Subjects: Reserve Bank announcement on credit cards; Unemployment figures; Fremantle Barracks; Spy Plane; petrol prices.
E&OE................................
JOURNALIST:
Prime Minister if we could have a quick word about the Reserve Bank?
PRIME MINISTER:
Yes, certainly.
JOURNALIST:
It's taking steps to re-regulate interchange fees, would this be enough to push down credit card costs?
PRIME MINISTER:
Well I welcome the action taken by the Reserve Bank. You will remember that the ACCC referred this issue to the Bank and the announcement today is a demonstration that the Reserve Bank is willing to use its power and its authority to act in the interests of consumers. The question of what impact this action has on fees is too early to speculate about, but they're asserting a role which is welcome and it does indicate a willingness on the part of the Bank to act as it should in the interests of consumers. And I would imagine that people will generally welcome this decision, it reminds the Australian public that although we live in essentially a free market, open economy that there is still a role for sensible regulation where there's a clear public interest established and there is certainly a public interest in relation to this issue. And I very strongly endorse what the bank has done.
JOURNALIST:
The jobless rate is down by 0.1%. How confident are you that that will remain the case?
PRIME MINISTER:
Well I'm not going to commit myself to a particular figure, but looking at some of the doom and gloom predictions we've had from various irresponsible quarters over the past few weeks, it's not a bad figure. I don't want to put it any more strongly than that and I can't guarantee what it's going to be in the future but it's not a bad outcome, there's still a growth in full-time jobs. We have an unemployment rate now that is still dramatically lower than what it was five years ago when we came to government.
JOURNALIST:
. exceptional circumstance funding to WA farmers.
PRIME MINISTER:
I saw them this morning and I undertook to do what I can to expedite consideration of that matter by the relevant committee. There was an exceptional circumstances declaration made in relation to a large area a few months ago and what is being sought here is an extension of the area. We only got the application at the end of March, the 26th of March, and I'll make sure that a decision is made as quickly as possible.
JOURNALIST:
Do you think they have a case?
PRIME MINISTER:
Well I haven't examined the detail of it and it's really not very helpful of me to speculate when I haven't read the document.
JOURNALIST:
Mr Howard, on the spy plane crisis, it appears to be over. Could Mr Bush have diffused the situation a bit earlier if he had said sorry?
PRIME MINISTER:
No I don't think you can criticise what the President has done. I think the President has handled the issue with a great deal of patience but also considerable strength.
JOURNALIST:
Mr Howard, on the banks, are there any other areas of banking that you would like to see the RBA intervene over?
PRIME MINISTER:
I don't have anything that immediately comes to mind but the best thing you can have with the banking system is competition and the changes we made that helped the mortgage originators in providing more competition in relation to housing interest rates is one of the reasons why average homebuyers here in Western Australia are paying $300 a month less than they were a few years ago.
JOURNALIST:
This isn't the thin end of the wedge, the reregulation of the banking sector?
PRIME MINISTER:
No, it has just got to be seen as a sensible exercise of the Reserve Bank's statutory authority. We don't live in a world where you either have to have total regulation or no regulation at all. What you need is an economic environment where people are essentially allowed to operate freely but where there is a public interest then bodies like the Reserve Bank have a job to do.
JOURNALIST:
The artillery barracks is still causing some concern here. Have you been able to get any further information about it from two days ago? You said you'd look into the matter, there have been meetings here.
PRIME MINISTER:
Well, I did and I repeat that we will honour the commitment made. What has happened is that some sources close to the Western Australian government have tried to misrepresent our position. We made a commitment. That commitment will be honoured in full but some people are trying to reinterpret the commitment to mean something that it was never meant to mean. We will deliver in full on the commitment made before the Western Australian election.
JOURNALIST:
Do you know what that commitment is?
PRIME MINISTER:
Yes, I do know what that commitment is and it is going to be delivered in full.
JOURNALIST:
What's your response to some service stations in the east putting petrol up by about 10 cents for Easter?
PRIME MINISTER:
Well, look, I can't give a running commentary on each and every fuel price in each and every outlet in Australia. I really can't do that. The petrol prices are very high because the world price is high and we need as much competition as possible and we are looking at ways of improving competition but I really can't give a commentary on individual petrol prices in the thousands of outlets around the nation.
[ends]