PM: It's great to be out here at Altona with the Premier of Victoria and also with the Industry Minister Kim Carr. The three of us believe passionately in the future of Australian manufacturing.
We also believe passionately in the future of the Australian automobile industry and that's why we're here today with our friends from Toyota.
Because, what we've agreed recently with the management of Toyota in Japan is that from 2010 we'll have manufactured, here in Melbourne, the Toyota Camry hybrid.
This will be a great step forward for the manufacturing industry in Australia. A great step forward for the future of the automobile industry in Australia. And a great step forward in our response to climate change.
Let's be very clear about the facts.
This hybrid will consume one third less petrol and therefore produce one third less emissions. Good for the family budget, good for the environment. And that's why the Australian Government and Victorian Government are backing this project.
Can I say that this has been made possible at the Commonwealth end as a result of the Green Car Innovation Fund. That's something that the Industry Minister Kim Carr has been behind from the beginning. And this Green Car Innovation Fund forms the backbone, a half billion dollar backbone, to our new car plan for Australia.
Our new car plan for Australia has as its core what we do to make greater number and range of fuel efficient vehicles in this country in the future. That's what the Green Car Innovation Fund is all about. That's what our new car plan for Australia is all about. And it begins with this decision to bring in an Australian manufactured hybrid here at Toyota from 2010.
Over to you Premier.
BRUMBY: Thank you very much Prime Minister and if I could just echo the Prime Ministers remarks today. This I think is an extraordinarily exciting decision by Toyota, an extraordinarily positive decision for the motor vehicle industry in Australia.
It brings together the very best in manufacturing with the combined efforts we've got across all of the Governments of Australia to tackle climate change. And as the Prime Minister has just said that the best way of doing that is through hybrid vehicles.
This is a great decision for the economy because it's going to mean more investment and more jobs.
It's a great decision for the environment because its going to mean around one third lower carbon emissions.
And it's a great decision to for families because if your fuel consumption is reduced by a third or your fuel consumption is improved by a third, then of course, your household budget is improved immeasurably as well.
So, good for the economy, good for the environment and good for families.
This is also a great partnership, I think, between Toyota, the State Government and the Federal Government. This investment, this decision wouldn't have occurred without that partnership occurring. And this is probably the biggest single breakthrough I think we've seen in the motor vehicle industry in decades.
If we want to tackle climate change, the best way to do that is through hybrid vehicles. If we want to reduce emissions in the transport sector, the best way to do that is through hybrids vehicles. And of course the next generation of hybrid vehicles, the plug in vehicles, you'll be able to buy your hybrid car, take it home at night, and if you're a subscriber to green power, plug into the power point and your car will be completely carbon neutral. And in terms of these big challenges we've got in Australia at the moment, how we sustain our manufacturing industry, how we tackle climate change, there is no better way of doing this than through the production of hybrid vehicles.
Can I also just say today, as you know the President of Toyota Mr Watanabe is in Melbourne and of course the Prime Minister met him on his visit. I met the President earlier this year in Nagoya in February. I met with the President this morning and today at lunchtime, the Prime Minister, Senator Carr and I will be meeting again with President Watanabe to have further discussions about Toyota and about their possible investments in the future. And we welcome his visit here to Melbourne and we welcome his strong endorsement of the Government support which has been provided for this great project.
PM: Thanks Premier.
Just before we take your questions if I could just add one or two points in conclusion.
As Premier John Brumby has said, this is all about partnership. About partnership in dealing with the future of manufacturing, partnership about dealing with the future of climate change.
The best thing for the country is to have State and Federal Governments working together on this in partnership with industry. There's an alternative, which is just to have a permanent rolling brawl and everyone blames everyone else for nothing happening.
We don't actually have that view.
We think there's a smarter way ahead. We think there's a smarter way ahead for the Australian people, the economy and the environment - and that's to work together.
One other thing on another subject. I noticed the statement today by Mr Alexander Downer on his future. I would simply wish Mr Downer well in his career post politics. The Secretary General of the United Nations and I spoke last night about his appointment as a UN special envoy on Cyprus. This has been the subject of previous discussions between the Australian Government and the United Nations.
I've indicated before to the Secretary General that the Australian Government fully supports Mr Downer's appointment. We believe that this is an important role for the United Nations and we are completely behind Mr Downer's appointment, something I confirmed again last night in my discussions with the Secretary General Ban Ki-moon who currently is in Japan. Over to you, folks.
JOURNALIST: (Inaudible)
PM: Well, this hasn't been formally formalised yet by Mr Downer. I don't know if his letter has yet gone into the Speaker of the House of Representatives. So let's take all this one step at a time.
JOURNALIST: (Inaudible)
PM: Well you know something, as I said, in the 18 months I have been leader of the Labor Party, polls will go up and down on climate change, on political parties. But the key thing is to govern for Australia's long term future.
This requires tough decisions, tough decisions for Australia's long term future. That's what we were elected to do. That's what we intend to do.
JOURNALIST: (Inaudible)
PM: I'm actually not even familiar with the detail of that.
JOURNALIST: (Inaudible)
PM: That's a matter for the independent investigation by the New South Wales police. And politically, I propose not to make comment on the content of that investigation.
JOURNALIST: (Inaudible)
PM: I've got a bit of a noise problem back here.
JOURNALIST: (Inaudible)
PM: Well look, I think the cost of petrol is hurting all Australians and hurting Australian family budgets, which is one of the reasons why for Australian motorists, we're getting behind hybrid vehicle manufacture in Australia.
What's the core reason for getting behind hybrid vehicles? For the future of the environment, for the future of handling the pressures on the family budget, one third less petrol consumption, one third less greenhouse gas emissions. Good outcomes for the environment, good outcomes for the family budget.
JOURNALIST: (Inaudible)
PM: Sorry, say that again.
JOURNALIST: (Inaudible)
PM: Well, we had a very good discussion, Kim and myself, with Mr Watanabe and his executives in Nagoya less than a month ago. And I know he already has developed a strong working relationship with the Premier through the Premier's earlier visit to Nagoya this year.
We will obviously discuss more of the details concerning the 2010 project. But we're also concerned about the long term. What we want is to see long term commitment and investment in Australian automobile manufacturing. Toyota is part of that. I also notice that Senator Carr, would note, that Senator Carr has also been in Detroit and has had discussions also with Ford and GM.
For us, the three of us, we are passionate believers in the future of this industry. And that means working in partnership with the big car companies. We make no apology for that. And we will talk, we will jawbone, we will negotiate, we will get the best deal - hopefully - for the Australian consumer, and hopefully for Australian manufacturing and hopefully for Australian manufacturing jobs.
In the case of hybrids and fuel efficient vehicles generally, the best deal possible for the environment as well.
JOURNALIST: (Inaudible)
PM: Well, we've always said that when it comes to climate change, the economic cost of inaction on climate change is far greater than the economic costs of acting on climate change. That's our starting point principle.
Secondly, we've also said that through an emissions trading scheme we'd be providing support for families, pensioners, carers in adjustment costs. Also providing support to Australian industry for adjustment costs as well.
We have a long term policy development process underway. It will take us through a Green Paper and a White Paper. But do you know something, tough decisions have to be made.
You can either look at your kids and grandkids and say, ‘not my problem, it's all your problem', or we in this generation can act. And my view is, we've got a responsibility to act. But we are going to do it in an economically responsible fashion, and do it in a way which supports working families, working Australians, pensioners and carers on the way through.
JOURNALIST: (Inaudible)
PM: We've said consistently that through our Green Paper process and White Paper process, the scope of the emissions trading scheme would be made clear. Furthermore, what we have said is that we believe the scheme should be as broadly based as possible, and there are clear cut economic and environmental reasons for doing so. And at the same time, we've indicated from the beginning that we will be providing support to families, to individuals, to pensioners, to carers, to assist with cost adjustment. And also, providing support for Australian business.
We've got to do the right thing by the environment, the right thing by climate change, the right thing by the economy and the right thing by the household budget. All of these will require tough decisions. This Government will not be walking away from tough decisions.
Twelve years, the previous Government walked away from this. Refused to ratify Kyoto, said it was someone else's problem, and now, who knows where their position is on emissions trading. Last year they said that petrol should be in, said the Environment Minister on behalf of the Government, this year they say it shouldn't be. Or having, listened to their environment spokesman, it might be. Who knows.
We have a clear cut policy development process on this. And we have been explicit about how it will unfold and that is the process that we will use to unfold the scheme associated with emissions trading.
JOUNALIST: (Inaudible)
PM: Well it is important that we invest within this scheme as described by the Treasurer. But when it comes to renewable energy, can I say, ‘what is our clear cut vision for the future? We want to increase the mandatory renewable energy target to 20 per cent by 2020'. That is what we committed to do. That is what we intend to do.
You see, if you are serious about the climate change challenge, and acting responsibly on the way through, it requires action at multiple levels.
One, a commitment to emissions trading. That is economically and environmentally responsible, a market based solution to dealing with the challenge of greenhouse emissions.
Two, boosting the role of renewable energy through increasing the mandatory renewable energy target. And that is what we are doing and we already have a half billion dollar clean energy fund. That is already existing. And that is in addition to the half billion dollar green car innovation fund. I mean we are active in this space.
Thirdly, there is a big challenge when it comes to energy efficiency writ large. We will have more to say on that in the period ahead.
Fourthly, alternative fuel strategies. Fifthly, public transport. And I am sure we will be engaged in further discussions with the Victorian and other state governments about the big challenge of urban traffic congestion.
Ask yourself this question, how much do people waste each week sitting in unnecessary traffic queues and how much of additional do they put into the environment in terms of greenhouse gas emissions because we have yet to evolve a large long term investment into urban public transport systems with the national government playing its role as well. I think it is time to act.
Those are domestic strategies for dealing with this challenge. Then there is the global strategy and that is why we ratified Kyoto. Very simple reason for that. You can either be at the negotiating table for the future of bringing down greenhouse gas emissions or walk away from it.
Out predecessors walked away from Kyoto, did nothing on emissions trading until five minutes to midnight and now have walked away from it again. Nothing on renewable energy. I think the contrast is clear.
JOURNALIST: (inaudible)
PM: (inaudible) Look the Government has a clear cut policy agenda. Much of our legislation has been blocked in the Senate by the Liberal Party.
We are a Government of responsible economic management. When you have inherited the highest inflation rate this country has seen in 16 years, as we did. When you had 10 interest rate rises in row, as we did at the time at which we formed office, the responsible course of action is to bring in a significant budget surplus to put downward pressure on demand, downward pressure on inflation and downward pressure on interest rates.
That's why we have got a $22 billion surplus budgeted for. Our Liberal opponents who once described themselves I think as economic conservatives are now seeking to blow a $22 billion hole in that surplus.
Again the contrast is clear. They have done that in the Senate up until 30 June. With the new Senate we will be negotiating hard to ensure that our legislative and Budget package gets through.
JOURNLIST: (Inaudible)
PM: Well I think the computers in schools program speaks for itself. I was in Mackay yesterday in North Queensland and I noticed a lot of the incoming criticisms from Dr Nelson on this.
In Mackay, that region, there are three secondary schools who are as of round one of the funding application, have received grants to the tune of something like half a million dollars to bring in 500 computers. And two Catholic schools, one Government school. When I spoke to the principal of one of the Catholic secondary schools there, St Pats in Mackay, he was delighted.
So when the Liberal Party come to us and say, that this is a fraud, I would ask Dr Nelson to go to each one of the principals of the 896 secondary schools across Australia who have been allocated grants in round one of this program, and say to each of them that this is a fraud.
But let me tell you, they don't think it is. They think it is practical help to assist schools with bringing our kids into the digital revolution of the 21st Century.
On the negotiations with the states as Premier Brumby and I know, there is a period that lies ahead of us over the next three to six months to work out our respective roles in terms of additional investment responsibilities on the part of the Commonwealth.
We said that in the Adelaide COAG meeting. The process continues and we are confident we will get a good outcome on it. Good for the kids, good for the Federation.