PM: Well it's good to be here with the Chief Minister of the Northern Territory, Paul Henderson talking about the future of Darwin, the port of Darwin and the long term economic development of Australia.
Darwin in the 21st Century is going to be very much Australia's gateway to Asia. And if you look at how this city and this port have transformed in recent years and what the potential lies ahead, we can only be optimistic about what we can do in partnership with each other.
Therefore, it becomes a practical challenge about how do we build long term the capacity of the Port of Darwin to support future major projects in this part of Australia. And that is why today with the Northern Territory Government, what we are announcing is a funding of $3.2 million for two significant feasibility studies into the long term expansion of this port.
One goes to channel deepening in the port itself and the second goes to, how do we expand the on berth facilities here within the port to support greater activity in the future. These are important underpinnings of the research which will then need to be undertaken by infrastructure Australia, as Infrastructure Australia considers the submission which has been put to it by the Government of the Northern Territory.
This is practical action on our part in support of what the Northern Territory Government is seeking to do. Long term this is critical not just for the Territory, not just for critical for Territorians but also critical for the National economy. You come up here to the Northern Territory, you come to Darwin you sense automatically, a great deal of optimism for the economic future.
And when it comes to the burgeoning economies of East Asia and Darwin's natural point of access to those economies, where the rubber hits the road is what we can do here at the port and where the rubber hits the road again is, practical proposals such as those that have been put forward by Paul and his Government and our consideration and evaluation of whether Infrastructure Australia is able to support those.
A practical step again is, two immediate feasibility studies - one on channel deepening, the other on, on berth port expansion so that we can look at infrastructure Australia's ability to get behind the Territory Government long term. Over to you Chief Minister.
HENDERSON: Thank you Prime Minister and I do welcome you here to East Arm Port today. It is fantastic to show you the wonderful growth potential that is here.
Today as Chief Minister I am announcing a $100 million investment in expanding infrastructure at the port here in Darwin. This builds on the 08' Budget, I announced $60 million this financial year, in terms of expanding the Port's capacity. There will be a further $40 billion invested over the next two years.
This is a $100 million investment in the Northern Territory's future. The future of the Territory is really wrapped up around the resources sector. And the expansion of the Port of Darwin, the Darwin to Adelaide rail link is really creating the opportunity for resource developments in Central Australia. Driving the economies in regional Australia, providing employments in Central Australia and for Indigenous people.
But those mines and that resource cannot be developed unless we expand the capacity of the Port to give the port the capacity to ship those resources to a resource hungry Asia.
So this is a significant investment today. We have put in a submission to the Infrastructure Australia Fund, seeking a $200 million contribution from the Australian Government and it is great to be here with the Prime Minister today to demonstrate what is happening at the Port of Darwin, the opportunities to further grow the export capacity of the nation through the Port of Darwin and certainly it is an investment that will also return dividends in terms of employment, investment and the resources sector in Central Australia.
PM: And just to conclude, before we take your questions on this and any other subject. So therefore, in a nutshell what you have got from the NT Government is $100 million from it's own resources. Secondly, an application to Infrastructure Australia for a $200 million investment from the Commonwealth Government. And thirdly in terms of practical action now, while Infrastructure Australia works its way through those proposals, is funding for two feasibility studies which underpin this overall project.
One for channel deepening, and one for the actual physical expansion of the berthing facilities here. Over to you folks.
JOURNALIST: (inaudible)
HENDERSON: Oh look I am very confident that we will be able to work through these issues with the Green Paper that the Prime Minister and Penny Wong released last week.
We've had the SEAAOC Oil and Gas Conference here in Darwin last week when the Green Paper was released. I met with all of the major LNG producers (inaudible) last week and obviously there's issues that need to be worked through.
But I believe it is in the nation's interests that we expand the LNG industry in Australia. Certainly as Chief Minister I am 100 per cent committed to seeing the INPEX project delivered here for Darwin. And in terms of globally, LNG being a much cleaner source of base-load energy supplies, it really is an opportunity for Australia to grow an industry that is actually going to contribute to a reduction of greenhouse gasses globally.
I believe we can work through these issues and I am certainly going to be working through a Northern Territory Government's submission to the Green Paper that seeks to maintain the investment in LNG in Australia, particularly here in the Northern Territory.
PM: I will just add to that before taking a further question. That's why the Australian Government is a big believed in the long term of LNG and in the expansion of LNG in the future. And that's why we have already invested a significant amount of money for example in carbon capture and storage, with LNG facilities already from the Australian Government, and we'll be doing more of that.
Secondly as the Chief Minister has just said, through the Green Paper process, we will be consulting the LNG industry extensively across the country. And we are confident that we can find a way forward on this.
Continuing LNG into Australia's economic future, expanding it's role for the reasons the Chief Minister has just outlined, but also working with the industry to draw down its green house gas emissions. You know, you can do all those three things.
That's the challenge. We intend to take that challenge head on for our long term economic interests in Australia and in the Territory, but also doing it in a responsible way, which deals with the challenge of greenhouse gas reduction.
JOURNALIST: Should the LNG industry get free permits (inaudible)
PM: Well what we have said is that, if you look at our Green Paper, we are now in the process of consulting extensively with industry including the LNG parts of that industry.
We believe that there is a way through this in our consultations. If we didn't we would not have already invested upfront significantly in carbon capture and storage technologies.
I am confident there is a way forward through this partnership with the industry. And we are looking for example for submissions from the industry on the specific data requirements we have in terms of carbon intensity, as a proportion of revenue produced from the industry, that is one of the benchmarks that we'll be that we would use in terms of the future use of permits.
But secondly, also the possible application of industry adjustment funds of the type which has been foreshadowed with the climate change adjustment fund.
JOURNALIST: Mr Rudd on inflation, the opposition says the inflation rise yesterday is proof that the Government is not doing it's job but more than that, rather than fighting inflation, decision your government is making is actually contributing.
PM: The previous Government had 12 years to deal with the emerging inflation challenge and instead left this Government with the highest inflation we have seen in this country for 16 years.
That's what we got in the in-tray, day one. Secondly, what we have done since day one is launch our five point plan of attack to deal with the inflation challenge long term. The core of which is a $22 billion budget surplus, which the Liberals say we should simple fritter away.
We have credibility on this question. Our opponents do not. And can I say on the practical impact, for households across the country, practical measures like honouring our commitment for a $45 billion tax package for households. A $5 billion plus package for pensioners and carers, and practical measures such as what we are doing in the housing sector, $2.2 billion worth of measures. And I would draw attention to the fact that we have had the Treasurer and the Housing Minister now release our prospectus for the Housing Rental Affordability Scheme. And that will be a significant investment by us - 50,000 units of affordable rental accommodation nation wide. Large investment from us in partnership with the private sector.
Practical action by us to deal with real concerns on cost of living and a responsible overall economic strategy for dealing with the inflation challenge and problem which our predecessors left in our in-tray, day one.
JOURNALIST: (inaudible)
PM: Well I am simply referring to the basic statistical reality which is that as of seven months ago which is when we assumed the Government, they having been in Government for 12 years, we received in the in tray, inflation at a 16 year high.
That is a fact. No one disputes that fact. Secondly what we've done is not simply say isn't that a terrible thing. We embraced within one month of assuming office a five part strategy for waging a long term war against inflation, the anchor stone of which is a $22 billion budget surplus, as well as strategies for dealing with capacity constraints like this, dealing with exports and the skills shortage as well.
That's a practical way forward, not simply saying that we've inherited a problem and isn't it terrible.
JOURNALIST: (inaudible)
PM: Well it seven months into a challenge which has been emerging over the last decade plus and remember our predecessors received 20 separate warnings from the Reserve Bank of Australia about capacity constraint problems, infrastructure problems and skills problems compounding the inflation challenge. That's the challenge we've inherited, so what have we done in response to that?
One, a budget surplus $22 billion to take pressure off overall demand in the economy. Two, in terms of the skills shortage an $11 billion dollar education and skills investment fund for the future and three we now have a $20 billion Building Australia Fund to be presided over by Infrastructure Australia which is precisely the body to which the Government of Northern Territory has submitted this proposal.
Infrastructure action, skills action and on the overall question of total demand on the economy, action through the budget surplus. Our opponents say whittle down the budget surplus to nothing, don't act on skills cause we the Liberal party didn't act on skills for the previous decade plus and they say basically infrastructure who gives a damn its not our job. Our action plan is quite different.
JOURNALIST: Do think its impacting yet though? Are we seeing an impact of your strategy yet?
PM: Well you know something it takes a while to turn the Queen Mary around. And if its been heading in particular direction for more than a decade, with no action on the fundamental drivers of inflation, then its going to take a while therefore, for us to turn this around.
We have a plan and strategy in place and its going to take a while for it to take effect. On top of that we inherited a domestic inflation problem, the worst in 16 years only seven months ago, and since then a global financial crisis adding to the cost of credit, a global oil crisis adding to the cost of fuel and associated with that a global food crisis which has added to the overall global cost of food, all of which flows into inflation as well.
Global factors out there driving inflation on top of the domestic inflation challenge we inherited from our predecessors and our response is here's a plan of action going forward but its going to be tough and its going to resolution to see it through.
JOURNALIST: (inaudible) alcopop tax has contributed to inflation. What do you make of that claim by the opposition?
PM: Well the Opposition, the Liberal party can say that they are concerned about binge drinking one day and they don't give a damn about it the next. It's a bit like trying to find out what the Liberal party position is on climate change. Its hot one day, cold the next, disappears completely on the day after. But the same when it comes to how you properly deal with challenges like binge drinking.
JOURNALIST: Mr Rudd on your emissions trading scheme, what do you believe is the future of the coal fired power generation industry. Do you think that industry has a future at all?
PM: I believe when it comes to what we categorise in the Green Paper as strongly affected industries, which goes to the heart of coal fired power generation, of course it has a future. That's why we are engaged very much with the industry on the sort of support they will need for their adjustment processes. That's one and that's what's called the Electricity Supply Adjustment Fund, ESAF in the Green Paper.
Point two is this, the best way you can also assist industry and the coal fired Generation sector is by working with them on the next generation of cleaner, greener technologies. Carbon capture and storage, clean coal technology, we put our best foot forward with a half billion dollar clean coal innovation fund, investment fund.
Our political opponents had no such investment going forward, we have. It's the new technologies particularly in CCS. A half billion dollar action from us, more to come and secondly can I say also working in the physical adjustment process through the adjustment fund which is contained within the Green Paper. And its for those reasons we believe there is a viable future for coal in this country.
JOURNALIST: A range of groups in the Northern Territory have called for an inquiry into how the Territory Government spends Commonwealth revenues. Will the Federal Government support such an inquiry and do you have a problem...
PM: I have absolutely no basis for concluding at all that the NT Government is doing anything other than the right thing when it comes to the use of public funds for investment in indigenous communities.
Secondly the NT Government itself some time ago commissioned its own inquiry with the likes of Saul Eslake, part of that inquiry which concluded that some 50 percent of the Territory's commitment of funding to services was being expended on Indigenous Territorians. Thirdly what I've also said is since we've formed the Government of Australia, nationwide every State and the Territories through the Council of Australian Governments process, we are also collecting data based on a principle of transparency of who is spending how much on what. That will conclude in March of next year and we've had nothing but cooperation from the Government here in Darwin in providing that data.
JOURNALIST: Rents up more than 20 percent in some areas according to a new report (inaudible)
PM: What we've released today, well two things. One is we have a housing policy and strategy anchored at present in $2.2 billion worth of programs to deal with first home savers, to deal with rental affordability programs and thirdly also to deal with how to you draw down the infrastructure costs for new housing developments. These programs did not exist before, we have introduced them or are in the process of introducing them in the matter of our first seven months in office.
Secondly the prospectus today has been released by both the Housing Minister and the Treasurer on the new Affordable Rental Accommodation Strategy or scheme for the country. This is important, 50,000 units of affordable rental housing - 20 per cent below on average the market price in partnership with the private sector modelled already on programs which have existed of a similar nature overseas.
That's practical action to deal with problems of rents which are real and are hurting working household right across the country.
JOURNALIST: Mr Rudd just in relation to emissions trading the opposition still hasn't decided (inaudible)
PM: My appeal to Dr Nelson, Mr Turnbull and whoever else may be lining up to lead the Liberal party is climate change requires a responsible long term strategy for the future, not just short term opportunistic politics. At present in the Liberal Party, climate change has become an internal political debate over the Liberals party's leadership. Instead it should be about the long term interests for our economy and for our environment and for our kids.
JOURNALIST: INPEX (Inaudible)
PM: What a perfectly phrased question. As Prime Minister of the Commonwealth of Australia made up of the various States and Territories, can I say this will be a great project for Australia.
What I know also is that the NT Government has put its best foot forward with a first class set of proposals to the project proponents of INPEX. Obviously this will be subject to a competitive process but can I say we are here shoulder to shoulder with the Government of Northern Territory supporting what they want to do with the port of Darwin. That's directly relevant of course to the future long term of projects such as this.
Can I say ultimately this is a project for the nation.
JOURNALIST: You flagged the beginning of consultations over constitutional reforms to recognise indigenous people. Does the Government have a plan for what form that will take, would it be in a preamble and what's the timeline for this reform?
PM: First and foremost, there's nothing new about the fact that the national platform of the Australian Labor Party has said for some time that we've committed to the constitutional recognition of the first Australians. That is not new its been around for a long time. That remains our commitment.
Secondly what I've also said loud and clear is that subsequent to the national apology, that our first priority is closing the gap between Indigenous and non-Indigenous Australians.
And when you look at those specific tasks that we have set for ourselves on education, on health and life expectancy, let me tell you they are huge. We have 25 percent of indigenous Australians living in remote communities, more than 400 of them across the country and the challenges facing each of those communities is different and in some cases massive.
Then we have the 75 percent of indigenous Australians who live in urban Australia. We have a huge problem on our hands in dealing with this. My immediate priority and that of the Government is to put in place systems of measurement, systems of funding and systems of management able to deliver real progress on closing the gap over time.
That occupies the bulk of the Governments thinking right now. On the question that you raise in terms of Constitutional recognition, that will be a process of consultation very much over time and we haven't set our minds yet as to how that will be advanced or progressed. Number one priority right now is closing the gap and taking the first concrete steps in that direction.