PM: I'm here in Beijing on my first visit to China as Prime Minister. The relationship with China is in good shape, it's a constructive one and a comprehensive one. We have enjoyed a series of high level visits between our two countries at a quick tempo in recent times, and I'm determined to see that continue.
Of course our economic relationship is a vital one for Australia's national interest and it is growing in leaps and bounds. You can give any number of statistics, to evidence the rate of growth but to give you just one statistic, merchandise exports grew by 37 per cent to nearly sixty billion dollars last year. As a result of course, a key focus of what I am doing here in China is on our economic relationship and I will this afternoon proceed to a forum of chief executive officers that is being in progress and receive a report on the work that they have done today. I am also looking forward to receiving the views of the CEOs about way of strengthening our future economic ties. I'll have the opportunity following that to speak this evening, at the Australian-China Economic Cooperation Forum which is involving a broad range of people than those involved than those at the CEO Forum. Now of course we cooperate economically directly between our two countries and we cooperate through multi lateral forums. Including APEC and the East Asia Summit and through the G20.
This morning I had the opportunity for a good discussion with Premier Wen. It was a constructive discussion and a very comprehensive discussion. We did discuss our economic relationship but we discussed a number of other important areas, including our growing people-to-people links and the cultural exchanges between our two countries and we've been very focused on facilitating cultural exchange between Australia and China as a way of building the bonds between our two nations.
On the economic relationship which we talked about today, we did focus on trade and investment; we did focus on infrastructure development within Australia. Premier Wen did take the opportunity to explain to me the commitments that China has in its 12th Five Year Plan, which has a very strong emphasis on sustainable economic growth and a very strong emphasis on clean energy.
Premier Wen and I also had the opportunity to discuss our bilateral free trade agreement. I restated Australia's commitment to a comprehensive high quality trade agreement and both Premier Wen and I are of the view that we need our free trade agreement talks to continue and to continue with some pace to them. So I had the opportunity to discuss the prospects for improving trade through our two countries by a free trade agreement.
In addition, in the context of what was a very broad and far reaching conversation, I did have the opportunity to raise with Premier Wen issues associated with Australia's concerns with human rights. I recognise China's remarkable progress in lifting millions of people out of poverty and into better lives. I did express to Premier Wen my concern and Australia's concern about the treatment of ethnic minorities, about the question of religious freedom and about recent reports in relation to human rights activists. I indicated to Premier Wen that Australia hopes this is not a backward step being taken by China on progress on human rights.
I did also raise with Premier Wen matters associated with North Korea. I discussed with Premier Wen my recent visit to the demilitarised zone, and I did raise with him Australia's clear concerns about North Korea's nuclear program and aggressive behaviour. Australia has consistently called on North Korea to abandon its nuclear program and engage in constructive dialogue. I raised this question with Premier Wen in the context of saying it is not in Australia's interest, nor is it in China's interest to see acts of aggression from North Korea and instability on the Korean Peninsula.
In addition to these comprehensive discussions, I was pleased with Premier Wen, to witness the signings of a number of important agreements between our two countries, a number or memorandums of understanding. Among these is an agreement to establish an Australian-Chinese science and research fund to fund joint programs with a focus on clean energy, and I specifically discussed with Premier Wen prospects of collaboration on clean energy of which this is one. Australia and China will contribute nine million dollars over three years to this initiative.
Another important Memorandum of Understanding signed today was one on strengthening tourism cooperation. We are seeing large numbers of increased tourists from China. We want to continue to see that growth and facilitate what is obviously a good economic opportunity for our country, but also a good way of developing people-to-people links and that memorandum of understanding signed today will take us on a further path of development for tourism including tourism for individuals from China; we already see a large number of organised tour groups.
Another of the Memorandum of Understanding signed today was about establishing a sector promotion forum for the services sector. This is important work; we want to lift trade in services. In order to do that we need good advice on the impediments to services exchange, the regulatory and other impediments. This MOU will create a forum that brings together business people from both countries to provide advice on those regulatory impediments to trade in services.
I also witnessed, with Premier Wen, the signing of a customs agreement for closer customs engagement between our two countries as we increase the number of people who move back and forwards and goods which move back and forth having our customs services cooperate well with each other is important.
And finally, I witnessed a commercial agreement between Karara Mining and the China Development Bank. This is about establishing a major investment facility which is to support the development of an iron ore project.
All in all, I very much welcomed the discussions I had with Premier Wen today, they were comprehensive, they were constructive and I look forward, apart from attending the business oriented and trade oriented events that I have later today, to meeting with President Hu tomorrow. I'm very happy to take questions.
JOURNALIST: Prime Minister, what is your message to Chinese business sector, and those who might be wondering about the carbon tax, and whether it will affect their interests in (inaudible) in Australian export?
PM: Well, if anybody raises that with me, and no one has to date, if any one raises it with me I will be very pleased to explain to them the government's policies and plans in relation to carbon pricing. Carbon pricing is good for the Australian economy, it's good for a clean energy future; we can't afford to have an economy that gets left behind as the world moves to a cleaner energy future. So it's all about future prosperity. It's good for Australians, it's good for business and I'll be happy to have that conversation.
JOURNALIST: Do you guarantee that businesses (inaudible)
PM: Well what I can to everyone, whether it's business people I speak to here in China, or whether it's people that I meet when I'm wandering through shopping centres in Australia, it's the same message, which is: It is good for our long term prosperity to price carbon. We want to be a prosperous country in the long term; we need to embrace a clean energy future. It's good for jobs, good for our economy and the right thing to do by our environment, and what is interesting, I think, is in the discussions I've had today with Premier Wen, clearly a focus of his work, and of the most recent Five Year Plan, the 12th Five Year Plan, has been a cleaner energy development. He specifically raised that with me in the context of prospects of collaboration on clean energy initiatives.
JOURNALIST: Prime Minister, you are not addressing any part of my question, will the carbon tax cause commodity prices in Australia [inaudible] to go up?
PM: Well we are working as you are well aware through a business round table with what are called in the trade a mission incentive trade exposed industries and we will keep working with them to get the design of the carbon price right, so we protect Australian jobs. But across the countries that I've visited on this trip - Japan, South Korea, China - people are hungry for our commodities export, they are hungry for our energy exports, including LNG, and so I am very confident these export industries have a very bright future.
JOURNALIST: Prime Minister, can I ask you about Premier Wen's response to your statements on human rights, did he give you an assurance that China hasn't taken a backwards step?
PM: Premier Wen did indicate, listened to the concerns that I had raised on human rights, obviously Premier Wen heard those concerns. He did indicate that his view is that China has not taken a backward step on human rights.
JOURNALIST: Is that something that you are comfortable with, are you comfortable with that answer, given that on Easter Sunday Christians for instance were arrested trying to hold a church service, so would you say that the response to you, is that a response that you are comfortable with his response?
PM: Well I think the appropriate thing to me to do as the Australian Prime Minister, in discussions with Premier Wen in this country is to raise Australian perspectives. I have done that, I've raised our concerns about human rights and ethnic minorities, religious freedom and in relation to the treatment of human right activists.
JOURNALIST: Even though that has been no real assurance given by him that there won't be a further crackdown?
PM: Well what we do is we raise our concerns and I have done that very clearly with Premier Wen today.
JOURNALIST: Can you tell me about the consular cases, and names that were raised today or (inaudible) that you may have brought up?
PM: I did take the opportunity in my discussions with Premier Wen to raise two consular matters. We obviously have an agreement between Australian and China which goes to the way in which we can raise consular matters, and the support we can provide to Australians in China. My advice from the Ambassador is that that agreement is working well to enable us to address the concerns of Australian's in China who may need consular access and support. I did take the opportunity with Premier Wen to indicate my concern and my interest, and the Australian's Governments concern and interest in the matter involving Stern Hu and Matthew Ng and they were the two cases that I raised by name.
JOURNALIST: And Premier Wen did he give you any assurance on what is happening to those two gentlemen?
PM: Well I am not intending to be drawn on the details of these individual cases. I raised each of them in the course of speaking to Premier Wen, put more properly; I raised my concern and interest in these two cases directly with him.
JOURNALIST: And just to confirm Prime Minister, you didn't discuss a carbon tax with him at all?
PM: I discussed clean energy but in the context he was really keen to raise it with me in the context of explaining the Five Year Plan, the 12th Five Year Plan and its focus on clean energy and sustainability.
JOURNALIST: Prime Minster, just to clarify you said he was keen to raise it with you, is that clean energy?
PM: He was, clean energy. Yes sorry, I will be absolutely clear the topic of clean energy was and climate change, Premier Wen was keen to raise with me as part of explaining what is important in the forthcoming Five Year Plan. I did explain to him that in Australia we are working through a debate about pricing carbon and it is the Government's plan to do put a price on carbon.
JOURNALIST: Did he have any comment on that, as in you know-
PM: No he didn't, no he didn't.
JOURNALIST: So what was your general impression [inaudible]?
PM: That is a good question and you are right, we haven't been here very long but what I can say on the basis of the discussions that I have had with Premier Wen today, we have a constructive relationship and I have got a positive outlook for the future and in terms of the relationship between our two countries. I want to build on what is already a constructive and comprehensive engagement between our two nations and between the discussions that I have had today and the memorandums of understanding that I have signed today. I think we have taken some steps to build on what is already a comprehensive constructive relationship between the two of us.
JOURNALIST: Overall how difficult is it to balance a key economic relationship like this, at the same time as to keep a strategic relationship with the United States given the concerns over China's rise, assertiveness and it how it will contain China and bring them into international framework. Do you share those concerns about Chinese rise, and how do you balance the two, when at times [inaudible]?
PM: Well our policy is not to contain, that is your wording of the question, it's certainly not my word, our policy is not to contain, our policy is to engage. To positively engage with China, and a prosperous China that's fully engaged in our region, and I did that the opportunity to talk to Premier Wen about the East Asia Summit, he represents China at that summit, to have China fully engaged in our region is good for the region. It is good for Australia, it is good for China.
We have a long term friendship and alliance with the United States. The engagement of the United States in the Asia Pacific, is a good thing too, that has been a long term policy of successive Australian Governments and it is certainly is my policy. This is not an either or choice, we have our long standing friendship and alliance with the United States. They are engaged in our region, they will continue to be engaged in the region. It is their region too, the Asia Pacific and we can continue to build our constructive, cooperative arrangements with China.
JOURNALIST: Prime Minister, in relation the change that Chris Bowen announced today regarding immigration, how is it actually going to stop the things that we have been seeing, for example in a place like Villawood?
PM: What Chris Bowen has announced I believe is appropriate so that people who commit offences whilst in immigration detention, have those offenses very clearly taken into account in the character test for migration visas. So I think the policy settings that Chris Bowen has announced back in Australia are right, and are appropriate so that people know that if you commit an offence in immigration detention that it will lead to failure of the character test.
JOURNALIST: But the Minister already has the power to do that under his ministerial discretion why is he this saying now?
PM: Well it is important to spell it out so that it applies in all circumstances. As you know of course there has been ministerial discretion but now it will be an automatic policy. It won't require a case-by-case assessment in that sense. No, it is all about making sure the rules comprehensive and clear. There won't be the kind of case-by-case assessment that you refer too. It will be an automatic consequence if you engage in something that is unlawful in immigration detention then you will fail the character test.
JOURNALIST: You have been critical about temporary protection visas over the years, over many years, and now you are going to adopt TPVs?
PM: I don't agree with the premise of your question. Temporary-
JOURNALIST: People found guilty of some offences in detention they are (inaudible)
PM: As I have just said, I don't agree with the premise of your question. Let's remember that temporary protection visas were not about the conduct of an individual, they were an automatic policy for everyone, an automatic policy that people would only qualify for a temporary visa. What Minister Bowen has announced and the policy of the Government is, if people do something in immigration detention that is unlawful then they will fail the character test. These are not the same thing, and ought not to be compared.
JOURNALIST: Prime Minister, on that issue previous Australia Governments, including this one, have been accused by human rights groups around the world for violating human rights in terms of mandatory detention policy, is it a bit critical of us to be taking up with China their human rights issues, when we clearly have a problem in our own backyard?
PM: Well I don't agree with your analysis that there is a problem and I don't agree with your terminology about mandatory detention. As a nation we use a mandatory detention system for good reason, if people arrive unauthorised in our country then it is appropriate for us to take steps to detain people whilst we ascertain their identity, their health status, any security concerns and we work through whether or not they are a legitimate refuge for whom we should extend our compassion and concern. Mandatory detention is a longstanding Labor policy; it was introduced into Australia by a Labor Government for good reason. Of course when people are in immigration detention, we seek to treat them in a fair and decent way and successive Ministers for Immigration under this Government, Minister Evans and now Minister Bowen, have worked hard to ensure that is the case.
JOURNALIST: Prime Minister, are you saying there is no problem in Australia detention centres at the moment?
PM: No, I was asked about the mandatory detention policy and I indicating to you I am a very big supporter of mandatory detention. It is the right thing to do.
JOURNALIST: That is what lead to this situation inside the Detention Centres [inaudible]
PM: Poor conduct by individuals has lead to this situation, and that poor conduct if it is unlawful, is conduct which will count in the character test under the arrangements that Minister Bowen has announced. If people, engage in unlawful acts then they will not be eligible for a visa which enables them to remain permanently in Australia.
JOURNALIST: Could you tell us about the Security talks that you might have had today with Premier Wen, did he raise anything [inaudible] about US alliance, Australia's involvement with Japan, Korea?
PM: I am afraid that whilst we had a long time together, there's only so many things that one can work through, so I have talked to you about the key issues in our discussions. Of course I am here in China tomorrow, and will also have the opportunity to meet with President Hu and I am looking forward to those discussions.
JOURNALIST: Defence security was not on the agenda today, will you be discussing that tomorrow?
PM: Look I'll have a further set of discussion tomorrow I didn't specifically canvas defence cooperation in my discussions with Premier Wen today. We did have a very comprehensive discussion both in a working bi-lateral meeting and then over lunch. What I would say about defence cooperation between Australia and China is that cooperation has been increasing, with things like for example annual meetings and exchanges between our Chief of Defence Force and his counterpart here in China; with work together that has included live firing exercises. So we have had a step up over time of our Defence cooperation, but I didn't have the opportunity in the course of today's meeting to deal with that, and look I have a further set of discussions tomorrow.
JOURNALIST: Prime Minister, what was Premier Wen's assessment on the North Korea situation?
(inaudible)
PM: I did indicate to Premier Wen that - don't take that personally Simon, ever since I've joked about the halo you've been anxious, and I think there's
JOURNALIST: It's disappeared.
PM: It was only there on a very, very temporary moment, that's true. Now I think I've forgotten your question, I think you asked me about North Korea.
JOURNALIST: (inaudible)
PM: Look I think, but I don't want to put words into Premier Wen's mouth but I think he accepted that there is, it is understandable for people, and it is understandable for South Korea to be concerned about the conduct of North Korea.
JOURNALIST: Sorry, did he though say I will that “I would use my influence to help, we want” or was he, was it more an off-hand thing [inaudible]
PM: No, his indication to me is that China is already engaged with the question of North Korea. Ok, Thank you.