PRIME MINISTER:
Ladies and gentlemen, I will be leaving this morning for a very important visit to India. India is one of the great coming powers of the world. The economic growth has been enormous. It's important that we do what we can to strengthen the economic relationship with India. I'll be accompanied by a very high level business delegation which will also include the Vice-Chancellor of the University of Melbourne and will be a body that is representative of all of the business sectors, including the tertiary sector which is so very important in the development of our relations. India and China of course will continue to bulk ever larger in Australia's economic and strategic future and it's important at this time that I go there. It's my second visit to India as Prime Minister. I will of course meet the Indian Prime Minister, the Indian President and other senior members of the Government as well as Sonia Ghandi, who was the leader of the Congress Party when it returned to power and also of course I will have the opportunity of meeting the Leader of the Opposition and other significant figures.
JOURNALIST:
Prime Minister, will you be raising the issue of free trade with the Indians?
PRIME MINISTER:
Well we're not looking to have a free trade agreement as such. I think it's too early in the relationship to even contemplate that, but the whole purpose of the visit is to see if there are ways we can improve trade associations. In the end people trade with each other if it's commercially worthwhile. If it's not commercially worthwhile they won't do it. Clearly at some time down the track if there were more formal things needed we would raise them. But it's altogether too premature to start talking about a free trade agreement with India.
JOURNALIST:
Australia has indicated (inaudible) uranium and then sell uranium to India?
PRIME MINISTER:
We don't have any plan to change our current policy. We sell uranium to countries which adhere to the nuclear non-proliferation treaty. What India and the United States have done is to reach an agreement to separate out India's military capacity from their civilian nuclear capacity and to put the civilian nuclear capacity under international inspections through the IAEA. Now that's a very positive development and we'll get more information about it. Of course it has to run the gauntlet of the American political process. We're certainly not going to suddenly change our policy just because the Indians and the Americans have reached an agreement. We'll study it, and if there are things that should additionally be done that are in Australia's interests then we'll do them.
JOURNALIST:
This is a sensitive matter for our relationship with the US, given that we're about to start to sell uranium to China? The US has different views on that. Is that something that will cause tension?
PRIME MINISTER:
I don't believe so. We don't automatically synchronise everything we do in foreign policy terms with the United States. We have a relationship with China which we have developed according to our interests and according to our assessments. I can't see our selling uranium to China affecting our relationship with the United States. We might have a different view from the Americans on it, but it's not going to affect our relationship.
JOURNALIST:
In the tertiary sector, we have seen a loss of students in traditional markets like in Indonesia? Do you think we can make up for that shortfall, is that what your Government is hoping to do?
PRIME MINISTER:
Well I think it will be one of those areas that will be on display. Australia is a very attractive place for overseas students and I'm quite certain, particularly having the vice-chancellor of one of Australia's leading universities with us who has very positive, progressive views about the university sector in Australia, I'm quite certain it will be something that will come under study and we do take a lot of students from India. We take a lot of migrants from India and it's very important therefore that we take every opportunity to expand the linkages.
JOURNALIST:
Prime Minister, there's criticism of the US President for not calling for democratic elections while he's in Pakistan. Is that something you'd like to see sooner rather than later, democratic elections?
PRIME MINISTER:
Well I think Pakistan has come along way from where it was a few years ago and I'm going to India on this occasion and India of course is the world's largest democracy. There's no democratic deficit in India.
JOURNALIST:
How much extra time does Mr Cole want for the inquiry?
PRIME MINISTER:
I think he wants another couple of months at least. Whatever extra time he wants he will be given.
JOURNALIST:
Any word from him on extension to the terms of reference?
PRIME MINISTER:
No he has not asked for any extension of the terms of reference. If he were to ask for it, we'd obviously consider it very positively.
JOURNALIST:
Is it more likely that he might do that given he's got a few more months...
PRIME MINISTER:
I have no idea. That really is a matter for him. He's conducting an independent inquiry. There is no ongoing contact in relation to those matters between him and the Government. If he wants extra terms of reference he'll ask for them. If he wants people from the Government to appear, he'll ask for them. If he wants extra time, which he does, he will ask for it and my understanding is that he wants probably until the end of May or June.
JOURNALIST:
Does it concern you that he's found such a goldmine?
PRIME MINISTER:
Well I don't put a qualitative label on it. I simply note that it's a very complex issue. There is a lot of correspondence, there are a lot of communications but whatever reason he has given for the extra time I accept. Look I am totally respectful of his independence and I'm not going to make a comment on his motives or anything of that kind. He's a very good lawyer, he's doing a very thorough job and we'll see what he finds.
JOURNALIST:
Do you have a message for Robert Jovicic who's due to come back to Australia any day (inaudible)?
PRIME MINISTER:
No. There have been decisions made and I don't wish to comment.
JOURNALIST:
What about the policy of sending people who have been in Australia since the age of two...?
PRIME MINISTER:
I support the application of the laws of Australia. I am not going to give a qualitative commentary on individual cases.
JOURNALIST:
Simon Crean?
PRIME MINISTER:
Well I think at this stage it's, how shall I put it, self-serving as a leader in my position to make any further comment. That's a matter for the Labor Party and I don't think it's time for me to make a further comment.
JOURNALIST:
The Iemma Government is having a GST review and how the revenue (inaudible)?
PRIME MINISTER:
The review, the allocation of money between the states is determined by the Grants Commission. If the states are unhappy with the way it's allocated they can change the allocation and we will accommodate them. But we're not going to provide over and above what we already provide. That's quite unreasonable and we don't decide as a Government how it's allocated. It's recommended by an independent Grants Commission. The states have a say in the composition of the Grants Commission. A few years ago when New South Wales got a better deal, Bob Carr said they were a mob of geniuses. Now Bob Carr, or Morris Iemma's unhappy, they're now terrible. But the simple fact is, we have provided a much bigger pie and if the states want to alter the way in which that pie is carved up, then they only have to tell us and Mr Costello and I will readily oblige.
JOURNALIST:
The A-League Grand Final is on today between Sydney and the Central Coast. A, do you have a tip and b, do have a comment on how John O'Neill and Frank Lowy are going?
PRIME MINISTER:
I reckon Frank Lowy and John O'Neill have done wonders for soccer. I am only sorry that I can't be at the match this afternoon because of my trip. I wish both teams well. I am not expecting a favourite. It's a bit of a 'David and Goliath' contest. The good thing is that soccer has come together in a magnificent way, certainly beating Uruguay was a huge boost but they have run it well. This is terrific because there have always been a lot of young people playing soccer. In fact more young Australians play soccer than any other football code and I think it's great that it is now lifting its profile, attracting more spectators. A lot of the old ethnic divisions have gone completely. I think that is fantastic, that was the key to it. It really was. Frank and John deserve a great deal of credit for the job they have done. Good luck to both teams.
Thank you.
[ends]