STEFANOVIC:
Prime Minister, first to the Solomon Islands regional assistance package, RAMSI will be reviewed, but will continue, although Mr Sogavare is believed to have said if Australian soldiers and police are removed from the Solomon Islands, nothing will happen to his country, he clearly doesn't care?
PRIME MINISTER:
Well the people of the Solomon Islands very strongly support RAMSI. That's our main concern. RAMSI has restored stability and order and it's laying the foundation for greater economic progress. The one hope the people of the Pacific have is rising living standards and that can only happen if there's reduced corruption and better governance.
STEFANOVIC:
Does it concern you that we seem to always go to these forums, supply aid and get a slap in the face in return?
PRIME MINISTER:
Well, we don't get a slap in the face from the people. RAMSI is very popular in the Solomon Islands and there's great affection for Australia in both the Solomon Islands and Papua New Guinea. My big responsibility is to make sure that Australian aid money is wisely spent. And I don't really mind what people say, up to a degree, as long as that objective is achieved and I will always insist that in return for the aid we give, we have increased standards of governance and improved economic performance. And I believe that that message will get through to the people of these countries.
STEFANOVIC:
Do you think it is a problem though, the leaders of these countries seem to have issues with you and Australia at the moment?
PRIME MINISTER:
I don't believe the differences will do any long-term damage to the relationship. Indeed, it's part of the process of winning acceptance of the need for improved governance and improved economic performance.
STEFANOVIC:
Prime Minister, is bringing Julian Moti back to answer those child sex allegations to Australia, is that on the table at all over there?
PRIME MINISTER:
It's not something that we have discussed, because it's a matter of the operation of the laws of Australia and the response of the authorities in the Solomon Islands. In that sense it's a bilateral issue between Australia and the Solomon Islands. We are supporting the application of the law. I didn't decide, the Government as such didn't decide about Mr Moti's extradition or about his being charged rather - that was a decision taken by the Australian Federal Police - and in our country, we allow the police to operate independently and to make the decisions that they believe are necessary to maintain the rule of law.
STEFANOVIC:
Prime Minister, issues here at home and Queensland Senator Russell Trood is among the first in your Government to openly criticise the war effort in Iraq -I'm sure you're aware of his criticism. While he says Australia should not pick up and leave, he does say this morning that progress is falling behind expectations, it could be a protracted war of attrition there and that it will test the patience of the public. He's right, isn't he?
PRIME MINISTER:
Well, I think I've acknowledged...everybody knows that the exercise did not go as quickly as we'd all hoped. But the issue now, the one thing that matters, is what do we do? And he's not advocating we pull out, he's not advocating the Labor course. I think we should take the advice of the Deputy Prime Minister of Iraq who said that if the international forces were to abandon Iraq, that would create chaos and much greater bloodshed. It's not easy. These things are never easy. But we have to ask ourselves, is Australia's security enhanced by Western defeat in Iraq? And I ask people to contemplate the impact on the authority of the United States, the impact on the West of a defeat in Iraq. Now if people think that's going to strengthen the West, it's going to strengthen America and strengthen Australia, I think they've taken leave of their senses.
STEFANOVIC:
If America pulls out of Iraq, will Australia follow suit?
PRIME MINISTER:
Well, America is not going to pull out of Iraq, America will only leave Iraq when she is satisfied that the Iraqis can look after the situation themselves. That is our position. But people have to face the choice. The consequence of the Labor policy is defeat for the West, unless of course we're going to maintain the hypocritical position, well, it's not good enough for us to be there but we'll leave it to somebody else. That would do great long-term damage to our alliance.
STEFANOVIC:
Prime Minister, while you're in those meetings today, a $400 million solar plant to be built in northern Victoria will be announced. Is that the Government's answer to global warming or at least climate change?
PRIME MINISTER:
Well, part of the response to climate change is solar power. Solar power will never be able to provide base-load power or solar sources in the way that, say, coal and I believe in the long-run, nuclear power can. But it's part of the response. And this announcement today is of money that comes out of a fund I announced more than two years ago. And over that period of time, various projects have been put before the Government, and the good ones have been selected, and we're starting to announce them and today in Victoria, the Treasurer and Mr McFarlane, the Industry Minister, will be announcing the solar plan and also another one that involves a new technology for brown coal.
STEFANOVIC:
Prime Minister, inflation figures out today. Do you think that there will be a raising of the interest rates by the end of the year? Should Australians prepare themselves for that?
PRIME MINISTER:
I don't know Karl. It will depend a lot on the Reserve Bank's assessment of inflationary pressure in the community. I don't know what the inflation figure is today, like everybody else, I will learn later on this morning. I do know this, that in making decisions on interest rates, the bank is governed by medium and longer term developments with the inflation rate. But even...however you look at it, interest rates will always be lower under a Coalition Government than the other side.
STEFANOVIC:
All right Prime Minister, good to talk to you this morning, we appreciate your time.
PRIME MINISTER:
Thank you.
[ends]