OLIVER PETERSON:
This afternoon the Prime Minister of Australia Malcolm Turnbull, welcome.
PRIME MINISTER:
Thanks Oli, great to be here.
OLIVER PETERSON:
Alright, now you just stepped off the plane of course from France, a long flight across. What brings you to WA?
PRIME MINISTER:
Well I’m here with some good news. We have announced $189 million of additional commonwealth funds to bring WA’s GST share effectively up to 50 per cent and that’s all going into hospitals. Mostly into the Joondalup hospital as you know.
It is very important to ensure Western Australia gets a fair deal from the GST; I’ve recognised that and have sought to ensure that we deliver on it.
We’ve got a productivity commission trying to nut out the answer to the problem at the moment and we look forward to continuing our work. But in the meantime we have put $1.4 billion of additional commonwealth money into Western Australia to make up for the shortfall of the GST.
OLIVER PETERSON:
Is it making up for the shortfall of GST or is this just infrastructure spending because you were in Victoria earlier this month announcing $5 billion for the airport rail link. What is the difference between what you promised to Victoria and what you are promising here to Western Australia?
PRIME MINISTER:
Well we invest in infrastructure in Western Australia as well.
Ultimately as you know, whether you are a commuter caught in traffic, or wanting to get into hospital – to get better service in hospital – wanting to see more beds at Joondalup hospital or Royal Perth hospital – you want to make sure the money is there to make it happen.
And what we are doing is playing our part and making sure that we support Western Australians in having the essential services they need.
OLIVER PETERSON:
This is not just a GST top up though, there is still a structural problem with the GST. I know you are waiting on the outcome of a productivity commission report next month.
Can you commit to doing something about it before the next federal election?
PRIME MINISTER:
Well we'll certainly commit to considering the Productivity Commission report very carefully and then working out, as I've been seeking to do with the other states and territories, a solution that passes the pub test whether you're in Busselton or in Burnie - or Bundaberg for that matter.
You’ve got to make sure in this big country that we have a GST that works for everybody and is seen as fair across the country.
And the point I made here in Perth back in 2016 was that leaving all interstate rivalry aside, the truth is that the amount of money that Western Australians were getting out of the GST, their share, their percentage was unfair and would not pass the pub test anywhere - anywhere in the country.
Western Australia was heading down around 30 cents in the dollar. Now, you know, we've put additional money in to address that. We've talked about setting a floor - that was the discussion I had with Colin Barnett.
It's a complex issue no doubt about that Oli. That's why we've got the Productivity Commission working on it. They'll report to us next month and then then we will seek to ensure that we get a fair deal and one that is seen as being fair everywhere.
It’s failing the pub test in Busselton to know that and Bunbury – you’ve got past pass the pub test everywhere.
OLIVER PETERSON:
It does but we also need a solution Prime Minister because both yourself and the Opposition Leader, Bill Shorten, have come to Perth and effectively you're promising infrastructure projects with infrastructure funds. But how does the state government continue to deliver the vital services in health and education and pay the wages to public servants without the GST being fixed?
PRIME MINISTER:
Well I think this is the most important thing is for the state government to be able to get a fair line of sight on what the GST revenues is going to be.
I mean what has shocked everybody in recent times is the way the formula was applied. Western Australia's share dropped dramatically. Now of course this was according to the formula in recognition of the big revenues from mining royalties.
You see this is the important thing to bear in mind, for your listeners to understand, what the GST allocation formula seeks to do is to ensure that Australians wherever they live in Australia get adequate services - in education, health roads and so forth.
Some states have got a greater ability to raise their own money than others. So, there is a degree of trust subsidisation, that's always been part of our Australian model and indeed Western Australia was a beneficiary of it in years past. I think everyone gets that. But the problem was – as my late father would have said, there's a difference between scratching your ear and ripping it off - and 30 cents in the dollar is not fair.
That was not fair and that's why we put we put $1.4 billion of additional money in over the last four years. But you're right Oli, we do need a longer term fix and that's what we're working.
OLIVER PETERSON:
Ok. You and the Liberal party hold 11 of the 16 federal seats and you're well aware of that - you're governed by one vote.
How important is Western Australia to your chances of re-election? Is that why for example today money is promised into the electorates of Michael Keenen and Christian Porter, two very senior members of your government, who really are on the nose and could lose their seat at the next election?
PRIME MINISTER:
Well they’re certainly not on the nose. They're doing a fantastic job. I think that's very unfair.
OLIVER PETERSON:
I don’t dispute the work they’re doing, but the polls might indicate Prime Minister…
PRIME MINISTER:
Oli, they're doing a fantastic job. They really are. Michael Keenan is taking government services into the 21st century with digitalisation and Christian Porter is one of the finest legal minds in Australia and we're really lucky to have him as Attorney General.
But here's the thing. This is a big country and Western Australia is a huge part of it. We have to make sure that government delivers for all Australians wherever they live and that's my commitment. I'm the Prime Minister of Australia that's all of Australia and that's why I'm here in Western Australia.
OLIVER PETERSON:
Will you be funding the extension of the train line into Yanchep?
PRIME MINISTER:
Well I can't comment on any other infrastructure announcements until of course we make them when we'll be then talking about them a lot.
OLIVER PETERSON:
What about the Ellenbrook electric rail line? I’ll just get one more in there…
PRIME MINISTER:
Your inquiries are much appreciated and you know I'm a passionate devotee of urban rail.
In fact do you know, an interesting West Australian point, the guy that taught me most about the economics of metropolitan rail services is Peter Newman, huge brain - written a lot about it.
OLIVER PETERSON:
And one of the engineers of many of the rail networks here in Perth.
PRIME MINISTER:
You know what Western Australia has done a fantastic job on Metro Rail. Led the way at a time when other states were doing nothing. It’s actually got on with it and we are putting money big money into metro rail around the country now.
That's an innovation of my government because before I was Prime Minister, federal governments basically didn't get involved in urban rail. I think it's very important that we do. But you've obviously got to do it on the right terms and as Peter Newman says - you've got to look at the rail development with the eye of maximising the amenity, the liveability, the potential for transit-based development and so forth instead of just doing what a lot of transport engineers have done in years past - just finding the best alignment between a and b.
You've got to look at it in a holistic city-building way, city-shaping way. And Peter Newman's work's been you know, he is he's well famous - you know - he's a big brain.
I hope you're listening Peter giving you a huge rap.
OLIVER PETERSON:
Oh yeah...
PRIME MINISTER:
I'm sure someone's going to get in touch with him and say get on the radio before they start going through your shortcomings.
OLIVER PETERSON:
Now obviously you're not going to tell me what you're committing to on the rail.
PRIME MINISTER:
Fair enough.
OLIVER PETERSON:
But let's just say you do and Bill Shorten as I said was here earlier in the month committing a $1.6 billion infrastructure WA saving fund.
So West Australians will head to the polls whenever that is and they'll look at what you've said they'll look at what Bill Shorten said and the GST is still hovering in the clouds at the moment.
Prime Minister why should West Australians give the Liberal National government another term?
PRIME MINISTER:
Because we're delivering the economic growth that is ensuring we do have the revenues to do all these things. I mean let's not kid ourselves. Bill Shorten stands now for a party and a platform that is about higher taxes. He wants everyone to pay more taxes, whether it's individuals whether it's companies whether it's small businesses, whether it's big businesses. He has got a higher taxing policy now we're seeing record jobs growth in Australia.
Western Australia is starting to see stronger jobs growth after having obviously had the downturn when the commodities boom and the mining construction boom came to an end - as it obviously was going to. So you've seen that growth why are you seeing that? You're seeing that because people have the confidence to invest in their businesses.
Why do they have that conference? Because they have a government which I lead which is saying to them we're backing you. We want you to be able to retain more of your earnings so that you can invest it in your business and we are seeing record jobs growth. Now, I went to the last election and I promised jobs and growth and I've delivered.
We've got record jobs growth in Australia and we're seeing over a thousand jobs a day over 11,000 jobs a day being created the longest run of jobs growth in our history and the highest annual jobs growth ever.
OLIVER PETERSON:
Ok. Talking of taxes budget next month the Treasurer today has revealed that there will be no increase to the Medicare levy to fund the NDIS. So how can the Disability Services sector be confident about ongoing funding will continue to be there for this scheme?
PRIME MINISTER:
Well it's because we have got much stronger revenues that we can afford to do that. I mean this is what happens when you get good economic management when you get stronger economic growth you have more people in work fewer people drawing unemployment benefits, more people in work paying more tax companies making more profits, paying more tax. You're starting to see higher government revenues and that of course means that we don't have to increase the Medicare levy as we've proposed last year, to fund the NDIS we'll have sufficient funds from other revenues other taxation revenues to do so but that is only because of the strong growth that is being delivered by the policies that we've put in place.
When I say we're delivering it the growth is being delivered by hardworking Australians investing and having a go. Government's job is to provide the framework, the environment in which they can do their best and that's what the Aussies are doing right now having a go.
OLIVER PETERSON:
So can the country afford income tax cuts, company tax cuts and not change the Medicare levy?
PRIME MINISTER:
Well the answer is - everything will be revealed in the budget, and as the Treasurer, I'm sure has said a hundred times today. You just have to wait for budget night but we don't have long to wait.
OLIVER PETERSON:
Now while you're overseas of course the banking Royal Commission continues to reveal claims of misconduct and bad behaviour. CEOs resigning customers are left furious. Now you've admitted while you were overseas it was a political mistake not to establish the commission in 2016. Does it need more time to hold sessions if the Banking Royal Commission doesn't wrap up in the next few weeks.
PRIME MINISTER:
Well I mean it's got more than the next few weeks to go. It's been set up to provide a report in 12 months the Royal Commissioner will let us know.
OLIVER PETERSON:
Are you happy to let it continue to run?
PRIME MINISTER:
Well I'm not going to pre-empt what the Royal Commissioner asks for but that's a matter for him. But just you know just to be very clear on the history and back in 2016 I gave a speech at it at a Westpac event in fact in which I called out the failure of culture in the banking and financial services sector and I said that there was a failure to put customers first. And you know everything that we've seen is a function of that. It's another it's another symptom of the fundamental problem that in the financial services sector too many institutions were not putting the customers first. I called that out and I resolved that we would take strong action to deal with it and we have as you know we set up a one stop shop to deal with consumer finance complaints whether it's in superannuation or insurance or in banking. We've introduced tough new penalties - very tough penalties - you know bank executives that do the wrong thing won’t be able to work in the industry again.
We've obviously increased the tax on banks with the banking levy, but one strong measure after another we’ve put them in place. The good thing about the Royal Commission now is that they've got the ability and they've been asked to not simply look at what has been happening in the past but also to look at the reforms we've instituted and give us in the light of their investigations their advice as to how we could improve them.
OLIVER PETERSON:
Can Australians have confidence in their banks?
PRIME MINISTER:
Yes, look we have got some of the strongest banks in the world and from a financial point of view and that's good. A lot of people say banks make profits well the only thing that didn't work the last thing you want to have is banks that are making losses.
You know a lot of other countries have found that to be a very painful and expensive business. So, we've got strong banks and want to keep them that way. We've got regulators whose job it is to make sure they are soundly managed and they have got the right amount of capital and so forth. But there is no question that customers have not always been put first. And that's particularly, you're seeing examples of this in the commission in respect to financial advice. There's no excuse for that. Banks, financial institutions, financial advisers they have a solemn fiduciary duty to their customers, to their clients and they must always put them first.
OLIVER PETERSON:
Prime Minister before I let you go this afternoon, will you be meeting with the Premier Mark McGowan while you are here in Perth.
PRIME MINISTER:
I'm always looking forward to meet Mark. We have an interesting family connection actually. Well we do - we're not related but my dad was a hotel broker and he was actually killed in an airplane crash many years ago flying up to Casino, he was going to sell a pub in Casino and the publican was a great friend of Mark's father and so it was quite interesting you know that six degrees of separation that we had that connection, I'm the Prime Minister of Australia, he's the Premier of Western Australia and we've both got a connection through a pub in a country town in New South Wales.
OLIVER PETERSON:
So the state and federal government can work together.
PRIME MINISTER:
Absolutely. Of course we should and that's our job and look can I say to you if you look at the hospitals deal we did. We signed up a new hospital deal which is going to over the five years I think to 2025 will deliver $14 billion of funding, very significant increase in funding, into Western Australian hospitals. Mark McGowan signed up to that at the last COAG meeting but from the other side of politics of course. But his job is to look after the people of Western Australia and so is my job to do that, my job is to look after all Australians. Western Australia is a big part of Australia and people say why you are in Western Australia? The answer is because I'm Prime Minister of Australia and this is a huge part of our great country to which I might say having been away for a while. I'm so happy to return.
OLIVER PETERSON:
I'm sure you are Prime Minister really appreciate you joining us in the Perth live studio this afternoon very moving as well from France with the French Prime Minister Edouard Felipe. Lovely comments as well and I think it's been widely acknowledged across the nation today that that strong bond between our two nations.
PRIME MINISTER:
That's right. Those were very solemn and moving ceremonies and to be in Villers-Bretonneux on Anzac Day full of Australia. And to think that 100 years before to the very day that town had also been full of Australians fighting for their lives fighting and bleeding and dying to defend the liberty of France, the liberty of us all. And it's the French said then we will never forget the Australians and they never have.
OLIVER PETERSON:
No they certainly haven't. Prime Minister – thank you.
PRIME MINISTER:
Thank you.
[ENDS]