FAINE:
Prime Minister, good morning.
PRIME MINISTER:
Good morning Jon.
FAINE:
The number of course – 9414 1774 if you have a question to put to the Prime Minister – 9414 1774. Prime Minister, the Treasurer tomorrow, Peter Costello, releases a discussion paper which amongst other things, according to the Financial Review, recommends that people on disability pensions and parenting allowance be required to look for work in exchange for some income support. Is that going to be your policy, going into the next election?
PRIME MINISTER:
I think you';d better wait until he releases it. There is a fair amount of speculation. I think people will find that this is a pretty, not only positive report, but it contains a number of positive new proposals. And rather than respond to some of the reports, which inevitably with these things can be wide of the mark, on a one by one basis, I';d rather wait until Peter makes the presentation. It';s going to be quite an important statement and it';s going to address one of the big, long-term challenges of this country, and that is how to cope with an ageing population in a sensible way. And Peter will not only bring to the public an update of the intergenerational report that he presented as part of the budget in 2002, but he will also have a number of particular proposals that I think people will find interesting and relevant, and he';ll be doing that in Sydney. And in Melbourne I';ll be talking to CEDA about some of the broader economic challenges that the country has. So it';s very much a day in which the Government will be talking about the future challenges for this country, and Peter doing it very specifically in an area that he has done some wonderful work on over the past few years.
FAINE:
And then at the same time you';re also looking at reforming superannuation, and there are various commentators in the papers saying well look, your lump sum is going to disappear, you won';t be able to take a lump sum.
PRIME MINISTER:
Well once again, I think it';s better if people wait. There is a lot of speculation.
FAINE:
There is. I';m asking you to try and either confirm or quell…
PRIME MINISTER:
Well I know you are, but I';m not going to spoil the day for the person who is making the announcement. But I don';t think people should believe some of the more exotic things that are being predicted.
FAINE:
Then let';s talk principle. Do you think Australians should work longer?
PRIME MINISTER:
I think it';s desirable that people, if they are able to do so, do work longer, yes. I';ve been saying that for a couple of years. And we need, as a nation, to increase our workforce participation rates because our population will continue to age and if we are to afford the longer lives that people hopefully will live, and the healthier lives, then we need as a nation to encourage workforce participation. I think we squander immense talent at too early an age. I think we went through a cult some years ago of encouraging early retirement. Now I';m not saying people have to, but I think they should be encouraged to, and I think there has to be a cultural change and that cultural change has got to go right through private enterprise and the public sector, whereby people perhaps they might have a change of pace when they get to a certain age, but still remain very usefully in the workforce.
FAINE:
So it';s not a change in the community that';s going to happen overnight. It will take a long time. Meanwhile you';ve got all sorts of other entrenched issues to deal with.
PRIME MINISTER:
Of course, of course.
FAINE:
And the other way to deal with the same issues of course is to boost immigration.
PRIME MINISTER:
Well we have in fact increased immigration in a way that has very strong public support. But even if you treble immigration overnight, which is not possible, but even if you do, all the economic studies suggest that that would have but a marginal impact on the process of demographic change because people who come to this country as migrants bring, like the rest of us they bring their demands for public services and they';re part of the ageing process. It';s a challenge that every developed country has. We are in about the middle. We don';t have as big a problem as Japan, where I think in two years time you will have the crossover point between deaths, net deaths, and births.
FAINE:
And a declining population.
PRIME MINISTER:
That';s right. And Italy and Spain, which have fertility rates of about 1.2, 1.25 against our 1.74, they have a far sharper problem. The United States on the other hand is not ageing at quite the same rate.
FAINE:
But at the same time, I mean you';ve met the challenge instantly and overnight in reforming your own superannuation. So in order to change everybody else';s super…
PRIME MINISTER:
Can I just make it absolutely clear. People have certain expectations and we';re not in the business of abruptly changing those expectations overnight. We';re not going to do that. I want to make that absolutely clear. The sort of change that has to be undertaken in this whole area, if change is to be undertaken, is something that has got to be done in a measured fashion.
FAINE:
And that';s going to be a critical piece of policy then going into the next election presumably because it affects every single person, unlike say a rural doctor crisis and other things that…
PRIME MINISTER:
Well these are the big issues that this country faces and it';s our responsibility as a Government to address them, and to address them in a sensible way – not address them in a way that abruptly changes people';s entitlements or expectations. But we';ve never been afraid to address big long-term issues.
FAINE:
Well you weren';t on your big tax reform agenda.
PRIME MINISTER:
The big tax reform, industrial relations. We';ve never been afraid to address these issues. But let';s wait until the Treasurer makes his presentation.
FAINE:
Well is this John Howard looking for an issue for the next term?
PRIME MINISTER:
No, it';s not John Howard (inaudible) initiative, it';s the Prime Minister and the Treasurer, as we always do, working together to continue the economic growth and the economic strength that this country has had over the last eight years. We are enjoying our best economic conditions since World War II. For the first time in 35 years, we have inflation below three per cent and unemployment below six. Now you can';t take that for granted. There seems to be an assumption developing in some parts of Australia that no matter what you do, or who you have in charge, that prosperity will continue. Well that';s not right. If we do an about turn, for example, on industrial relations, we';ll pretty quickly wreck prosperity that we';ve enjoyed over the last few years.
FAINE:
Alright. We need to get to calls as soon as we can. But if you and Peter Costello together are going to share the delivery of this particular issue, it again raises and implies that the public, in the minds of the voters, at what point in the next term does John Howard, if he wins the election, hand over to Peter Costello. That is just going to keep dogging you through the next six or so months.
PRIME MINISTER:
Jon, the Treasurer is responsible for these matters as part of his portfolio. From the year dot, the Treasurer has always, after the Prime Minister, been the principal spokesman for the Government. I was a Treasurer when Malcolm Fraser was the Prime Minister. Life goes on the same. As far as I am concerned, in relation to my future, I have indicated in the past what my response to that question is…
FAINE:
And I understand it, but…
PRIME MINISTER:
And it hasn';t changed.
FAINE:
But it can';t change the fact this is going to continue to be an issue through an election campaign.
PRIME MINISTER:
You can ask it, anybody can ask it, and I';ll give the same answer.
FAINE:
And we';ll keep getting the same answer, which leaves the question there and everyone will keep asking it. It goes round and round, doesn';t it? It chases its own tail. Isn';t that right? You don';t want to answer?
PRIME MINISTER:
No, I';ve given you my answer. You';re wasting your listeners'; time. But anyway, I';m quite happy to sit here and smile back at you and give the same answer.
FAINE:
But the problem then is the public, who are going to be asked to go to the polls and tick a box, are saying well, what am I ticking the box for?
PRIME MINISTER:
Look the Australian public will make their judgement of me, they';ll make their judgement of the government I lead. I will continue to give the response I';ve given in the past in relation to that question.
FAINE:
But it';s not a good enough response Prime Minister.
PRIME MINISTER:
Well with respect, the Australian people will decide that, not you or me or anybody else.
FAINE:
And they keep raising it. On talkback they raise it, in letters to the editor they raise it at every opportunity. They say well what';s on offer here?
PRIME MINISTER:
Jon, the Australian people will decide that at the election.
FAINE:
It';s like the superannuation for politicians issue. It will keep nagging away at you.
PRIME MINISTER:
Come on, that';s drawing a long bow mate.
FAINE:
Do you think so?
PRIME MINISTER:
Yes.
FAINE:
Well we';ll see what happens. We';ll get to calls in just a moment. Do you feel that you now need to try and catch up with Mark Latham';s agenda? According to all the Press Gallery and the various correspondents, even those that have been very favourable to your administration, they';re saying well he';s seized the initiative.
PRIME MINISTER:
Well I';ve read a lot of commentary. I';ve also read polls in The Australian newspaper this morning which is interesting, given that we had such a bollocking from the federal parliamentary Press Gallery over the last two weeks. Some people may have thought it was different. But I think what… seriously I think what the poll indicates is the reality, and that is the next election will be very close. That';s something I have said repeatedly. Federal elections in Australia are always close. There has only really been a few landslides. I had a big win in ';96. Malcolm Fraser had a couple of big wins. Bob Hawke had a fairly big win in ';83. That';s really it in the last 25 or 30 years. And the next election will be like most federal elections in this country. It will be very, very close and it';s going to be a tough proposition for the Government to win.
FAINE:
As you just remarked, you';ve been getting a bollocking from the Press Gallery. Why is that, do you think?
PRIME MINISTER:
Well it happens from time to time.
FAINE:
Not out of thin air though.
PRIME MINISTER:
Well Jon, I';m not in the business of giving commentary on why your colleagues do things. I';m just making a…
FAINE:
I just thought I';d tempt you.
PRIME MINISTER:
Well I don';t go for those sorts of temptations. I';m just making a passing observation that';s interesting, isn';t it? And I think the Australian public, they';ll make up their mind. They listen to what commentators say, they listen to what I say and what my opposite number says. But in the end they decide these things and they don';t get it wrong. They know what they';re about. And I think the next election will be very close, as most past elections have been.
FAINE:
Seventeen minutes to nine. You';re going to visit a couple of key seats in out eastern, outer suburban Melbourne today and you';re going to have a look at the new toll way, the site of the toll way that the Bracks Government is going to build.
PRIME MINISTER:
The one that they shouldn';t be building because they said it would be a freeway.
FAINE:
Well, they were relying on $500 million from the Federal Government that they';re not going to get.
PRIME MINISTER:
No, no, we signed a memorandum of understanding on a certain basis and that basis will continue to be honoured. But they';ve walked away from that agreement.
FAINE:
But that';s Victorian road money, if it';s not to be spent on that project why can';t it be spent on another?
PRIME MINISTER:
Jon, we are committed to the Scoresby Freeway and we intend to force the Bracks Government to honour the memorandum of understanding.
FAINE:
How? How do you force them to do that?
PRIME MINISTER:
Well we continue to do it by continuing to maintain our position and continuing to tell the people of Melbourne, particularly in this part of Melbourne that we signed a memorandum of understanding for a freeway in good faith and that remains our position and will remain our position.
FAINE:
Well, you can';t actually force them to build?
PRIME MINISTER:
Well, we';ll just wait and see. We';re not going to join their retreat from a deal that they represented to the Victorian public before the state election as being their intention and we signed it in good faith and we';re going to continue to maintain that position.
FAINE:
That leaves us $500 million short on road funding?
PRIME MINISTER:
If what the expectation of the Victorian public was at the time of the last state election is not realised it will be because of the breach of promise by the Bracks Government, not a lack of faith by the Howard Government.
FAINE:
When push came to shove on Port Nepean, you thought it was worth..?
PRIME MINISTER:
Jon, it was an entirely different situation. We have a memorandum of understanding which was signed between the two Governments in good faith. In good faith it was signed and Mr Bracks wrote to people and said we will build this freeway, we will keep our promise, we will do this, we will do that and he hasn';t. And I';m just saying to the people effected, we intend to honour the memorandum of understanding.
FAINE:
A couple of very quick ones – bulkbilling, some of those electorates that you';re visiting according to today';s Herald Sun newspaper had the highest fall in bulkbilling rate of any part of Australia. For some, the most important issue for the people out there?
PRIME MINISTER:
Jon, bulkbilling is the important issue. But an even more important issue is the availability of doctors and the two are linked. If you look at bulkbilling figures around the country – you';ll find that there';s a direct correlation between the availability of GPs and bulkbilling levels and that';s why our Medicare Plus package is so important. The extra five dollars for cardholders and children under sixteen has already kicked in, it kicked in on the second of this month. We';re still waiting to get out new safety net through the Senate. And I can';t understand why the Labor Party is opposing a new benefit for Australian families. I mean, they could support this and even if they win the next election and introduce their own policy the safety net won';t frustrate the introduction of their own policy. I can understand an Opposition saying, I can';t vote for this because it will so fundamentally alter the landscape that the alternative policy I want to introduce can';t be introduced. I can understand that, I might argue against it and question the wisdom of the alternative policy, but there';s no logic other than short sighted Opposition in opposing something that is consistent in the long run with your own policy. And in the process, they';re denying to families of this country this additional protection.
FAINE:
Thirteen minutes to nine. Pop the headphones on, Prime Minister, and we';ll get to calls. Richard from Geelong, has been waiting patiently. Richard, good morning, you';re through to the Prime Minister.
CALLER:
Good morning. Thanks for taking my call.
PRIME MINISTER:
How are you Richard?
CALLER:
Well thank you. My question relates to the health system and you';ve highlighted a couple of interesting points where you';ve tried and made some good efforts in mending the system. But I';m sure you';re well aware of the second level of health administration that';s currently in place through the State Governments and how much time and resource that sort of takes. And me, myself, being an allied health professional working in a rural area, I find the state system absorbs a lot of resources.
FAINE:
Have you got a question, Richard?
CALLER:
Yeah, those people on the ground are without, finding it very frustrating. So I was wondering, Prime Minister, whether there is anything you see yourself doing in the future that can alleviate this discrepancy in the two health systems?
FAINE:
Specifically, what sort of allied health do you mean?
CALLER:
I';m looking at anything that supports the medical practitioner in the rural area.
PRIME MINISTER:
Well, one of the things we';ve brought in, of course, in the Medicare Plus package is practise nurses, something that doctors have been wanting for a long time and they welcome that very strongly. As far as the general administration of health on the ground, well the State Government, they have to be accountable for that. We do have a federal system and we do have states and it does come to a point at which the states have got to discharge their responsibilities. They run the hospitals, we don';t. We fund them, almost half the cost is provided by the Federal Government, but we don';t run them – they';re run by State Governments.
FAINE:
Thanks for your call, Richard. Lachlan in Hawthorn. Morning Lachlan.
CALLER:
Morning. Hi, Prime Minister. When are you going to fund, jointly fund the Geelong Bypass as a road of national importance and here';s four reasons why I think you should – firstly, it';s an international tourist Mecca, the Great Ocean road. Secondly, it would encourage migration out of the city. It would bring these regional centres closer. I';ve got three young kids, I want to move. Thirdly, safety, there was a double fatality on the Geelong Freeway recently. There';s 29 sets of traffic lights in Geelong. And finally, I think it';d be a vote winner. When are you going to fund it?
PRIME MINISTER:
Well, let me say that we have a lot of requests for funding of roads of national importance and we';ll be stacking all of those requests up and making some judgements on them over the months ahead. I can';t say anymore than that. I';m not going to make a promise on the run.
FAINE:
But Lachlan is quite accurate when he says it';s a vote winner and there are some key seats out there.
PRIME MINISTER:
I understand that, Jon. That';s what Lachlans in different parts of Australia say to me about a lot of places they think should be raised as national importance. And look, I';m not in any way putting down what Lachlan';s put to me, I understand exactly what he';s saying.
FAINE:
Is it in the queue even?
PRIME MINISTER:
Well, it';s one of those that will obviously be considered. But I';m not going to promise it. I don';t want to be in a situation of giving a false impression. I will carefully assess, along with John Anderson and Peter Costello the priorities we will give. We only have limited resources. Although, we are going to boost them over the next few years through the proceeds of the abolition of that fuel subsidy scheme that hasn';t worked very well. And that';s going to be on top incidentally of the additional $1.2 billion for the renewal of the Roads to Recovery program.
FAINE:
At the risk of making a nuisance of myself. You are $500 million ahead so far on Victorian road funding, aren';t you?
PRIME MINISTER:
Jon, we';ve already dealt with that issue. You know our policy. You';re not making a nuisance of yourself. You';re trying to get a googly past me.
FAINE:
Christian, in Warrandyte. Morning Christian.
CALLER:
Morning Jon.
FAINE:
Go right ahead.
CALLER:
Good morning, Mr Howard.
PRIME MINISTER:
How are you?
CALLER:
I wanted to ask you about the education and your comments recently about the apparent lack of values in Government schools. I go to a Government primary school.
FAINE:
How old are you Christian?
PRIME MINISTER:
Eleven?
CALLER:
12 in March, and I was wondering what effects do you think your comments have had on the majority of parents who choose to send their children to government schools?
PRIME MINISTER:
I don';t think they';ve had a negative effect at all because most parents understood what I was saying. What I said was, when asked by a reporter – why do an increasing number of people take their children out of government schools and send them to independent schools – I said one of the reasons given to me is that issues relating to values and discipline and I have to say to you, Christian, and I';ve had a lot of people, including parents, government schools, say that they understood exactly what I was getting at. I have never attacked all government schools. I have never attacked teachers in government schools as such. In fact, I married a teacher in a government school, she hasn';t taught for some years now, but I';m the last person in the world to attack teachers. But there is a debate going on in this country about the sort of education that we should give our children and I believe very strongly in a choice being available to parents. When I was your age, I attended a government school in Sydney, I then went on to a government selective high school. I';ve never been to an independent school myself. I sent my own children to government schools at a primary school level. I chose to send them to an independent school at a secondary school level. So I';ve had feet in both camps and I think my children received a wonderful education at their government school and a very good education at their independent school. So there are good elements, but there is a view by a lot of people that there are some advantages in the areas that I';ve described by sending children to independent schools and I think rather than say that I';ve offended all teachers and all parents who send their children to government schools, maybe the government sector should say - well perhaps there';s something in this, there must be an explanation as to why there has been such a strong drift of people from the government sector to the independent sector and instead of reacting in a defensive way, I think rather what people should be doing is say well perhaps there';s something in this, maybe we should look again at our system.
FAINE:
Thank you, Christian. Brian in Wantirna. Morning, Brian.
CALLER:
Good morning, Mr Prime Minister.
PRIME MINISTER:
Good morning.
CALLER:
With respect, I';d like to ask you why your Government seems to constantly favour New South Wales with the road funding?
PRIME MINISTER:
Really?
CALLER:
Well, the figures that I';ve been…
PRIME MINISTER:
Who';s given you the figures?
CALLER:
I';ve seen them in the newspapers and if they';re wrong well it';s up to the newspapers, but they';re saying 15 per cent for Victoria and we pay 25. New South Wales – 42 per cent and they pay 30. Now, do you think that';s fair? And would you stop politicking about the Scoresby Freeway. It';s the only thing you seem to come down here for, you don';t come down to throw us any good news, just to prop up Doyle';s flagging fortunes here and try and drag some of those…
PRIME MINISTER:
You might be hard to persuade even with facts.
FAINE:
Brian, you there?
CALLER:
Why can';t we have our $500 million that was promised?
PRIME MINISTER:
Well, we promised it and we';ll deliver on our side of the bargain.
CALLER:
Why do you fund toll roads in New South Wales and there';s nine projects there?
PRIME MINISTER:
Well, all the road funding we give in New South Wales in relation to toll roads… we have funded toll roads, nobody';s denying that. No, but the point I';m making is that we signed an agreement, come on now…
CALLER:
(inaudible)
FAINE:
The Prime Minister';s trying to respond, so just wait.
PRIME MINISTER:
…talking over you.
FAINE:
No, go right ahead.
PRIME MINISTER:
We signed an agreement on Scoresby and Mr Bracks repudiated that agreement. He misled the Victorian public, and I know it hurts Labor supporters when this is said but it';s true, and he';s the person who';s created this problem because he broke his solemn promise to the people of that part of Melbourne. We haven';t, we want to honour that promise and that';s what I';m on about and it';s not the only reason I come to Victoria, I can assure you of that.
FAINE:
Thank you for your call, Brian. Christine in Oakleigh. Good morning, Christine.
CALLER:
Good morning, Prime Minister.
PRIME MINISTER:
Hello, Christine.
CALLER:
My question is about the refunding of the safety net. I was just wondering how you can possibly refund a gap payment when there';s no upper limit to the gap, this is in effect offering an open cheque to all doctors and it';s irresponsible and I can imagine bulkbilling just dropping to its lowest point because who would accept a $5 incentive to bulkbill when specialists and other medical counterparts would be receiving 80 per cent of whatever charge they want to put?
PRIME MINISTER:
Well, the reason that it';s not 100 per cent is precisely the point that you make. And bulkbilling rates, can I tell you, are very low already without the safety net in relation to specialist consultations, I think they are down at 30 per cent. Now you have in fact delivered one of the strongest arguments in favour of the safety net. But it';s not only the out of pockets for a GP consultation that will be captured by the safety net, it';s also the out of pockets for other out of hospital MBF services. And without the safety net, you have a very low bulkbilling rate and people are paying the difference out of their pocket. What I want to do is to help them to the tune of 80 per cent, so I thank you, I think you';ve delivered the argument.
CALLER:
Prime Minister, you';re actually offering an open-ended cheque for (inaudible)
PRIME MINISTER:
No, it';s not open-ended when you only get 80 per cent, I mean if it were 100 per cent….. look, nobody goes to a doctor or a specialist unless it is necessary. There are always market constraints in relation to the charging of fees and the fact that it';s 80 per cent and not 100 per cent and the fact that you have to accumulate in relation to concession card holders and family tax benefit A holders $500 and in the case of the rest of us, $1,000 in a 12 month period, means that it isn';t by definition open-ended. It is a genuine safety net to meet the unexpected extra expense that all families from time to time incur and for the life of me, I can';t understand why the Labor Party continues to block it.
FAINE:
Thank you, Christine. Another Christine, though, in Dandenong with just a few minutes to go til the news. Good morning, Christine.
CALLER:
Good morning, Prime Minister. I wanted to ask you about the role of childcare that you see for participation of particularly women in the workforce…
PRIME MINISTER:
Yes.
CALLER:
And as a customer of around quality childcare. So I suppose specifically local governments seems to be the best provider of that and (inaudible) federal government…
PRIME MINISTER:
The best provider of what, I';m sorry?
FAINE:
Childcare.
CALLER:
Childcare.
PRIME MINISTER:
No, but you gave a particular type of childcare. You';re arguing that local government generally is the best provider of childcare, are you?
CALLER:
Yes.
PRIME MINISTER:
Really?
CALLER:
Yes.
PRIME MINISTER:
I';m not saying they';re a bad provider, but I would have thought there are good providers of childcare from all sources, it depends in what part of the country you';re in, that';s all. That';s why I was baulking… I think childcare is hugely important and the… I mean, I can reel out the figures of the hundreds of thousands of extra places, the fact that childcare has become more affordable since 2000 with the introduction of the…
FAINE:
You';ve been told time and again that second parent returning to work is hit by an…
PRIME MINISTER:
Hang on, different issue… yeah, but I mean everything';s connected in the end. But that is a different issue and I';m happy to talk about that. But I';m just talking about the lady';s childcare point. I think there are all sorts of high-quality childcare around the country and we';ve just announced an additional 10,000 in after school hours childcare places and we';ve got that further under assessment for the near future. But one of the things that we did a few years ago was to introduce more flexibility in childcare for people who lived in very remote areas who can';t by definition come into town and have access to a childcare centre in their town.
FAINE:
Christine, thank you for your call. Very briefly, Prime Minister, Jim Bacon, Tasmania Premier.
PRIME MINISTER:
It';s very sad. I spoke to him yesterday and I feel deeply sorry for him. I know that all Australians and particularly the people from Tasmania will wish him well in this great fight that he now undertakes.
FAINE:
Thank you for your time this morning.
[ends]