KOCH: Good morning to you Prime Minister. Look, what really-
PM: Good morning Kochie.
KOCH: Gets my goat up with this sort of thing is that, during the financial crisis, we all came to the help of the banks, the Government- which is us- let them trade on our AAA credit rating so they could raise capital cheaply. The Government, which is us, guaranteed deposits. And this is what they do to us.
PM: Well you're right Kochie. There's been far too much gouging in the past on bank fees and charges. That's absolutely right. And if you look at that most recent data, by the way, no consolation to your viewers, the level of gouging has slowed a bit, would you believe, from where it was in the past. But here's the good news.
From the first of July, we have new, tough national credit laws covering all financial institutions, which enable you out there as a member of the public to actually take action with a bank on the basis of unfair or exploitative fees and charges. Up until now there's been no legal basis for doing it. As of 1 July this year there is.
KOCH: Alright. Because, you know, the super tax on mining profits has got everyone's attention at the moment. Have you ever thought of sticking one on the banks if they gouge us too much?
PM: Well what worries me of course with sticking external charges on banks is the immediate flow-through to consumers, and the cost of your mortgage, the cost of your car loan and those sorts of things. On the question of the resources super profits tax, that in fact is about super profits being earned on the basis of what our mining companies, the most profitable of them, sell to the rest of the world. In other words, the flow-through impact on prices here is negligible. And the key thing there is getting a fairer share back for all working families through better super.
But on the bank fees and charges, you're right. And people are right to be angry about that. That's why this Government has changed the law. And I would really urge your listeners- sorry, your viewers- to get a hold of the information on the Government website about 1 July, about your new rights to tackle your bank on exploitative fees and charges. And secondly, for the first time, the Australian Government from 1 July is also taking over total regulatory responsibility-
KOCH: Okay.
PM: For the entire credit union and rest of those institutions, rather than being fragmented across the country.
KOCH: Alright, we might do a segment over the next couple of days next week on what your new rights are going to be and how you can take on the banks. Speaking of the super profits tax on miners, though, you've had some pretty narky responses from the miners themselves. Today, business commentator Terry McCrann reckons you're going to announce major changes to the proposed super profits tax, either today or tomorrow. Are you going to do that?
PM: I think Terry's pretty wide of the mark on that. Can I just say, I've seen in some of the newspapers this morning, it says we were on the verge of a deal. The other newspapers are saying there'll never be a deal. You know, the reality probably lies somewhere in between all that Kochie. I think we've got weeks and probably months of consultation yet with the major mining companies.
We'll work our way through the detail. I've had some good discussions with heads of mining companies, both BHP and Twiggy Forrest and others. That continues with our Resources Minister, Martin Ferguson. The key thing is to make sure we get a fair return for the mining companies, and a fair return on the resources owned by all Australians, in the form of better super.
KOCH: Okay, you just said that opinion today is from one end to the other, and the truth will lie in the middle. So that tends to indicate you are prepared to compromise, and you will compromise?
PM: Yeah but Kochie, what I have said from day one is that we think we've got the rate of this tax about right. And we've also said we'd consult with industry on detail, on implementation, and generous transition arrangements. And as I've just said, with all of the mining companies we've met- come and tell us where your projects are up to, how can we help in terms of those transitional arrangements-
KOCH: They're certainly telling you.
PM: Yeah, but the bottom line is, have you ever met a mining company, Kochie, who says he wants to pay more tax? Well, our view is, it's time that the most profitable companies, who gain super profits when commodity prices go through the roof, it's time some of those super profits came back to help with bringing down the company tax rate, helping small business with big tax breaks, and better super for working families, and investing in infrastructure.
KOCH: Okay, alright. As long as we don't lose jobs, as long as we don't lose exports. Let's take a question from a viewer now-
PM: Well, look at the unemployment figures yesterday.
KOCH: Yeah, I know, they're pretty impressive. Vicky runs a prawn trawler on Queensland's Sunshine Coast. She has a question for you. Vicky, you've got the Prime Minister's ear.
PM: Sure.
VIEWER: Good morning Prime Minister.
PM: Hi Vicky, how are you?
VIEWER: I just wanted to- good. Our family owns and operates a fishing vessel out of Mooloolaba here on the Sunshine Coast, and we'd just like to know, these further fishing grounds that you want to close, why do we need these new Commonwealth marine reserves? It's not only going to impact on our commercial fishermen and our industry, but the land-based operations that rely and supply the commercial fishing industry, their survival.
Also, the consumer, they're the ones that are really going to miss out. You and your family, Kochie and his family, they're- there's not going to be the local seafood available. With these closures, the fresh seafood's going to be gone. You're not going to be able to enjoy your fresh seafood every week.
KOCH: Alright, let's go back to the Prime Minister.
PM: Is it Vicky, or Lisa? Vicky. I know where you are, Mooloolaba. I learnt to swim down at the beach at Mooloolaba, and I certainly know where the trawlers operate from down at the Mooloolaba boat harbour. Now, the fishing industry's vital for Australia's future. Recreational fishing is also really important for families right across the country. The key question is to get the balance right. You see, as you know, as someone engaged in the industry, there is a whole concern out there about maintaining the overall health of our fish stocks right around Australia.
And you will see, for example, there's been debates recently about the supply of bluefin tuna and lobsters in various parts of the country. The key thing is to get this balance right. There will be a process which is gone through with all of the commercial fishers and recreational fishers around the country to make sure we get that balance right. Let me tell you, we are huge supporters of the continuation of the commercial fishing industry. I'd really encourage you to get engaged, through your organisation, with the Federal Government and the state Government on how we get that balance right, because your interest lies in making sure we've got enough fish stocks for the future as well, for you, and for all those people who like to dip their line in on the weekend, purely recreationally.
KOCH: Alright Vicky, thank you for that. Watch out for the Prime Minister the next time he takes a dip in your area, hopefully not in budgie smugglers. Now before we let you go Prime Minister, Harry Kewell's groin has been a concern for the entire nation ahead of the World Cup. A South African witch doctor- now, listen to this, this is important- a South African witch doctor says Kewell needs a get well message from Australia's Prime Minister so he can be healed in time to play for the Socceroos. This is not the BER, this is not the ETS, this is not the GFC, this is way more important. It's the KGC, a Kewell groin crisis. So, can you send Harry a message?
PM: You know Kochie, sometimes there's things that sort of catch you on the back foot in politics. And being provided advice by a South African witch doctor to fix Harry Kewell's groin is just, kind of, right out there.
KOCH: Yep, yep.
PM: Can I just say, I reckon Harry Kewell wouldn't want me anywhere near the fixing of his groin. I think there's a whole lot of professional people who can do that. But let me just say this. Forget the witch doctor, let's get on with the game. And I think Harry's fantastic, and I wish him the absolute best- and I'll be out there watching on Monday for the first game.
KOCH: Okay, alright, I think that was a get well message. I think that'll do it. You can talk to the witch doctor about putting a spell on some, a spell on some mining gurus or something like that. We'll leave that up to you. Alright, you have a good weekend, thank you for that.
PM: By the way, someone said here this morning- someone said here this morning- I was supposed to fix his groin, not just send a message. So, I'm just sending him a cheerio.
KOCH: Right.
PM: I think it's the safest thing to do. It's a family program.
KOCH: Okay, yeah. We wouldn't want to give you the tube of dencorub. Alright, thank you very much for that.
PM: No way, no way.