PRIME MINISTER
TRANSCRIPT1 OF PRESS CON* FERE~ NCE I1) BART
24 January 1986
JOURNALIST: oil prices.
PM: Well, it is like so much ini economics. It is usually
a mixture. Obviously the Cover xmnent is going to have to
consider this when we next come to review, which is March
the 1st, that is the next set time. And at that stage we
will be looking at both thc price of cruide and at the level.
of the Australian dollar. I think it is quite obvious that
there will be some relief. But; what has got to be understood
is that with the fall in price, if we just simply applied
the IPP, then that could a very, very significant fall in
revenue to governmnft. So those things have to be taken
in account.
JOURNALIST: IS there any suggestion that the Government
would try to maintain prices at a higher rate artificially?
PM: It wouldn't be a question of artificially. I can't
at this stage, until tho Cabinet considers all the circumstances,
say what the outcome will be because it depends upon the
two factors. It depends upon the pr-iCe of crude. And there
is a mixture of the official price and the spot price, as
you know. And it is a question of where the levc-l of the
Australian dollar is. So it would be precipitate of me
at this stage to say just what the outcome would be.
JOURNALIST: Is there any threat to the tax cuts promised?
PM: NO.
JOURNALlIt'Y. Arc you caying thore Is no consideration will
take place before March 1?
P'M: There wi] ll be a lot of consideration. But I am saying
* that is when the next decision has to be taken. Last year
we made it clear that we would review this every couple
of months or so. And the next review dated for the first
of March. And Cabinet will obviously before then~ be considering
tho implications of it.
JOURNALIST: I-ow much of a loss of revenue are we talking
about? PM: Put it thin way. If there were to be a drop of say
eight to ten dollars a barrell, we talk in US terms in oil
prices, if there were to be a drop of' eight to ten dollars
a barrell and there were no change at all in Lthe policy,
then that could mean a loss of about one and a half billion
dollars in revenue. Now that is a lot of bickies.
JOURNALisTr: What sort of options are before the Gok~ crnment?
PM: It is too early to say because we don't know now what
the price will be there and what the exchange rate will I
be. And that will be a determinative influence. So all
I cart say is that there are obvious Plus features in, not
only for Australia but for much of the world in the reduction
in oil prices, but because successive governments in Australia,
since 1978, when the parity pricing policy was introduced
by the Fraser Government, successive governments have come
to rely for a significant part of revenue upon this policy.
Anid so that has to be taken into account.
JOURNALIST: Any chance that poliuy might be abandoned?
PM: NO. I am not talking about abandonment.
JOURNALIST: Change?
PM: What I say is this. We have been in office now for
nearly three years and we have shown, I think more than
any other government in recent memory, a capacity for soundb
economic management to take account of changes in the economic[
scene and to have economic policies settings which are calculated
to keop economic growth going in this country. And wc will
continue to make the right decisions in the period ahead.
JOURNALIST: Do you think retail petrol prices are too high
at present?
PM: It depends who you ask. As a motorist I would say,
and everyone would say, that they are always too high.
if you ask a retailer, well they are probably not high enough.
He is not getting enough. And if you make the comparison
with the rest of the world, still generally speaking, Australian
retail prices are lower than most of the rest of' the world.
So it just depends what your standard of judgement is.
JOURNALIST: Mr Hawke, can you see any benefits in Mr Gray's
idea of taking young people off the dole?
PM : You will excuse me if T have a little bit of mirth
about Mr Gray putting himself forward as some authority
on unemployment, particularly youth unemployment. The fact
is that Tasmiania has the worst unemployment figures of any
state in Australia. And that ~ after three years of' Mr
Cray. Now for him, in the thA& of an election, to throw
up an idea about youth unemployment does provoke a little
bit of mirth. He has had three years. lic has produced
the worst situation in Australia.
JOURNALIST: Would the idea work?.
PM: I doubt it. Well, he won't have the opportunity of
bringing it into effect. I don'. t think he will be there
but I doubt even if he were to' be re-elected whether hie
would proceed with it.
JOURNALIST: The proposal that young people do community
work rather than
PM: The concept of being involved in community work is
one which we have developed in many respects. But underlying
the proposal as I understand it is the concept that there
is always part-time work there waiting to be done. Where
JOURNALIST: Mr Hawke, what would you do for a. State Labor
Government if it was elected. YOu talked yesterday about
cooperation with Mr Wriedt. I am Just asking can you be
more specific?
PM: I have had the opportunity of discussing with Mr Wricdt
his plans for Tasmania ' 86 and beyond. And there is a
lot of imagination in that. And we will obviously be prepared
to cooperate with him in trying to give effect to that.
The point I was trying to make was this, that there is
in relations between government, much depends upon attitudes.
Now more than any other state leader Mr Gray has believed
in the policy of confrontation, misrepresentation. If you
have that attitude on the part of a State Premier it is
very difficult to maximise the relations between governments.
It is just a matter of human nature whether you are talking
about governments or whether you are talking about groups
or whether you are talking about individuals. If the attitude
of one is confrontationalism, misrepresentaLion you aro
just not going to maximise your relationship. In the case
of Mr Wriedt, we know one another. We have
known Or%& 3nother for many yearC..
There is a respect, a knowledge and a shared concept of
cooperation rather than confrontation. Out of that sort
of context you are going to get boLter results.
JOURNALIST: the spirit of the woodchip agreement by
putting in domestic logging roads?
PM: I don't want to get Loo far into that. Let me say
this. The evidence is fairly clear that since the Commonwealth
made the decision in regard to the woodchip industry, there
have been some attempts down here by the State Government
to foment this issue in an electoral situation. That doesn't
do anyone any good.
JOURNALIST: inaudible question
PM: I think they know where their beat bet is. a