PM: Thank you very much to the assembled throng and their capacity for sound effects, that was very impressive.
I'm here today with Simon Crean and with Stephen Smith to announce the details of my reshuffled ministry. Obviously I became Prime Minister because I believed it was important to get the Government back on track. I particularly believed it was important to renew our focus on strengthening the economy and delivering the services that hard working Australians need. In order to do this you need a steady hand, hard work and methodical work. So in considering the question of a reshuffle I have determined that it is best to have as limited a reshuffle as possible to keep the maximum stability amongst the team and to keep our focus on the work that Australians need the Government to be doing.
In that spirit I have invited Simon Crean to take over my portfolios of education, employment and workplace relations and social inclusion.
Of course Simon Crean comes to this task having served in an earlier Labor Government as Minister for Employment, Education and Training. He also comes to this task having been a President of the Australian Council of Trade Unions and I think when he served in that capacity, being recognised as one of the people who assisted in the modernisation of Australia's union movement and in making sure that our union movement understood the demands of a complex and dynamic economy and understood the need to work productively with employers.
Simon Crean is too our longest serving Cabinet Minister. He has served in the Hawke Cabinet, the Keating Cabinet, the Rudd Cabinet and now of course will serve in this capacity in the Gillard Cabinet. Obviously Simon Crean is a very safe pair of hands for portfolios that are very, very close to my heart.
I have asked Stephen Smith, who has been doing a great job as Minister for Foreign Affairs to also take over being Minister for Trade.
Stephen has served as a Shadow Minister for Trade, he is consequently familiar with the trade issues and as people would be aware the one Department, the Department of Foreign Affairs and Trade, deals with both questions and consequently Stephen can easily work with the entire Department in his new capacity as Minister for Foreign Affairs and Minister for Trade.
I have in recent days had conversations with Kevin Rudd about his future.
What I have said to Kevin Rudd is, and he has confirmed to me, that it's his intention to seek re-election as the Member for Griffith, so consequently what I have said to Kevin Rudd is I would be absolutely delighted to see him serve as a senior Cabinet Minister in the team if the Government is re-elected.
Obviously our focus is on delivering to hard working Australians a strengthening economy and a renewed focus on services. I am not making any assumptions about what will happen on election day; this will be a close, hard fought contest, but if the Government is re-elected I will be very delighted to welcome Kevin Rudd into the Cabinet in a senior position.
I'm very happy with those words to take questions. Yes.
JOURNALIST: What was Kevin Rudd's response to that, was he seeking an appointment earlier or is he happy to wait?
PM: Look there is nothing about this period of time that is easy or happy for Kevin Rudd.
As I've said at earlier press conferences and I genuinely believe this is a tremendously, tremendously difficult time for him and his family, I understand that. What I said to Kevin is that I think this is the best course and it would enable him, if he chose to do so at this time, to spend more time with his family, which I know is one of his key priorities in life is love of family, of Therese and the children, and that would give him the opportunity to spend some time with them. But he would be very, very welcome, very welcome indeed, if the Government is re-elected, serving in a senior capacity in the team.
We'll go to Paul and then to Matt.
JOURNALIST: Does this leave Queensland unrepresented in your Cabinet?
PM: Well the Deputy Prime Minister of this country is a Queenslander, Wayne Swan. Yes.
JOURNALIST: Prime Minister does your mining tax, we know what steps you've put in place to resolve that issue, can you guarantee though that would be, that this matter would be resolved before the election. Don't Australians have a right to know what you are planning to do on this matter before they vote?
PM: Well I can guarantee today that I'm doing all I can, working with my team, particularly Treasurer Wayne Swan and Minister Martin Ferguson, to expedite negotiations to make sure that we are having clear, focussed, genuine negotiations about the mining tax.
I had assumed you might want to ask some more questions about the reshuffle but given you've gone to other matters, what I might, you've taken me by surprise, what I might do at this point is invite my colleagues to say a few words and then we'll go onto general questions.
JOURNALIST: (inaudible) can you give guarantee-
PM: Well why don't we do this first and then I'll come back to your questions, stay in order, I like doing that as you know.
CREAN: Well thanks Prime Minister and of course I'm delighted to have been made the offer by you to resume some of the unfinished business in the portfolio that I had a great deal of involvement with in the past.
I genuinely believe that employment is fundamental to the economic security of this nation so anything that can be done to connect people much better with the workforce, to develop its skills, to give people the opportunity to continue developing those skills in a lifelong learning sense is fundamental to sustainable economic fortunes for the nation, as well as opportunity for individuals.
It's also essential we do everything to increase the retention rates in school, lift participation in school, because that produces a more prosperous nation, so this portfolio is intricately linked with the economic future of the country but with the opportunity for individuals within it.
As for the workplace relations area, whilst I haven't had portfolio responsibilities, I have had some experience in this field as well.
So I look forward to combining the tasks, look forward to working with Julia and the team to the re-election of the Government but we take nothing for granted, the task ahead is a hard one, and I look forward to playing whatever constructive role I can in developing the policy framework from which we hope we get the ultimate reward from the Australian people.
Thank you.
PM: We'll just go to Stephen then you can ask questions of all three.
SMITH: Well Prime Minister thank you very much. Obviously I'm very pleased to serve the Gillard Labor Government in the capacity as Minister for Foreign Affairs and Trade.
One of the very important fundamentals which have secured Australia's prosperity historically has been being a great trading nation and our trade efforts of course have been not just bilateral, but regional and multilateral, and Simon has been an absolutely devoted Trade Minister who has been inexhaustible in his efforts to secure multilateral, regional and bilateral trade improvements.
Can I start but welcoming very much the decision by the G20 leaders' meeting over the weekend to put renewed emphasis on a successful conclusion to the Doha round.
Australia, in particular Simon, has been at the forefront of urging the international community to bring the Doha round to a successful conclusion and we welcome very much the G20 leaders' meeting decision to give added priority to the Doha round and to consider it again at the next G20 meeting in Seoul.
On the regional front, Simon has been instrumental in helping to ensure that a very important but under-appreciated regional trade agreement, the Australia-New Zealand-ASEAN trade agreement, came to fruition and we're now working very hard on the TPP, the Trans-Pacific Partnership, which is another very important regional trade agreement for us.
On the bilateral front, we continue to pursue a number of very important free trade agreements where we either have negotiations under foot or where we have preliminary studies in hand - in particular and importantly India and Indonesia.
So, I look forward very much to working in all of these areas.
I, of course, will benefit from the fact that we have one department, the Department of Foreign Affairs and Trade, to assist in this task. It, of course, is of considerable advantage to any minister for foreign affairs and trade that we are served by one of the great departments of state, and so the fact that the department performs both roles will be of great advantage to me in the weeks and months ahead.
Can I finish by thanking the Prime Minister for the opportunity, but also by again complimenting and congratulating Simon on the terrific achievement to set a very firm foundation for Australia's trade role and performance into the future.
Thank you.
PM: OK, Mathew, on the Resources Super Profits Tax, obviously the Australian people will be able to judge the Government on the Resources Super Profits Tax at the time of the election. I welcome the judgment on that. We are working hard to collaborate with our mining community in a spirit of good will to resolve details associated with the tax.
Patricia.
JOURNALIST: You were criticised for having too much on your plate with all those portfolios. Do you think that that would be a problem for Simon Crean as well? Why did you not take an opportunity to split those portfolios and give them more attention through (inaudible)
PM: Well, obviously, I didn't think it would be a problem for Simon to perform this work, and that's why I've invited him to do it, and the premium that I have put in making these new ministerial arrangements is on stability, on making sure that we can continue to get on with the job of ensuring the Government is on track and doing what we need to do to meet the aspirations of hard-working Australians.
Dennis. Sorry, hang on, hang on, hang on - Dennis, then we'll come across.
JOURNALIST: (inaudible) and the new education minister, will there be any changes in the investigations into the BER and Mr Orgill's taskforce?
PM: Dennis, if I can answer that and if I can thank you for your remarkable focus on this question.I think it would a be a little bit unfair to suggest to Simon Crean before he's sworn in or briefed on any of these matters that he should put a view. Obviously, I formed the view that the taskforce led by Brad Orgill is doing good work on the question of value for money.
JOURNALIST: Would you expect a much bigger reshuffle, with new faces, if you win the next election, and do you see any merit in Caucus and the factions resuming control of who should be in the ministry?
PM: Well, can I echo Simon's words, because I think he's put it well. Our focus is on governing for the nation now, and then when the election is called our focus will be on campaigning to gain again the trust of the Australian people to be their Government. Consequently, I'm not really wanting to be drawn on, you know, speculation for the days beyond. Our focus is about that election and the contrast between the Government and what is being promised by Mr Abbott, and they are stark contrasts.
JOURNALIST: (inaudible)
PM: Just hang on, hang on, hang on. They are stark contrasts. I think it is appropriate that as leader, in a consultative way, I work, I form a team and work with a team. I've said one of my hallmarks as Prime Minister is I intend to take a consultative approach. Once it comes to the moment of decision, the decisions are mine, but I intend to take a consultative approach along the way.
Andrew.
JOURNALIST: Just back on the mining tax, (inaudible) could you at least confirm that the original consultation phase (inaudible) and that is one that ends at the end of the year?
PM: The Treasurer, I think you will find, has clearly said that there were two phases to the consultations and that we were in the second stage. He said that a number of days ago.
Obviously, as incoming Prime Minister I have taken additional steps to make sure that we are meaningfully negotiating with the mining industry in the spirit of goodwill, which is why I took the Government advertisements off our TV screens and I was very, very pleased to see that the mining industry reciprocated.
JOURNALIST: Prime Minister, could you consider disbanding SPBC and would you ensure that all major policy decisions go to the full Cabinet?
PM: I've already said, and in case there was any ambiguity about it, I'm happy to clarify it, my intention as Prime Minister is to run a Cabinet system of Government; run by a Cabinet system of Government means all substantial decisions will go to the full Cabinet.
Yes, Latika.
JOURNALIST: (inaudible)
PM: Sorry?
JOURNALIST: What's happening with Lindsay Tanner?
PM: Sorry, I assumed that almost went without saying, but let me clarify it, make it express, obviously, I have asked Lindsay Tanner to continue in his position as Finance Minister until election day and, you know, from an abundance of caution, so all things are clear, there will be no further appointments to Cabinet. There will be no further ministerial appointments. There will be no further parliamentary secretary appointments.
The team is the team that you see here with everything else staying as you know it. Simon Crean has taken every part of my portfolio.
JOURNALIST: Prime Minister, by leaving Mr Tanner in the Finance portfolio, don't you open yourself up to claims from the Opposition that we won't know who's in charge of the nation's purse strings if you're indeed re-elected?
PM: Well, let me say if the Opposition wants to start that argument, gee, I'll be in it quickly.
We obviously have Treasurer Wayne Swan and Finance Minister Lindsay Tanner working together on the nation's finances and the economy. This is in stark contrast to an Opposition that appears to have absolutely nobody doing it.
If we are re-elected, then of course I will be ensuring that we have a strong Finance Minister in a future team, but our approach as a Government has been to do what we needed to do in the economy, in the global financial crisis, to keep people working, to bring the budget back to surplus and we will do that in 2013, and I think it is very interesting that the Deputy Leader and Treasurer Wayne Swan is attending the G20 on my behalf. There, countries around the world are saying they'll aim to halve their deficits by 2013. We will be in surplus in 2013.
Right, we'll go back here and then across. Yes?
JOURNALIST: Will you nominate a Finance Minister before the election if you are indeed re-elected?
PM: No, what I will do about positions is what I've indicated here today.
Our focus is on election day.
We take nothing for granted, nothing for granted.
If I am re-elected as Prime Minister and the Government is re-elected, then, following our election, I will shape the team at that point.
We'll go here, and then across to Michelle. Yep?
JOURNALIST: Sorry, your Cabinet has no regional voice. Is that a concern to you?
PM: Well, I think when you look across our whole Cabinet, when you look across our whole ministerial team and across who we represent in this parliament we have some very, very strong regional voices who are heard each and every day as the team goes about making its decisions. I've...
JOURNALIST: (inaudible)
PM: Well, the decisions, the decisions of the Government, obviously Cabinet, is important.
We've got Lindsay, we've got Anthony Albanese there, working to represent regions, working in contact with Local Government.
Very recently in this Parliament House I attended a very important event that he had, an annual event, to make sure that we are talking to Local Government around the country, to make sure we're understanding the perspective of regions around the country.
We're a Government that's taken the Cabinet around the country to get the benefit of those perspectives.
We've got great regional Members, you know, Janelle Saffin, Kirsten Livermore and the list goes on and on and on, Jim Turnour, and so the list goes on, their voices are well and truly heard. Can I go to Michelle? Yeah, no, and I'm coming over here, I'm not-
JOURNALIST: Prime Minister Gillard, will you consider the pursuit of an Asia-Pacific Community?
PM: Look, on questions of foreign affairs policy, I'm not here to make a statement today about foreign affairs policy. Obviously I will rely on advice from Stephen Smith in shaping future policy announcements by the Government. Okay, Malcolm.
JOURNALIST: Thank you very much Prime Minister. Back to the structure of Cabinet, the Cabinet structure. The so-called kitchen cabinet or gang of four was one of a number of cabinet sub-committees. Have you abolished that system of sub-committees, and with it the so-called kitchen cabinet?
PM: What I have done is I've said to my colleagues that we want to have a proper system of Cabinet Government.
That means that my colleagues in the Cabinet will shape the Cabinet committees and the rules that will govern the operation of the Gillard Government. We have commenced work on that, on that set of Cabinet arrangements and rules. But I couldn't be clearer here about my end point and my intention. I want to see a traditional system of Cabinet Government where the Cabinet is the highest decision-making body in the Government, in the Executive.
Phil Coorey.
JOURNALIST: What was the tone of your conversation with Mr Rudd, and was he happy to accept a delay until after the election, or did you have to convince him to do that?
PM: Well look, I'm not going to go to details of what I believe to be private conversations. And I've obviously indicated there is nothing, nothing about this period that is happy or easy for Mr Rudd. It's obviously a very, very stressful, difficult time. Yes, Patricia.
JOURNALIST: Prime Minister, do your modest changes that you've made to your frontbench indicate something about election timing? Do you want to go into a quick election considering you made such minimal changes?
PM: No. The modest changes I've made to my frontbench indicate that my key focus is to have a steady hand, methodical work delivering for Australians.
Yes Mark.
JOURNALIST: Prime Minister, yesterday you talked about some of the concerns of people in Western Sydney about population. Their biggest concern is transportation, buses, trains, cars getting them into work, getting their kids to school. What can you offer people in outer urban areas in terms of improved transportation?
PM: Well I, look, I think there are a set of concerns that people in Western Sydney feel, and many of those concerns do go to the question of how you manage growth. And they've seen a lot of growth, and as I said yesterday, they hear figures like 40 million and 36 million and they don't want to see Australia hurtling towards 36 million or 40 million, and I think they will welcome the opportunity for the nation to take a breath, to work on the policy, to reflect on how we want to manage this future. Including how we want to manage getting the services to people that they need; the roads they use, the transportation systems they rely on.
It would be easy for me to make it a set of glib statements which would be interpreted as promises about new services. I'm not going to do that.
You know, we've got to take a measured approach here, a balanced approach. Anything to do with transport costs real money. And my focus is on making sure we deliver that surplus in 2013.
I have asked Tony Burke as the Minister dealing with questions of sustainable population to look at this area as part of taking a breath and planning our future.
Matthew to Simon.
JOURNALIST: On the question of education, it seems to me that Julia Gillard always made a big play about a Labor Government having to provide equality of opportunity. I'm interested to know whether you believe Australia has further to go in that area, and whether you are going to be developing (inaudible) policy in that area to take to the next election.
CREAN: Well I fundamentally believe that education is the great enabler for individual development. And I've- one of the reasons I joined the Labor Party was to advance that. I was a beneficiary of a good education, and I believe others should be entitled to be able to access that.
What Julia has done is to create a framework that lays solid foundations for advancing that.
What we have to do is to get ourselves elected so that framework is not dismantled.
I recall when I was last Employment and Education and Training Minister, we set up many of these things. We built them, only to see them dismantled. That's the fundamental difference between us and our opponents when it comes to things like education.
I see important opportunities to build again, but I inherit a great platform on which to do it. And I'm delighted to have the opportunity to continue in that direction.
PM: Okay, we'll take two more questions before everybody freezes to death. We'll go to Phil, with the two Phils.
JOURNALIST: Just back on the population thing, can you explain what Tony Burke's been tasked to do, given what Kevin Rudd had already tasked him to do?
PM: What I have asked Tony Burke to do is to develop a set of policies that enable us to have a sustainable population.
What you put at the forefront of your decision-making and thinking here, matters. And what I'm putting at the forefront of our thinking is the set of environmental concerns that come with an increased population, and the set of concerns about planning and where population goes.
As I said yesterday, I live in Melbourne's west, where across two growth corridors, my electorate lies across two growth corridors, in a place like that, Melbourne's west, in Western Sydney, in the Brisbane-Gold Coast corridor, people look at what has happened with growth and they hear figures like 36 and 40 million and they say 'where are these people going to go?'
At the same time, I travel to the northwest of this country and I meet industry leaders and communities that are crying out for more people and more workers. So I think we've got to get a balance here, and that is what I've asked Tony Burke to do.
Last question.
JOURNALIST: Prime Minister, just to clarify, is the CPRS still Government policy, or are you going to scrap that and start with something new?
PM: Well, I'm going to say to you exactly what I've been saying over the last few days.
The Government took a decision about the Carbon Pollution Reduction Scheme and assessing in 2012 the degree of international movement on questions of climate change, and having done that assessment would then make a final decision about reintroducing the legislation for the Carbon Pollution Reduction Scheme.
I'm very clear that climate change is caused by human activity; that addressing climate change means that we will need to have a price on carbon. But I'm also very clear in my own mind that there is a lot of work to do to build the kind of lasting and deep community consensus we need to have the kind of transformation in our economy and the way we live that pricing carbon will require.
In the coming period, I will have more to say about what this nation can do and how Australians can work together to address the challenge of climate change.
Thanks very much.