HOST: Good morning Prime Minister.
PM: Good morning and there is a bit of rain around, you're right. So a delayed start, I don't think we're anticipating any play before around about midday.
HOST: No, but look, I'm confident that the ground staff, and they're going through the motions of taking the covers off now, it looks as though there's going to be a break in the weather and I guess whatever happens, whatever happens the lunch will be on, Prime Minister. Yes?
PM: Well that's true and I did have a great function at the Lodge last night to welcome both teams and representatives of cricket from around Australia, from Cricket Australia, but also a number of people who do so much work to make sure that the local ACT competition continues to thrive.
HOST: Can I tell you Prime Minister, we're just looking around the ground here, because we've been here since 5:30, there is dead set a spectator already in place waiting.
PM: Heavens above. Is that someone who's been there all night?
HOST: Some very keen people here.
It's going to be a big week coming up for you and your government of course, Parliament back sitting next week, the polls are rubbish, they're not flash and I don't know what's going to turn it around unless there's radical action. But we just get the feeling based on the talk about this meeting on the weekend that there may be radical action. What can you tell us about what's happening on the weekend?
PM: Look, this is a planning session for the Labor caucus at the start of the Parliamentary year. So one of the things I've been very focussed on as Prime Minister is to make sure that all our internal processes work well. We want to run a very competent, stable, methodical government, so it just makes sense to bring the team together at the start of the Parliamentary year and talk about the year to come.
At the same time, of course, we're not just looking internally to make sure our processes are right, but we're out there in the Australian community talking about what is going to make a difference for the future.
So my focus has really been on building the new economy we need to deal with this time of major economic change in Australia's economy.
HOST: Based on the polls, unless there is some wholesale changes to Federal Labor policy between now and election I don't think you're going to be at the Lodge, and I'm not telling you anything you don't know. And when I was talking about this meeting this morning, I made the suggestion that it wouldn't surprise me if the carbon tax was delayed, if not scrapped. Is that at all a possibility, even a faint one?
PM: No, not at all, because putting a price on carbon is absolutely pivotal to building the new economy we need so people have got jobs and prosperity in the future. To do that, what you're suggesting would actually risk long term jobs and prosperity for this nation.
We're in a time of tremendous global economic change, people see all of the news from Europe and they know that the American economy has its problems too. Here we're strong and we need to stay strong, but you only stay strong by making sure you're working on the challenges of the future, not standing still. If we stand still and just continue to run a high carbon pollution economy, then ultimately we will get left behind as the world moves on to a low carbon future.
HOST: But in reality if you leave it in place, isn't it reality that it'll be Tony Abbott who's tinkering with it and administering with it and perhaps dismantling it completely?
PM: Oh look, number one: government's about doing the right thing for the nation's future, the hard decisions. I'm not in the camp that says you sit here with your eyes on the opinion polls and that's all that matters to you, I'm here to make the changes we need to ensure our nation is stronger for the future. I'm going to be here working to support working families today, because a lot of people are finding it hard to make ends meet, so we're increasing benefits for families, like being able to put your school uniforms as you buy them on your tax and get a rebate for them - that matters.
But what also matters is making sure we're building the economy we need for tomorrow, so kids right around the country, whether they come from the poorest of households or the richest of households, can know that they can have a good job and a good future.
So that's what drives me.
HOST: OK, we've got this ideas session coming up at the Lodge in Canberra on Sunday night. Are you expecting any bright ideas from the Foreign Minister?
PM: Well, let's be very clear about what this is. I'm already crystal clear on what the Government's agenda is for 2012 and I spoke very directly about our economic agenda during the course of this week and building the new Australian economy.
But I work with a team, I work with a caucus team and they're a good team and of course like many workplaces would have planning sessions at the start of a calendar year, we are going to have one.
HOST: Dennis Shanahan in The Australian is suggesting that a challenge from Kevin Rudd to your prime ministership is now possible within the next eight weeks. He talks of despair growing within government ranks. There is surely some truth in what he says?
PM: Look, I don't worry about chatter in the media, I get on with the job and I think we've got to be very focussed - what do people want government to do? Talk about themselves, or deliver results.
Well I want government to deliver results and that's what I'm doing as Prime Minister.
HOST: Prime Minister, last Friday's demonstration at Parliament House showed disrespect to the flag and one of our listeners has asked why is it not illegal to burn the flag. Does it take free speech too far?
PM: Of course if you burn things, including the flag, in the wrong circumstances you can be breaking laws and by that I mean people shouldn't be going round setting fire to anything. I find it completely disrespectful and completely wrong for people to be burning the Australian flag.
I don't think that that's what we want to see in our nation. Of course people will have different views about what we should do as a country, we're a wonderful democracy and that means people can engage in all sorts of peaceful protest to make sure their views are heard, but burning the flag in my view is way too far. It is wrong to do it and no one should do it.
HOST: A lot of chatter around this morning over the Westpac announcement to cut a number of hundred workers and it's not the only announcement of the last few days of banking, manufacturing and industrial jobs going offshore. How does your government ensure job security for Aussies when this is happening on a regular basis?
PM: Well, look, that's a really good question and that's what I've been talking about this week and what the policies we're delivering this year will be all about. We're at a really interesting time in the Australian economy and a challenging time.
We came out of the global financial crisis strong and that's a great thing. We've got a strong economy and low government debt and we've got low unemployment. Our strength is driving a strong dollar and that strong dollar is driving further economic change and particularly putting pressure on trade exposed areas of the economy, like manufacturing.
So in this time of change we've got to be working with those sectors to make sure that they come through and we continue to have a diversified economy with lots of areas of strength. I don't want to wake up in ten years time and the only strength in the Australian economy is mining.
So we've been really focussed on working with manufacturing and we're standing by the car industry and car workers' jobs and that's actually the central political debate at the moment: Are you for those jobs or against them? I'm for them, Tony Abbott's against them.
On financial services, this is an industry undergoing change too, but we know that the financial services sector will continue to grow over time. It's got a bright future, because we're in the growing region of the world, with hugely growing numbers in the middle classes of Asia and those people will want sophisticated financial services, amongst a lot of other things that we've got the capacity to make and sell.
HOST: Prime Minister, before I let you go, have you got a message of encouragement to Brad Haddin and the PM's XI players, because I'm sure they're listening as we speak? What is it in the lead up to this, perhaps shortened Prime Minister's XI game today?
PM: Well I got the opportunity to spend some time with the team last night. Brad, of course, is a local boy. I said I wanted a tough captain and I think I've got one, Brad will be that tough captain. So my message to the team would be - go for it, don't worry about the weather, however much play there is we want every ball to count, we want every bit of play to count.
HOST: Prime Minister, thank you so much for being accessible to us this morning, we really do appreciate it.
PM: Thank you.