E OE PROOF COPY ONLY
TRANSCRIPT OF THE PRIME MINISTER, THE HON P. J. KEATING MP
DOORSTOP, HOBART, 23 JANUARY 1992
( inaudible)
PM: I think they have to stick with a Government which has
given Tasmania an industrial future and given Tasmania
a reasonable decent set of financial accounts. I think
it needs to be remembered just how far the
discretionary gap, the gap between discrete spending
and revenue was under Mr Gray's Government. It was 30% 6
and th:-Ls community pays, I think, a real trauma in that
which Premier Field and the Field Government have very
largely now overcome and so in terms of really the
hardest sort of work which is keeping a State within
its capacity to spend and afford it, that sort of hard
grinding work, while at the same time keeping all the
industrial facilities going. That hard grinding work,
Premier Field has done and the message I give to
Tasmanians is hang on to him.
Why didn't you stay longer? Why are you flying in and
flying out not meeting the people?
PM Well, ' I've come down at the first opportunity and I'm
seeing quite a lot of people tonight, 170 I think, and
the Chamber of Manufacturers in Launceston, they're
people as far as I know.
the capital Prime Minister?
PM: And I know about this Hobart/ Launceston thing and I'm
quite happy to visit the Premier here in Hobart and
speak in Launceston tonight and I think people
( inaudible Michael Field and he should stay
( inaudible)
Mr Keating do you suggest that the GST played a part in the
Liberal loss in the NSW by-election? I assume you think
that Federal issues have been postponed?
PM: Well, Dr Hewson's goods and services tax package, apart
from putting his hands into every pocket of every
person in the country for everything they buy, is also
about a 5 per cent reduction in the Commonwealth
payments to the States. That's a $ 40 million reduction
in the income of Tasmania and that's a very large
impost on the State, that would have to be made up by
taxes and charges. This is a State with a relatively
small population and it will mean a very heavy impost
on most Tasmanians. I'm really at a loss as to why the
Leader of the Opposition here, Mr Groom, is supporting
the Figlatback, the Hewson Fightback package when it is
going to rip $ 40 million off Tasmania.
Yes, you would think that Tasmanians would understand that
they would be voting on those Federal issues and...
PM: Well, they certainly will to the extent that the
Coalition has been asking people to endorse the policy
which the Leader of the Opposition, Mr Groom, supports
of taking $ 40 million off the State.
So we had to have a recession, don't we have to have a
fightback?
PM: I don't deny that Dr Hewson has a plan but it is the
wrong plan. A plan that says if we can't really get
honest suggestions that all the things that matter to
Australia, like jobs, recovery, growth, investment,
exports, national efficiency, all of that would be
fixed by tax on your Wheat Bix and your clothes. Does
anyone really think that can happen? While at the same
time blow out the inflation rate/ interest rate out with
it. I mean that's what people have got to understand
what this really means. I mean this is a very nasty
package, wrapped up, a very nasty tax wrapped up with
some tax give-aways which are not as large as the tax
burden which will fail on most Australians.
of Immigration, Graeme Campbell came to say that you
have made a blunder in comments and suggested that anyone
who now knows his
PM: I don't think that's right. I think that it's
important that people understand what population growth
is all about and what it means in national growth and
national demand and on my part I welcome Dr Hewson's
assurance that he will debate this issue, rationally,
sensibly and not return to the sort of themes which
were running in 1988.
any comments you have made?
PM: No, because no, I think this is an important subject to
Australians. People can't pretend that this has
economic: implications and then address them in a throw
away line in a doorstop in a by-election.
How embarrasing has it been, the Solicitor-General's
PM: Well I don't think embarrasing, but the Attorney's
office has made a decision about that and he did not
speak to me nor did he need to.
Did you ever
PM: None whatsoever, I've not spoken to the Attorney about
it either directly or indirectly.
Given that the Opposition hag been pushing the GST so hard
in Tasmania, would this election have been a qood chance for
you to come down?
PM: Well, I. ll be saying some things tonight at quite a
large meeting and talking about what I think are the
real issues of Australian that is, to be on the
recovery, to return to higher rates of employment, to
maintain a low inflation rate and low interest rates,
to build our capital stocks and build more production,
to produce more and therefore reduce the current
account deficit, to make all the factories of Australia
work effEiciently, tLo make sure the transport system
works efficiently, these are the real issues, and the
consumption taxes they put in relation to those
issues -is a tenth order issue. And so what Dr Hewson
has done is taken a tenth order issue and tried to
manufacture it into a first order issue and then sold
it. Well the fact is it is a very nasty number. It is
very nasty for most Australians but worse of all that
it is not about the real thing, it is not about the
issues -that matter. It is not about the things which
will remedy Australia's economic difficulty.
But 62% of Australia say that Dr Hewson is doing it well?
PM: Well that's OK, but I mean again we will make our
point, this-Government has been about reducing the tax
burden of Australians. This is now the second lowest
taxed country in the OECD. And it is a very strange
debate when you have got people believing you can be
popular in saying that Australia has long term
fundamental difficulties, what it needs to remedy all
this is a new tax. And you say really? What we really
need is a new tax? Well it is a novel twist of the
debate and as the issues are opened up, I'm quite sure
Australians will come to weigh much more carefully than
what is your position here?
PM: Well we put a Bill in the Parliament and I think
there is only one issue here, will the Liberal Party
agree to the package of resource security legislation.
in the Senate of the Commonwealth. If they do there
will be an Act. A Bill for an Act, and it will be an.
Act of~ Parliament. If they don't the Resource Security
will go down and its Mr Groom, who I think, and the
Liberal Party, who the questions should be directed to.
We have got our Bill in the Chamber.
Has the Premier asked you to do anything to pave the way for
his gas proposals and the steel proposals for the North West
Coast? PM: He has and I ( inaudible)... . which I think would be good
for Tasmanians and I'm sure he will be pleased to say-a
few words in
Can't we get from you Prime Minister part of this..
PM: He is the PremierletA tell you. It's his proposal.
What did he ask you to do?
PM: Well hie's asked the Commonwealth to share in the costs
of a feasibility study for the Steel mill and I have
given certain undertakings which he'll reveal to you.
Is this the way Tasmania should be going with these 2
proposals? PM: Well at least I think the fundamentals seem to be there
and the way of testing the fundamentals is in the way I
think government to. Tasmanians are always going to
have play to its naturals strengths and these projects are
about draw:' Lng those strengths together and enhancing them
and the Government I think has been very sensible about
doing it, about supporting it.
And so you support
PM: Well -: have done my best to
So totally insignificant in the national picture, are we,
Tasmania'? You consider it an insignificant part of your
Commonwealth picture?
PM: How do come to that point?
I'm asking thequestion, are we important in your plan of
Australia? PM: Absolutely, I mean it is an Australian State, the
population is small but that just means that all we are
seeing is basically the same. I think all of the publi. c
policy and development issues are difficult regardless
of size. In the other States, the numbers might be
larger, but problems are much the same. And all of
Australia is going to have to play to its natural
strengths. In other words, comparative advantage. And
Australia will, as we are doing now, lifting the growth
in trade, playing to our natural advantage. And I
think Tasmania will continue to do more of that in the
future. Because in the end it's natural advantage and
comparative advantage which gives any trading entity a
chance and that is what the Premier is trying to do in
seeking possibilities here for projects which are
comparative or natural advantage.
What are Labor's changes in the next election?
PM: Well I think that the Premier has taken on just about
the toughest: job of any of the States. The fiscal task in
Tasmania was greater than any of the States. And when I was
Treasurer, I can tell you this, the fiscal difficulties of
Tasmania was greater than any of the States and Michael
Field has done more than anybody could ever have imagined to
reoair that yawning gap which Premier Gray left him and the
people of Tasmania. And not only that, been able to balance
the issues and balance the forces in politics so that the
place keeps on developing. I think he has got a very
natural touch in balancing competing issues and demand and
at the same time, a good economic manager. And what the
Opposition are proposing is for the Opposition leader,
somebody who Mr Fraser thought wasn't competent enough to
be a Federal Minister and who is supporting a policy which
claws a heap of money out of the States.
prospect of another hung Parliament?
PM: Obviously I'm not here to give you a cheek by joul
seat by seat opinion about which seats would be won, but the
Government has performed strongly, this is the right answer
for Tasmanians, the Field Government, and I think if ever
there was a Premier who on the basis of sheer hard work and
courage has took, on the tough issues and got on top of them,
has asked for another mandate, it is Michael Field.
ENDS