STANLEY: Mr Rudd good afternoon.
PM: G'day John.
STANLEY: Moving around the country at a pace again-
PM: (inaudible) to the annual conference of the Small Business Council of Australia. Some small business people getting together in Melbourne for their annual conference, talking to them about the economy and us working together with them to try and see business through.
STANLEY: On your message regarding the economy, we had today these figures on business confidence showing it was up in May, some of the commentators saying that that is a welcome increase in business confidence. You said last week we're not out of the woods yet in terms of the recession. Does this give you any thought that we might be coming out of it a bit more quickly?
PM: It's too hard to tell what lies down the track but - and I go back to what I said last week - we're not out of the woods yet but there's two or three positive things which have emerged. One last week as you know we had positive economic growth for the March quarter and we are the fastest growing economy therefore of all the advanced economies in the world, all thirty of them. And so therefore that puts us in a position where we've got the fastest growth, the lowest debt and the lowest deficit of all the major advanced economies. That's good.
The business survey, the business confidence survey you just referred to, it's been going down in recent times, obviously reflective of the global economic recession but with this rise I'm told is the sharpest rise in business confidence since 1989, that's the figures for May and it is now at its highest level since February 2008. So that's okay.
Then we've got some jobs data from the ANZ, job ads, job vacancies in Australia have been going down for twelve consecutive months but on this one that is again for the month just passed, it's stabilised. These three pieces of data I think point to the fact that we're seeing some positive response to the economic stimulus strategy that the Government put in place. Also the response to what small business and businesses generally are doing in the face of the worst economic conditions in three quarters of a century.
STANLEY: The prediction of eight and a half percent for unemployment for the next financial year, does this give you hope that it may be milder than that?
PM: It's still going to be tough, very tough. We've got unemployment data out later this week, I'll be very surprised if unemployment doesn't go up because of what we've seen right around the world. The whole point of economic policy by government at a time of global economic recession is that when the private sector is in retreat, the Government to step into the breach, to step into the gap and to make a difference.
And that's why we've implemented the stimulus strategy phase one through cash payments to make a difference in retail sales and the one and a half million Australians who work there. Phase two, the medium term infrastructure build, the biggest school modernisation program in the country's history, that's starting about now and phase three is long term infrastructure build which is roads, rail, port, high speed broadband, solar energy etc and the overall thrust of this is nation building for recovery. Supporting jobs and small business today, while building the infrastructure we need for tomorrow.
STANLEY: You said earlier today that you chose your own Ministry, of course you unlike most Labor Leaders are able to choose your own Ministry. You said you-
PM: That's because I changed the rule.
STANLEY: You changed the rules that's right.
PM: [inaudible] had been around for 100 years that caucus chose the front bench. I thought we had to modernise and after the last election and when I was elected as Prime Minister I put it to the parliamentary party to change that so now it's my call as Leader.
STANLEY: And you said earlier today, I heard you on Sky News saying that in choosing your new Ministers you weren't even aware which factions they were from, can you seriously say that you chose Mark Arbib on merit and then thought ‘oh actually he's from the right'?
PM: No, no what I was saying earlier today, in response to that question, if you looked across my entire parliamentary party and said where do people come from in terms of those sorts of groupings, I probably couldn't tell you confidently in the case of each person.
In the case of Mark and this is a seriously well talented individual, very bright, very capable - if you've seen his performance so far as parliamentary secretary responsible for Government service delivery and he is therefore responsible directly for making sure that the $28 billion investment in medium term infrastructure I referred to before, schools, public housing as well as energy insulation is happening - he's been doing a fantastic job on that, particularly with the Coordinator General within the Australian Government Public Service - and therefore I believe that based on that and his general skills he was certainly worthy of going to this important portfolio of employment.
STANLEY: If I could pick someone else for instance Bill Shorten was a parliamentary secretary yet he remains a parliamentary secretary and you've had Mark Arbib promoted above him. (inaudible)
PM: Well Bill's doing a fantastic job, that's why I recently gave him expanded responsibilities for the Victorian bushfire recovery as well but he's doing a great job also in the area of disability services. As I said in an interview earlier today as well, in the future I am confident that there will be other opportunities for promotion of other talented individuals.
But we've got Chris Bowen who has now gone into the Cabinet from Sydney, we've got Greg Combet also from NSW going into the Ministry for the first time as Minister for Defence [inaudible] and Mark Arbib we've just spoken about, Minister for Employment and also on top of that continuing strong cabinet ministers in John Faulkner who is also from NSW and-
STANLEY: Can I just pick up-
PM: And also from NSW of course Tony Burke [inaudible]
STANLEY: [inaudible] All those people you've mentioned, those of us who follow politics closely know they're outstanding. You can add in Jason Clare the young MP from Blaxland.
PM: I was getting to him.
STANLEY: Is part of the problem that we have here in NSW at the State Government level that you've got all the good ones in your caucus and we've been left with the dregs in Macquarie Street?
PM: Look as far as the NSW Government is concerned I am sure there are many, many capable people in that Government.
STANLEY: But have you got the better ones from NSW?
PM: What I am saying is that I have got a great team federally who come to us from NSW and they, if I was packing down a scrum in, you know, the front row, you've got you know John Faulkner, you've got Tony Burke, you've got Chris Bowen. Fantastic Ministers. Cabinet Ministers. Then you've got in the outer Ministry now you've got Mark Arbib and Greg Combet and you've got people like Jason Clare now who've been appointed as parliamentary secretary responsible for employment, these are-
STANLEY: (inaudible) with John Della Bosca and Frank Sartor.
PM: Well these are individuals with great talent and ability but you know we at the federal level are also blessed with you know a strong level of talent, you know also in NSW you've got key ministers like Anthony Albanese who is the Minister for Infrastructure, in cabinet. Peter Garrett the Minister for the Environment in Cabinet, as well as a range of other Ministers.
STANLEY: All federal MPs again.
PM: I suppose my point to your listening audience is that this is a strong team from NSW [inaudible] and they are making a good contribution to this Government.
STANLEY: You haven't made much of a secret that you don't think the team at the state level is all that strong.
PM: Well look the NSW Government wrestling with all sorts of challenges and I understand some of those challenges and we've tried to work with them on some of them but we all are required to work with the resources at our disposal and many of the individuals within the NSW Government I have very high regard for, I have known and worked with over many years. But my job as Prime Minister is to put together the best Cabinet and Ministry and Executive possible nationally because we've got this huge challenge, worst global recession in three quarters of a century and therefore it's all hands to the tiller and that means emphasising infrastructure, emphasising jobs, emphasising recovery and getting the best talent to that task. As well as I've you know in this list I've just referred to, Maxine McKew for example, excellent job and she's now been promoted to working as parliamentary secretary in infrastructure and other parliamentary secretaries including Ursula Stephens.
STANLEY: A couple of quick ones if I can, I know you're pressed for time. First of all Julia Gillard, she's been getting very good press from the commentariat in Canberra, they're suggesting that now she would have universal support across the party if heaven forbid something happened to you, the proverbial bus. Do you acknowledge that now she is your, she is your successor in the same way that John Howard used to say that if he went under a bus it would be Peter Costello. Do you acknowledge that she would become our first female Prime Minister.
PM: Julia Gillard is an exceptionally talented individual. We work really closely, we are good friends. I think she is making an exceptional Deputy Prime Minister, she is, she has done an extraordinary job in getting parliamentary passage of the Government's new industrial relations legislation through the Fair Work Act, the Commonwealth Parliament. She's doing a great job also in the employment area given the enormous impact of the global recession. But can I say at any stage in the future Julia would be very, very hard to beat. She's fantastic, first class and my privilege of working with her as my Deputy since becoming Leader of the Labor Party in Opposition and through to us winning the election. I could not have hoped for a better partner to work with what has been a very, very difficult period for governments [inaudible].
STANLEY: But in the Party do you acknowledge that she would have support across the Party?
PM: I think what I'd say to that is that my answer to your earlier question which is I think we're getting beyond that at the national level and that's really good. The culture of our show - just to go back to the earlier conversation we had and merging with your current question - is increasingly one where we are solely driven by the merits of individuals and the contribution they can make to the show, and against those measures, Julia is outstanding and I think the country is well served by having her-
STANLEY: Will she be our first female Prime Minister?
PM: -as Deputy Prime Minister of the country. As I said, in the future she'd be very, very, very hard to beat.
STANLEY: And just finally Gordon Ramsey, have you caught up with the spat, I'm sure you have, do you have some comment on him?
PM: You know I've read the stuff this morning about what was said about - you're talking about Tracey Grimshaw?
STANLEY: Yes that's right.
PM: I think all I could describe his remarks as reflecting is a new form of low life. There you go.
STANLEY: I just can't imagine you and Therese sitting at home watching Gordon Ramsey. Do you?
PM: You've got it and I just thought the remarks about Tracey Grimshaw who, you know look, Tracey Grimshaw I have met a few times in life you know we're not personal friends or anything like that but I drew breath when I saw the sort of stuff that was said about her. I just think that's off and offensive and good on Tracey Grimshaw for coming out and giving him a left upper cut.
STANLEY: I'll leave it there, I'm running late but an emailer here asked me - you have always supported the Broncos, he claims that a few years ago - this is a major political scandal brewing here - he claims he saw you at a Parramatta game with a Parramatta tag on back in 2005.
PM: I'm sure the Eels at some stage have probably given me badges as most teams have around the country but I've been a Broncos man from going back way back when.
STANLEY: Good on you well that will sort that out for him. He was most agitated. Prime Minister thank you.
PM: So whether I was at that game or not I have no idea but I am sure the Eels at some stage have given me some paraphernalia as have many teams around the country.
STANLEY: I am sure they have. Thank you for your time.
PM: Broncos first and last mate.
STANLEY: And can those of us who follow the Dragons thank you very much for giving us your coach.
PM: Well the Broncos didn't do so well the other night. I'm in a state of moral mourning over that but we all have our ups and downs in life don't we?
STANLEY: We'll take Wayne Bennett any time. Thank you very much.
PM: He's a good man.
STANLEY: Indeed he is thank you.