PM: It's good to be here in Kununurra with the Premier. As you know today we have signed this new national partnership agreement for the next stage in the economic development of the Kimberleys. This is an important agreement for the nation, it's an important agreement for Western Australia and I would thank the Premier for his cooperation in arriving at this conclusion.
For the Commonwealth part this is a significant investment, some 195 million dollars in five priority areas towards health infrastructure, education and training infrastructure, social housing, transport and general community infrastructure. That partners with a parallel investment from the state government which goes to the next phase in the Ord, Ord Stage Two.
I think we're both animated by the thought that we are embarking upon an agreement of historic significance in providing the foundations for the next stage of the Kimberley's economic development. Importantly also with new opportunities not just for agriculture but new economic and employment opportunities for Indigenous Australia as well. And what has been heartening here on the ground is to see the level of optimism and the level of wanting to get on with the business of cooperating better to provide economic opportunities and employment opportunities for all. So congratulations Premier.
BARNETT: Thank you. It's been nearly 40 years since the main dam on the Ord River was constructed at the first stage of the Ord River irrigation scheme. There's been a lot of work done by a lot of people including the local Indigenous community and I am absolutely delighted today that we were able to sign between the Commonwealth and the State this development agreement that will see an expansion of more than doubling of the irrigation land of the Ord River scheme. Some early site works will start during this dry season, the major construction will be during 2010 so not far away, probably starting about April 2010.
In the meantime the Federal Government's involvement with a very generous support for education, health, a whole range of community services and including some transport infrastructure will add to it. And a collective commitment between the Commonwealth and the State of 400 million dollars into this area is an absolutely extraordinary event.
And I think the Prime Minister would agree with me, all of Australia is looking at this. Not only because of the significance of a major new and expanded irrigation area but because of the relationship that has been developed between the wider community and the local Mirriuwung Gajerong people and this is an economic development but also an extraordinarily important social development. Peoples of Australia, the first Australians, and new Australians working together to achieve this and as you can see the flags are flying for Kununurra.
And I'd just like to personally thank the Prime Minister. The Prime Minister came here to look at the Ord River scheme with me just before Christmas, not that long ago, only six months ago. And in that short period of time he and his respective Ministers, particularly Gary Gray and on the Western Australian side Brendon Grylls have negotiated not only the expansion of the irrigation scheme but a very wide ranging series of social and community improvements. And I think, thank you Prime Minister, I think that is a remarkable example of cooperation between the Commonwealth Government and the State Government and an amazing effort by the various agencies involved to actually get this project on the ground, the money is in the bank and work will now start.
PM: Okay over to you folks, or folk.
JOURNALIST: Prime Minister the car figures out today. Pretty good and due to the tax break is what the commentary said, do you have any response to that?
PM: The, what the, it is important at a time of global economic recession for us to be taking every effort to make a difference in the global economy. I'd note also on the challenging front that US employment figures are out today and that I am advised the US lost nearly half a million jobs last month, renders the US unemployment rate to 9.5 per cent which I am also advised is the worst unemployment rate in the United States in 75 years. Underlining the facts that we're not out of the woods yet as a global economy or as an Australian economy.
Secondly I also note as a fact that the insolvency figures are up for Australia. There has been an 11.1 per cent increase in insolvency numbers, indicating again that we have a continued problem on our hands that we must work our way through. Obviously the motor vehicle sales are encouraging and I note what the Federal Chamber of Automotive Industries Chief Executive Andrew McKellar has said today, the surge in business sales is directly attributed to the federal Government's business tax break and these figures provide clear evidence that this has been a very effective policy measure.
All I'd say is what we're trying to do is acting nationally through tax breaks for business and locally through initiatives like this in the Kimberleys to make a difference to the economy now when the recession globally is so big.
JOURNALIST: Are figures like this an indication that we will avoid the doom and gloom that America has seen?
PM: So far Australia has avoided a technical recession but we are not out of the woods yet. As I have said before, I can't make those projections for the future. All I know is that we are very much focused on the implementation of our national economic stimulus strategy to make a difference in the economy. Phase one in cash payments, phase two in the measures we've taken, the school modernisation program nationally, phase three long term infrastructure including what we're doing here with the Ord - these sorts of investments and elsewhere in Western Australia with the prospect of Oakajee and what we've done already in the commitments to Northbridge in Perth.
These things together make a difference, together with the measures that we have taken to improve the taxation treatment of business investments. This 30 per cent tax deductibility which has been provided up until 30 June to support businesses bringing forward some of their capital investments and capital acquisitions and for small business for the next six months increasing that to 50 per cent through to the end of the year.
But you know? These measures have not yet seen us out of the woods. They are making a difference. It's good that we're the fastest growing economy in the OECD, the only one of the major advanced economies not to be in recession but can I just say there is a lot of work to be done yet.
JOURNALIST: How concerned are you over the missile tests in North Korea?
PM: I think the regime in North Korea needs to have applied to it maximum global political pressure and the reason is this destabilising behaviour of engaging in missile firings off their own coast and the waters between themselves and Japan do nothing to contribute to regional stability, do everything to head in the reverse direction.
These tests are condemned by the Australian Government and I would ask again the North Korean regime to pay attention to the position taken by President Obama and to return to the negotiating table in the six party talks aimed at the denuclearisation of the Peninsula.
JOURNALIST: What can the Australian Government do (inaudible)?
PM: Our representations to the regime in Pyongyang will be robust and strong. Other actions that we have taken in concert with other members of the United Nations have already been detailed by the Foreign Minister. But when you're dealing with a regime like North Korea it's very hard, but we intend to remain in close cooperation and solidarity with the United States as we try to bring some semblance of sense to the North Korean regime. Frankly it's going to be tough but it is very important that everyone continues to apply maximum political and economic pressure on the regime in Pyongyang.
JOURNALIST: Mr Rudd, the $3 billion Square Kilometre Array radio telescope project. Is your Government committed to doing everything possible to make that come to Western Australia including an upgrade to the broadband, fast tracking that?
PM: Well the Premier and I have discussed this before and this is a major project for the nation and the Australian Government and the WA Government are working very closely on it. The competition is stiff, I think we're all aware of that but this for us is a major project in which we're going to inject every level of national effort.
Details on the broadband application question I think would best be directed to the Minister responsible for broadband. But can I say we will be leaving no stone unturned to make sure that we put our every best effort into what from memory is a $2 billion plus investment in important scientific infrastructure which would help lift our overall research effort and lift our economic performance in the future.
JOURNALIST: And in The Australian newspaper today it appears that you may be at war with The Australian newspaper? Is that a smart thing to be at war with an organisation that buys ink by the barrel load?
PM: I think, I think what I said yesterday is simply it's important for us to have a free and open national discussion about responsible reporting by newspapers like the Sydney Daily Telegraph, like the Brisbane Courier-Mail, like The Adelaide Advertiser. And like I said, if you're going to put on the front page of your newspapers a statement in the papers' names that the Prime Minister of Australia is corrupt and for that to be based on an email which apparently the editors of those papers never saw and an email which we now know to be false, fake and a forgery, I think people I run into the streets would just like to know what journalistic tests were applied to that.
I think that's a reasonable discussion to have. And you should be able to have that discussion - taking out the essence of your question - without political leaders around the country being accused of having a glass jaw, without political leaders in any way fearing retaliation for what should be just a normal discussion. “How did this happen? What sort of journalistic checks were applied?” I am sure you folk in the profession would be equally interested in this as I am.
And having said that, I've got to zip.
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