Subject:
Unemployment figure; education; workplace reform.
E&OE...
PRIME MINISTER:
Could I just say that the unemployment figure that's just come out at 4.4 per cent is another piece of evidence of just how strong the labour market is. It's another repudiation of the Labor Party's predictions that WorkChoices would lead to higher unemployment. We've now had 326,000 jobs created in Australia since we introduced the new industrial relations system. I also point out that 70 per cent of the jobs created in April were in New South Wales, Victoria and South Australia and that gives the lie to the Labor argument that it's only the resources boom that is responsible for the strength of the Australian economy. And in fact in April there was a slight fall in the number of people employed in Western Australia. Now obviously the resources boom is strong, and valuable, and very important but it's just not the case that the great bulk of the strength of the Australian economy is due only to the resources boom. This is a wonderful reminder of the opportunities for young Australians as they leave school, as they leave tertiary institutions; we have a very strong labour market with rich opportunities for young Australians.
JOURNALIST:
Prime Minister with the tax cuts in the Budget and now these strong labour force figures, any concerns at all that it will put pressure on inflation?
PRIME MINISTER:
No I don't believe so. The real indications in relation to inflation were contained in the latest figures from the ABS; the comments of the Reserve Bank, the Reserve Bank has lowered its own inflation forecast. What matters in this equation, which is obviously relevant to interest rates, is inflation. And what the Bank has said is that inflation is likely to be lower rather than higher in present circumstances and I don't believe for a moment these figures or anything in the Budget alters those equations. We're not complacent and you've always got to be careful not to overheat the economy. But there was nothing in the Budget that overheated the economy, the tax cuts were affordable, we still have a very big surplus and our education investments are laying aside money to improve the productive capacity of the economy years into the future.
JOURNALIST:
What's your response to some of the states who don't really like the idea of handing over university...control at universities?
PRIME MINISTER:
Well the most important thing for universities at the moment, by far, is the $5 billion Higher Education Endowment Fund. It's obviously the case that we fund, and the Federal Government funds the universities and many people including university administrators see it as rather anomalous that the Federal Government should fund and the states should continue to regulate universities. There is something there that leads to unnecessary red tape and it's an issue that we will discuss with the states.
JOURNALIST:
What about Mr Rudd? Labor is saying it's going to reconsider its opposition to full fee paying places?
PRIME MINISTER:
Well Mr Rudd apparently has come out this morning and clarified his position and I am told that what he said was that what he meant yesterday was that he wouldn't require those people who were now on full fee paying courses to interrupt their courses, and he would allow them to continue but he is against any new students being admitted to universities who pay full fees. It sounds to me as if the education union, the academics union have pulled him into line. I mean it is a ridiculous position to oppose full fee paying students provided you make adequate provision for HECS funded places. And according to the Vice Chancellors we have done that, but Mr Rudd seems to have a different policy every day. I mean he had a different policy yesterday than he had the day before and he's got a different policy today than he had yesterday.
JOURNALIST:
Can you outline a few of those policies you expect tonight in his Budget in Reply? You'll be listening closely. Do you expect any surprises or anything like that?
PRIME MINISTER:
Well what Mr Rudd has got to do is to lay out a plan to keep the Australian economy strong and productive and prosperous into the future. He had an opportunity at the National Conference to do that and he failed and he's got a responsibility tonight to lay out to the Australian public how he plans to keep the Australian economy strong. And can I just make the observation that that plan has to include; and while he's in a mood to change policy, it has to include an abandonment of his plan to bring back the unfair dismissal laws because these wonderful employment figures we've got today would not have been possible if we had maintained the unfair dismissal laws that we abolished more than a year ago. I believe that part of the explanation for this very low rate of unemployment is that small business, as a result of the unfair dismissal laws being abolished, has had the courage to take more people on. I think that is one of the reasons, an important reason, why these unemployment figures are so good. We've had 50,000 new jobs created in the month of April. Now that has to be in part due to the greater flexibility that small business has and Mr Rudd is going to end that. I can't understand the logic and it's completely contrary to the longer term interests of the economy.
Thank you.
[ends]