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PRINIMISET E
TRANSCRIPT OF THE PRIME MINISTER, THE HON P J KEATING, MPR
DOORSTOP, RICHMOND, TASMANIA
26 FEBRUARY$ 1994
E& OE PROOF COPY
J: Prime Minster, does Mrs Kelly enjoy your unqualified support
PM: I thought you were going to ask me about the things that really matter,
like the success we had yesterday. The Commonwealth and the
States together and one of the most, I think, far reaching decisions
thatprobably this country has seen. That Is, to open up these great
huge Government business enterprises like water and electricity to the
same competitive Influences as the rest of the economy. And I am
very pleased that yesterday was a demonstration of the fact that so
much cooperation has been in evidence at the commonwealth heads
of government meetings, because there is a view before each one, you
know, there is going to be the general line that tends to be run in the
media: " well there won't be any agreement here", but invariably there
is. And we have now got a national rail corporation, a national training
authority, Hilmer endorsed, so it was a very productive dlays work and
can-I say that the Commonwealth Government was very happy at the
outcome. it will mean a lot for consumers. I think that over time, as
you can see with telephones, putting a competitor into Telecom has
reduced telephone tariffs. This Is going to be just the same over time
in these other big bulk trading commodities like electricity and water,
which are not just Important to consumers, but of course, absolutely
critical to business as we go on to become a more competitive country.
J: Are you talking about private power companies, private water
companies eventually emerging?
PM: Well, what we will see is a separation of power generation from
distribution. So, you will have power stations tendering to provide their
power. But instead of being locked up away from the Trade Practices
Act and simply immune under state legislation they will be open to the
same competitive influences as the rest of the private economy.
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J: So, cheaper power, cheaper water?
PM: It will end up cheaper power, cheaper power for consumers, cheaper
power for business, whicI s I think especially critical given that we are
sitting on a coal seam all the way down the East Coast of Australia.
We have a great natural advantage in electricity, and of course, in
water and the other products. So, it was a very far reaching decision.
Now, we have got to put flesh on the bones of the decision, we have
got to work it up to the next COAG Meeting, work up the
Commonwealth legislation joIntly with the States, and State legislation.
J: Jeff Kennett, though, is still saying that IR is the rock on which all
this could fall.
PM: Well that's a bit of ideology on the part of the Liberal Party. And what
we say to them Is this In tact, they dropped their agenda item
yesterday anyway the Government has now laid the foundations for a
most flexible labour market. Any enterprising business can enter into a
nw ind ustrial -relations agreement or anyone covered by a federal
award can vary the award without recourse to a union. Now, all that
really means is that it is up now to the employers to take these things
up and run with them. But they will always take them up when these
product markets are changing. I mean, if there is competition say
with Telecom it meant that the Telecom management and workforce
had to make the place more efficient. So, the labour market reform
generally follows, or the labour market changes, generally follow the
changes In the product markets. But you can't get the changes unless
you do things like yesterday.
SSo you can guarantee to business then, that the IR changes aren't
going to mean two categories of citizens: the unions and the rest?
PM: No; no. Because one of the rocks upon which this democracy of ours
is built is the right of free association. But be that as it may, an
employer under these changes can still make a new agreement with
the employees without reference to a union, Now, really what the
Liberals want are to cut peoples wages. And with profits as high as
they are in the economy now, in the stock market and in business, the
notion of going around and cutting people on $ 350.00 a week back is
something this Government won't wear. So, when you hear Liberal
Premiers talking abo -ut I R change~ sti is simply code for cutting back
ordinary people on low income wages. Now, if profits were broken and
the place had no prospects of growing these issues sort themselves
out in a low growth economy. But profits are high, as high as any
period in our history, and the stock market is back to where it was
before the stock market crash of 1987. So, to go around now saying,
" well look, we can only have change providing we can cut these little
people back on $ 350 bucks a week", is not the change we need. It is
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mean spirited, it is unnecessary. What we need are the big changes
and it was the big changes we went after yesterday, and got.
J: One of the problems is that there is so much political noise around as
a result of Mrs Kelly and the -sport grants, the sort of good news you
are giving us tdc-ay is getting lost.
PM: Well I think it is up to you guys to put the right priority on things.
Where is the weight? I mean, what happened yesterday will stick to
the country for the next ten, twenty, thirty, forty years. These other
little matters disappear within weeks. They are just one of the political
dust storms that come through.
J: Mrs Kelly and her problems seem to be sticking to the Government.
PM: Well it is a matter of the weight. I mean, even the Liberal Party don't
say there Is anything other than their lack of appreciation, let's put it
that way, for Mrs Kelly's choices. That's what it boils down to. Well,
tough for them.
J: Do you think the jury is still out untill this committee report comes
down?
PM: Well we will see. We have got a committee and we have set it up, so
there we are, we will wait and see what it says.
J Kelly's future hinge on a positive response from that?
PM: Well we will just wait and see what it says.
J: Do you think Mrs Kelly the prospect of resigning during the week?
PM: -Well we will wait and see what it says. And I will see her Monday.
J: Mr Keating, is the Government concerned about federal court action
which could delay the start of Pay TV?
PM: No, I mean, that is one out of the blue. I must say that is not one I
have caught up with. I am quite sure in the hub-bub over Pay
television, that is, In the jockeying, commercial jockeying of both the
people who have got licences and the people who have got product,
will see obviously quite a lot of huff ing and puffing in courts, but this is
natural whenever you are going to see something which is virtually
going to change the choices of Australian television viewers, there is
always going to be competition for a thing like that.
J: Is their any indication of Telecom being involved in that legal action?
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PM: I have got no Idea, Telecom runs itself as a private business and it
has got to look after itself.
J: Prime Minister, do you believe that Tasmanians have received the best
value from the $ 312 million in Gordon below Franklin Dam
compensation?
PM: Well I don't think I am in a position to make a judgement about that.
That is up to the State Government, they have got to be accountable to
the Tasmanian electorate, for the expenditure of very valuable dollars
from the Commonwealth. These are things which will come once, they
won't come again, and no doubt the opposition here will make clear
what it thinks are the valuable decisions and what are not.
J: A senior Tasmanian economist has said that it is a wonder that the
Federal Government doesn't try and retrieve the funds. Is that an
option?
PM; I have never seen that remark at all. But can I just say about
Tasmania generally. I think it is worth reporting that Tasmania has
picked up the competitive breezes in Australia. This morning I was at
a fish canning plant which is exporting. Not so many months ago I was
in Ulverstone at a potato factory, which Is exporting, Pacific Dunlop's
Potato Plant, and so the agriculture industries of Tasmania, particularly
small industries with small growers, are picking up product and
exporting it around the world. So, in a sense Tasmania is becoming a
bit of a model for the rest of the country in seeing the opportunities of
the new competitiveness of Australia and the Innovation which can
come from sensible management and good relations between product
suppliers and the workforce. And again, here in Richmond, I mean the
restoration of an important colonial town, one which adds a lot of
tourist lustre to this part of Tasmania, and one which is, of course,
helping keep the economy of Tasmania moving. So, tourism, niche
markets, food markets, but building on Australia's huge
competitiveness and exports of the kind we saw this morning is the
way for Australia, and I think In some of these industries Tasmania is
actually leading the way.
J have you heard anything about the Hobart Aquatic Centre..?
PM: No, I haven't.
ENDS