HOST: Prime Minister thanks for joining us. The latest Fairfax/Nielsen poll has found support for the carbon price and the carbon tax has fallen four points to 33 per cent. Fifty-one per cent of people believe they are going to be worse off. The message just isn't getting through that the compensation is going to cover them.
PM: People will have the opportunity to judge for themselves, Kochie. Not based on the claims of politicians, but by what they can see in their own lives. And what people are going to see is tax cuts. Pensioners have already seen increases, people have seen increases in family payments. And people are going to see that the claims like ‘the coal industry is going to shut down' are all untrue.
So this is the opportunity for Australians to judge for themselves, not based on what the politicians tell them.
HOST: Yeah, they're not listening though because rarely do I see any coverage saying that 43 industries including a lot of manufacturing industries that pollute, they'll actually be paying a carbon tax of $1.30 a tonne, not 23 bucks because of some of the free credits that you're passing through to them. Why aren't people talking about that?
PM: Well, I'm certainly happy to talk about it, Kochie. You're right. For industries that are trade exposed, that are out there making their way in the world, the effective carbon price they pay is $1.30 a tonne. Generally, our big polluters are paying $23 a tonne and that's a very important point itself. It's a price being paid by businesses that generate carbon pollution, not by individuals, not by families.
Yes, there is some flow through impact into prices and that's why people are getting tax cuts from this week and why we have increased pensions and family payments and we'll keep increasing those pensions and family payments.
And the tax cuts this week will benefit 7 million Australians and it will mean that you get to keep more of the money you earn rather than giving it to the taxman.
HOST: But people are scared. Number one, they still remember you saying ‘there will be no carbon tax in my government' which I bet you could throttle the Greens for having the balance of power because you've had to cave in to them on this basis. And we should be directing some of our anger at the Greens for forcing this on too.
But the latest Newspoll out today, saying that the Party would be wiped out in Queensland, how big a concern is that for you?
PM: Well, Kochie, let's just be clear about why we've done this. Our nation has been debating putting a price on carbon for well over five years now-
HOST: I'm talking about Queensland. Why-
PM: And I'm happy to talk about Queensland too, Kochie but I do want to say, the reason for putting a price on carbon is because it's the right thing to do for our nation's future.
HOST: Yeah but you said you wouldn't do it. That's what gets under people's skin.
PM: I am very happy to address that too-
HOST: You needed the Greens to be in government so you have caved in to them. But Queensland-
PM: Kochie, let me answer that and then I'll answer your question on Queensland. We went, the Labor Party, to the 2007 election saying we wanted to have an emissions trading scheme. So did Mr Howard. That everybody wanted to put a price on carbon. By the 2010 campaign, the Coalition had changed its mind but I've always believed putting a price on carbon was what we needed to do to lock in our prosperity and do the right thing by our environment and that's what we are doing.
HOST: Okay, you said no carbon tax, but Queensland. You're going to get wiped out there. Not one seat on this latest Newspoll will you maintain.
PM: Well, Kochie, this isn't about the polls. This is about what's right for our nation's future. I mean, you do have to take some big decisions in politics to secure the nation's future.
And Kochie we've had some very divisive debates in the past: the GST, universal superannuation, Medicare. Some big divisive debates in the past. And when the dust has settled and people have had the opportunity to judge it all for themselves, they've recognised it was the right thing for the nation. And in the months ahead, Australians will have that opportunity about carbon pricing.
HOST: So you'll hope that it will be a kick up in the polls.
Just quickly before we let you go, we're all disappointed in all sides of politics for not settling on this asylum seeker policy last week. You've flick-passed it, going to the winter recess, to Angus Houston and his committee. Will you guarantee you'll abide by his recommendation, rather than just shelve the report?
PM: There will be no shelving of this report, Kochie. I've only ordered this expert panel to start work because I want to see us break this deadlock. I've been prepared to compromise. We did compromise last week.
HOST: Will you guarantee you'll accept the recommendations?
PM: Look, I have only done this because I want the recommendations-
HOST: And we'll put this to Mr Abbott too-
PM: Look, I've only done it Kochie, because I want the recommendations-
HOST: Okay, so that's a yes?
PM: And I have only done it because I've been prepared to compromise. We compromised last week. Sadly, the Greens and the Liberals did not move one millimetre.
HOST: So that's a yes, you'll guarantee?
PM: I'm trying to find another way through. Kochie, I'm going to weigh them with the utmost seriousness. I'm going to get the report, but I've only put this process in train because I think it's a good way to guide our nation through.
HOST: Okay, Julia Gillard, thanks very much.
PM: Thanks Kochie.