9'.
PRIME MINISTER
TRANSCRIPT OF NEWS CONFERENCE, RICHMOND RAAF BASE, SYDNEY
DECEMBER 1989
E OE PROOF ONLY
JOURNALIST: Mr Hawke airlines are pressing ahead with
their damages claim?
PM: Well whether they're going to the point of collection I
don't know. I hope they're not. Obviously the formal
proceedings have to go to a conclusion. But I've expressed
my view very clearly that I hope they don't move to a
collection of damages.
JOURNALIST: Mr Peacock says a coalition government would
see a massive downturn in interest rates. How do you feel
about that?
PM: Well, you know, to coin a phrase of Mr Peacock in
regard to the Opposition you just have to say ' who's to
know'. I mean just last week we had Senator Stone, Dr
Hewson and Mr Howard saying that interest rates would remain
high, and through the next three years. But now the Leader
of the Opposition, who is not regarded by Mr Stone, Dr
Hewson or Mr Howard as having any economic competence as
compared with themselves, contradicts them and says they
will come down massively. Now of course, as I've had reason
to say, when you're talking about economics Mr Peacock knows
nothing. The important thing to say about interest rates is
what I've said and what my Treasurer has said. And that is
that we will keep the settings of policy firm for as long as
is required. We do have the situation now where there are
signs, as both the Treasurer and I have been saying, that
that policy is working. The conditions are being created
for a reduction in interest rates. But we have no more to
say about that. And for Mr Peacock to be coming out and
speaking in direct and blatant contradiction of those people
within the Opposition who really do know more about these
things than he does, is a sign of the increasing desperation
of Mr Peacock.
JOURNALIST: wind down their operations. Does that mean
the pilots' dispute is over in your
PM: well we have made the position quite clear and indeed
the people are reflecting their understanding of it. The
domestic airline industry is being restored towards its
normal operating capacity. They'll be able to handle the
Christmas traffic and we will see Australia's domestic
airlines operating normally in the early part of 1990.
JOURNALIST: What about the cost to the taxpayer
PM: The cost to the taxpayer is something that will be
finally determined when the accounts are put in and when
they are dealt with by government officials. All I can say
is this, that it will be a significantly lesser amount than
those figures that were recklessly thrown around by the Mr
Jull to whom I referred. And of course the other point to
make is that the cost to Australia would've been infinitely
higher, immeasurably higher if I had been prepared to do
what the Opposition had wanted me to do and that is to lay
down and let the pilots have their way. That would've been
economically disastrous. It was totally unacceptable to me.
JOURNALIST: Mr Keating doesn't seem to be as definite as
you are about the signs of interest rates coming down. He
doesn't seem to be as definite as you about interest rates
coming down next year. He seems
PM: You look at the comments of Mr Keating yesterday and
mine. They were totally
JOURNALIST: So you see that as a strong endorsement of your
comments? PM: well if you actually look at what he said he had no
reason to disagree with the remarks I'd made.
JOURNALIST: Will there be a cost in the Defence Force
budget itself in terms of wear and tear and greaterusage of
the aircraft over this dispute?
PM: Well if there's anything that has to be taken into
account in the Budget sense it will be. I mean we've made
it quite clear that what was being done in this last four
months was to provide a service from the Royal Australian
Air Force and to a lesser extent from the Royal Australian
Navy to provide an essential service to Australia. And if
there is supplementation required then of course that will
be done.
JOURNALIST: Mr Hawke.
PM: G'day, how are you. There's no need to kneel.
JOURNALIST: There is, the cameras are there.
PM: Arise.
JOURNALIST: After yesterday's retail sales figures the
Chamber of Commerce said that you should be looking at
bringing interest rates down at the end of January,
beginning of February and if you don't it might be too hard
for too long. Is that something that you are looking at?
PM: As I've said before, the fine art of economic
management now is to make the decision in regard to monetary
policy, that is interest rates, which means firstly that you
haven't taken them off too early and therefore allow a
resurgence of demand which would mean unacceptably high
levels of imports. And on the other hand not leaving it too
late so that you go into an unacceptably prolonged and deep
downturn. JOURNALIST: Recession.
PM: I believe that we will be able to make that fine art of
judgement. We will.
JOURNALIST: Are you afraid the markets will jump the gun
and lower interest rates too early?
PM: I think that the markets will respond to their
assessment of government policy.
JOURNALIST: Mr Hawke, the pilots say they still want their
seniority. Isn't that going to still be a stumbling block
to getting them back in the air?
PM: Well of course the airlines need very few pilots now as
the figures have been released. This matter will be before
the Commission on Monday and the position there is quite
clear. If the Federation wants to have any part now in the
final resolution of the difficulties in the airline industry
then they have to meet three conditions. And not special
conditions upon them, the same conditions that apply to any
other union. And that's a matter for decision for them. It
will either you'll have a complete restoration of the
airline industry without the involvement of the Federation
or they may have some part in the tail end of it. It's up
to them.
ends