PRIME MINISTER ABBOTT:
It has been a real pleasure and an honour to welcome to Australia for these annual ministerial talks my brother prime minister, John Key of New Zealand.
We are family. We are, by accidents of history, two countries, but we are family and increasingly, we are one economy.
Our talks today have been focused on what we here in Australia can usefully do to build on the aspiration that we both have to be one economy but two countries.
Obviously for this country, Australia, one of the very big events this year is the G20 process which kicks off in a couple of weeks' time, with finance ministers meeting here in Sydney, and culminates with the leaders' meeting in Brisbane in November.
I want the G20 to be an opportunity not just to showcase Australia, but to showcase Australasia; to showcase the fact that while New Zealand is a separate country, we are increasingly one economy. We are family, to be sure, but we are also increasingly one market. This is very important for us, and it's very important for New Zealand.
Effectively, it will be a G21 this year. We will have the Business 20 group, the B20 meeting, in mid-July here in Sydney. I will be inviting some senior New Zealand business people to join Australia's B20 committee that is organising the B20 in mid-July, but preceding the formal B20 or B21 meeting in Sydney in mid-July, we are going to have an Australasian business week.
This is going to be an outstanding opportunity for Australia and New Zealand to showcase our countries, our economies, and our market to some of the world's top business leaders and given the importance of investment for both of our countries, given the importance of exports for both of our countries, I think this is probably just about the very best thing that we can do for New Zealand right now.
So, again, I'm delighted and honoured to have my brother prime minister here with me today and I am confident that 2014 will not only be a year of opportunity for Australia, but it will be a year of opportunity for Australasia, a year of opportunity for New Zealand, too.
PRIME MINISTER KEY:
Firstly, Tony, can I say it's great to be back in Australia, and to be part of the bilateral meetings that take place each year. Thank you, also, for hosting my ministers in the joint ministerial meeting. It is the third I've attended now and they are hugely beneficial, I think, to the understanding and decision-making that our counterparts make.
When we were issued the invitation by Australia to be part of the G20 in 2014, a lot of New Zealanders may not have understood the significance of that. As we can now see, New Zealand business people are going to be part of the B20. What that effectively means is Australia is going to play host to 400 of the most significant chief executives from around the world, and our companies and our business people are going to be part of that. That's something we are both very grateful for. It will be of economic significance to our country, and I think it is a great sign of, as I say, the friendship and the family that exists between New Zealand and Australia.
The fact that we brought with us such a large group of business people, arguably our pre-eminent business people, shows you the significance and the relationship and the way that New Zealand treats this relationship with Australia – its importance, its depth and its breadth.
I think today in the course of discussions that we've had, we've had the opportunity to raise a whole range of issues to reflect on how strong that relationship is, but of course to look to progress that relationship.
We welcome Australia's decision to ensure that some young Australians who are born to parents that are not residents or citizens here in Australia will now have access to higher education and student loans. We think that is a sensible and progressive step, and we thank you for doing that.
We are delighted by the announcement that there will be an ANZAC visa for people that come to visit the Cricket World Cup that both Australia and New Zealand is co-hosting in 2015. It is again an example of how we can work together and I think that’s very important.
We’re also very pleased that the decision has been made to send to the tax review the issue of imputation credits and the Prime Minister made it quite clear actually that Australia is interested in that issue. Today may not be the day from a financial point of view to complete that, but it's very much an alive issue if we want to truly have an Australasian capital market which is the desire of both countries.
So, I think it has been a hugely progressive morning, and there are lots of things we’ll have questions to answer on, but Tony, we really thank you for what you are doing and the leadership you are showing in Australia.
PRIME MINISTER ABBOTT:
Thanks so much, John.
We are going to take a question from a New Zealand journalist first.
QUESTION:
Prime Minister Abbott, this is really a follow-up to a question that I asked you last year and I didn't get the opportunity to follow it up. You said then how valuable New Zealand citizens were to Australia but more importantly about how they pay taxes from day one. They pay their taxes, but they are disadvantaged because they don't qualify for welfare and for other benefits that your Australian citizens in New Zealand get. Do you think that's fair?
PRIME MINISTER ABBOTT:
What New Zealanders get is something that no other country on earth gets and that is an automatic right of residence and an automatic right to work in this country. So, this is something very valuable and very precious which New Zealand, alone of all the countries on earth, gets and I’m pleased that we extend this particular prerogative to our brothers and sisters across the Tasman. But knowing just how industrious our brothers and sisters across the Tasman are, when they come to Australia, I expect them in, Bob Menzies’ immortal phrase, to be “lifters, not leaners”. Thank God the vast majority of them have been and will continue to be and that’s as it should be.
An Australian media question?
QUESTION:
Prime Minister Abbott, Marty Natalegawa has again weighed into the asylum seeker issue saying that towing back the boats is not helpful. Are tensions strained with Indonesia and can you shed any light on this latest group that turned up along the Java coast?
PRIME MINISTER ABBOTT:
I have nothing but respect and admiration for President Yudhoyono, who has not only been a great president of Indonesia, but he’s been a very good friend to Australia. I have a strong relationship with the Foreign Minister of Indonesia. Julie Bishop has a very close and cordial relationship with the Foreign Minister of Indonesia. The important thing here, for both our countries, is to stop the boats and I’m very pleased to note that today is the 50th day without an illegal boat arriving in Australia. I think you’ve got to go back to 2008 before you had a period like that: the 50th day without an illegal boat. So, these policies are working. Yes, they’re tough policies, but they are working.
A New Zealand question, please?
QUESTION:
A question to both Prime Ministers. Just on the G20, you’ve said here you’ll take measures to ensure the multinationals are paying their fair share of tax and I wonder if at a substantive level, if you could play out for us how you might actually operationalise that?
PRIME MINISTER ABBOTT:
Well, this is something which is being discussed at a very detailed level by officials across the G20 countries and I don’t want to bore people who might be watching this press conference with that kind of arcana, but nevertheless, it is very important for the health of our economies and indeed for the legitimacy of our market systems, for people to pay tax which is not only low and simple but fair, and that means not only that everyone should pay their fair share of tax inside economies, but they should pay their fair share of tax between economies and the basic principle has got to be that you should pay an appropriate level of tax in the economy where you earn the relevant level of revenue.
John?
PRIME MINISTER KEY:
Well, look, it’s a complex issue. In some cases actually, the revenue has rightfully been booked in another jurisdiction, because actually that’s where the revenue is being paid and earned. But, what we would say is we live in a very globally connected world now and that’s only going to intensify and the only way to actually resolve the fact that multinationals should pay fair tax in each country they operate in and not use loopholes or tax havens to book revenue and deprive our countries of the appropriate level of tax, is for us to work together collectively. It’s something that all these jurisdictions can get together and find a solution to. So, we’re much stronger if we hold hands on this issue but in the end we’ve got to leave it to our tax directors and the likes to work through it. But, the message I think is very clear: if you’re going to come as a multinational and operate in Australia and New Zealand and other countries, the expectation is that you’ll become a good corporate citizen and that means actually honouring your tax obligations.
PRIME MINISTER ABBOTT:
Australian question?
QUESTION:
Prime Minister Abbott , Brendan Trembath from the ABC. I note both Australia and New Zealand have independent public broadcasters, but your Defence Minister today has said that the reporting of the asylum seeker allegations justifies a detailed inquiry, some reform and an investigation of the ABC. Would you agree?
PRIME MINISTER ABBOTT:
Well, I watched, or at least I’m familiar with Media Watch’s investigation and report into these matters and the ABC’s own Media Watch concluded that the original reporting was unjustified and I think that’s a perfectly appropriate verdict.
QUESTION:
Do you think there needs to be an inquiry, though?
PRIME MINISTER ABBOTT:
Well, I think that anyone who’s been following this whole issue would think that allegations of such seriousness, made by someone with such self-interest, should have been corroborated before they were broadcast and plainly they weren’t.
A New Zealand question?
QUESTION:
I’m wondering if the issue of New Zealand exporters being cut out of the Homebrands from Coles and Woolies was raised with you by New Zealand and if there was anything you would do about that?
PRIME MINISTER ABBOTT:
Yes, it was raised and I know that some of the New Zealand producers are quite exercised about this. My natural instinct is to say that these are commercial decisions to be made commercially by private businesses, in accordance with what they think is their best commercial interest. But, I would point out that anyone who does feel that he or she has been aggrieved by competition policy here in Australia can apply to the ACCC and anyone who thinks that our competition policy needs to be improved can make a submission to the Competition Review, which is going to be underway shortly.
I think we’re up to an Australian question. Michael?
QUESTION:
Mr Abbott, do you think that the Australian Navy should release any video or stills to settle any of the ambiguity that’s surrounding these asylum seeker claims that Defence personnel burnt their hands, given the latest revelations in today's paper?
PRIME MINISTER ABBOTT:
Well, what I'm interested in doing is stopping the boats. That's what I'm interesting in doing and that's what the Australian public elected this Government to do, amongst a number of other things, to stop the boats. As I said earlier, I'm pleased that we’ve now have 50 days without an illegal boat arriving in Australia and the message is getting out loud and clear to the people smugglers and their would-be customers that the way is shut, the way is shut. You shall not pass.
Now, I don't want to do anything that might complicate that task of stopping the boats, and frankly I don't want to do anything that would cast aspersions on the professionalism of our naval and customs personnel. I have nothing but respect for them. They are doing a fine job, often under difficult circumstances. They act in accordance with the humanity which you would expect of Australian military and service personnel and I have seen nothing that credibly casts any doubts on that professionalism.
QUESTION:
If there is vision, wouldn't vision or stills help dispel any of the ambiguity that’s surrounding this story and this case?
PRIME MINISTER ABBOTT:
It might also help the people smugglers and that's what we should not want to do.
A New Zealand question?
QUESTION:
Prime Minister Abbott, could you perhaps explain your thinking on the student loans decision and why you decided it's important to make decisions in that area?
PRIME MINISTER ABBOTT:
Well, I’d love to claim complete credit for this decision myself, but I’m actually going to give the credit for this decision to the former government. It was made by the former government and it was announced as I understand it some weeks before the caretaker period commenced, and given that this is important to New Zealand, very important to New Zealand, and given that there’s got to be some significant continuity from one government to the next, that decision stands.
QUESTION:
Prime Minister, can I just ask on Schapelle Corby? All the media attention today is on her, on her release. Are you hoping she is let out today?
PRIME MINISTER ABBOTT:
I absolutely understand the excitement that these possibilities are causing people, and particularly causing her supporters, but I think it's a good principle not to comment on decisions which are only pending. I do not want to complicate her situation by issuing public comment on it.
QUESTION:
Prime Minister Abbott, will the Government consider extending access to concessional loans to farmers in drought as has been lobbied by the NFF?
PRIME MINISTER ABBOTT:
There is a scheme that was put in place by the former government to assist farmers who in difficulties, in part because of bad decisions that the former government had made, in order to make that a more user-friendly scheme. We have extended the quantum; we've made more money available to farmers in Queensland, which is the worst hit area by the current drought. So, we are already adjusting an existing scheme to be helpful and, as you know, Minister Joyce is talking to farmers and to the farm groups and we accept that for those parts of Australia which have been very badly hit by drought, more needs to be done, and we will do more, but we're also very conscious of the fact that we have to be a fiscally responsible government and we have to be a fair government and our response to this issue will be fiscally responsible and it will be fair, but it will be a response.
QUESTION:
Mr Key on the TPP; you both discussed the TPP and the progress and obviously there’s been a few wrinkles in the United States political system and I wonder whether you think it can be got over the line this year and whether a combined Australasian, you know, some sort of mechanism can be pushed forward, politically or diplomatically?
PRIME MINISTER KEY:
Well, I mean, my sense of it is that President Obama is very committed to a very high-level, comprehensive deal. That doesn't mean that he can ultimately get fast-track authority, or can necessarily enjoy the level of support it would need to pass, but he personally is very committed to it and they are the comments he’s made to me. I think from Australia and New Zealand's point of view, we can see the enormous economic gains for our countries, providing a good deal is signed. So, we’re certainly of the view that now’s the time to try and complete a deal. If we don't get that in the first six months of this year, then my guess is it’s going to become more challenging as time goes on, so we are going to push hard, and continue to put pressure on our trade ministers to try and see if it can be resolved. I think it's possible. Our risks are either in losing some of the counter-parties along the way, or a downgrading of the overall ambition for TPP, but at the moment, everything I've seen continues to tell me that a high-level comprehensive deal is still achievable, and achievable this year.
PRIME MINISTER ABBOTT:
We’re strong supporters of the Trans-Pacific Partnership Process. We’re strong supporters of the unilateral, bilateral, plurilateral and multilateral measures to promote freer trade. We've got very important bilateral talks under way with Japan and we want them to successfully conclude as soon as possible, but we also want to conclude the Trans-Pacific Partnership talks as quickly as possible as well, and we're working very harmoniously with New Zealand towards that end.
Can I finally say, just by way of observation, that tonight is the opening night of the Winter Olympics at Sochi. New Zealand probably would typically do better at the Winter Olympics than Australia, but we have high hopes in a number of those contests, and I wish Australian athletes well, and may I also wish New Zealand athletes well.
PRIME MINISTER KEY:
Thanks very much.
PRIME MINISTER ABBOTT:
Thank you.
[ends]