Subject:
Unemployment figures; WorkChoices; climate change.
E&OE...
PRIME MINISTER:
Well ladies and gentlemen thank you for attending this news conference. I wanted to make some remarks about today's unemployment figures. Today's unemployment rate came in at the very pleasing level of 4.5 per cent. We remain in a situation where we have a 32-year low in unemployment and that is the greatest human dividend of all that's been delivered by 10 years of very strong and effective economic management. We've now had 12 months of employment statistics since the introduction of WorkChoices and whilst it would have been too early three months, six months, even nine months after the introduction of WorkChoices to make any definitive claims about the impact of WorkChoices, and most particularly the abolition of the unfair dismissal laws on unemployment in this country, I do believe, after a year, and a year in which 276,000 new jobs have been created, it is reasonable to assert that one of the contributions made to this spectacular growth in employment has been the removal of the unfair dismissal provisions under WorkChoices. There is no doubt in my mind that there is a greater incentive for small business to take on new staff now that the threat of unfair dismissal action has been removed. The other, often not remarked feature of the employment market since WorkChoices has been in the increase amongst the new jobs, in the percentage, accounted for by full time work. In the last 12 months, of the 276,000 jobs that have been created, 96 per cent of them have been full time, whereas in the two previous years the full time statistics were 61 and 56 per cent. Now there's a reason for that, and the reason is not only that people feel freer to make commitments in relation to new employees because they realise with the removal of the unfair dismissal laws they can, if things don't work out, let somebody go, but the other reason is that the old unfair dismissal laws in fact provided an incentive for people to be employed on a casual basis because the old unfair dismissal laws did not apply to somebody except where that causal person worked regular and systematic hours for more than 12 months. And so you've had a situation where, ironically, our Labor opponents, who have argued that we have led or produced policies that have led to the casualisation of the workforce, are not only wrong in that claim because the percentage of casuals as part of the overall workforce has not risen under this Government, and has in fact amongst the newly employed since WorkChoices was introduced, actually declined; but ironically the very policies that they espouse would, in fact, create greater incentives for casualisation of the workforce because if the old unfair dismissal regime were reintroduced, or some artificial variant of it, there would be a greater incentive to employ casual people. So I believe after a year of WorkChoices it can fairly be asserted that the removal of the unfair dismissal laws has made a very positive contribution to a reduction in unemployment. Unemployment was 5.1 per cent when WorkChoices was introduced, it is now 4.5 per cent and it has hovered around that level for some time. I can't give guarantees about its future level but I think it is fair to say after a year that a reduction of that magnitude in unemployment and the generation of 276,000 new jobs - 96 per cent of them of which are full time jobs - does represent a significant human dividend from the removal of those unfair dismissal laws, a positive benefit, a very significant benefit for people arising out of WorkChoices and one that after a year it is reasonable and not too premature to make that claim.
JOURNALIST:
Mr Howard what about other elements of WorkChoices, did that have any role do you believe, like AWAs, or is it just the unfair dismissal provision?
PRIME MINISTER:
Well I think the unfair dismissal laws have made the greatest single contribution to reducing unemployment. I think AWAs provide other benefits, they provide a lot of additional benefits for workers, they provide a lot of additional opportunities for higher productivity, but it was always my opinion that the unfair dismissal laws frighten small business out of taking on more staff, and now that those unfair dismissal laws have been removed, people are being taken on and I do think the labour market is being cleared in a way that wouldn't have happened without the WorkChoices changes. And if you look at those statistics for the long term unemployed, the way in which they have fallen, I quoted some statistics for the period through to January of this year in a speech a couple of weeks ago, and it had shown a drop of about 25 per cent in the number of long term unemployed. Now I'm not directly attributing all of that to WorkChoices, but I think the climate of fear that existed previously in relation to a small business not being able to let somebody go who wasn't working out, now that that has been removed, I think they are willing to take on more staff and I do think it's fair to make the claim that WorkChoices has made a contribution.
JOURNALIST:
So Prime Minister there's no secret plan according to some reports?
PRIME MINISTER:
No secret plan.....
JOURNALIST:
According to some reports over the weekend....
PRIME MINISTER:
No, well I don't know where they came from.
JOURNALIST:
Prime Minister, in the period in the year after unfair dismissal provisions were introduced in 1994 there was employment growth of four per cent and how do you explain that?
PRIME MINISTER:
Well how I explain that is purely due, Mark, to the fact that in 1994 the economy was slowly coming out of a very deep recession which had seen more than a million people unemployed.
JOURNALIST:
Prime Minister given the strength.......
PRIME MINISTER:
....I remember that period very well and that is precisely what was happening and there was inevitably going to be a rebound because we hit almost 11 per cent unemployment. I don't think it had any connection at all to the introduction of the unfair dismissal laws.
JOURNALIST:
Given the strength of the labour market, Prime Minister, are you not concerned at the continuing...that the level of angst that is in the community about WorkChoices and how do you plan to address that in the lead up to the election?
PRIME MINISTER:
Well what I do in relation to WorkChoices is to constantly point out the benefits, and there's no greater human dividend from good economic management than to give people a job. And fairness is at a 32 year high, if you think that fairness in the workplace starts with the chance of a job - as another Prime Minister somewhere else very strongly asserted - and I deal with the facts. And I know there's a campaign being waged against WorkChoices, it's a self interested campaign, it's not a worker driven campaign. It's a union boss's driven campaign that is designed to unsettle people. Somebody mentioned a moment ago an article in The Sunday Age, there was a unnamed union official who said something to the effect, and I quote from recollection, this is not about facts, this is about creating a sense of fear. And that is precisely what some of the union advertisements are designed to do and what I'm doing today is pointing out that so far from people being fearful of WorkChoices, WorkChoices have in fact contributed very significantly through the abolition of the unfair dismissal laws, have contributed very significantly to a reduction in the number of unemployed in our community and I think that's a wonderful thing.
JOURNALIST:
Prime Minister, as each unemployment figures come out, new record in unemployment often gets reported as new pressure on interest rates, picking up on Steve's ...
PRIME MINISTER:
Well you have an opportunity today to turn the tide on that.
JOURNALIST:
Do you find it frustrating that the Government's achievements on the unemployment front are going through an interest rate...
PRIME MINISTER:
I never admit to frustration, I never admit to frustration. I retain my calm willingness to deal on the merits...deal with the merits of issues. I think there is a danger that this community, though, will take low unemployment for granted and imagine that nothing can disturb low unemployment. Well if you want disturb low unemployment re-introduce the unfair dismissal laws, that will push the unemployment rate up.
JOURNALIST:
Is this low unemployment rate sustainable, economically?
PRIME MINISTER:
Well I am hopeful that these figures can be maintained. We have been around this level now for some months and as I said a moment ago, I didn't make extravagant claims about the contribution of WorkChoices after three months or six months or nine months, but I think after 12 months it's fair to say that WorkChoices has been responsible at least in part for the 32-year low we have unemployment and I think that's a fairly conservative, calm claim to make given the length of time that's elapsed since the introduction of WorkChoices.
JOURNALIST:
(inaudible) what happens if the economy turns down?
PRIME MINISTER:
Well I am working on it not turning down and I invite you to, you know, not you but I invite the people of Australia to retain a government that can stop the economy turning down.
JOURNALIST:
I guess I am making the point that if it's easier for employers to sack people that's likely to make them take them on, but in a downturn that's likely to make unemployment...
PRIME MINISTER:
Well I think if you have a more flexible industrial relations system you can handle a downturn better economically and I think from the workers' point of view, but the aim of government should be to prevent a downturn and there is no reason with careful economic management by experienced people there's no reason why we should contemplate a downturn. I mean this country has every reason to believe that if the right people with the right experience continue in charge of our economic affairs, this country has every reason to believe and expect a continuation of the strong economic conditions we now enjoy, and that is our aim. I mean my aim over the next term if the people of Australia return us at the end of the year, my aim is to make sure that we maintain the current momentum of economic growth and as we come out of the drought, as I hope we do, at an even higher level. So I am not factoring in, I mean it is a council of defeatism and despair to counsel in the prospect of an economic downturn, my responsibility is to stop that happening, I don't believe in recessions you have to have, I believe in continued economic prosperity you are entitled to have.
JOURNALIST:
Prime Minister why won't you allow the Office of the Employment Advocate to release another analysis of workplace agreements?
PRIME MINISTER:
Well for the reason that Joe Hockey's outlined constantly in the House.
JOURNALIST:
What's that?
PRIME MINISTER:
About comparisons of apples and oranges.
JOURNALIST:
Can you understand the reluctance of industry groups to sort of heed your call to help promote WorkChoices in the lead up to the election because they don't want to be seen as politically partisan?
PRIME MINISTER:
Look I am not going to get into a commentary on them, I made an observation and I don't retreat from that observation. I made the observation that those who believe in WorkChoices should be willing to fight for the preservation of WorkChoices, now that's a general observation I make, I am not singling out anybody, I am not reacting to anything but I am not retreating from the observation.
JOURNALIST:
Prime Minister the unions are trying to stop local councils from moving their staff on to WorkChoices, will the Federal Government be throwing its weight behind the councils to try to help them in the courts?
PRIME MINISTER:
Well I gather the Minister is getting some legal advice on that, we are not taking sides. I mean people are entitled to use the law and the way I read it is that there is some constitutional doubt about the position of councils there would be no constitutional doubt about the position of councils if state governments handed over their powers, but I don't think any state Labor governments are in a hurry to do that. Although I note that Mr Bracks has never sought to re-trace the steps of Mr Kennett in relation to that, but this matter may end up in the courts. But I read the reports this morning I don't know much more than that but I do gather the Minister is getting some advice, we are not seeking to take anybody's side so much in relation to that, but clearly if the matter needs to be resolved well it should be resolved and there may be an interest in having the matter resolved constitutionally.
JOURNALIST:
Prime Minister your Environment Minister Malcolm Turnbull's in Brisbane today and launched a report talking about piping water from northern New South Wales to Queensland, a lukewarm reaction from the states, do you think they've got legitimate concerns about this, especially from New South Wales on environmental grounds?
PRIME MINISTER:
Well I think what matters is not the states, I think what matters is the people of south-east Queensland and I think this proposal ought to be carefully considered, and we have to, if we are ever to solve our water problems, we have got to stop automatically thinking in terms of the reaction of jurisdictions and think nationally. As far as I am concerned, I don't care very much about state borders and if there is a plan that will take water from one part of Australia to another, and solve a problem on terms that are fair and equitable to people in both parts of the country, well I am in favour of it and I am not particularly sensitive to state feelings, I am very sensitive to the problems of the people of south-east Queensland and if this proposal is good and I ask two premiers concerned to put aside the fact that the idea has been floated by a Liberal minister. I mean heavens above we've got to try and think of outcomes for people and benefits for people and the report as I understand is being compiled by the Snowy Mountains body which is very experienced concerning these things and let's have a look at it. I mean let's be broad-minded enough instead of having a knee-jerk reaction, oh you can't take New South Wales into Queensland, to heck with that it's Australian water. It's not New South Wales water, it's Australian water and I think Australian water should be available for Australians on terms that are fair an equitable to people in all parts of the country, that's my view.
JOURNALIST:
Prime Minister, given that you are warming to the notion of...
PRIME MINISTER:
Warming?
JOURNALIST:
Warming to the... yes well it's linked, you'll see. You are warming to the notion of giving carbon a price, do you still believe that the premiers' proposal for a carbon emissions trading regime would be devastating to the economy and destructive of jobs?
PRIME MINISTER:
Well that was an observation I made in relation to specific targets.
JOURNALIST:
Is that your view now?
PRIME MINISTER:
No my view has not changed in relation to those specific targets, what I said was that committing yourself to a 30 per cent reduction by the year 2020 in greenhouse gas emissions would be very bad for the economy and would destroy jobs. I find it amazing that people including Mr Rudd are committing themselves to targets and then hastily saying I am going to get somebody to tell me how difficult the problem is. I mean if you don't know how difficult it is how on earth can you responsibly commit yourself to a target? What I have said, and I stand by it, is that there is a case for a carbon price. What that should be is something that in the Australian situation will emerge in part from the task group that is now doing its work and it will also pay some regard to what is happening overseas. But the remarks I made that you quoted were not attached to carbon pricing, they were attached to particular targets.
JOURNALIST:
Why is it the South Australian Liberal Party policy to have a target by 2020?
PRIME MINISTER:
Yeah well I think that was a policy of another period in relation to the South Australian Liberal Party, but even if it still remains their policy, I do not agree with it, and it's wrong. I don't agree with it. I mean occasionally, you know, state policies disagree with federal policies, but our policy is very clearly of a Liberal Government, our policy is very clearly as I've enunciated it.
JOURNALIST:
Prime Minister will we move closer to a national emissions scheme at tomorrow's COAG given climate change is high on the agenda, and further to that, what are you hoping to achieve from tomorrow's meeting on the climate change agenda?
PRIME MINISTER:
Well I, as always, want practical outcomes that deliver benefits for people rather than high blown statements with a tinge of religious fervour. I think it's important that we actually try and deliver some outcomes; and you say will emissions trading be closer this time tomorrow or tomorrow afternoon? I think the determinant in relation to emissions trading in the near future clearly has to be the outcome of the Task Group because the Task Group which is chaired by the Secretary of my Department includes a lot of industry representatives and I think that is the real driver in this area and we also have to have regard to our economic position. I mean I am not going to embrace policies here that damage the Australian economy and destroy jobs. I've said that before and that's why I'm not going to irresponsibly say we'll cut emissions by 30 per cent by the year 2020 which is Mr Rudd's policy. I mean I'll embrace policies that make a contribution to reducing greenhouse gas emissions in a proportionate, measured way that don't destroy Australian jobs, particularly in the coal industry.
JOURNALIST:
You've spoken to Mr Bracks about COAG and presumably about water? Do you believe you're closer to getting agreement with Victoria on the $10 billion plan?
PRIME MINISTER:
Well I remain quite positive about that and I think it's in everybody's interests and I noticed that this morning the Victorian Nationals put out a statement saying that they were now completely satisfied after discussions with Malcolm Turnbull, they were completely satisfied and they thought the Victorian Government ought to sign up to the plan. I hope Victoria signs and I remain optimistic that we can resolve outstanding matters soon.
JOURNALIST:
Did you offer further assurances to Mr Bracks to protect Victorian irrigators, which is essentially at the heart of the issue?
PRIME MINISTER:
Let me put it this way; the discussions have progressed between the two Ministers and we haven't offered any special deals. I mean any assurances we provide to Victoria will be consistent with the framework of the agreement. It's in everybody's interest. You can't make this work without Victoria, I want to make that very clear, it won't work. It will be like a three-legged horse if you don't have Victoria and I want it to work, the rest of the country wants it to work and I think deep down Mr Bracks wants it to work. And I hope you know, the better angels of his nature on this subject prevail.
JOURNALIST:
Yesterday you defended the broadcaster Alan Jones...
PRIME MINISTER:
Yes I did.
JOURNALIST:
By saying that he represents the views of many people. Do you endorse the views of the people the he was representing that he read out at the time of the Cronulla riots?
PRIME MINISTER:
Look, he represents the views of a lot of people on a lot of issues. I haven't read all of the transcript of that finding or anything, but I make the point that I made yesterday; and that is that he's a very good broadcaster. I don't believe that he's an agent of prejudice and discrimination in the community as some have implied, and he, on a lot of subjects, articulates a lot of views. But I normally, if I want to transmit my own view on something, I normally do that by somebody asking me