JOURNALIST:
Mr Howard, what's your reaction to Kate Lundy's comments about the FTA and the...?
PRIME MINISTER:
Her comments are misguided, but the Labor Party is springing wide open on the Free Trade Agreement. This is because Mr Latham didn't show leadership on the issue five months ago. He should have declared for the agreement five months ago, instead he decided to play politics and now he's paying the price with a divided party. This is a once in a generation opportunity for Australia, it should not be squandered. Sensible Labor people like the Premiers and Mr Beazley know it's in Australia's interests, it's pity the Leader doesn't.
JOURNALIST:
(inaudible) have shared Kate Lundy's concerns about contents, American contents in our...
PRIME MINISTER:
Well, they're misguided. There's adequate protection in the agreement for local content and there are valuable reservations in relation to new media. These things were made very clear in the negotiations five months ago - Mr Latham knows that. If he'd shown leadership these provisions would not now be emerging. But he played politics. And in the end, he will put political advantage ahead of the national interest.
JOURNALIST:
In relation to the PBS system, some are concerned that the prices of medicines will go up...
PRIME MINISTER:
They can't because this review procedure is not mandatory, all it can do is express an opinion and if the PBAC and the Government say no, end of story - that's always been the case. This is a smoke screen. It's about time Mr Latham showed some strength and said to his party - this is good for Australia we are going to back it.
JOURNALIST:
You say that all medicines that come on to the PBS in the future would still...?
PRIME MINISTER:
I have no doubt under the existing arrangements that the scheme that has served this country well will continue to do so and there is nothing in the Free Trade Agreement that is going to undermine the Pharmaceutical Benefits Scheme.
JOURNALIST:
There have been calls today from Labor's Kim Carr about the manufacturing industry to have an adjustment package like the one that was given to the sugar industry...
PRIME MINISTER:
It is not justified because we get enormous benefits - the manufacturing industry in Australia gets enormous benefits under the Free Trade Agreement - tariff free entry into this giant United States market. There is no justification, the car industry, for example, has more than welcomed it; Toyota has welcomed it; Ford and general motors have welcomed it. This is a very good agreement for Australian manufacturers.
JOURNALIST:
What about Alexander Downer's comments about the apparent rifts between Australia and Spain and Ambassador in Madrid being called in to sort of explain Alexander's comments. What do you think about that?
PRIME MINISTER:
Mr Downer's comments were quite justified and I support them. There's no rift, there's a difference of opinion about Iraq. We thought Spain was wrong to pull their troops out of Iraq. We think it sent the wrong signal and it could well have had an impact on the behaviour of others - that's what Mr Downer was saying. It sent the wrong signal and you don't buy immunity from terrorist attacks by giving in to them.
JOURNALIST:
Do you think it was appropriate that the Spanish Government asked...
PRIME MINISTER:
Well, that's a diplomatic thing, I don't want to get into that. All I'm saying is that Mr Downer was right and I support this remarks. Thank you. [ends]