Subjects: GST; Defence Force spending; Internet; Kyoto Accord; datacasting.
E&OE ………………………………………………………………………………
GOTTLIEBSEN:
John, as a person who has devoted a lifetime to Australian Service, is achieving a GST for Australia more important to John Howard than winning the next election?
PRIME MINISTER:
Well I hope I can do both. But, I am prepared to take the risk of political adversity that’s involved in tax reform in order to achieve it. There is no point in being in public life unless you are prepared to put your future on the line, to bring about something that is good for the country, or make it more competitive and get the states more money for public services, and all the other benefits of tax reform. So, you see that as yes well, I can’t argue with the interpretation, but I think we can do both.
GOTTLIEBSEN:
With pharmacies and other parts of small business concerned about the administration of GST, are you worried about the effect on the National Party of the ALP’s Country Labor campaign?
PRIME MINISTER:
Right at the moment we are at our maximum point of political vulnerability because it’s easy to run a fear campaign, it’s hard to put it down. Many of the consumer surveys show that people are expecting higher price rises and lower or lesser tax cuts than they’re actually going to get. It won’t be until it comes in and it’s been operating for a few months that people will really know what’s involved. It’s my strong belief that they will give it the thumbs up.
GOTTLIEBSEN:
Are you disappointed that after a huge advertising campaign, only about 35% of Australians are in favour of the GST, and only about 46% think it will benefit the economy?
PRIME MINISTER:
No, I am not too unhappy with those figures, but they don’t mean a lot, they are all taken during this period of maximum political static and turbulence. Wait until it comes in, and see how people react. It really depends very much question you ask them. You’d never have a huge majority for a GST on its own. I am not in favour of the GST on its own, I am in favour of the GST as part of tax reform, but certainly not on its own.
GOTTLIEBSEN:
John, are you aware of the coming drain on small business cash as a result of the accelerated tax over the next fourteen months?
PRIME MINISTER:
Well I don’t, I think the phasing arrangements that have been introduced will help the very small businesses, and I think many of those fears are not well founded.
GOTTLIEBSEN:
Do you admit that not enough money has being allocated to maintain the current levels of the Australian Defence Forces?
PRIME MINISTER:
Well I think what I’m saying is for a combination of reasons we need to spend more, and there’s been a very small increase in the current Budget that will take effect next year, but after that I see an increase as being necessary. Just how much and it what areas will be resolved in the context of the White Paper which will be coming out later this year. But circumstances are such that we do need to spend more.
GOTTLIEBSEN:
Is it likely to be substantial?
PRIME MINISTER:
Well, until I’ve got an idea of what it is, I never like putting those kind of labels on it because everybody puts a different figure on substantial, or significant, or modest, or noticeable. We need to spend more on defence, and just how much more and where it will be spent is really a job for the White Paper in particular.
GOTTLIEBSEN:
John do you use the Internet?
PRIME MINISTER:
Yes I do. Not a lot because I have a staff that does much for me, but I have a reasonable but not very extensive capacity to use it but I do use it from time to time. Largely for you know picking up and news and things of that kind.
GOTTLIEBSEN:
John you’re not as passionate about the new economy as say Tony Blair or Bill Clinton. Do you think you might have underestimated its importance?
PRIME MINISTER:
No I don’t think I’ve misread its importance, but I am averse to this idea that there is a new economy and an old economy and there is some dichotomy between them, I think they’re quite complimentary. And if you look at the approaches that we’ve taken in a lot of policy areas you’ll see that. I reject the idea that you can draw a line through the old economy companies and the new economy companies. Many of the successful old economy companies so called, are those that have embraced very readily the instruments of the new economy.
GOTTLIEBSEN:
Where does the Government stand on greenhouse gases and the Kyoto Accord?
PRIME MINISTER:
Well we thought the outcome in Kyoto was a very fair and reasonable one. We remain disappointed that developing countries aren’t part of it. We are very conscious as a net exporter of energy product and being an industrialised society that is such an exporter, we are in a unique position. And there are still many aspects of the international understanding such as it is that exists at the moment that’s not very satisfactory to Australia, and we still have a long way to go to get an outcome that is fair and satisfactory.
GOTTLIEBSEN:
Is Australia going to honour its obligations?
PRIME MINISTER:
Well I think it’s too early for us to start making declarations about that. Let’s see what progress is made towards ratification.
GOTTLIEBSEN:
Do you think the US will ratify the treaty?
PRIME MINISTER:
It’s a hard ask, a very hard ask.
GOTTLIEBSEN:
John, are you concerned that Fairfax, News Corporation and Telstra have all abandoned data casting? Is there any room for the Government to move on this policy, or is it all locked up?
PRIME MINISTER:
Well there’s a lot of discussion going on right at the moment, I think you’re aware of that. I would like to think none of them have abandoned it, and I hope that the discussions that are going on at the present time which have to respect the legislation, or the outcome that was supported by all sides of politics a couple years ago. Any outcome’s got to respect that. But I hope that those companies will continue to be players. They should be and I hope we can find a way whereby they will.
[Ends]