ubjects: sports funding; Olympic Games; reconciliation; Australian dollar; Conrad Kalejs; petrol prices; school funding; former President Suharto; Australian citizenship; New Zealand’s commitment in East Timor; MRI investigation.
E&OE……………………………………………………………………………………
MITCHELL:
On the line first is the national cheerleader, the Prime Minister, Mr Howard, good morning.
PRIME MINISTER::
Hello Neil.
MITCHELL::
Imagine what this bloke could do if he was a wowser.
PRIME MINISTER:
Indeed, he’d be unstoppable.
MITCHELL:
Now, the Games, great performance. Will this mean more funding for sport from your Government?
PRIME MINISTER:
We are having a look at what we might do long term about funding over and above what has already been a very generous provision. There was over and above the general funding, there was a special programme for these Olympics, recognising that because they were in Australia we would have a much bigger team than normal and then on top of that we increased the base funding in the last budget for the Australian Sports Commission. But I have commissioned an examination of options as to whether there might be some further contributions made and I will be making some decision in discussion with my colleagues about that over the next few weeks.
MITCHELL:
Yeah, I guess it’s fair enough, the sports are expecting a cutback because they got the extra allowance for these Games .
PRIME MINISTER:
Well they got extra for this, and it’s not a cutback..
MITCHELL:
No, no but they [inaudible]
PRIME MINISTER:
Its just that that particular programme runs out and I'm just having a look at whether we mightn’t provide some support over and above what has already been provided.
MITCHELL:
It’s a bit tempting isn’t it, because we seem to be, well there is argument that we on the edge of making a significant step up as a sporting nation.
PRIME MINISTER:
Well, we are already a very significant sporting nation.If you do it on a weighted population basis, ours has been probably a better performance than any. But I don’t want to dwell too much on national comparisons, that is not meant to be the spirit of the Games, but you can’t feel other than as an Australian, and particularly as Prime Minister because I’ve got the responsibility of taking these decisions and it is very much part of our way of life. I would like to feel as well as focussing on elite sport and that’s of course what the Olympics is all about, that we could find ways of encouraging some of the children, particularly in our schools, who don’t play sport quite as much as perhaps people of earlier generations at school seemed to play a bit more sport. And it is one thing to have elite sports men and women performing well and winning medals, it’s also very important to have a fitter nation and people who participate more themselves, particularly when they are younger in sport and the participation at the grass roots doesn't always match the elitism at the Olympics or the AFL Grand Final or the cricket or the rugby.
MITCHELL:
That’s true, this could just be the spur that it needs for kids to do a bit more.
PRIME MINISTER:
Well, it could because there is no doubt with other sports when you win a cricket series or a football series, particularly against another country, it does encourage more young people to play and follow that sport, that's been measured on many occasions.
MITCHELL:
I think you said to me a couple of weeks ago on the eve of the Games you were going to be the national cheerleader, the number one fan. And you copped a bit of flak about it, people were a bit cynical about it. What was the highlight for you?
PRIME MINISTER:
Oh, there is a blend of memories. The women’s water polo was fantastic. Cathy Freeman's win. Michael Diamond's shooting victory. Many of the swimming events, there were so many of them. They were all good. Last Monday night there was a particular symbolism I guess in the fact that you had an Aboriginal Australian in Cathy Freeman winning a gold medal and you had Tatiana Gregoriava winning a silver medal and she's a very recent immigrant from Russia so there is a nice valid symbolism I guess in all of that. But there is no one thing that you say is sort of just as the only or principle memory, there has been a whole blend of memories. It’s been a fantastically successful thing for Australia. The best thing about the Olympic Games is that we have demonstrated to the world, for those who didn't know it, there are many, that we are a modern sophisticated, capable, can- do country which is able to do these things well. It's not just the technical proficiency but the human adequacy. The friendliness of the volunteers, the way in which people have been received in a very open, helpful, friendly, cordial fashion. It really has presented Australia in the best possible light to the rest of the world and it’s a bit of put down to those who are always sort of putting us down. I mean Australians more- I mean there are too many Australians who are negative about this country's image around the world. This country has a good image around the world. It has a much better image as a result of the Games.
MITCHELL:
Reconciliation, the word reconciliation has perhaps political implications so I will use another one. Do you think that Catherine Freeman’s medal will a have unifying effect on this country?
PRIME MINISTER:
Of course it will contribute to that. But I think it is more than that. What the positive response,Neil, indicates that we were probably a lot more unified or reconciled on these issues than of many of the critics had allowed for. Everybody was happy. She’s a great athlete, she’s a very nice young person. She was very excited about it and she’s an Aboriginal Australian. So everybody was very happy about that, and the fact that everybody is happy about that probably drives home the point that as people who say there are deep rivers division in the Australian community are I think wrong and exaggerating the situation. There are probably fewer divisions within the Australian community on these issues than the critics and the doomsayers allow for. That’s what I think is important about Cathy Freeman if there is reconciliation – slash – social significance in it. But lets not politically highjack her win. She’s a great athlete. There have been great Australian Aboriginal athletes in the past, I mean Yvonne Goolagong, the Ella brothers in Rugby. There are many.
MITCHELL:
Doug Nicholls.
PRIME MINISTER:
Exactly, it goes on and on and on. But I mean Cathy is a very attractive person, she’s got a nice vivacious personality. A lot of our athletes are great role models. Susie O’Neill I think is a magnificent role model for young Australian women as well.
MITCHELL:
I guess what it’s done is create an atmosphere, or a mood around her victory that perhaps is unifying and perhaps puts more attention back on the government to take a step towards an apology.
PRIME MINISTER:
Well, I think that is a separate issue.
MITCHELL:
You don’t think it puts that pressure on?
PRIME MINISTER:
No, I don’t. I think you are misreading the significance of it. I think what, I mean people are very, I think what it demonstrates is that we are a more reconciled country than many people previously thought. The question of a formal apology is something that is, that people have different views on. That doesn’t mean to say we don’t all believe in reconciliation and we aren’t all happy. I mean, what in effect that says is the only way you can truly feel happy about her win is to adopt one side of the argument concerning a formal apology. I think that’s a mistake.
MITCHELL:
[inaudible]…I’m afraid all this isn’t going to boost the dollar though is it?
PRIME MINISTER:
Well, they are separate considerations.
MITCHELL:
Well, we talk about the image of Australia, the standing of and Australia sending a message to the world that Australia is a can- do country. Will all this be a positive impact in that sense?
PRIME MINISTER:
Well, I don't think the success of the Games is going to be automatically reflected in the level of the dollar, that’s not realistic, there are other considerations. I think in relation to the dollar what we have to do is try and take a much longer view. We have to recognise that with a floating exchange rate, things - the level of, the dollar is going to go up and down. We did, of course, find a great deal of solace in effect in a floating exchange rate a couple of years ago. It was a floating exchange rate that helped us through the Asian economic crisis and we therefore have to accept that it will be at different levels over differing periods of time. And I think it would be a mistake to apply too short a time frame to the level of the dollar.
MITCHELL:
Okay, we will take a quick break here and come back with more from the Prime Minister away from the sport.
[ad break]
MITCHELL:
Mr Howard, the suspected war criminal, Conrad Kalejs is to be charged, Latvia wants to extradite him from Australia. Will we object, or will we go along with it?
PRIME MINISTER:
We will facilitate the extradition application. In fact we have worked very hard with the Latvian authorities to put in place an extradition treaty. But the proper processes of the law will be followed. Like any other Australian citizen, he is entitled to a presumption of innocence and he should be treated correctly according to the processes of the law.
MITCHELL:
Now, I read today that there will be announced today, figures showing surplus of the financial year of several billion dollars higher than expected. Is that correct?
PRIME MINISTER:
For the last financial year?
MITCHELL:
Yes.
PRIME MINISTER:
Well, there is going to be a statement made and Peter Costello and John Fahey are going to make it at 10 o’clock this morning.
MITCHELL:
And it's healthy?
PRIME MINISTER:
Well, it’s good. But I don't want to speculate any further than that.
MITCHELL:
Okay, can I ask you then about the petroleum resource rental parity pricing.
PRIME MINISTER:
Yeah, sure.
MITCHELL:
I'm told that's brought in an extra $470 million above what’s expected. Is that right?
PRIME MINISTER:
I think you are talking about the projections as to how much more might be gathered this year.
MITCHELL:
Yes, from parity pricing.
PRIME MINISTER:
From parity pricing. I’ve acknowledged before that if the present world price of oil is maintained right through the financial year and provided there are not any contra items in relation to the operating expenses of the companies, there could be an increase in the take from the resources rent tax. But it’s too early to conclude that there will be because we are only three months into the current financial year.
MITCHELL:
Well, with that prediction and let’s assume that what I’m saying, what I’m suggesting or what’s reported about the 10 o’clock announcement is right.
PRIME MINISTER:
Yes, but the 10 o'clock announcement, I'm sorry, we're confusing years. The 10 o'clock announcement is about the financial year that’s finished.
MITCHELL:
Yes, but it’s put us in a healthier position hasn’t it?
PRIME MINISTER:
Well, except that you have to wait and see what the composition. I mean sometimes you can have a bigger surplus than expected because some of your anticipated expenditure didn't occur, but it is going to occur in the subsequent year. But you really have to ….
MITCHELL:
The point is I’m saying there’s plenty of money there.
PRIME MINISTER:
Well I thought you were saying that. Neil, we may finish this current financial year, we may finish it in a better position we may not. I honestly can’t know that yet because we’re only three months into it. And can I say in relation to people and I know the Royal Automobile Club of Victoria is one and I know its put that figure of $470 million around. But can I say to them that for them to call on us now only three months into the financial year on the basis of only a three month figure, to commit to a $470 million reduction in petrol excise is asking us to be irresponsible. I can’t do that.
MITCHELL:
You’ll be four months in, an extra four months in by February. Will you look at it then?
PRIME MINISTER:
Well we’ll obviously keep monitoring the situation but I’ve said before that I see no merit in running the surplus down for an excise reduction, no merit at all. Look I have to say again that the driver of higher oil prices, petrol prices is the world price of crude oil. I mean that has become even more evidenced since you and I last spoke two weeks ago. President Clinton has now accessed America’s strategic crude oil resource which is something they haven’t done since the Gulf war, which drives home the point that even the most powerful country in the world is finding it hard to deal with this problem.
MITCHELL:
True. But the amount of tax you’re taking out of this is still increasing and will increase.
PRIME MINISTER:
Well you can’t know that until you are further into the financial year because, well two things can happen. The present price could change and you only get that extra $470 million if the current level is sustained for the next 9 months. If it were to go down then that amount would go down and then there are other contra items in the budget. I mean we may find in other areas quite unrelated to revenue but we’ve ended up having to spend more than we calculated and the extra you spend there cancels out the extra money you get from the resource rent tax. You see if you’re the Royal Automobile Club of Victoria you just focus on resource rent tax and nothing else but I can’t just do that. I don’t have that luxury. I’ve got to worry about increased outlays in other areas.
MITCHELL:
The Victorian Premier ended the truckies’ blockade here in Melbourne by saying he would in effect that he would lobby you, would take it to a Premiers’ conference. Will you listen to his arguments?
PRIME MINISTER:
Well I think Mr Bracks has been grandstanding on this issue. I mean,he’s calling on us to cut excise. He’s not making any contribution or offer himself in relation to anything that the Victorian government might do. I think the blockade by the truckies ended because they realised that we were not going to negotiate with them. While they were in favour of blockades…..but if people want to put a point of view to me on petrol excise or anything I’m happy to listen to it. But I don’t think the Premiers’ conference is the forum for what has just become a political exercise in Canberra bashing by the Victorian Premier.
MITCHELL:
Do you recognise that the truckies have other problems with….?
PRIME MINISTER:
Well yeah but they’re quite unrelated to the price of fuel. The irony about the truckies’ blockade is that the great bulk of those drivers use diesel and we’ve cut diesel by 24 cents a litre. I mean it’s bizarre. I mean most of those were big trucks, I think over 20 tonnes, and they will use diesel and they received a 24 cent a litre reduction under the tax package that came in on the 1st of July. They weren’t blockading over petrol prices, they were blockading over the terms of their industrial arrangements with their contractors. Now that’s a separate issue and it’s quite -just political stunting by the Victorian Premier to say this is all to do with petrol prices. I mean that is transparently wrong.
MITCHELL:
Well it started to get the petrol flowing again so I don’t think Victorians mind it too much.
PRIME MINISTER:
Well I would argue that one of the reasons that the people called off the blockade is that we indicated we weren’t going to negotiate under duress.
MITCHELL:
Mr Howard, on to another issue, $700 million extra for private schools. Now really I think Dr Kemp says it will be the extra funding to the schools based on the income and education levels of the parents.
PRIME MINISTER:
That’s right.
MITCHELL:
Well how do the schools know that?
PRIME MINISTER:
How do the schools know that?
MITCHELL:
Well how does anybody know that?
PRIME MINISTER:
Well you carry out surveys of the school population.
MITCHELL:
Well I’ve got kids at a private school. I’ve never been asked and I’d object to answering.
PRIME MINISTER:
Well I can’t answer …… I mean you’re entitled to have whatever views you like….
MITCHELL:
Well I’ve never known any school to ask a parent what their income is or what….
PRIME MINISTER:
No well there are socio-economic surveys carried out in relation to the areas from which the parent bodies are drawn and it’s a far more reliable measure of the capacity of parents to pay. This is a much fairer formula.
MITCHELL:
So what’s the aim, to brings fees down?
PRIME MINISTER:
Well the aim is to fairer….distributing in a fairer fashion government assistance and that will make it possible for some schools to reduce fees and a number of schools have indicated that they are going to reduce fees. And I think it’s important to point out that under this formula you’re going to have the federal government providing funding of only 13.7% of the total cost of educating a child at the so called 67 most well to-do communities. But that figure will rise to 70% in relation to schools in the less well to- do parts of Australia. So when you look at it in that sense it’s an extremely fair way of providing government assistance to independent schools.
MITCHELL:
Are there any strings on how the schools spend the money?
PRIME MINISTER:
They’ve got to meet educational standards.
MITCHELL:
Of course, but I mean they don’t have to bring down fees. They can….
PRIME MINISTER:
They are not forced to bring down fees, they never have been. We think that represents too great an interference in the independence of the schools. You’ve got to strike a balance between…. I mean if you as a government are providing only 13.7% of the cost of educating a child it might be regarded as too much interference to require a reduction in fees as distinct from expecting as will be the case with many schools that those fees will come down.
MITCHELL:
So if the fees don’t come down how does that government money or public money help get people with less private money, less well off, into the private school system?
PRIME MINISTER:
Well it some cases it will mean that fees won’t go up at the same rate that would otherwise be the case. It’s a bit like private health insurance premiums. There’s no doubt in the world that the 30% tax rebate has meant that premiums have not gone up. They haven’t necessarily come down but I think most people who’ve got private health insurance are very grateful that the premiums haven’t gone up by anything like the same rate. Now that’s a very similar comparison.
MITCHELL:
Can I ask you quickly about a couple of other issues? Former President Suharto. No prosecution to go ahead. You’re reaction to that?
PRIME MINISTER:
Well I’m reluctant to comment too much on the judicial system of another country. But I guess I express some surprise.
MITCHELL:
Damir Dokic, Jelena Dokic’s father says he’s going to give up his Australian passport and go back to Yugoslavia. That disappointed me a bit. I mean Australian citizenship isn’t a tradeable commodity is it?
PRIME MINISTER:
Well you don’t have to remain an Australian if you don’t want to. That’s right. I mean if you say you’re going to surrender your Australian citizenship you’re not trading it. You’re not nominating it go to somebody else. You’re just saying that you’re going to cease to be an Australian.
MITCHELL:
Yeah that’s right but once you became a citizen you were sort of doing it for life really.
PRIME MINISTER:
Well there have been some fairly highly publicised examples of people who cease to be Australian citizens.
MITCHELL:
Yeah but Rupert Murdoch was born here wasn’t he?
PRIME MINISTER:
Yeah but I think a person, I mean I think being an Australian citizen is the greatest privilege in the world but if somebody wants to cease being an Australian and take on the citizenship of another country or resume their citizenship in another country I don’t see why they should be stopped from doing that. I think they’re mad but I don’t see why they should be stopped from doing that.
MITCHELL:
Would you be disappointed if he did?
PRIME MINISTER:
I’m always disappointed if people cease being Australians. Always.
MITCHELL:
You met the New Zealand Prime Minister yesterday. There were reports that they may be cutting back their forces in Timor. If that happens what will that mean to Australia?
PRIME MINISTER:
Well she didn’t tell me that. The New Zealanders have actually cooperated very well with Australia in Timor. And the help they gave us up front right at the very beginning was most welcome and our forces and their forces have cooperated very closely in East Timor.
MITCHELL:
The MRI issue, I read today $8.4 million its cost to investigate all that which is a hell of a lot of money.
PRIME MINISTER:
A lot of money yes.
MITCHELL:
Out of a leak. I mean who wears that waste?
PRIME MINISTER:
Well unfortunately the investigation was carried out to find out whether you could mount a case to prosecute anybody. And the independent Director of Public Prosecutions, and we don’t control him, has said there’s not enough evidence to justify prosecution.
MITCHELL:
But, well we found ourselves in this situation because of a leak didn’t we, no matter where the leak came from?
PRIME MINISTER:
Well that was the allegation. I mean we’re in the hands of due process. I mean we run a country according to the rule of law. You can’t charge people on caprice . You’ve got to have a proper investigation and if the independent Director of Public Prosecutions, the Crown prosecuting authorities say there’s not enough evidence to mount a case then we can’t as a government come in over them and say;’ no charge ‘em’.
MITCHELL:
Are the MRI machines, are those machines necessary sitting out there in the community? We don’t need them.
PRIME MINISTER:
Well they’re certainly very helpful in detecting conditions.
MITCHELL:
But there’s no rebates paying on them?
PRIME MINISTER:
I beg your pardon.
MITCHELL:
No rebate being paid on them I read?
PRIME MINISTER:
Well in some cases that is the situation and I guess the Health Minister will investigate what can be done with them. But I’ve got to stress that the decision not to prosecute is a decision taken by the independent Director or Public Prosecutions. I mean there’s nothing we can do about that.
MITCHELL:
Thank you for your time. Enjoy the end of the Games. What do you think of the new Australian national anthem – Aussie Aussie Aussie?
PRIME MINISTER:
Well it’s rendered with great fervour, but gee so is the official anthem.
MITCHELL:
Have you actually done it – Aussie Aussie Aussie?
PRIME MINISTER:
I’ve done it once or twice. I’m not going to repeat it on air. But I’ve had a lot of people accompanying me before. But these Games have done great things for the Australian popularity and also the popularity of the anthem.
MITCHELL:
Thank you Prime Minister.
[Ends]