PRIME MINISTER
TRANSCRIPT OF INTERVIEW WITH JANA WENDT, A CURRENT
AFFAIR, 19 JULY 1990
E 0 E PROOF ONLY
WENDT: Mr Hawke, thanks for your time this evening.
PM: Pleasure.
WENDT: I'd like to look specifically at one of those
States that you hope to cooperate with and that is
Victoria. How do you think that that Government has
handled the financial crisis that exists there?
PM: Well, that's a good try, Jana. I don't think you'd
expect me on a public television program to go into my
analysis of what's happened in Victoria, but, I mean, I
don't want to dodge your question. Let me say this, that
I would think that Mr Cain and his Ministers would have
to readily concede that the handling of the economy down
there has been less than perfect. I don't think they're
going to say, Bob, you shouldn't have said that. It has
been less than perfect. The important thing is that they
get it right now.
WENDT: I want to ask you specifically about the Pyramid
collapse. Do you think that Victorian depositors of
Pyramid were justifiably outraged when only last, or this
February, the Victorian Government gave them guarantees
that all was well?
PM: Obviously when depositors hear what was said in
February, then they take notice of that and then when
things turn out differently they are going to be
disappointed and justifiably disappointed. No-one can
avoid the logic of that.
WENDT: OK, so we can't avoid that logic. When we know
that the Victorian Government was aware that Pyramid was
in terrible trouble, do you think they were wrong in not
letting those depositors know that they were aware of
that trouble?
PM: I don't know personally the extent of the knowledge
of the Victorian Government at the time you talk about,
Jana, so therefore I can't answer that question.
WENDT: Well, it is quite clear because the Victorian
Government at the time, in March, was actively seeking a
buyer for Pyramid. So it knew that Pyramid was in
trouble. PM: It's always whether it's Victoria or any other
State, I think you will have to appreciate fairly, that
there is a, there is a dilemma for any Government and
whether it's of a Labor or non Labor persuasion, if there
are question marks about an institution, a large deposit
taking institution and the line between a Government
being concerned about that and not saying or doing
anything publicly which may exacerbate the concerns and
the runs that may be made, I mean, it's a very difficult
line for a Government to draw.
WENDT: But what's involved then, Mr Hawke, as I'm sure
you appreciate, is 220,000 battlers, depositors, who
weren't made aware by that Government that there was
trouble.
PM: I understand the concern there and I share their
concern and what I am pleased to see is the commitment of
the Victorian Government to try and meet the concerns of
those people.
WENDT: Are you satisfied that there is a commitment to
rectify the problem? For instance, we've seen a number
of runs on financial institutions there. The Chairman of
the Bank of Melbourne, which itself suffered a run
recently, said that there is a political vacuum in
Victoria, that there is no political leadership there.
What do you think?
PM: Well, I don't accept that there's a vacuum. I don't
accept that there's no leadership, but let me make the
more important point in regard to the Victorian situation
and that is that the Reserve Bank of Australia has made
clear that, in regard to other societies in Victoria,
that the banks will be provided with sufficient liquidity
to ensure that they are not over-run by the problems of
the Farrow Group. Now the Reserve Bank has said that and
I think that's the important thing for people to
understand. WENDT: Mr Hawke, maybe that guarantee isn't worth all
that much because we ' ve seen continuing runs even
spreading to NSW. Are we in a position where Victoria
might trigger off a financial crisis nation-wide?
PM: No.
WENDT: Can you be sure of that?
PM: I can't set myself up as an authority over and above
the Reserve Bank in these matters. I'm satisified with
what the Reserve Bank has said leads to the conclusion
that we should not have and do not have a basis for a
national concern of the type that you're talking about.
WENDT: You see Mr Cain thinks that there is potential
there for a national crisis. His advice to depositors
was, and I'm quoting him, " just sit back and draw breath,
otherwise the entire financial system in Australia will
be threatened".
PM: Well Mr Cain has said that. I'm saying that the
authority in regard to the national situation is the
Reserve Bank as far as we're concerned. And the Reserve
Bank has said that it will provide the liquidity to the
banking system to ensure that other societies are not
going to be adversely affected by the collapse of the
Farrow group. So that's the important thing.
WENDT: So you're satisfied that Mr Cain is wrong in that
regard? PM: It's not a question of putting me against Mr Cain.
I'm simply not going to have my statements set up against
him. You can do that if you want. I'm simply saying
that my responsibility is to put it in terms of my
authority via the Reserve Bank. But let me make this
point as to the future Jana, which I think is what you
and we're all concerned with. I think that what we've
got to do is to ensure that there is effective
supervision of the non-bank deposit-taking institutions
around the country.
WENDT: Yes, so you obviously feel that there's a need
for uniform legislation at least. You see Mr Cain has
said that he blames your Government and your Government's
policy mix of deregulation and high interest rates for
what's happened. Do you accept any responsibility for
what's happened in Victoriaa?
PM: No, the responsibilities in regard to the
supervision of these sorts of institutions is, under the
law and under the Constitution, with the States. Now
this has happened in Victoria, it hasn't happened
elsewhere. So it's not appropriate for the Premier in
question and the State in question to seek to transfer
responsibility.
WENDT: Mr Hawke, there was a time in this State that I'm
in at the moment in Western Australia when there were
financial disasters that could be deemed to be less than
the ones of the Victorian Government and it was seen to
be wise to remove the leader of this State. Is it time
for new leadership in Victoria?
PM: That is the leadership in Victoria is entirely a
matter for the Parliamentary Labor Party in Victoria.
Entirely.
WENDT: Do you think it might be time for fresh
leadership? PM: I do respect you for your ambition in asking the
question but I know that you don't expect me on the Jana
Wendt program, as great a program as it is, to intrude
myself into what is essentially a matter for the
Victorians. WENDT: Alright Mr Hawke, let's move on. Last week the
Treasurer took a media entourage, at public expense, to
share his passion for the VFL. Do you think that we
should be footing the bill for that?
PM: Let me say this, that at this stage of the year the
Treasurer is an extremely hard-working individual. He
wait a minute, I'm not dodging your question. He works
hard all the year. But we are now in the process of
preparing a budget. I mean I've come out to do this
program from the Expenditure Review Commxittee. He's
going flat out all the time. It's not a normal period of
the year for the Treasurer. I mean his hours are
extremely limited and I guess he saved a considerable
amount of time in this way. Now there are rules for the
use of these aircraft and I assume that they have been
abided by.
WENDT: So you think it's ok that we pay for that?
PM: I don't think that Mr Keating is one who, in
relationship to the job he does and what he's done for
this country, can be seen to have exploited the
emoluments or conditions that attach to the job.
WENDT: Former Whitlam Minister Clyde Cameron has
suggested that before this term is up, Mr Keating will be
sitting in your chair. Is this the kind of statement
that you're going to be lumbered with before you do say
well I'm bowing out of this?
PM: Clyde's likely to say anything isn't he. I mean he
said that. Clyde's made a lot of statements that are
wrong. He's made some that are right too. But he's not
right on that one.
WENDT: But clearly he's just adding to this feeling that
the leadership push by Paul Keating is on.
PM: Well, it's not a feeling that is felt around
Canberra I can assure you. Every now and again a
journalist or an ex-poly will try and give it a bit of a
run. It is a non issue.
WENDT: Doesn't bother you-
PM: I can assure you-
WENDT: Doesn't bother you. You don't resent it-
PM: No. No. Of course I don't resent it. I feel
terribly secure.
WENDT: Mr Hawke, well let me move on again. The
Attorney-General and the Justice Minister have called for
evidence in relation to allegations that a Cabinet
Minister and a high profile businessman were involved in
a murder. Now has any evidence been brought forward, to
your knowledge?
PM: None to mine. And I make a simple point. That if
the journalist in question, Mr Thomas Burton has any
evidence whatsoever on this matter, there is an enormous
obligation on Thomas Burton to take that evidence to the
appropriate authorities. And I tell him, do that. If
you've got evidence Mr Burton take it to the Federal
police or the National Crime Authority. Take it to the
relevant authorities. Because if you've got evidence
then it should be investigated. And indeed if he doesn't
take that evidence then he stands condemned.
WENDT: Have you personally been made aware of the names
allegedly involved in this?
PM: No. I haven't.
WENDT: Do you-
PM: May I say as I look at my colleagues around the
Cabinet table I don't do so with any trepidation that I'm
looking into the eyes of a murderer.
WENDT: Well Mr Hawke, I think on that note we'll leave
it. Thank you very much for you time tonight.
PM: Thank you very much indeed.
ends