Subjects: Introduction of the GST, income tax; Christopher Skase; broadcasting of Olympic Games.
E&OE.....
LIEBMANN:
Good morning to you.
PRIME MINISTER:
Good morning Steve.
LIEBMANN:
You fly out in about 10 hours from now for London. Do you depart feeling slightly more relaxed and comfortable than say Friday?
PRIME MINISTER:
Oh yes. I think it's gone pretty well. I do. But I'm by nature a cautious bloke.
LIEBMANN:
So you're holding your breath?
PRIME MINISTER:
Well I am, but I think the Australian public adjusted very well. And the good news Steve is that, the good news is coming this week in the form of lower tax. There's always the case that you'd actually pay some higher prices on day one and then it would be a day or two, or three, or six before your tax cuts arrived. And what people will find through the next two weeks is that they'll be getting their pay packets and they'll realise just how much their income tax has come down. And I hope they will then see the whole thing as part of a whole: some things up, some things down, some things the same in price, and then balanced with a tax cut. Now that for 80% of Australians is what tax reform is about.
LIEBMANN:
You had some nervous backbenchers come Friday, or leading up to Friday. What sort of feedback are you getting from them, have you got from them over the weekend?
PRIME MINISTER:
The same as my own experience, and I was out and about and I talked to shoppers in a pretty un-orchestrated way. And the reaction they're getting is that, well people have taken it in their stride. If anything people are a little surprised that things didn't go up as much. I guess they'd been fed hype about everything going up by 10%, and we've had sort of Chicken Little stories from the Opposition for months. And when the sky didn't fall in and the world didn't come to an end which of course it was never going to do, people are quite pleased. But it is early days yet. But this is a huge reform and I want to thank the Australian community for the way they've taken it in their stride, particularly the shopkeepers, the small ones who don't have the resources and the big bucks, and I think they've done it very well.
LIEBMANN:
That's going to be the big test isn't it? I mean I was going to say to you what are you going to be looking for from here on as the package from your point of view is bedded down? The real test will come in October won't it, when small business who are the core of your constituency has to file its first return?
PRIME MINISTER:
Well that's an important milestone. But the real test was the weekend. I mean, I know you're not doing it but some people keep shifting the test. Mr Beazley originally said the world was going to come to an end on Saturday. He now says it's going to be a slow burn. He said that you couldn't make it fairer and now he's arguing you can make it fairer. I mean the fact is that he's being very negative and I'm trying to be positive and I think the Australian people react well to somebody who's trying all the time against the odds to do something good for Australia.
LIEBMANN:
The Democrats are saying that the focus on tax should now shift to fine tuning this new system. Do you agree that it needs to be fine-tuned and do you anticipate much fine-tuning?
PRIME MINISTER:
Well Steve I think it's a bit premature to be talking about fine tuning two days after it's come in. I mean that really is saying something for the sake of getting a grab up. I mean really, it's only two days. Do we think there might down the track be some fine-tuning? Perhaps. It depends what emerges. But there won't be any changes of any substance. I mean it's here now. I think the Australian people have, they've had a lot of change. But over the next couple of weeks as they get their tax cuts and the increased family benefits they will then realise what an aggregate approach it's always been. It's never been slapping 10% on top of everything else. It's all been about producing a fairer better system and one that gives people lower income tax liability.
LIEBMANN:
But if one month, two months, three months down the track, a glaring inequity emerged would you consider fine-tuning or change?
PRIME MINISTER:
Well Steve we're not a party that will tolerate glaring inequities but I don't think any glaring inequities will emerge. I mean we put a lot of effort into this. We listened to a lot of people. We fine-tuned it before it came in and it's got to be given a chance to work. So far it is working but it is early days and I'm a realist. There could be glitches but I don't think so.
LIEBMANN:
You've indicated your reform agenda doesn't stop here, so what's next?
PRIME MINISTER:
Well a number of things but it's not the right time two days after tax reform's come in to announce it. I think you need a bit more clear air. But in the next few months people will know that the reform agenda of this government goes on. You can never stop. You've either got to go forward or you lose ground. It's a very competitive world out there and you do Australia a disservice if you try and rest on any laurels of early reform, and we won't be doing that. We'll be pushing ahead. I mean we're a strong country now and that's because of reforms we were willing to undertake and tax reform will make it stronger. I mean one of the things I'll be able to say to investors overseas over the next few days is that we now have an Australian economy that is growing faster than the European Union's average, faster than the United Kingdom, about the same as the United States, and faster than most countries in our region. Now that is a very good story and it's a story that will be very attractive to potential investors in this country.
LIEBMANN:
Let me come back though to a reform agenda. Lower income taxes?
PRIME MINISTER:
Well you're getting lower income tax this week.
LIEBMANN:
Well more income tax cuts down the track?
PRIME MINISTER:
Well I don't want to start speculation on that. I really don't.
LIEBMANN:
It would be compelling going to an election.
PRIME MINISTER:
Well there are things other than tax in this life. It's important. Other things are important as well. I think people want a balance in their government. They like lower tax. They also?..
LIEBMANN:
You wouldn't rule it out?
PRIME MINISTER:
Look, I don't rule anything out. I don't rule anything out. But by that I don't think people should assume that it's the only thing I worry about. It's not. There are other things. We obviously have a commitment over time to increase our defence resources and there are other things that's quite important. But I don't really want in the wake of tax reform to talk about it. Although I find it encouraging and interesting that already the spotlight is shifting from tax reform to the future. It must mean that tax reform is going fairly well at the moment.
LIEBMANN:
You've given some of the petrol companies, I emphasise some, a bit of a roughing up since they said that the GST is going to mean higher fuel prices. Are you prepared to get really tough with them if they don't at least hold prices?
PRIME MINISTER:
Well if they behave unfairly, I think that's the best way I can put it, of course the ACCC will have a look at them. So far reports are that petrol either fell a bit or didn't move. I heard some report three or four cents a litre from some company. Well I don't know how they could justify that.
LIEBMANN:
Well in fact the companies are saying that whilst you're out of the country the price of petrol could go up four cents a litre probably, or possibly by midweek.
PRIME MINISTER:
Yeah but they couldn't be arguing that's due to the GST could they?
LIEBMANN:
Well I'm not sure that they are.
PRIME MINISTER:
Well I can't control a movement according to the movement in the world prices of crude oil. I mean the world price of crude oil goes like that and I've got no control over that. No matter who the Prime Minister of Australia we can't control the price that comes out of the Middle East.
LIEBMANN:
Do you regret that promise about petrol prices and the GST?
PRIME MINISTER:
No I don't. I mean so far there hasn't been any movement which you can drive home to the GST.
LIEBMANN:
Can you say this morning, to our viewers around Australia, that under no circumstances will the GST rise from 10% while the Coalition's in power?
PRIME MINISTER:
Well I certainly can.
LIEBMANN:
Unequivocally?
PRIME MINISTER:
Absolutely, unequivocally. There's no way I'm going to promote or support or endorse or benign neglect allow to happen, an increase. That 10% was fixed to the rate that is meant to endure.
LIEBMANN:
A couple of quickies as you depart for London. You probably didn't see the program last night but Christopher Skase is saying that he is innocent of all charges against him, he has no money and your government tried to kidnap him and that government agencies were conspiring to kill him.
PRIME MINISTER:
I'm heartbroken. I didn't see the program but I'm still heartbroken.
LIEBMANN:
Will we ever see him back in Australia?..
PRIME MINISTER:
Well I hope that like anybody else that is accused of sort of those crimes that he is ultimately brought to justice. It's very difficult but I hope he is. And we will continue to devote an appropriate level of resources to bring that about and I know how hard Amanda Vanstone, my Minister, is working on it.
LIEBMANN:
And the suggestion that he has no money at all.
PRIME MINISTER:
Well I think I've given you my answer on that.
LIEBMANN:
There is a report in the British media today that their Foreign Minister, Robin Cook, is going to raise Olympic broadcast arrangements with you when you get to London on the basis that they breach international trade rules. Do they?
PRIME MINISTER:
Well I'll be very interested if he does. It's the first I've heard of it. Completely out of the blue that suggestion. Our broadcast breaches trade rules? I mean I'll be very interested to get a lecture from a European minister about trade rules. I mean the trade rules work very much in Europe's favour already. He's surely not wanting them to work in favour any more. But I'm interested to hear what he's got to say. I don't know what he's talking about to be quite honest. That's a newie on me. A broadcast breaching trade rules?
LIEBMANN:
For non-broadcast rights to the Olympic Games. I'm sorry if I didn't make that clear.
PRIME MINISTER:
Well I'm still mystified and I've not had that put to me ever before.
LIEBMANN:
Have a safe trip.
PRIME MINISTER:
I will. Thank you.
LIEBMANN:
Thank you Prime Minister.
[Ends]