JOURNALIST:
Prime Minister, can you tell us about bracket creep, what are you going to do for the average Australian out there?
PRIME MINISTER:
We'll continue to deliver an economy that has low interest rates and low inflation and where we can we'll cut tax.
JOURNALIST:
Can you do that using bracket creep?
PRIME MINISTER:
You don't use bracket creep to cut tax, you cut tax to get rid of bracket creep.
JOURNALIST:
Are you going to do that?
PRIME MINISTER:
We'll continue to cut tax where we can.
JOURNALIST:
Some people are saying Prime Minister they'd rather have you know more hospitals and improvements to roads rather than you know small tax cuts. What's your response to that?
PRIME MINISTER:
I think you have to spend money on the necessities and that's why we have increased public hospital funding by 17 per cent in real terms under the new agreement, even though we don't run the public hospital system, we have no say in them, we in fact contribute more money to their operation than do the states.
JOURNALIST:
How can hospitals cope if doctors continue to resign, especially in New South Wales in relation to this latest levy on them?
PRIME MINISTER:
Well I'm concerned if doctors leave the public hospital system, if specialists do that, is a matter of concern for me. New Health Minister Tony Abbott is turning his mind to this and as in the past will be willing to talk to leaders of the medical profession. I also don't think the State Governments should be allowed to escape their responsibilities, the problem after all started with the failure of the states to fix the negligence laws of this country, which have led to huge verdicts and rising premiums. That's the root cause of the medical indemnity problem, not the Federal Government. The root cause of the medical indemnity crisis, if it's a crisis, is the failure of State Governments over the years to reign in the negligence laws and therefore the very high verdicts which have driven up premiums.
JOURNALIST:
But the new crisis will be if these doctors do walk away and there's no surgeons in Orange... how do you deal with that crisis?
PRIME MINISTER:
I've already said that will be a matter of concern and Mr Abbott as the new Health Minister, I know because I've spoken to him, is already turning his attention to it and as always will be willing to discuss the issue with the medical profession. But the states have deep and historic responsibilities in this area, they run the negligence laws of Australia, we don't.
JOURNALIST:
Would you consider suspending the levy....
PRIME MINISTER:
I repeat what I've said, no more.
JOURNALIST:
Is your visit here today anything to do with the fact some are saying Mal Brough's seat is looking shaky, his seat of Longman at the next election?
PRIME MINISTER:
Well I visit his seat regularly, it's always been a marginal seat, any seat with the sort of majority he has is always a tough fight but he's a very good member, he's got new responsibilities, he's effectively going to be an assistant minister for defence, he'll have new responsibilities and that's because he's a very good minister and a very good member.
JOURNALIST:
Are you concerned that Australia Zoo might be moved out of Australia to the US?
PRIME MINISTER:
I would hope that wouldn't happen, heavens above that would be shocking.
JOURNALIST:
Would you give any sort of ...
PRIME MINISTER:
Look hang on mate I haven't even seen the crocodiles yet.
JOURNALIST:
On income tax breaks, when do you anticipate rolling out any sort of a...
PRIME MINISTER:
Can everybody sort of, I've used this expression before, but can everybody just calm down a bit. The $7.3 billion surplus was last year, that's already been spent, it was already applied to reducing our national debt. Whether we have a surplus this year or next year we don't know, I mean we will, I expect a surplus but how big it will be it's too early to tell. We've already given a tax cut this year, $2.3 billion tax cut this year, so it's a question of whether we have a capacity for the next financial year, that's the 1st of July 2004, and we are many months away from knowing whether we have a capacity to cut taxes in that financial year. But our general approach is that we cut tax where we can, that's our philosophy.
JOURNALIST:
Prime Minister how can you be beaten at the next election?
PRIME MINISTER:
Easily, there's only eight seats between me and electoral oblivion and no-body ought to forget it who's interested in my welfare, as distinct from other people's welfare.
JOURNALIST:
... rather have spending on other areas rather than a small tax cut, I mean has your promise of a tax cut, has that backfired?
PRIME MINISTER:
Look, different people have different views and the job of a government leader is to assess what is the right balance and I can assure the Australian people we'll continue to support health and education spending but we'll also continue to try and cut tax where we can.
[ends]