JOURNALIST: Prime Minister, surely Barry O'Farrell's got a mandate to spend the $2 billion in government funding, Federal Government funding, on whatever infrastructure he likes, after the result on Saturday?
PM: Thank you for that question. Can I start by congratulating Mr O'Farrell on his victory in New South Wales. I congratulated him on Sunday, I rang him to offer my congratulations and I know I will be able to work with Mr O'Farrell in the interests of the people of New South Wales. Mr O'Farrell is a reasonable man who will want to get on with the job in New South Wales that he's been elected to do.
I'd also like to offer my congratulations to Kristina Keneally on a campaign that was hard fought, energetically fought and courageously fought by her.
JOURNALIST: Prime Minister, is the New South Wales style of politics dead?
PM: The people of New South Wales have spoken. They were, of course, delivering their verdict after 16 years of government. The people of New South Wales have spoken and now it's my task as Prime Minister to work with Mr O'Farrell in the interests of his state on areas like education and health and transport.
I've always believed that reasonable people can sit down and work together, that's what I intend to do with Mr O'Farrell.
JOURNALIST: (inaudible) reasonable sit down with Mr O'Farrell and talk about the fact that he'd like the $2.1 billion grant not to go to the Epping-Parramatta road, but to the one he claims he's got a mandate for?
PM: The Federal Government gave a commitment during the federal election and I intend to honour that commitment. I understand that Mr O'Farrell has a set of policies and plans for transport in New South Wales and I'll be happy to speak to Mr O'Farrell about those policies and plans. New South Wales, the people of New South Wales are obviously looking to see Mr O'Farrell deliver improvements in education, in health, in transport. We are a Government with a big reform agenda and a major set of investments in each area. If we look at education, $20 billion of investment in New South Wales, if we look at health, $12 billion of investment, if we look at infrastructure, $12 billion of investment. I'll be happy to sit down and work with Mr O'Farrell in a reasonable discussion about his policies and plans and my policies and plans.
JOURNALIST: What measures are you taking to make sure that the New South Wales style of politics doesn't infect your Government?
PM: What happened on the weekend is a state election, it was participated in by the people of New South Wales and they delivered their verdict in that state election.
I believe the people of New South Wales know the difference between state issues and federal issues. This was a decision a long time in the making and it was delivered on Saturday.
JOURNALIST: But how is Federal Labor different to New South Wales Labor, that's the question?
PM: Of course, and the Federal Government is getting on with the job we were elected to do. The message here, I believe, is people want to see you make progress, not play politics. This is a Government that is making progress, making progress on the issues that matter to the Australian people, keeping the economy strong, getting the budget back into surplus, tackling the challenges of the future like climate change, delivering the National Broadband Network, improving local schools, improving local hospitals, making sure people can get a doctor when they need one. These are the things, the real progress that is driving the Government I lead and that's what we'll continue-
JOURNALIST: Key independents lost their seats in New South Wales, they're now firmly back in the hands of the Coalition. Coalition figures say that this is an indictment on your carbon tax and also an indictment on the independents forming government with you federally, it's a backlash.
PM: Let's just be a little bit practical about this, we're talking about a state election after 16 years. I think New South Wales voters had made up their mind a long time ago and I don't think that they made up their mind on the basis of events in the last few weeks, I think they'd made up their mind a long time ago and we saw that when people went and put their ballots in ballot boxes on Saturday.
JOURNALIST: Prime Minister, what do you make of the pressure being put on the independents by the National Party, saying that they're seriously compromised and that they made the wrong call in supporting your Government?
PM: Mr Oakeshott and Mr Windsor made a decision on what they believed was in the best interests of their electorate. They made a decision on policy, for example they made a decision because they understand the power of the National Broadband Network to transform regional economies in the way that people get services, like health services and education services. And I think the problem with this analysis from the Opposition is it goes through to the next stage - why was the Opposition in a position where it didn't have the right policies for regional communities? No effective policy about broadband, no effective policy about health, no effective policy about education, no effective policy about transport infrastructure. What we continue to see from the Opposition here in Canberra is just continued negativity.
I believe in New South Wales, what we will see from Mr O'Farrell is a reasonable man, a moderate Liberal, seeking to get on with the job and engage in constructive federalism.
JOURNALIST: Is Kristina Keneally welcome in your federal party?
PM: Kristina Keneally has made clear what she sees as her future, when she gave what I thought was a very gracious speech on Saturday night.
JOURNALIST: Prime Minister, can you outline what the federal consequences will be of Mr O'Farrell's election and was this a rejection of your carbon tax?
PM: I just answered the question before and I will work with Mr O'Farrell they way I've worked with Premier Barnett and Premier Baillieu to get results for the people of Australia. Let's remember it was at the COAG meeting earlier this year that I struck a national health agreement, with Premier Barnett, with Premier Baillieu at the table. An agreement that means more doctors, more resources into health, more local control, less waiting time, less bureaucracy. An agreement in the interests of Australians, worked together constructively, reasonable people sitting around a table. I believe Mr O'Farrell is a reasonable man, is a moderate Liberal, he will bring that spirit to discussions with the Federal Government. I do not believe Mr O'Farrell will follow Tony Abbott in his extremism.