JOURNALIST:
What are your thoughts on this so-called confidential research where single incomes families are supposedly worse off under tax cuts and welfare changes?
PRIME MINISTER:
Well they';re not. There';s no such thing as a 60 per cent slug on battling families. It has always been the case that if you income test unemployment benefits and welfare payments and family payments that as people';s incomes rise those benefits are reduced. That was the case under Labor, it';s the case under this government, it will always be the case unless you have a completely non income testing family payments system or welfare system and I don';t think any country can afford a completely non income tested system where you pay family benefits to millionaires, I don';t think anybody wants that and we have in fact reduced the impact of withdrawals by allowing people to keep their payments for longer periods of time. So I just completely reject the suggestion that there is a 60 per cent tax, there';s not a 60 per cent tax, that is just literally untrue and there is nothing new in the notion that as you earn more money the family payment you get at certain stages, or the unemployment benefit you get reduces.
JOURNALIST:
Mr Howard, just in there you were talking about the ageing population and things that need to be addressed to keep people in the workforce. Is one thing you';re considering increasing the preservation age for superannuation?
PRIME MINISTER:
Well there are certain things that have been said about that by the Treasurer already. But the point I';m making is that we have to in a whole range of areas encourage people to remain in the workforce longer, we have to alter the culture, we';ve got to alter the culture of private business and we';ve got to alter the culture of governments. We';re beginning to do that and we have to understand that we have an enormous resource of experience and talent of people in the age cohort of let';s say 55 through to 70.
JOURNALIST:
The plan to send police, Australian police to Papa New Guinea, is that a good idea? Why is a good idea?
PRIME MINISTER:
Well it';s always a good idea to be willing to help our close friends and neighbours, always a good idea because…
JOURNALIST:
… seen as interference though.
PRIME MINISTER:
No, when you help people you';re not interfering.
JOURNALIST:
Is Australia planning to cut PNG';s aid if they don';t reform?
PRIME MINISTER:
Look we have said that we want to ensure that improvements in governance and financial accountability, not only in PNG but elsewhere, continue to rise. That policy is well known, it';s a prudent policy and I';m sure that we can work our way through these things with our friends in Port Moresby.
JOURNALIST:
Do you think that Sir Michael Somare though isn';t co-operating with Australia?
PRIME MINISTER:
I';m sure that the conference and the discussions that are taking place involving the Foreign Minister will go in a very effective and positive manner.
JOURNALIST:
Prime Minister, the effective marginal tax rate issue, the highlighting of this though, does it not show the Government has not been able to break through on the issue of…
PRIME MINISTER:
You';re asking me to make a bit of political comment, of course I';ll leave that to you.
JOURNALIST:
… sort of put off…
PRIME MINISTER:
No, I can only repeat what I';ve said and that is that there is nothing new about withdrawing a benefit as somebody';s income rises, it';s been with us for years, you can only get rid of it if you have completely non income tested benefits and I don';t hear either side of politics in Australia advocating that and in fact the Labor Party when it was in office boosted about how it more narrowly targeted and more sharply targeted welfare payments. And obviously no country can afford a completely non means tested welfare payments system.
Thank you.
[ends]