./ 110-e
2
PRIME MINISTER
S1989
i& ta 0 P= WOOGmLY 7, ASUJIDI, 22
S JOUJNALST: Can I ask you first, are you concerned that Mr
xeating has said, or do you agree with him that the pilots"
dispute effect on tourism is being overestimated, that
tourism leaders are in danger of talking down their
business? PN: I don't think I agree with Paul in this sense that I
think he was trying to say that if you talk gloom and doom
in any long term sense that doesn't recognise that the
fundamental attractiveness of Australia as a tourism
destination for overseas visitors and for Australians to
travel themselves all over the place, is not changed by the
pilots dispute. We have a greater diversity of scenery,
geography and attractions than anywhere else, I think. We
have the most stable political environment, friendly people,
a congenial environment. So those fundamentals are not
going to change. Nov Paul doesn't feel and certainly I've
said that we recognise that in the interim period of this
dispute of course there is a problem for some, there is
suffering and that's why I've done two things. Firstly, I
have personally written to the banking industry and to the
finance industry to say to them, now if there are people who
clearly as a result of the pilots dispute, not sow
pre-existing condition, if they are suffering then I would
ask that they be accommodated, temporarily. And the second
thing is I've undertaken that in the post-dispute situation
we will look with the tourism industry at helping with an
advertising campaign to say well things are back to normal.
JOURNALIST: Do you agree that the tourism industry's not
really hurting at this stage?
PK: Oh listen Just read the transcript will you of what
I've just said. I've given a detailed answer to that
question. CHAN= L
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JOURNALIST: prime Minister, you said yesterday YOU Were
fairly hopeful home loan interest rates wouldn't rise to
1Sg Are you still confident today that they won't go
PK: Its still hopeful that they won't. We vant the
community to understand, including the banking industry. As
I've just been saying in a link-up to an investment seminar
in Japan, that we have said at the time of the Budget that
the first six months of this financial year, that is you
know July to December, would be months in which we would
expect to see pretty tough figure. but then in the second
half of the financial year we would be expecting an
improvement. I went people to understand that much of the
actual economic facts that are represented in these figures
show that there in a strenqthening of the infrastructure.
For instance, two of the big lumpy items in last month's
figures were buying aircraft for Qantas and one of the LNG
ships which will be taking LNG from Australia to Japan. Now
that's an adverse figure now in the current account figures
but they will imdi at. ly be turned into exor earners so
we will keep the tight monetary wages an~ d fiseal policy to
try and reduce somewhat the level of economic activity so
that we can still have economic growth and employment growth
but at a slightly lover level so that we can sustain the
level of imports associated with that level of activity.
It's a slightly long answer but I do want to make what I
think is this important pointi that we're not complacent
about these figure., they do represent same problem,, but the
stance of policy is there to ensure that we will go into the
immediate, medium term, and longer term future with essential
restructuring of our Australian economy which is going to
transfoarm the position. Let so just give you the example
which I just did into Japan via satellite. an Tuesday of
this week I was over in Wetern Australia f or the opening of
the North West Shelf Project. Now that's a project which
represents som, in total represents some $ 1211 in
investment. a lot of that would've been reflected in
equipment coming into Australia which would've appeared as a
minus in our current account figures. But as ve go into the
that Project is going to be generating export income of
the order of $ 2B per annum. That's the sort of thing I'm
referring to.
JOURALI1': In your link-up with Japan this morning, vas
there much concern expressed from Tokyo about the state of
Australiats economy and part iculary the current problem of
the pilots dispute?
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PM: No concern expressed about the state of the Australian
economy. There were questions that went to some of the
things that you've been talking about, of debt and the
current account issues. But it's interesting that the
seminar up there is organised by the Melbourne fira, John
nMontosh, with which I've been associated in these saeinars
in London and New York and Tokyo, usually by satellite I
night say, but that is indicative of the confidence that
they as investment houses and their audience in these major
centras have in the future of Australia. It's not
surprising that they should because if you look at the
fundamentals of this country and I just hope that people
will understand them, the oanormous advantages that
Australia has, we are a population of paradox that we have
in term of ethnic origins, one of the most hetrogeneous
* populations and yet politically very homogeneous, a very
stable population, a highly trained workforce, increasingly
skilled, great resources and a proximity to the fastest
growing regions of the world. Those are the things which
will determine and are deteraing the future growth and
welfare of this country and that's what was recognised up
there. Finally, on the question of the pilots dispute, I
was able to sake clear to that audience just what this
dispute is about. They were asking that this presage some
new sort of approach to industrial relations. The answer is
no. That under the accord we have seen in this country
these things, and let them be clearly understood. When we
cae to office, the worst recession in 50 years, that's what
we inherited, unemployment, which had increased by a quarter
of a million in the previous 12 months. Now what have we
done under the accord? You've had the trade union movement
and the Government agreeing that there would be restraint in
wages. In the event we've had one and half million new
jobs, we've had a rate of employment growth which is five
Stimes faster than under our conservative predecessors, a
rate of employment growth more than twice as fast as the
rest of the world and a move from wages to profits which the
trade union movement has involved itself in so that you can
have the inorease in investent and mployment. Now the
pilots are saying, or their Federation is saying, ' to hell
with that, we are going to operate differently. We'll grab
by using our power', and the Government and the trade
union movement has said that's not on. That's why their
outrageous claim cannot be allowed and will not be allowed
to succeed because the interests of all Australians are
bound up with the continuation of responsible restraint
which allows growth and improvement in the social wage,
education, health and so on.
JOURNALIST: Prime Minister, earlier this year you said you
were confident interest rates would begin to ease by the end
of the calendar year. DO you stand by that after
yesterday's balance of payments?
pM: I hope it will be the case and all I can may is what
I've also continually said through the year. As a Prim
Kinister I don't want interests rates to be higher for one
day longer than is economically necessary. But I also have
said and will continue to may that w won't reduce them one
day earlier than is economically responsible. Nov you
could, you know if you wanted to, say alright you will
artificially confect monet~ ary policy and reduce interest
rates earlier than would bq economically responsible. we're
not going to do that but we vil continue in the area of
wages policy and monetary policy and fiscal policy the sort
of restraint that's necessary to keep this economy on
course. In the past what you've had is a blowout of wages
which has meant interest rates going higher than they are at
the momnt and the econoW collapsing. We're not going to
allow that to occur.
JUOUNIST: Prime Ministar, with the current pressure on
ianctceorseasttia trea tteosu, r iysomu ' vpee opwrlei twtheon tmoi gthht e bbe aunknsd ear spkirensgs utrhee ma tto
this stoe because of the pilots dispute. Doesn't this make
it unlikely that the banks will be able to offer any kind of
help to tourism operators who need financial assistance?
Pl: It's really not saying that we vant then to be
massively reducing their interest or anything like that but
obviously z think there could be some accommodation where
because their cash flow has diminished as a result of the
decline in patronage during the dispute and where it's
legitimately and identifyably concerned there as a result of
the dispute, well I vould say to the banks and the finance
compani sej ust, you know be a little bit more patient and
accmmodating and I think that can be done.
JOURNALIST: Your tip for the rugby league grand final in
Sydney?
FS: Well as the number one supporter, in the official
sense, of the Raiders I an tipping the Raiders and that in
many senses would be very good for rugby, for the first time
in a country side you could have the Raiders getting up. I
must say as a betting man you would have to say I think, and
I think the Raiders might acknowledge this, if you were
looking at it in strict punting term probahly Balnmin
should start favourites. All I hope is that in the event it
will be a great, close, tough game and may the best side on
the day win.
I JOURNALIST: Prime Minister, one more quick question. The
Opposition has told the conference in Japan that they will
looking at having 15% Japanese ownership of qovrnaent
enterprises, such as Qantas, Australian Airlines,
Commmonwealth Bank. Is that sothing you would be looking
at? PM: well it's very interesting to hear what Mr John Moore,
who was described in the introduction as a Minister in our
Cabinet. Firstly, I would say about Mr John Moore he's not
and would never get within a bull's roar of being a member
of my Cabinet. Secondly, I would say that if the coup
against Kr Peacock comes oft, which is being contemplated
now to restore Hr Howard, he won't oome within a bull's roar
of being in the Opposition's shadow cabinet.
JOuRNALST: Nhat about the idea?
PM: Nov wait a minute. This is very, very, very, very
serious for someone in Australian politics, it's very
serious indeed. Mr John Moore, not in my Cabinet. e's
in Mr Peacock's shadow cabinet but more than half the
Liberal Party wants to get rid of Mr Peacock and if that
happened Mr Moore wouldn't even be in the shadow cabinet.
So what Hr Moore says about anything in Australia is you
know really not very relevant. I nean it has been suggested
in regard to Mr Moore that he should return to Queensland.
I nean if he can't sort out in Queensland the politibs of
his own Liberal Party there, where they have Mr Innes, the
Leader of the Liberal Party, being undermined to duap him, I
mean they are dumping Mr Ahern in the National Party. Now
the other part of the coalition, they are going to dump Mr
innes for Sally-Anne Atkinson. Nov here's a man who's the
State President of the Liberal Party up in Tokyo having the
temerity where he's in danger hiaself of getting turfed
out of his own shadow cabinet to talk about Australian
Government policy, now really.
JORALIST: Is it a feasible idea though?
PM: Anything that comes out of the mind of Moore is not
very feasible.
ends