALLER:

Is that Liam. It is Kevin Fay from the Park Owners Association

Liam. I would like to ask the Prime Minister a question on the GST.

PRIME MINISTER:

Yes.

CALLER:

Mr Howard, why do permanent residents in caravan parks,

who own their own home, have to pay GST on their rent while the tenants

of residential properties do not?

PRIME MINISTER:

Well under the current law as passed, we have a situation

where people in those parks are treated the same as people in furnished

apartments and in long stays in hotels. And what happens is that there

is a five, there is an option as you know as an owner.

CALLER:

That's right.

PRIME MINISTER:

You can either, you can either charge a 5% GST and claim

all your input taxing, or alternatively you can chose to be input taxed,

in other words, no GST at all but you don't get your inputs back.

Right?

CALLER:

Mr Howard, I think you misunderstood me . . .

PRIME MINISTER:

No, I haven't. I am sorry, but I haven't misunderstood

you at all. I know precisely the issue you're raising. And the point

I am seeking to make is that if you want to alter it which your question

implies we should do, that will not in anyway be to the benefit of people

who rent on a long term basis, caravans in caravan parks. They will be

no better off, and the idea that they would be better off if we did away

with that option is just wrong.

CALLER:

Mr Howard, with respect, let me explain again. I actually

and thousands like me actually own our home, we actually live in a park

for which we pay a rent on each week. So, we're not renting a caravan,

we're not . . .

PRIME MINISTER:

Yes, I understand that.

CALLER:

We own the dwelling. Now, what we're saying is that

we are being subjected to a GST when other residents, and residential

properties are not. We are not the same as furnished apartments, we are

not. This is our home.

PRIME MINISTER:

Yeah, look, I do understand that but it doesn't

alter the fact that if we did what you want us to do, and that is to change

the existing arrangement, you would not be any better off.

CALLER:

Why not?

PRIME MINISTER:

Because the impact of the change you have in mind would result in the

people to whom you pay the rent being on an input tax bases and that could

have some impact on your rent and therefore you would be no better off.

BARTLETT:

Lets move on, Derek, Good Morning.

CALLER:

Good morning Liam, good morning Prime Minister. Welcome to Perth

PRIME MINISTER:

How are you?

CALLER:

Not too bad. May I call you John?

PRIME MINISTER:

Please yourself.

CALLER:

John, in regards to the GST on the first of July (inaudible) income tax

cuts and the (inaudible) GST. Can you explain to me and the listeners

at the end of the day, that this achieves a revenue neutral situation

regards to the Federal Governments tax take. Will they actually be taking

less money from the people of Australia or what a lot of people believe

will it be a tax bonanza.

PRIME MINISTER:

No. The Federal Government will in fact be delivering a major reduction

in the tax burden. There will be less revenue collected. I mean one of

the things that has been overlooked about this whole tax reform is that

it will result in a reduction in the tax burden. There will be a twelve

billion dollar cut in income tax and the average family will be $47 a

week better off.

BARTLETT:

So what are you saying Derek? You want to know if the Federal Government

is taking more or less?

CALLER:

I want to know if they take more or less. John is this policy taking

less?

PRIME MINISTER:

Yes.

CALLER:

So what people of Australia will have to pay the price with regards services

in regards to hospitals, education and welfare and (inaudible).

PRIME MINISTER:

Well they will actually get better services because the states will get

over time, over time, over time, the states will get the benefit of the

rise of the GST revenue, but of course we have used some of the surplus

accumulated to help fund the tax cuts. We are not denying that. We have

never pretended otherwise but in the end if you build up surpluses, the

public is entitled to get the benefit of that surplus being returned to

them and we have done that in part in helping to fund the tax cuts.

BARTLETT:

Alright Derek, thanks for your call. Denis good morning.

CALLER:

Hello?

BARTLETT:

Hello, how are you?, Go ahead.

CALLER:

Good morning Mr Howard.

PRIME MINISTER:

Good morning, how are you? Derek is it?

CALLER:

No its Dennis. I am talking to you today as the president of the wine

industry association.

PRIME MINISTER:

Yes Dennis, how are you?

CALLER:

Very well thank you. I am sure you would be delighted that my question

is not about the GST. But it is however about another new tax.

PRIME MINISTER:

You are talking about the wine industry are you? Well that is tied up

with the GST Dennis. Let's understand that. The change would not

have resulted were it not for the total tax reform package. So I think

it is a part and parcel of the same thing. So let's not be too coy

about that.

CALLER:

It is a new tax. Anyway, my members are concerned that the basis you

have introduced it which is on value not volume is grossly inequitable.

It threatens their livelihood. It favours the twenty large companies in

Australia that produces 95% of Australia's wine against the 5, against

the 1,200 that produce the remaining 5%. You'll tell me that you

have introduced by the democrats that the three hundred thousand dollar

concession. Let me say that doesn't go with in a bull's roar

of ....

PRIME MINISTER:

Look I know. I do understand the argument and it's an argument that's

been addressed to us at great length by people in the wine industry. There

are a lot of views in the wine industry. In fairness to other listeners,

we are not going to spend all morning talking about one issue. What you're

seeking is a change away from an ad valorem approach to a volumetric approach.

CALLER:

I am not seeking that at all.

PRIME MINISTER:

Well you could have fooled me.

CALLER:

Well I am sorry. I have written to you on this subject, if you answered,

you wouldn't have this confusion. I am asking and our members are

asking and it is supported by the liberal party and the national party

federal conference, the wine makers federation of Australia for an exemption

for the first million dollars of sale in Australia by wine producers.

Now to put that in perspective, two companies alone....

PRIME MINISTER:

Look Dennis, we can't. Look, everybody wants their own exemption.

I mean let's call a spade a spade. I know there are a range of views

in the wine industry. We have already provided in relation to cellar door

sales, quite a generous exemption. You say its not enough. Well there

are a lot of people. I mean I have people in the brewing industry wanting

a change.

CALLER:

Brewing industries are multinationals...

PRIME MINISTER:

Yeah, hang on, it's all very well to say they're multinationals

and use emotive words like that. The reality is that if you look at each

thing in isolation, you can mount a case of change. Of course you can.

11496