TRANSCRIPT OF NEWS CONFERENCE, PARLIAMENT HOUSE
29 OCTOBER 1990
E OE PROOF ONLY
JOURNALIST: Mr Hawke, do you think it's appropriate if
States raise their taxes and the Commonwealth reduces
their taxes accordingly?
PM: Well we want to get a situation where there's not
going to be an overall net increase in the impost on the
citizens of this country. The important thing is, as far
as the conference is concerned, that we recognise that
from the States' point of view that this is a centrally
important issue. There is a significant fiscal imbalance
and we're quite prepared to examine that and we seem to
have the principles of such an investigation agreed.
That is, on our part, a recognition of their concern
about this imbalance. On their part a recognition of the
fact that the national Government has to have
responsibility for the macro-economic health of the
country. Now what we will do I hope, and I don't want to
pre-empt the discussion that will start tonight in
Brisbane and go on tomorrow, but I think we'll get the
agreement on the principles as to which this matter
should now be investigated. I would like to make the
point which I think nearly all of you in your
commentaries have been fair enough to note, that this is
not a conference which itself is going to make all the
decisions. I mean the historic importance of this
conference is the recognition on the part of the States
and the Commonwealth that the time has come to try and
get a more efficient and co-operative system of
government in this country. We've identified with a very
considerable degree of agreement what the agenda should
be, what the areas are that we need to look at.
Essentially what will come out of today is the beginning
of a concentrated work process which will go on into at
least I think two more special Premiers' conferences next
year. But the areas of agreement are the one that you
mentioned in your question, that is the financial
relationships, then we've got the area of duplication of
services, micro-economic reform. Those three broad
areas, including within micro-economic reform the
question of looking at trying to eliminate the
duplication of regulations that exist in this country and
then the two more specific issues of the environment and
industrial relations. Now there'll be some areas where
we'll be ablE! to have some immediate decisions. But they
will be important in themselves. But the most important
thing will be-the agreement as to processes and
priorities that will now be pursued through.
JOURNALIST: Prime Minister, what mechanisms do you
envisage for ensuring that national control of the macroeconomic
agenda is maintained if the States are to get
back some taxing powers?
PM: Well tha~ t's not something that we'll have an answer
to today. I mean I believe that what we will get is an
agreement to have a detailed co-operative inquiry into
what's a very complex issue. There will be an acceptance
on the part cof the States of our concern about the need
for effective macro-economic control. There'll be an
acceptance on our part of the need to try and find ways
in which we can give them more access to revenue of their
own. Now you just have to state the issues to see that
they are complex. But we'll go into this, as I believe
the States will, with good intent and good will. I am
hopeful then that out of that process next year will come
some answers that will meet the requirements of both the
States and the Commonwealth.
JOURNALIST: Prime Minister, does it concern you that, on
a wider economic issue, that consumer confidence is now
at its lowest ebb for some years, lower in fact than
during the ' 182 recession?
PM: Well you say does it concern me? I would expect
that as a result of the policies that we've had in place
to lower the level of activity, level of demand, that
there would be a lowering of confidence. That's an
inevitable concomitant of the policies that had to be
followed to rceduce the level of demand in this country.
But if the comparisons are being made with 1982 then I
would be much more concerned if in fact the things that
really mattered in that respect, that is employment,
growth and investment, if they were all worse, they are
not, they aria all better. Now I don't say that with any
sense of complacency but we've had to try and walk the
very difficult line of reducing demand, reducing
activity, but not doing it in a way which was going to
plunge us in-to the sort of depths of lowered activity
which was a characteristic of 1982-83.
JOURNALIST: Prime Minister, Dr Hewson says the
Opposition and him in particular should be at the Special
Premiers' Conference.
PM: Well there's one simple answer to that Dr Hewson.
You've got to become head of government before you attend
heads of governments' meetings.
JOURNALIST: Mr Hawke, what specific areas would you look
for outcomes from this meeting?
PM: Geoff, : 1 think there'll be, in certain areas of
micro-economLc reform I think we'll get some agreement
there. I'm very hopeful that we'll be able to sign a
heads of agreement to establish a national rail-freight
corporation which will be a very significant advance.
There might be a couple of other areas in the regulatory
area. But obviously the other issues are of such
complexity that what we've got to do at this meeting is
to get the agreement as to working parties and the
principles ofE investigation. Like in the area of
duplication of services. I think there's one area there,
I hope, in regard to disabilities, the delivery of
services there, there may be a possibility of getting
agreement at this conference in that area. But in the
others I think we'll get agreement on principles and
priorities and processes of investigation with a report
back to special conferences next year.
JOURNALIST: What about mutual recognition of
regulations? PM: That concept is certainly going to be advanced at
this meeting. I would think that that will be accepted.
But that will still require then further work on it, but
the principle will be accepted I would think.
JOURNALIST: Are you expecting much antagonism or is
everyone going to be very friendly?
PM: I think it will generally be a very friendly and
cooperative : meeting. Now that the Chief Minister of the
Northern Territory has had his election, got that out of
the way, I hope he'll come along prepared to work hard
and constructively.
JOURNALIST: Can I just ask you about the election
results in New Zealand and the Northern Territory. Do
they show dissatisfaction with Labor that could have any
relevance to your case?
PM: No, we've got an election in 1993. It's a long time
away. I wouldn't like to face an election at the moment.
But I'm not going to.
JOURNALIST: What difference will a change of government
in New Zealand mean for Australia?
PM: Well I can't tell exactly. But I did ring Mr Bolger
on Saturday night. I've known him back to the 1970s when
I used to attend the International Labour Organisation
regularly as head of the Australian trade union movement.
He was then the New Zealand Minister of Labour. So I
know the fellow well. He agreed with me that things
would, the relationship would go on constructively and I
believe from. our point of view it will. As to any
differences that will emerge from changes in policy
that's a bit hard'to tell because following the campaign
from afar it: was hard to see a lot of differences in
economic policies that were being put forward by the
Nationals. JOURNALIST: Is there some comfort that the frigates
project will still go ahead?
PM: You may have noticed that I deliberately refrained
when this matter arose during last week from saying
anything about it because it didn't seem to me that it
would in any way be useful for me to be attempting to
intrude in that matter. But I'm certainly pleased to
have got the assurance from the Prime Minister elect that
they will adhere to the contract. It would have been a
difficulty if they hadn't adhered to their contract, not
only in regard to the specific issue but in regard to the
whole environment of our relationship.
JOURNALIST: Mr Hawke, do you welcome the visit of a
private Australian envoy to Iraq to try and release our,
get our hostages released?
PM: Well the question of private envoys going there is a
very vexed one and we believe that there are a lot of
downsides in that. Our official representatives have
been unceasing in their representations to the
authorities in Iraq and I pay full tribute to them for
their commitment and their dedication and their unceasing
work. We will continue to try and do all that we can to
protect the interests of our citizens there and to get
their retrieval as it were from Iraq as soon as that's
humanly possible.
ends