Subjects: building approval figures; first home owners grant; Aston by-election; family tax and childcare benefits; Aged care, AMA, Timor Gap treaty; research and development.
E&OE................................
PRIME MINISTER:
Well ladies and gentlemen I'll be very happy to answer your questions but can I just start a comment very briefly on the building approvals figures for May that have just come out, they've risen 25 per cent. That's the biggest monthly rise since the series began in 1983. And this is a direct result of the government's action in doubling the first home owners grant for new homes following the figures we got for the December quarter. So very good news, it's a great employer, it employs a lot of people in the suburbs of Melbourne and indeed the suburbs all around the country. Really good news and a great shot in the arm for a great industry.
JOURNALIST:
Do you think investors like that (inaudible)?
PRIME MINISTER:
Well I don't know Jim, Aston is very tough for us, we're behind at the moment and you better believe it, because it's true. We have quite a fight in front of us. But obviously things like that do produce confidence and they will help. But it's quite a tough fight for us. But generally speaking they're really great figures and they're good news for the whole country as well as being good news for the industry in Aston.
JOURNALIST:
Would you consider extending the home owners grant (inaudible) recent figures?
PRIME MINISTER:
Well it's a bit early to start talking about extending something that's only been going for three or four months. But obviously we keep a close eye on that and we're keen to have a very strong home building industry continuing indefinitely.
JOURNALIST:
(inaudible) cut off point of December 31 (inaudible).
PRIME MINISTER:
I'll always be very sensitive to the home building industry.
JOURNALIST:
(inaudible).
PRIME MINISTER:
Well I'm saying we'll always be sensitive.
JOURNALIST:
(inaudible) with (inaudible) extend to child care payments?
PRIME MINISTER:
That was always intended to, the child care debts are much smaller than the family tax benefit debts. It was always intended to do that.
JOURNALIST:
How much will it cost the budget?
PRIME MINISTER:
Well the figure that I used on Sunday includes the child care benefit debts as well. It's an aggregate figure so anybody who is suggesting that because it's going to cover those debts as well there's an additional amount involved, they're wrong. We're talking here about denying ourselves an increase to the surplus, we're not talking about running down the surplus.
JOURNALIST:
(inaudible) rather looked like (inaudible)
PRIME MINISTER:
Well we thought that given the very large number involved, we are in a transition to a new system, and we thought it was only fair and reasonable that during this transition year only, we have a larger tolerance. There was always a very nominal tolerance and we decided to have a larger one.
JOURNALIST:
But you were particularly quite adamant earlier last week that (inaudible).
PRIME MINISTER:
Well I don't think there was anything that I said that it is in conflict with the decision that was ultimately taken.
JOURNALIST:
Prime Minister on aged care has (inaudible) crisis like just up the road there's a place called (inaudible) it was saying (inaudible) resources (inaudible) are giving (inaudible).
PRIME MINISTER:
Well I can't speak for individual nursing home without knowing their particular circumstances. I can say that we have increased from something like $2.6 billion to $3.9 billion over the last four years the Federal Government contribution to aged care. We have established a very effective accreditation system. It's impossible for me to know the circumstances of each individual nursing home. There may be reasons unrelated to what the Federal Government has done for particular situations.
JOURNALIST:
Are you confident that the Timor gap treaty will be signed this week?
PRIME MINISTER:
Well I am confident of that. There was an agreement concluded between Senator Minchin and Mr Downer negotiating on behalf of the Commonwealth. And people negotiating on behalf of the new emerging state of East Timor. And my understanding is that Mr Downer and Senator Minchin will be going to East Timor I think to sign the treaty on behalf of Australia in the next couple of days. I in fact agreed to their travel late last night, so I'm pretty optimistic it's going to take place.
JOURNALIST:
Mr Howard given that Mr Beazley (inaudible) in this area, how concerned are you about the spat between Dr Wooldridge and Kerryn Phellps given that (inaudible) and (inaudible) coming up.
PRIME MINISTER:
Well I'm pleased that the dispute has been settled, we want good relations with the AMA. We have a very good story on health to tell. We've rescued private health insurance. We're contributing 28 per cent in real terms increase to public hospitals around the country. I mean it's a huge increase. We've been very generous to the states on public hospitals and we've got a far better balance. I mean we're putting a lot of extra money into preventative health measures, about seven or eight hundred million dollars in the last budget which is a tremendously positive story to tell. I know it gets criticised a lot but this country's got a health system that's better than any in the world. It may still have deficiencies, but it's a hell of a lot better than comparable systems around the world.
JOURNALIST:
(inaudible)
PRIME MINISTER:
Well just persuading enough people to support us by doing what I'm doing now and meeting people, putting on display a really first class candidate in Chris Pearce, somebody who resonates with the electorate. I mean we are selling the positives of our candidate. We are saying that he's the best person to represent the electorate in Canberra because of his age, his family links, his understanding of the community. He will do it better than any alternative. And we are putting him forward very much as a successor to a very hard working former member in Peter Nugent. It's a tough seat, and we've got the odds against us at present.
JOURNALIST:
(inaudible) next week?
PRIME MINISTER:
I beg your pardon. I'll be coming here again on Thursday and I'll be coming here again next week. So the answer is yes.
JOURNALIST:
Why do you think the odds are against .
PRIME MINISTER:
Why, I don't know. But I don't spend time examining ancient history, I'm more interested in turning it around between now and polling day.
JOURNALIST:
Just regarding research and development, just one question, do you think in terms of Mr Beazley announcement yesterday that your government is doing enough on research and development?
PRIME MINISTER:
Look my message to Mr Beazley I think it's a message of Australians, spare us the spaghetti and meat ball flow charts, tell us what you're going to do and how you're going to pay for it.
[ends]