ROWE:
In our Canberra studio is Prime Minister John Howard. Good morning to you PM.
PRIME MINISTER:
Morning, Jessica. How are you?
ROWE:
Very well. Now has the Treasurer delivered a good budget?
PRIME MINISTER:
Yes, he has. It's a Budget that is very much pitched to the future of Australia, but it also deals immediately with a current problem that most Australians have and that is the impact of high petrol prices. The tax cuts are the best way of helping people cope with high petrol prices. People have been saying to us, what are you doing about petrol prices? Why don't you cut the excise, why don't you subsidise the price of petrol, why don't you do this, why don't you do that? All of those are Mickey Mouse solutions because they don't guard against changes in the price of petrol in the future and they put the revenue at risk. What we are doing by providing tax cuts, is to give people additional wherewithal to meet the higher price of petrol. Now that's not the only reason we've cut tax but it is one of the benefits of cutting tax. Now that's the short term.
The long-term of course is in things like investment in medical research. That is a fantastic continuation of a policy of this Government. I think we've increased commitment to medical research five-fold since we came to Government in 1996. And of course the superannuation changes, and I've been listening to some of your programme a moment ago, those superannuation changes will make a dramatically beneficial impact on people's working patterns and it will encourage people to remain in the workforce at least until 60. One of the problems we've had in Australia is that we have a very high level of people leaving the workforce between 55 and 6o and that is a terrible loss of talented men and women in our workforce.
ROWE:
But Prime Minister, what we were discussing earlier, Shirley the pensioner who we had on, she's saying very much they're the forgotten people. We're also getting a lot of emails from viewers this morning. What is the benefit for pensioners in this Budget?
PRIME MINISTER:
Well can I just deal with people over age 70 generally? For self-funded retirees, this Budget is enormously beneficial because the superannuation plan effectively proposes cutting in half the application of the pension assets test, something that is hardly being mentioned. It's the other shoe, if you like, of the superannuation changes. So for people who are self-funded retirees, that is enormous. In relation to people who are relying only on the pension, there is of course the utilities supplement. They get this utilities payment of $100 a year that was introduced about 18 months ago. We're going to supplement that, to be paid before the 30th of June. Now this at the moment is on a one-off basis. It will be paid before the 30th of June. And of course, there are the regular six-monthly updates or indexations of the pension. If you are a part-pensioner, in other words you have some investment income, then you will get the benefit of the low-income tax offset, which helps people. And the effect of all of that will mean that people will not pay any tax on any income they earn up to about $10,000 a year. So it depends a little bit on somebody's status, but when I talk about over-70s, I've got to address each situation of that age cohort over 70.
ROWE:
Prime Minister, time is against us. There's a just few things that I'd still like to cover with you. A lot of people are saying this is an audition Budget for the Treasurer. Are you going to be giving him a chance any time soon in the top job?
PRIME MINISTER:
Jessica, I'll remain Prime Minister as long as my party wants me to and it's in the best interests of the party that I do so.
ROWE:
Just briefly Prime Minister moving on to Beaconsfield. I mean this is a story that's united all of Australia. Have you had a chance to talk with Brant and Todd yet?
PRIME MINISTER:
No, I haven't. I want to and I'll endeavour to get in touch with them today, but I left them alone yesterday. They wanted to be with their family and their mates and their local community. There'll be time for me to speak to them. I think they know from the comments I've made that I, like all other Australians, are very much in admiration of what they've done. But I do want to speak to them, and I'm sure I'll have an opportunity of doing so over the next few days. And of course we're going to have a reception in the Great Hall of the national parliament for all of those people involved in this inspiring Australian achievement, this wonderful demonstration of Australian mateship.
ROWE:
Oh it is. Just finally, Prime Minister, you've promised that you're going to help the Beaconsfield community. What specifically are you going to do to help that community?
PRIME MINISTER:
If the mine remains closed for an extended period of time, that is possible, then obviously people will lose jobs or their jobs will be put at risk. And I've said that the Federal Government will provide assistance to the community over and above what is normally provided in those situations. I can't tell you what form that will take because I don't know precisely how long the mine is going to be closed or indeed what length of time it will be. And I understand the community, many in the community want the mine to continue. It varies a bit. I'm in touch, I'm speaking to the mayor. I've got a representative on the Premier's taskforce and we'll continue to talk to everybody involved. The principle though has been stated on behalf of the Government, and I'll meet that commitment.
ROWE:
Prime Minister, thanks for your time this morning.
PRIME MINISTER:
Thank you Jessica.
[ends]