PM: This morning I had a great opportunity to speak on the telephone with President elect Barack Obama. It was a good conversation, a friendly conversation and follows on earlier chats that we have had on the phone through the course of the presidential election campaign.
The president elect and I spoke about the strength of the Australia-United States relationship and our commitment to take that relationship to even greater strengths into the future. We spoke of the common challenges we face and our resolve to act together in dealing on the global financial crisis and also working closely together on the great challenge of climate change.
Strong, creative cooperation between our two administrations in the future. We also spoke of current challenges of security and those which continue to confront our troops in the field in various theatres around the world.
We also undertook to stay in close contact with one another into the future and the period leading up to the inauguration of the new president on the 20th of January. This is a good conversation, it follows on earlier contact that I have had with the President and of course, continuing contact which many of us have had with various members of the Obama transition team in the United States as well.
From my own point of view, I look forward very much to working with President Obama into the future. The challenges we face are great, they are global challenges, they are regional challenges, but I believe that Australia will have a strong friend and partner in this new president of the United States. Over to you folks.
JOURNALIST: Prime Minister did you speak of a numbers commitment with Australian troops in Afghanistan?
PM: I think it is fair to say the US presidential elections occurred two days ago and it is some time yet, in fact more than two months before Barack Obama is sworn in as the next President of the United States.
There is plenty of time to work through the details of our common commitments on Afghanistan into the future. And as I have said before to President Bush and I have said again today to the President elect of the United States, Australia intends to be in Afghanistan for the long haul.
That is a commitment I have made publicly in the past and we remain steadfast with that commitment into the future.
JOURNALIST: Would you entertain increasing that commitment (inaudible)
PM: Well let's look at a few facts there. The first is that of the non NATO country contributing to Afghanistan at the moment, Australia has the highest contribution of all non NATO participants in the Afghanistan war.
We have more than 1000 troops in the field. Secondly we think that is about right. We have got no plans to increase in the future, but there is going to be plenty of time to discuss the new administration's plans on Afghanistan in the period ahead. I look forward to doing that.
As I have said before and I will say again, Australia has stated publicly its commitment and resolve to be in Afghanistan for the long haul. And part of the reason for that is as follows: we must be resolute in dealing with the continued campaign against terrorism and we must be absolutely focussed on the fact that the terrorist threat has not gone away, it is there and the last thing any of us want is for Afghanistan to become a future significant base for global terrorist operations of the type that we saw at S-11.
JOURNALIST: Did you invite him to come and visit you in Australia?
PM: He and I have chatted about these things in the past. This morning was more of a, well it was a congratulatory call on my part and an opportunity to talk about the relationship in the broad. But Barack Obama will always be welcome in Australia but I am sure we will have an opportunity to discuss that possibility when we catch up again.
JOURNALIST: In light of the IMF figures that came out today haven't they shown within two days of your economic forecast being released that your forecasts are too optimistic?
PM: Absolutely not. The projected growth for the Australian economy both by the IMF and in the mid year forecast released by the Treasurer are basically about the same. I think there is a difference of about 0.2 [per cent].
The bottom line is the global economy has suffered a huge whacking as a consequence of the global financial crisis. What follows from that is that the Australian economy is not immune. It will affect growth and jobs as the Treasurer has said before, and as I have said before.
The challenge is this - our future course of policy action. We've sought to underpin positive growth and continued support for jobs in the Australian economy off the back of the $10.4 billion economic security strategy. Furthermore, the Government will have fresh announcements to make on the question of future infrastructure funding. And on top of that, we remain resolved to take whatever future action is necessary to continue to support positive growth for the future.
But I believe in being upfront with the Australian people. This will be tough, it will be hard, it will be difficult. As the IMF confirms, the major economic the world are sliding into a global recession. That's the import of the IMF report today.
JOURNALIST:Will new infrastructure funding be moving in a different direction to the (inaudible) -
PM: Sorry, can you say that once more?
JOURNALIST:Will new infrastructure funding be directed in a different area to the package that you've already announced?
PM: The Government is still finalising our approach to infrastructure. As I've indicated already before, we'll make statements on this come December. And it'll be the first of a number of statements for the future.
What's the challenge with infrastructure? One, building what is necessary for the Australian economy for the long term. Long term economic growth needs. A national broadband network, hospitals, universities, TAFEs, schools, roads, rail, ports - these are things that the national economy needs for the future.
But we also need to do what we can responsibly to bring as much of that investment forward in order to support continued positive growth.
That's the double challenge we face. Making sure it's right for the long term, but also dealing with the challenges we now face coming off the back of this gloomy prognosis from the IMF on the global economy and a global recession across the major economies next year.
JOURNALIST:Just on ABC Learning (Inaudible) Is the Government considering a bailout package?
PM: Well, we take seriously the impact which this difficulty that this company is experiencing has on working families right across Australia and the employees. This series of centres, more than a thousand of them across the country, currently, as I'm advised, provides childcare for a very large number of Australian kids, some 120,000 children across the country, and also provides employment for about 16,000 Australians.
This, therefore, is an important priority for mums and dads, for the littlies, and for the people who work in these centres.
Secondly, that is why the Government has established its own taskforce to work with the administrator and with the creditors to ensure that all that can be done is being done.
The Government's priority is to ensure that all working families reliant on ABC Learning can continue to have access to childcare into the future. That's our base line concern.
This task force, involving the government, involving the Treasury and involving the administrator and involving the creditors, has been hard at work on the detail of all of this and that work continues.
JOURNALIST:What about the staff members who may not be able to get their entitlements over the very important Christmas holiday period?
PM: Well the difficulties that this company has experienced which resulted in the administrator being called in is a major difficult development for those families affected. Let's be completely upfront about that. The practical challenge is to work our way through the problems which come out of this systematically.
The taskforce which is hard at work with the administrator and the creditors is examining the detail of all of this.
As for any further implications which flow from this for employees then the Australian Industrial relations laws would apply and that means that the full provisions of Australian industrial law consistent with the employment agreements which these employees have would need to be honoured.
But I emphasise again the Government takes the impact of this on families very seriously. This has been a huge provider, some 25 per cent of child care places in Australia I am advised, 120,000 kids, 16,000 employees. Therefore that's why the Government has had a taskforce hard at work in very detailed discussions with the administrator and the creditors.
JOURNALIST:Prime Minister in practical terms what will the taskforce be able to achieve that the administrators can't?
PM: Can I say that this is a very complex set of negotiations, complex set of discussions which have been going on for some time and our responsibility to mums and dads is to leave no stone unturned when it comes to ensuring that we can continue to provide parents with this fundamental undertaking - that is, to ensure that working families can continue to have access to proper childcare into the future.
It is difficult work, it is complex work but it is ongoing.
JOURNALIST:(Inaudible) just re-regulating the childcare industry?
PM: Can I say our task right now having inherited these arrangements - a party which was in Government for 12 years before us - is the immediate challenge now. I am concerned right now as is Julia Gillard with what happens with 120,000 kids, thousands of family depending on these centres and on top of that, and on top of that 16,000 employees. That's the immediate task.
What follows from that in terms of the proper regulation of the childcare industry in the future and what further regulation may be necessary, including questions of market concentration, is something for us to address very soon.
JOURNALIST:(Inaudible)
PM: Oh we have had a few chats in the past. But today was all about the strength of the relationship between the two countries.
I'm convinced that we are going to have a first class working relationship with President elect Obama. As I have said before publicly I believe him to be a very good man. I have also said publicly that his message of hope for America is I believe equally a message of hope for the world and the reason for that is that the challenges we all face nationally are truly global challenges.
The financial crisis, climate change, security, these are things which individual nation states need now to work actively in partnership with other countries to effectively resolve and I believe in President elect Obama, Australia will have a good friend and partner.
Thanks very much