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PRIME MINISTER
TRANSCRIPT OF THE PRIME MINISTER, THE HON P J KEATING MP
INTERVIEW WITH NEIL MERCER, TODAY TONIGHT, CHANNEL 7
MAY 1995
E& OE PROOF COPY
NM: Prime Minister, welcome to the program.
PM: Thank you Neil.
NM: Do you accept that in many ways, this Budget is a critical test of your
own personal credibility?
PM: I don't think that is right at all. I was re-hired by the nation in 1993,
to re-start growth and employment and that is exactly what we have
done. I 1
NM: And the promised tax cuts of course, which you haven't delivered,
Prime Minister?
PM: No that's not right Neil. They were paid... . the first round was paid
a week probably doesn't mean much to you, Neil but it was
paid at the end of 1993
NM: The second round has been paid?
PM: . the second round $ 4000 million of it is going to be paid into
superannuation accounts. Now, let's take the two issues: on growth,
we have had the fastest growing Western world economy since the
election. On employment, we have had the largest fall in
unemployment in our history. On inflation, we are down to between
2% and We have paid the first round of tax cuts, and now on
the second round we are paying into people's supera ' nnuation
accounts so that every Australian working person will have what they
have never had before, and that is a massive pool of savings for
them in retirement. And the country will end up with a massive pool
of savings to relieve our call on overseas debt.
NM: But Prime Minister, they won't have that $ 10 or $ 15 in the hand as
you promised. They will have something in 20 or 30 years time.
PM: Understand this in 1993 the Government suspended the second
round of the tax cuts, and we said " we would bring them back,
probably in 1998....
NM: What I'm putting to you is that....
PM: do you recall that?
NM: What I am putting to you, Prime Minister, is that a lot of people are
now very cynical, given that promise.... . you see, that promise has
been broken.
PM: Mr Howard has been running around saying that all day...
NM: . he's been saying that you are dishonest and a liar.
PM: Let me tell you this he was Treasurer in the 1977 election and
promised tax cuts, and he then took them away 5 months later and
he got in these headlines " Lies, lies, lies" do you remember that?
NM: I do indeed, Prime Minister. A lot of people would say that headline
applies to you today.
PM: How could they? Neil, don't be ridiculous if we are paying $ 4000
million off the Budget $ 4000 million off the Budget who do you
think we are paying it to? To Martians?
NM: John Howard says...
PM: No. Come on you answer me.
NM: John Howard....
PM: Leave John Howard you have made your little claim.
NM: No the point I'm making is, Prime Minister, is that you promised
voters 10 or 15 bucks in the hand they will not have that when you
said they would have it, and what I'm putting is that you are trying to
convince people that black is white.
PM: Let me just remind you, again. In the election campaign of 1993, I
couldn't get a line for the tax cuts. You know what they said to me?
" Oh, come on Prime Minister you promised those in 1992 in One
Natio! You know Neil, through the election campaign I was saying
to people like you " but what about the tax cuts" " oh, come on Prime
Minister, don't mention those". The tax cuts never rated a line in the
1993 election this is all a bit of re-writing of history. But, they
certainly rated a line in peoples bank-books when they were paid at
the end of 1993. And let me just tell you this you ask your viewers
this question would they rather $ 10 a week in their hands, or $ 15 a
week, rather than this: a person on 100% of average weekly
earnings that is, someone on $ 33,000 a year will, as a
consequence of last night's policy change, mean that at the end of
their working life if they start their working life and finish it 40 years
later they will end up with a parcel of $ 461,000. This is a person
on $ 33,000 a year...
NM: We're going to ask that question, Prime Minister.
PM: . and then they pick up an annual retirement annuity of $ 30,000 a
year.
NM: We are going to ask that question.
PM; $ 33,000 a year.
NM: What I am putting to you you're confident that Australians will buy
that sales pitch?
PM: Neil, it's hardly a sales pitch.
NM: But it's a gamble on your part.
PM: It's not a gamble at all. What other Government would have the wit,
the conscientiousness, the imagination to actually build for the
average working person a big nest egg in retirement so that they
never have to worry again about their retirement. That is, a person
on $ 33,000 a year goes into retirement on $ 30,000 a year not just
the pension, but $ 30,000 a year. That can only come from a Labor
Government.
NM: Prime Minister, let's talk about families. John Howard says that the
big losers in this Budget are families Medicare levy is up, the cost
of a family car is up at least $ 1000, they have lost their tax cuts, and
there is a 12% GST on the home on buildings.
PM: There is not a GST on the home. This is from John Howard, who
wanted to put a 15% GST on the whole of the home that is bricks,
mortar, tiles, concrete this is an extension of the sales tax for taps,
copper pipes, drill bits, pieces of plumbing. In other words, some of
the products used in building not bricks, not mortar, not concrete,
not timber. But John Howard wanted to put 15% on them last year at
the election.
NM: We have to wind up, Prime Minister how do you rank this Budget in
terms of Budgets that have been delivered since 1983, very quickly?
4
PM: It's a surplus, it takes the pressure off interest rates, it keeps growth
going through the 1990s, and it delivers the biggest savings nest
egg to fill the greatest savings pot-hole we have ever had.
NM: Prime Minister, thanks very much for your time.
PM: Thank you Neil.
ends.