E&OE...................................................................................................
Ladies and gentlemen, I have just briefly left the Cabinet meeting to
announce that the Federal Government has decided on the basis that the
New South Wales Government will match the Federal Government's contribution
dollar for dollar, the Federal Government has decided to supplement in
cooperation with the State Government the amount coming under the deed
of arrangement for National Textiles to an amount so that the workers
will receive their full entitlements.
This commitment is conditional on a number of things. The first condition,
of course, is that the New South Wales Government will, as promised, match
the Commonwealth contribution dollar for dollar.
It is also conditional on all parties getting behind and supporting the
proposed deed of arrangement and that that deed of arrangement being approved
without any undue delay so that the funds that will flow from that deed
of arrangement and the action that will occur as a result of that deed
arrangement can be applied towards the realisation of the claims in accordance
with the law including importantly the claims of the workers.
The money will be paid by the Commonwealth Government and the State Government
up front so that there will be approximately $4 million available from
the two governments in effect immediately.
In addition to that and recognising the severe, relatively speaking,
the difficult employment situation in this part of Australia the Government
is also willing to make available training assistance to the retrenched
workers up to the tune of $2 million. This was an element of support that
I mentioned in my discussion with the delegation of workers I met at Williamtown
last Friday.
Can I say that in addition Mr Reith will be putting out a more detailed
statement which encapsulates the things that I have mentioned here but
also confirming the general approach that we are going to take in relation
to our basic payment scheme for the future. And he'll be canvassing
in some detail how we are going to deal with situations of this kind that
might arise in the future.
I have already indicated that I had a particular sympathy for workers
in a situation such as this. It is the obligation of governments to pursue
agendas of economic change and reform because they are beneficial to the
overall community. But it is also the obligation of governments where
people are hurt through no fault of their own as a consequence of that
economic change and reform it's necessary to give a bit of assistance
to those people.
And just as in other circumstances that assistance has been extended
particularly in an industry such as textiles which for many years was
supported by government but is now in the name of broader economic reforms
seeing its protection withdrawn. It is not unreasonable that special regard
by had to those circumstances.
The answer is not to slow down economic reform, the answer rather is
to take particular care that where there are particular victims of economic
reform those people are given a bit of assistance. And it was in that
light that I felt in this particular case having regard to not only the
regional circumstances but the character of the industry and the reform
process that's occurred in that industry, I thought that the right
and proper thing was to try and find a way of ensuring that these men
and women got their entitlements.
Now, the question of a broader basic payment scheme is something that
has to be considered away from the focus, I suppose, of a particular situation
and we must have regard to other factors in relation to that. But this
is an example of where governments should keep up the process of economic
reform but recognise that some people may get hurt in the process and
be willing to help those people. And I think what we have done is to provide
them with genuine help.
We'll be providing about $4 million and the New South Wales Government
about $2 million and I hope that the deed of arrangement can be concluded
as speedily as possible so that these people may, with the assistance
of the two governments, be able to get on with their lives. And I wish
them and their families better fortune in the future and I hope this assistance
from the two governments will help in some way to aid them in that aspiration.
JOURNALIST:
So Prime Minister, is it the case that the National Textile workers are
being regarded by Cabinet as a one-off case or is the principle that you
have applied to National Textiles one that you intend to apply more generally
in terms of the Government's treatment of workers entitlements in
cases like National Textiles?
PRIME MINISTER:
Jim, what we have done is to say we believe there should be a basic payments
approach to redundancy situations wherever they occur. In the case of
National Textiles because of the relatively higher rate of unemployment
in that area and also because it is an industry that's been affected by
economic change a top up over and above the basic approach was justifiable
and desirable.
JOURNALIST:
Prime Minister, [inaudible] in the future if we do have some kind of
national entitlement scheme in place, would other workers that might find
themselves in a similar situation who might be in a strapped region as
well, expect something extra the Government to give them extra consideration
on top of the national safety net. . ?
PRIME MINISTER:
What you should wait Fran is to have a look at Mr Reith's statement
and further comments that we are going to make. But what we've sought
to do today is to crystallise the Government's intentions in relation
to the problem, generally, and also to pay particular regard to circumstances
where because of economic change, you've got to remember that textiles,
clothing, and footwear is an area that was protected for a very long time
and that protection was begun to be unwound by the Hawke Government and
that process has gone on, and it is only fair and proper that we stand
beside these people in that situation particularly having regard to the
difficulties in that region.
JOURNALIST:
Mr Howard, an estimated 20,000 workers a year find themselves under these
circumstances in less celebrated cases. Will you be looking at some of
those to see if they also . . .
PRIME MINISTER:
Well, Catherine, I've stated, Catherine I have stated what we have
decided today and I think that is about all I intend to say at this stage.
JOURNALIST:
. . . undertaking from the New South Wales Government today on your decision?
PRIME MINISTER:
Well, Mr Reith has an undertaking from the New South Wales Government
to match dollar for dollar what we do in relation to the entitlements.
And I am quite certain that . . . well, no I haven't been in touch
with Mr Carr, Mr Reith has been in touch with Mr Shaw and we're anxious
to work with the New South Wales Government in this. This ought not to
be something where the two governments do other than work together very
closely to assist the men and women of the region.
JOURNALIST:
Mr Howard, do you think directors' duties should be tightened?
PRIME MINISTER:
Well, what we've said in the past and what we intend to do, is to
create a new offence, whereby anybody who acts in a way that is calculated
to deprive workers of their entitlements, or part of those entitlements,
then that should be an offence. Now that is a change to the Corporations
Law. Can I say that there is no allegation being made in this case that
that has occurred. But of course this case will be treated like every
other case. It will be treated on its merits. And if there is any fault
claimed well that'll be investigated. But I have to say that there's
been no claim of the breach of the law made to the Government that I am
aware of.
JOURNALIST:
Prime Minister, just to get this clear, is it the case that for greater
generosity on the part of the taxpayers to occur where businesses to go
under, the two criteria are that it be a business which has suffered because
of microeconomic reform, and secondly that it be in an area, the business
be an area of higher than normal . . .
PRIME MINISTER:
I think what you can safely say Jim is that the reason that we have gone
beyond the basic payments approach in relation to National Textiles, is
because of those two reasons.
JOURNALIST:
Inaudible.
PRIME MINISTER:
I am sorry, I can't hear you.
JOURNALIST:
Is the deed of arrangement a certainty. And if it isn't will there
be government, would the government be contributing more?
PRIME MINISTER:
Well, I have said that what we are offering is conditional on the deed
of arrangement being signed. Is that a certainty? Well, as far as we're
concerned, it should be. I would encourage everybody to get behind the
deed of arrangement. I raised that matter with the worker's delegation.
And I mean we are, in co-operation with the New South Wales Government,
we're going to pick up the difference between what is coming from
the company, from the liquidation process, so that they will get their
full entitlements. Now in those circumstances it's highly desirable
that the deed of arrangement be signed. And I would hope that all of those
people who can influence, including the union, will get behind the deed
of arrangement.
JOURNALIST:
Mr Howard, in relation to the GST. Can you guarantee that new car prices
will still fall by 8%?
PRIME MINISTER:
Phil, I can just repeat what I said. And that is as a result of the change
in the tax, there will be a fall, the price of cars will be lower to the
amount I mentioned than they would otherwise have been. It's axiomatic.
JOURNALIST:
. . . petrol pricing in Cabinet today. .
PRIME MINISTER:
Sorry. .
JOURNALIST:
Senator Kemp said this afternoon that the Government would deliver on
its promise that petrol prices need not rise under the GST. Are there
any limits to that promise?
PRIME MINISTER:
Well, I can only tell you that we are going honour that promise.
JOURNALIST:
Well that means that the top price paid in the country will not increase
as a consequence of the GST?
PRIME MINISTER:
Jim, I know what is patently the case. And that is that we are going
to honour our commitment.
JOURNALIST:
So there are no limits to that . . .
JOURNALIST:
So, regional Australia can rest assured that under the GST they won't
be paying more?
PRIME MINISTER:
Look, country Australia is going to do very well out of this tax package.
I haven't spent a week travelling around the Australian bush to see
other than great benefits delivered to rural Australia, as a result of
the taxation package. They will have cheaper diesel. All fuel for business
purposes in both city and country will fall by about 7 cents a litre,
because you will be able to get the GST back as input cost. And I think
that when people see the GST come in and they see the new tax arrangement
I think they're going to be well satisfied. Look, we might, I might
as well make this comment now that we are going to have a scare day, seven
days a week between now and the introduction of the new tax system. We
fully expected that and what has happened over the past few weeks is of
no surprise to me. I want to make it clear that the Government's
commitment to the implementation of the plan in full is absolutely irrevocable,
because we believe that it will benefit Australia. And I believe that
once the new plan is in the benefits will overwhelm the negative campaign
that is being waged by our political opponents. It is easy to run a negative
campaign. It's easy to run an argument. It's easy to run a scare.
It's easy to take a tiny bit of what a minister's said in an
answer in Senate Estimates and say this is outrageous, he is walking away
from the Prime Minister's commitment, when he wasn't doing any
thing of the kind. And I am talking about Senator Minchin. He wasn't
walking away from my commitment. And I don't walk away from it either.
JOURNALIST:
Will people [inaudible]. Is there a chance they will be?
PRIME MINISTER:
Well, the commitment we made in the election campaign will be kept.
JOURNALIST:
Do you have a mechanism worked out for doing that yet?
PRIME MINISTER:
Michelle, just be calm, be assured and be a good faith.
JOURNALIST:
Prime Minister, the National Party Federal President yesterday said she
wasn't happy and surely the National Party, and they are part of
your Coalition, and they are feeling that they have to speak out because
they are concerned about it. Doesn't that concern you?
PRIME MINISTER:
No, it doesn't. Can I tell you I don't....I mean, none of
this is of any surprise to me. I mean, this is the biggest tax change
this country has ever seen and of course you are going to have a bit of
static, of course you are. But people should remember there's $12
billion of tax cuts, cheaper fuel in the bush, cheaper more competitive
exports, lower operating costs, increases in pensions, abolition of provisional
tax, halving of capital gains tax, reduction of company tax. It's
terrific. And that is what people will increasingly focus on. And look,
I expect many news conferences like this. I expect many feisty interviews
on Radio National and 7:30 Report and Neil Mitchell and, of course, it
will go on. But in the end the wisdom and the national benefit of this
terrific taxation reform will break through and there will be sun all
around us.
JOURNALIST:
Prime Minister, does Peter Costello need to follow your lead and get
out into the bush a little more often?
PRIME MINISTER:
Mr Costello is doing a tremendous job as Treasurer and he has my total
support in what is a very difficult and challenging job both intellectually
and physically.
JOURNALIST:
[Inaudible] and your rating has gone down considerably. Is that because
of the static, is it because of the GST?
PRIME MINISTER:
Well, that could be for many reasons Malcolm But look, I have experienced
every point, you know, on the sort of poll odyssey in my 25 years - every
point.
JOURNALIST:
Prime Minister, can you promise the voters...sorry, not the voters
but the private motorists of say Nyngan and Bourke that after the introduction
of the GST they will pay no more for their petrol?
PRIME MINISTER:
What I can promise you is that the Government's election undertaking
will be kept. And now I shall return to my colleagues and my duties in
relation to them. Cheerio. I really must depart.
JOURNALIST:
[Inaudible] new VIP planes today?
PRIME MINISTER:
Today? VIP planes...we haven't discussed that, not unless it's
occurred in the last couple of minutes. See you later.
[ends]