PRESENTER:
The Prime Minister Mr Howard is on his way home from Abuja, Nigeria after one of the most difficult and divisive Commonwealth Heads of Government Meetings in years. The decision by President Robert Mugabe to pull Zimbabwe out of the Commonwealth has left the group of 54 nations divided and at odds with each other. The Prime Minister of course has been at the centre of much of the action, having pushed for the continued suspension of Zimbabwe while the country gets its house in order. Our Africa correspondent Sally Sara spoke with Mr Howard at the end of CHOGM, and began by asking him his reaction to Mr Mugabe';s decision to quit the Commonwealth.
PRIME MINISTER:
Well it';s regrettable, but that';s the sort of decision that can always be reversed. There is no reason why Zimbabwe should have taken that decision. The Commonwealth handled the issue yesterday very well. The suspension continues, but there will be a renewed effort to get the parties together in Zimbabwe and hopefully make progress towards those changes that are needed inside the country so that readmission can take place.
SARA:
Mr Howard, what evidence do you have that the way the Commonwealth has handled this issue has in any way helped the people in Zimbabwe?
PRIME MINISTER:
Well the only way you can really help the people in Zimbabwe is for a change of direction inside that country and I do believe that taking a stand, as the Commonwealth has, and requiring processes to be followed and changes to occur and greater democracy to be implemented, that will lay the basis of improving things. If the Commonwealth had ignored what was happening inside Zimbabwe, that would have sent a message to the people of that country that we weren';t interested in their welfare and not interested in their future.
SARA:
But the cost of that, even inadvertently, now is that the ties have been almost severed, that it';s going to be very difficult to reengage with Zimbabwe.
PRIME MINISTER:
Sally, you can';t compromise on issues of democracy and issues that are fundamental to the Commonwealth';s existence and the Commonwealth';s value system. The difficulties inside Zimbabwe at the moment are not the fault of the Commonwealth, and they';re not the fault of members of the Commonwealth, like Australia, who have endeavoured to uphold the principles of the Commonwealth. Quite the reverse.
SARA:
But given the priorities that you have had here of trying to send a strong message, maintaining the standards of the Commonwealth, but also trying to have some kind of engagement with Zimbabwe, is there a risk that you went in too hard, with the quiet diplomacy approach of South Africa and other nations, in retrospect could that have worked better in your view?
PRIME MINISTER:
I don';t think for a moment that I went in too hard. The reality is that if the Commonwealth had lifted the suspension at this meeting, then the values that it is meant to stand for would have been seen as quite wasted and irrelevant.
SARA:
Mr Howard, just briefly on a couple of domestic issues. Firstly, Mr Latham has announced that he has appointed Simon Crean as his Shadow Treasurer. What does that say, do you believe, about Mr Latham';s team heading towards the next election?
PRIME MINISTER:
Well it';s not particularly new or novel, but beyond that I don';t want to say any more.
SARA:
The Reserve Bank is predicting falling levels of… a slowing of the level of inflation. Does that suggest to you that there is no need for further interest rate rises?
PRIME MINISTER:
Well I';m not from a distance going to get into a debate on that, except to remind your listeners that interest rates now are a country mile lower than what they were when we came to office, and the average homebuyer is paying four to five hundred dollars a month less on his or her loan.
SARA:
It';s a fairly benign environment though when it comes to inflation.
PRIME MINISTER:
It';s a benign environment because of the Government';s economic policies which the Labor Party endeavour to frustrate every inch of the way, and regrettably the new Leader of the Opposition is not turning his back on that negativity. He had a golden opportunity to support the MedicarePlus safety net. He said he wanted to be different and new and yet we go to Christmas without a safety net that will benefit all Australians being available.
SARA:
The Treasury is forecasting a larger than expected surplus for the current year, but around $3.8 billion for the following year. What sort of position does that leave you in in the lead up to the election? Are we talking about being able to deliver little more than another sandwich and milkshake tax cut?
PRIME MINISTER:
Well I';m not going to start speculating about that. What those figures indicate is that this Australian economy has been well managed and as a result it has grown strongly, with low inflation, consistent growth and low interest rates, falling unemployment, and a fiscal position that is the envy of every developed country in the world. And that reflects great credit on the Government and particularly on the Treasurer Peter Costello.
SARA:
How much of a priority is it for you to try and deliver some tax cuts in the lead up…
PRIME MINISTER:
Our priority is to do the right thing with the people';s money. It';s not our money. They want their money spent wisely, and after we';ve spent it on the things that they believe are important, they';d like it back. They don';t want it to go mouldering in the bank, and they want it back, and that';s fair enough because it';s their money. It';s not mine or Mr Costello';s.
[ends]