Subjects: Economy, petrol prices, Western Australian election campaign, Queensland election, education, US relations, Christopher Skase
E&OE................................
LEIBMANN:
First this morning to national affairs and with political leaders now back from their summer holidays both the Government and the Opposition are looking towards a Federal Election expected in the second half of the year. Later today, Labor Leader Kim Beazley's going to unveil his party's priority issues for the election. Joining us now ahead of that in the studio is the Prime Minister, John Howard. Good morning to you.
PRIME MINISTER:
Hello Steve
LEIBMANN:
Belated New Year greetings.
PRIME MINISTER:
And you to and to all of your viewers.
LEIBMANN:
Thankyou, Labor is saying, Kim Beazley's saying that their priorities as they roll towards an election will be health, education and living standards, what are yours?
PRIME MINISTER:
Well continuing to provide this country with good Government. And in a year when economic management will be more challenging than it has been for the past two or three years because of some of the unevenness now developing in the United States, providing an experienced group of people to manage those economic challenges a lot more effectively than our opponents. At the moment we face a policy lazy Opposition, they've had five years and have developed no policies. I mean Mr Beazley's going to talk about priorities, the time for priorities has passed, the time for actually telling the Australian people what you stand for and how you would be different if you won the election has long since arrived. And we're just not seeing that response from the Opposition.
LEIBMANN:
So that at the end of the day it's going to be to use that well worn phrase, the economy stupid.
PRIME MINISTER:
Well, not only the economy but the point I make is that because economic growth in the United States looks a bit less even than it has been and because of the strong correlation between economic activity here and in the United States and other developments, it's. managing the economy is going to be a harder task this year than it was last year or the year before. It wasn't easy then, but it's going to be challenging. And any idea that anybody has that anybody could run the economy at the present time should be put out of mind because there are going to be a lot of challenges over the next year in economic management and the quality of the two sides of Australian politics in managing the Australian economy will be more to the centre of the stage this year than perhaps it was last year.
LEIBMANN:
The wild card's got to be petrol prices isn't it? We talked about it the last time you were on our program and here we are your first day back at the office and it's still dominating out there.
PRIME MINISTER:
Well Steve everyone knows why petrol is dear, it's because the world price of crude oil has gone up and we've all seen.
LEIBMANN:
It's not the only reason..
PRIME MINISTER:
It is the reason why it is dearer now than what it was say when the GST was introduced. When the GST was introduced there was virtually no appreciable change. It's gone up over the last six to nine months because the world price has gone up. And this question of, let me deal with it head on, this question of the excise movement in February, we looked at that before Christmas and you're looking at a very minor movement, one and a bit more cents a litre.
LEIBMANN:
Two point three.
PRIME MINISTER:
Well depending on whether you're looking at the so-called CPI, the GST spike or the whole lot. And if you're looking at the whole lot, what's Labor's policy, they introduced it. And they're not pledging to get rid of half yearly indexation so let's not have any cant from them on that subject. Our position is that we looked at that before Christmas and we decided the best way to help in the long term is to put $1.2 billion extra into road funding as that's more helpful. The people will take that into account but we have addressed that issue and that was the decision that we took and we think that, long term, is of more value.
LEIBMANN:
But that's of little comfort to say motorists in Victoria, in Melbourne, who last week saw petrol prices at the pump go from 82 to 92, so there's a ten cent hike and it's still got the two point three cents to go on.
PRIME MINISTER:
The 82 to 92 is due to the fluctuation in the world price, in market conditions. You can't, I can't kid to the Australian people and Mr Beazley shouldn't try and do either. If he fell into office tomorrow he would have to deal with the same volatility in world oil prices. He hasn't promised to get rid of half yearly indexation, I don't hear him saying that. So there's really no difference. They don't have some alternative plan, it's like so many other issues, they just don't have any alternatives, they are a policy lazy Opposition.
LEIBMANN:
A couple of quickies before we go to a commercial break. Has Richard Court asked you to campaign for him in Western Australia?
PRIME MINISTER:
I'm going to the launch next week and anything else I'm asked to do I will but generally speaking Prime Ministers don't campaign on a daily basis in State elections. That election will be determined on State issues.
LEIBMANN:
And what about Queensland? What are your expectations? Is Peter Beattie going to call an election in that state this week? What are you hearing?
PRIME MINISTER:
I don't know. I only know what I read in the papers.
LEIBMANN:
Oh, come on.
PRIME MINISTER:
He doesn't ask me.
LEIBMANN:
Of course he doesn't. But what are your people in Queensland thinking?
PRIME MINISTER:
Well they expect an election to be called any day and there has to be and there will be but just exactly when I don't know.
[commercial break]
LEIBMANN:
Our guest this morning on his first day back at the office for 2001 is the Prime Minister, John Howard. Prime Minister, Kim Beazley says education's one of his priorities. Can we talk about that for a moment? We're watching Universities commercialising their operations, are you concerned that academic integrity is being compromised as paying students receive preferential treatment?
PRIME MINISTER:
I haven't been presented with any evidence of that. If people have complaints they should take them direct to the Universities. I say to those who are making the complaints, if they prove to be wrong you owe the system a great apology. And I know that Mr Beazley's Parliamentary Secretary, Kim Carr is running around with all sorts of complaints. If those complaints are not validated then he's got no role in education in the Opposition as far as I'm concerned. If people have got complaints, and I have seen no evidence to support them, but if they have they should take them to the University. Universities are autonomous organisations. We don't control the universities, we fund them.
LEIBMANN:
A bit more than 50% of them.
PRIME MINISTER:
Yes we do, but State Governments, they are established under State Government charter so their legal authority derives from State Governments and they operate autonomously so I would be appalled if there were preference being given..
LEIBMANN:
If they could convince you that we're watching an education divide develop between the haves and the have nots you'd do.
PRIME MINISTER:
I don't accept that, I really don't accept that. We have a very good University system, it's better than most countries. We should stop knocking the way we do things in this country. It's more expensive to get a university education in the United States than what it is in Australia and we have a better public/private mix in universities as in so many other.
LEIBMANN:
You'll maintain funding?
PRIME MINISTER:
For universities?
LEIBMANN:
For education generally.
PRIME MINISTER:
Oh yes, we've increased it every year for public schools as well as for private schools. We have increased, for example in New South Wales Federal Government help for Government schools is going up at a faster rate than State Government help.
LEIBMANN:
You're due to go to the United States mid year for the 50th Anniversary of ANZUS and obviously, I assume, you're going to meet the new President, George Bush.
PRIME MINISTER:
Well if I go to the United States I certainly will.
LEIBMANN:
Do you believe the position he'll take on trade is going to serve Australia's interests?
PRIME MINISTER:
I'm hopeful it will better than the Clinton Administration. Although I know from past experience that American governments look after their own, as we look after our own. But I hope the new Administration will be more open and I have a very open willingness to explore deeper trade arrangements with the United States, if there's a benefit. But that of course means movement by the Americans on agriculture.
LEIBMANN:
And are you prepared to commit Australia into playing a larger role in managing problems in Asia given the situation with China, the situation with Indonesia. Because obviously the new Administration expects you to.
PRIME MINISTER:
Well we will continue to do what we've done in the past. We'll take a strong prominent role if it's the right thing to do.
LEIBMANN:
It sounds like the Sheriff of the region.
PRIME MINISTER:
We'll take a strong prominent role if it's the right thing to do morally and also if it's in Australia's interest. I see the Americans extending respect to what Australia has done and rightly so because we did take an effective lead. But of course we will always look to our own national interest, as any Australian Government should.
LEIBMANN:
Just finally, is your Government going to get its hands on Christopher Skase this year?
PRIME MINISTER:
I hope so, but the vagaries of international extradition are such, I mean look what happened to Ronald Biggs. With the best will in the world we don't live in one international legal system and all I can say is that if he can be got he'll be got I can promise you that.
LEIBMANN:
Well thanks for coming in on your first day back in the office. Look forward to more of it during the year.
PRIME MINISTER:
Thankyou
[ends]