PM RUDD: Welcome and it's good to have the Prime Minister of Timor-Leste with us here on this wonderfully warm Canberra morning. It's always a pleasure to have our good friend Xanana Gusmao with us in Canberra.
Australia's national security interests require that we have a good relationship with our near neighbour East Timor, that we have a stable East Timor, that we have prosperous East Timor and that we have an East Timor anchored into a strong path for development for the future.
What we have with the Prime Minister is a strong leader who has acted decisively in response to the terrible event which unfolded in East Timor in February this year.
Most recently of course I have caught up with President Jose Ramos Horta both in Beijing and earlier during the President's visit to the Papal mass in Sydney and it's good to see that the President has recovered from the terrible assault on his life.
Those events in February were a reminder about the great challenges in building this new democracy in our region and what I've said to the Prime Minister this morning is that Australia will be secure, long term reliable partner with Timor-Leste not just in the months ahead, not just in the years ahead but in the decades ahead.
Geography has deemed that we are neighbours and the good thing is we are close neighbours and I believe I can say Prime Minister we are also close friends.
Also today the Prime Minister and I discussed the future of our education training and employment relationship. This is important because of the challenges which East Timor faces in improving its investments in its human capital, both within its public sector and across the general economy and then generating employment in that economy to take newly trained personnel.
We've agreed to launch a joint education training and employment initiative which will come back to us with specific recommendations for action by year's end. In particular what we are looking at is the needs in the Timor-Leste public sector and its public service for an intensified training program, grassroots, middle level and senior level in order to make sure that East Timor is properly equipped to address its challenges for development. And that applies I think particularly given the size of the investment fund which East Timor has already secured for itself to fund part of its economic development future.
As part of that initiative also we are looking at specific assistance with the development of East Timor's national economic infrastructure plan. That is due for unfolding during 2009. There is intense work to be done on it still and one of the initiatives also within the framework of this joint education, training initiative is to ensure that we provide additional high level personnel to assist with the completion of that particular infrastructure plan.
Also we are able to confirm today that we've significantly increased the number of East Timorese student scholarship for Australia and that has been a product of direct negotiations between the two ministries and the two Ministers. As well as an on the ground project within East Timor to advance the establishment of a language training centre for English language capability training in Dili itself.
On the economic front we discussed also the challenges for the development of our common resources and we look forward to making further progress on that when the joint commission meets at the end of October to resolve any outstanding differences between the two countries on the protocols which operate under the treaty and secondly on the appointment of all personnel to that body as well.
In terms of food challenges within Timor-Leste also we have agreed that Australia will be providing a further $2.5 million for the seeds for life program that aims to improve crop fields in East Timor through better seed varieties.
The last thing I would mention is of course of defence and security relationship. This has been part of Australia's engagement with Timor-Leste right back to the earliest days of the independence process and through to the present. And literally thousands of Australian defence personnel have served in Timor and done the good name of Australia proud in the work they have done on the ground there. And also working closely with their Timor-Leste counterparts.
Also I'm announcing today that construction has begun on a $5.7 million specialist training facility for the East Timorese military focussing on logistics, communication and medical services. This together with the continued program of cooperation we have between the Australian federal police and their East Timorese counterparts forms a large part of the continuing security policy relationship between our two countries.
Therefore on the questions of education, training and employment in which framework we also discussed the future application Labor mobility arrangements between us as well. Secondly, on the challenges for our common economic interests in the development of the resources in the Timor Sea. And thirdly the further enhancement to our security policy relationship. This has been a most productive discussion which the Prime Minister and I have had together, combined with a long discussion now between a large number of members of his own Cabinet and the members of our Cabinet as well.
Prime Minister.
PM GUSMAO: Thank you Prime Minister. Prime Minister, Your Excellency, ladies and gentlemen. Very good morning, we came and expected snow but I believe we brought the sun from the Timor-Leste to Canberra.
PM RUDD: Thank you.
PM GUSMAO: I would like to say thank you to Prime Minister Kevin Rudd and to the Australian Government and the Australian people for hosting this official visit. Prime Minister Rudd you and your nation have been loyal friends and steadfast partners to the people of Timor-Leste.
You have visited our nation twice since becoming Prime Minister. Once on your first overseas trip and the second to lend your support after the attacks of February 11.
These demonstrated the commitment of your nation to support Timor-Leste on our journey. By being the largest donor of development you as a nation are shaping the Timor experience. Standing side by side in peacekeeping, contributing to our health, education, human capacity and building our institutions. And working with us, not only identify our challenges but to help us deliver solutions and I can tell you the solutions what Prime Minister Kevin Rudd already mentioned to you and it was what we can bring to our country.
Today as we met with the Prime Minister and his Cabinet we we're inspired by the Australian experience, the expertise. Talking about expertise, Prime Minister has promised me to send a team of four or five senior construction experts to help as to make the plan of our infrastructure planning. The (inaudible) commitment to democracy. We are a young nation, we are only six years old and that is why everything that we are doing we do under these principals, under the commitment to self, the people and to go through a democratic way of development.
It is what we as the Government strive to establish and this my friends is what drives us daily in our (inaudible). I'd like to tell you that it was greatly due to your support this year that we as a Government we're able to achieve small, we can say miracles.
When we came to the Government we inherited many social, military and political problems and I can tell you today is better than when we came to the Government one year ago.
Problems of almost 700 petitioners were solved; they finally choose to be (inaudible). The rebels who (inaudible) international security have all surrendered. Over 100,000 (inaudible) who have lived in makeshift camps since 2006 have returned to their homes - 21 camps are closed and almost 50,000 people have begun their lives.
And it is all with the help of security forces, defence forces from Australia and of course the international community.
And I can tell you also that we we're able to pay the first pensions to the elderly, to the disabled, to the infirmed and the heroes of our nation, the veterans. They achieved a new level of national stability, the crime rates are down, the economic growth is up to eight per cent and there is a renewed sprit and vision. And we just ask the Australian Government that the Prime Minister of the nation here, we want to make our state institutions, essentially in the public service, more capable, more professional, more able to respond to the duties that we are committed to.
We are now seeing the fruits of strong performance, strong governance, supported by very young but very dedicated and talented Cabinet from diverse political backgrounds through a coalition. We lead a coalition of five parties, which is a little bit difficult but we are entering in a good way to respond to our differences and to be more committed to serve the people.
That's why here it is a special day for us after one year in the Government and Prime Minister thank you for all the help and we know that as a closest friend and as sometimes (inaudible) a friend of Timor-Leste - Australia and we continue to play a very important role in the building of our State. It is a difficult process of building the State and six year old we believe that with your continued support, we'll make our people more safe not only, but more happy.
And it is what I can say thanks from our heart to thank the Australian Government, the Australian people for the continued support in essentially, this is the first time they say, for support that our President received during his treatment in Darwin and it is due to your personal friendship.
Thank you very much.
PM RUDD: Thank you very much Mr Prime Minister and on a personal note as I said before its great to have to Kirsty here with us as well. It's great to be among friends.
Now if I understand we are to have four questions, we begin with a journalist from Timor-Leste.
JOURNALIST: (inaudible) I work for the East Timor television. I have two questions. The first is, the main problem facing East Timor now is unemployment. Around 80 per cent of East Timor young people doesn't have a job. So what are the Australian Government policy to help East Timor (inaudible) to solve this problem? The second question is, now Timor-Leste and Australia have a big project in Timor Sea (inaudible)
PM RUDD: I'll take those two and the Prime Minister I am sure will add. On the first one on employment, we discussed that a lot this morning. In the six or eight months that the Government of Australia how now been in office and following my visit to Dili in December and to Dili again in February, one of the things that we have done is this - we have begun a youth employment program. And the challenge is this - if you have got unfolding infrastructure projects coming, how do you generate labour intensive employment opportunities for young people, in particular young males, out in rural areas across Timor-Leste.
It is very young population, a rapidly growing population, need to apply jobs, need to find jobs for them. So we are doing action on the training front, but on the employment front Bob McMullan, the Parliamentary Secretary for Development Assistance cooperation has just launched in East Timor, a program aimed at creating 50,000 jobs across East Timor through this youth employment program which is labour intensive work, usually manual work, coming off the back of infrastructure projects.
As part of the joint education training employment initiative that we have just spoken about, to report back to us by years' end, we will look at how we can take that program further, once the funding for East Timor's national infrastructure plan unfolds next year.
On the second question you raised, which is about the joint project in greater Sunrise. The whole question of pipelines and on shore processing that is a matter for the commercial partners. Our job as Prime Ministers is to make sure the intergovernmental agreements are in place and that is the deadline we have set for ourselves to resolve any outstanding matters on that front, both in relation to a protocol for operating between us and on the personnel, to form the full membership of the joint commission to be in place by October.
That is our objective. That is the objective we have set for ourselves. Prime Minister?
PM GUSMAO: I will say that while our friends are trying to train our youth, it is our duty, East Timorese government, to create jobs. That is why we are thinking about how to push the development growing in our country. That is why also that Prime Minister offered me a team of four or five experts to help us to establish the infrastructure plan in our country.
We have to move to the public investment to create the basic infrastructure like roads, ports, airports, bridge, electricity. And it will attract investments and they will create jobs. On the other hand we are thinking that we don't have a good scheme of jobs there. We talk about microfinance, we talk about the possibility to help the small and medium enterprise and eventually agribusinesses. That is why this government is committed to continue to continue to push agricultural production that can start giving opportunities to the youth, essentially to women ,to start making small business on the small and medium size. We have to create the conditions to help them. We have to look at the mechanism that they can be confident that when they start a business they will have it is an overall picture of what we have to do in the few years coming.
About Sunrise, as the Prime Minister said, we also have the same point of view. It will be, it will depend on technical and commercial perspective. As Government what we can do is to establish and improve the mechanism to facilitate the (inaudible) real the decision about this.
JOURNALIST: (inaudible) Guest Workers Scheme (inaudible)
PM GUSMAO: Well we continue to talk about this, to discuss. Of course (inaudible) it will take time. We agreed with the Australian Government, with the Prime Minister that we will discuss how we can participate and how the Australian Government can (inaudible)
PM RUDD: Specifically what we have said is, in the joint education, training and employment initiative, that one of the matters to report back on is this. And that is to be by years' end and possibly earlier in terms of feasibility.
But let's take it from the ground up. There is still some work to be done on this.
JOURNALIST: Mr Rudd, on the Olympics, what do you think the legacy of the Beijing Olympics is for China's relationship with the West and do you think there needs to be increased funding for the Australian Olympians for the next Olympics in London?
PM RUDD: So from the future of Western civilisation to the number of medals next time around. Okay, let me try and sort of steer a middle path up the middle of this.
Look, I think our friends in China have hosted a highly successful Olympic Games.
Let's remember that these Games have been free of violence and this is a very uncertain world that we live in.
The Games also of course have generated their controversy. I don't know of a single Olympic Games in recent history which has not generated controversy of one sort or another. But on the broader question of China in the future, as I said recently in a speech, this is the great unfolding drama of the 21st Century. This is the dawn of the century of the Asia Pacific and one of the big driving forces in the century of the Asia Pacific is the future of China, not just it's economy but also it's international political personality.
So this was very much I suppose the public opening act, but it will be a challenge and an opportunity for us all to engage in. To repeat what I have said elsewhere, the big challenge for Australia is not to just to allow this century to unfold as if we are just passive bystanders, but to actually shape the century.
And that means, when you have got large, new emerging economies and foreign policy and security policy players like China, how do we fashion actively, a culture of cooperation and the habits of cooperation between the major countries and economies of the region.
That underpins the logic of our proposal long term for an Asia Pacific Community. And why we think that is important is that we would much rather have everyone's negotiating energies focussed in that direction rather than to allow any for m of the strategic drift in the reverse direction.
On the other part which is the future and funding for elite sport in this country and Olympic sports, as I said prior to the Olympics beginning, this Government will be long term partners in the significant funding of elite sports - both through the Australian Olympics Committee, through the AIS and other elite sporting organisations.
And we will be sitting down with all of those bodies following these Olympics to work out how that is to unfold.
But a second part of what we will be doing on the sports front as well, and that is elite sports are only ever properly supported if you have got a huge base of community sports program across the country as well. And so for us a parallel thrust is how do we invest effectively across the nation, in getting as many kids as possible engaged in sport from as early as possible, for a whole range of physical and social benefits as well.
And part of it is these kids openly feed into our elite sports programs as well. So we will be doing both of those and doing them vigorously into the future.
Other questions.
JOURNALIST: Mr Rudd what is the government doing in response to the apparent kidnapping of the photographer Nigel Brennan in Somalia?
PM RUDD: We have been actively engaged on this since the news of this kidnapping occurred. We have deployed additional staff from our mission in Pretoria to our high commission in Nairobi, which is handling this case at a consular level.
The DFAT consular officials are providing consular assistance to the family in Australia who have asked, I am simply referring to their request, have asked the media to respect their privacy at this difficult time. This is a sensitive and difficult case, but you need to know that we are engaged at every level on this, at every level on this.
JOURNALIST: Can I ask you also on Sunrise, I am Gemma Daley from Bloomberg, have you been informed of a decision by Woodside and it's partners to rule out processing Sunrise LNG in East Timor? And if they wanted to process in Darwin or through the floating terminal, would you oppose or block development of that field.
PM GUSMAO: Well our position is that we (inaudible) and commercial viabilities after that we will accept any decision. (inaudible)
PM RUDD: Okay, folks thank you for that. And thank you for being at this summery occasion with us all, out here in the courtyard.