PM: In the midst of a global financial crisis we are dealing with three big sets of challenges. One is taking whatever action is necessary to maintain the stability of the Australian financial system. That requires national action and coordinated international action of the type that the Government announced for this double guarantee for the banks.
Secondly the Government also has to be mindful of the implications of the global financial crisis on the real economy and jobs. That's why the Government announced not long ago a $10.4 billion economic security strategy for the future to provide much-needed fiscal stimulus for the Australian economy when our growth and our jobs are under threat, direct threat from the global financial crisis.
And the third is this, the third challenge for the future is to maintain the program of reform for the Australian economy long term. And that means productivity reform and that means building long term productivity growth and that means investing in long term drivers of productivity growth and that means the education revolution. And that's what we are here to talk about today.
That's why we are here in this school community in Brisbane and that's why I have made the remarks I have when I opened this classroom block here at Bulimba State School.
Mr Murdoch has made some comments today about education. Can I say this - that he is right. For a 21st century economy Australia needs a 21st century education system. It means Australia must have an education revolution. And what we invest in our pre-schools, what we invest in our schools, in our high schools, in our TAFEs and in our universities and the quality of that investment including the quality of teaching - unless we get this right we will fall behind the rest of the world long term. So Mr Murdoch's right. A 21st century economy demands a 21st century education system.
An education revolution is our response, investing in the quantity of money that we put in to the education system, the quality of that investment, but also making sure that we are pulling the States and Territories together in such common projects as a single national curriculum.
That's what Australia needs for the future together with a high speed broadband revolution, which will turbocharge education in this country in the 21st century. That is core business for us as a Government, core business together with our responsibility for the general economy and supporting growth and jobs in what will be a difficult, tough and ugly period ahead, and also taking whatever action is necessary to continue to maintain the stability of the Australian financial system.
Over to you folks.
JOURNALIST: Prime Minister if the Reserve Bank cuts rates and people want to blow it all on a punt, which Presidential candidate should they whack it on?
PM: The great American democracy will sort that out within a day or two and both these candidates, Senator Obama and Senator McCain, are fine Americans, they are fine individuals, I have had conversations with both of them and Australia's interests will be well served by the election of either.
JOURNALIST: The CFMEU have been critical of Government today saying they are not doing enough to protect jobs and they have called for a jobs summit, how do you respond?
PM: Well, the $10.4 billion economic security strategy was about supporting growth and jobs into the future. Part 2 of that economic security strategy is our bring-forward of our national infrastructure plan, our Building Australia plan, for December. These are two concrete steps, actions by Government, substantial actions by Government to underpin growth and jobs into the future.
Growth in this economy and jobs are under direct threat from the global financial crisis and as I have said before, the Government stands ready to take whatever other decisions are necessary to continue to support growth and jobs in the future.
It will be tough, it will be difficult, it will be hard, it will be ugly, particularly when you look at the unfolding economic data from around the world and the beginning of a global economic recession.
JOURNALIST: Is that a no to a jobs summit though?
PM: I said the Government remains prepared to take whatever action is necessary in the future and action of the type that I have already described that the Government has already taken with the economic security strategy, action of the type that I have described with the decisions that we will take and begin to take in December on infrastructure, infrastructure investment and actions like that are much more important than having summits talking about actions.
JOURNALIST: As a Brizzie boy would you give some thought to helping restore City Hall?
PM: As a four-year-old I remember being taken up by my mum to the clock tower in the City Hall and surveying from its great heights the city looming beneath it. It's part and parcel of Brizzie, it's part and parcel of Queensland.
I am disturbed by these reports about the state of the building. I have had a discussion briefly on this with the Lord Mayor quite some time ago when he mentioned it in passing.
What I also would say is that the Infrastructure Minister Anthony Albanese has already indicated that we will be establishing a community infrastructure fund in the future. The Brisbane City Council should make submissions to that. This is a council facility, we will want to be helpful but we need to see a submission first.
But for Brisbane and Queensland the City Hall is part of us and we are prepared to play our part but we need to see a detailed submission first.
JOURNALIST: Just back to US Politics, did George Bush really say what is the G20?
PM: The President of the United States has consistently emphasised the importance of the G20 in its response to the global financial crisis. Secondly the purpose of my call to the President of the United States was specifically to discuss the role of the G20 in responding to the global financial crisis and that was the explicit purpose of the call and the President did not make the remarks that have been attributed to him in the article in question.
JOURNALIST:Do you know where that leak came from...
PM: Sorry...
JOURNALIST: ... do you know where that leak came from was it from...
PM: No, sorry...
JOURNALIST: ... you don't know or it wasn't from your office?
PM:... as I said before the President has been clear cut about this, absolutely clear cut and his commitment to the G20 and the role it plays in responding to the global financial crisis. Secondly the purpose of my call was explicitly to discuss the role of the G20 in dealing with the global financial crisis, and thirdly the President did not make those remarks. And furthermore the spokesman from my office underlined that fact in subsequent statements once that particular article was produced.
Let me just add one point, I notice Mr Turnbull jumping up and down about alliance politics. The Liberal party only last year said that the election of Barack Obama would be a victory for Al Qaeda. The Liberal party this year has continued its attacks on Senator Obama through statements by two Liberal party front benchers.
My call on Mr Turnbull and the Liberal party is to apologise to the Democrats and to apologise to Senator Obama for those remarks, for those statements. It is extraordinary that one side of politics could make such extraordinary partisan remarks. I go back to what I said before, Australia and our interests will be well served by the election of either of these individuals, Republican or Democrat, that's a matter for the Americans.
But for the Liberals last year to say that Senator Obama's victory would be a victory for Al Qaeda, that remark has not been repudiated by the current Liberal leadership, in fact this year they have added to those attacks.
JOURNALIST: Can I just clear up that point. Did that leak or was that briefing from your office or elsewhere?
PM: The point about the content of the conversation is as I described. That is, the President in the conversation was absolutely explicit, absolutely explicit, about the role of the G20 in responding to the financial crisis.
On the source of individual stories, you know as well as I do Lane, that there are multiple conversations with multiple people from political offices and elsewhere which lead to the construction of a story.
What I know to be the facts are these.
One, that the President made no such remark.
Secondly, that the purpose of my call to the President was explicitly to discuss the role of the G20 in responding to the financial crisis.
And that thirdly, the President had already been on the record about the significance of the G20 and other institutions in responding to the crisis.
JOURNALIST: (Inaudible)
PM: Well, what happened with the action taken by the previous Howard Government was that you saw the effective undermining of the finances of Australia's universities by the abolition of previous arrangements which basically took a huge funding stream out of the universities. And therefore, an ability for those universities to continue to provide those services. That's the key challenge.
Secondly, the universities have therefore had a gap in their funding.
What have we done to help? First thing we've done to help is this - we have in the Budget brought forward a half billion dollar capital works program, on top of normal allocations to universities, to assist them on the way through. But on this one, we also believed it was necessary to give the universities options, an option to impose this charge. And furthermore, with the flexibility attached that they can make HECS type arrangements with students to pay for it.
But can I just make this point, this is a contribution which goes to the universities, not to any individual student union. And it is entirely at the discretion of the university.
JOURNALIST: If the Reserve cuts interest rates tomorrow, would you expect the banks to pass on the full amount given that they're getting a helping hand through the bank deposit guarantee?
PM: The first thing I'd say is that interest rate decisions are the independent preserve of the Reserve Bank - first point. The second is that the fact that the government has provided the banks, the commercial banks, with a double-guarantee has made it possible for the banks since then to pass on further interest rate cuts to consumers.
And the third is this, after ten interest rate rises in a row during the period of the Liberal Government, recent interest rate cuts have been welcome relief to working families who are doing it tough at present.
Our policy, on the question of any future interest rate cut, is we would expect the commercial banks to pass through any official cut in interest rates as rapidly as possible.
JOURNALIST: Who are you backing in the Cup tomorrow?
PM: On the Cup, well, if you have heard from the year 2s here at Bulimba, they've been checking out the location of the local TAB.
I think the Cup is an important event for all of us and my tip for you all is ‘Zipping'.
You might ask why I've chosen ‘Zipping'.
JOURNALIST: Why have you chosen ‘Zipping'?
PM: Why have I chosen ‘Zipping', Lane?
The bookmakers have it at seventh favourite, and that's no particular reason. But, can I say that why have I chosen ‘Zipping', because, it's time to zip.