Subjects: James Cook University; wages; Sugar Cane Industry; Indigenous; Communication in Cape York; Australian Dollar; Interest Rates
E&OE……………………………………………………………………………………
MOLLOY:
Mr Howard this morning you are off to open James Cook University’s Library in Cairns. James Cook University is currently facing industrial action by its teaching staff over academic wages. Are you confident that regional Universities are being funded adequately so that they can offer a high quality level of education to students?
PRIME MINISTER:
Well, I am, and on the subject of wages we have made some additional money available both in last year’s budget and this year’s budget to enable academic salaries to be adjusted more flexibly at the enterprise level. And the purpose of this was to encourage universities in exchange for improvement in work practices and the elimination of industrial practices that retarded flexibility, both in teaching and administration, that there could be higher salaries. But in the end, it’s really a matter for each individual University. Universities are autonomous organisations and it’s a matter for James Cook as it is a matter for every other university in Australia to make its own arrangements with its staff.
MOLLOY:
You’re aware of the very serious problems facing Australia’s sugar industry. The Cane Growers’ Association is finalising the details of a rescue package which it hopes would get backing from Government. Do you think some form of Federal Government assistance is warranted?
PRIME MINISTER:
Well, I am aware of how difficult it has been for the sugar people. I will be going along to their conference this morning. I won’t be announcing any assistance package this morning. Obviously they are putting something together. Clearly if they put something together, the Government will have a look at it. I am not making any promises. However I am very aware of the difficulty and the opportunity of seeing them this morning and hearing what they have to say. It will be good for them and good for me.
MOLLOY:
They say they not asking for hand-outs but help like low interest loans. Is that how you think the Federal Government will be able to…
PRIME MINISTER:
Well, I am not at this stage signalling anything in relation to Federal Government help. I mean, low interest loans are something that would be attractive to a lot of people. Interest rates in Australia now are much lower than they used to be, even despite recent increases. I am not announcing anything by way of assistance this morning. The purpose of my visiting the cane growers this morning is to indicate an understanding by the Government that they have gone through a difficult time, to hear what they have to say and it’s an opportunity that’s come up. It wasn’t originally on my programme, I found that I was here at the same time as their convention and it was possible at the last minute to include a visit and I’m glad that appeared to be the case.
MOLLOY:
On the issue of indigenous health, some indigenous organisations in the far north are calling for the establishment of drug and alcohol detoxification units throughout Cape York Peninsula which currently isn’t serviced by any. Does the Federal Government have a responsibility to provide some form of treatment programme on the Cape?
PRIME MINISTER:
Well, the primary responsibility for providing those sorts of facilities has always existed in the hands of the States. However, in our anti-drug strategy we are making more money available. The question of whether we can include those is a matter that has to be looked at according to what applications and submissions we receive. And in Townsville only yesterday I announced some more resources to help the campaign against illicit drug use by women. Now, of course none of these programmes are confined to any one section of the Australian population.
MOLLOY:
Because the State Government has said it is too big an area for them to take full responsibility for.
PRIME MINISTER:
Well it’s very convenient for the State Government to palm off responsibility. I mean just as things like Defence have always been responsibilities of Federal Governments so primary health care of this kind has always been the responsibility of State Governments. Of course States probably haven’t done enough over the years and the Federal Government has come in. Now we are prepared to look at what applications are made for Federal assistance. We are putting $500 million in to the Tough on Drugs Strategy over four years and it’s a lot more than any Federal Government has previously committed to drugs so our good faith in this area is not in question. Whether we can help with each and every project is a matter we have to examine according to the quality of the project and the money that’s available.
MOLLOY:
Communications on the Cape are far from adequate despite advances in technology. There are many people on the Cape who aren’t able to pick up radio or television services on the Cape, they are flat out getting them. How much longer will people in remote areas have to put up with communication levels like that?
PRIME MINISTER:
Well, one of the advantages of the sale of the second slab of shares in Telstra is that more money has been made available for remote area communications and that money has begun to flow through. Just precisely what areas will over the next few months and over the next year I can’t say without further advice, but I do recognise that there are some areas of Australia that don’t have access to adequate communications and we are working very hard, both out of the sale of the proceeds of the sale of Telstra and also generally to fill those gaps. It’s a legitimate complaint people have and they have a perfect right to ask for it.
MOLLOY:
This week, the Australian dollar went to its lowest level in twenty months. Can the average Australian afford another mortgage increase if interest rates go up?
PRIME MINISTER:
Well I don’t comment on the future movement of rates. Clearly, interest rates now, even after recent increases are much lower than what they were when we came to Government. The Reserve Bank of Australia fixes interest rates and that’s the practice that is followed by most western governments now where the Central Bank has the freedom to set interest rates. I can only repeat what I said yesterday that you can’t isolate yourself from the rest of the world, but as the Secretary of the Treasury said in a recent speech, that doesn’t mean you have to have a knee-jerk reaction to each and every movement in the United States.
MOLLOY:
Mr Howard, thank you for your time.
PRIME MINISTER:
Okay then.