E 0 E PROOF ONLY
TRANSCRIPT OF INTERVIEW WITH IAN M'cMINN 3AK 11 DECEMBER 1986
MCMINN: Prime Minister, welcome to the program and at the end of
the parliamentary year with the Senate finishing last night I am
wondering whether Christmas has arrived early for the Government.
obviously I am referring today's extraordinary trade figures. How
do you see them?
PM: Well, we have said consistently Ian, that we don't get
overly carried away by any one month's figures but having said
that we, of course, welcome this remarkably low figure of
$ 685 million which is significantly below I think what the market
was expecting. I think it does confirm what the Treasurer Paul
Keating and I have been saying that the basic strategy of the
Government as contained in the Budget and our wages policy is
having its impact. There is just simply no question now that the
J-Curve that is the expectation that the depreciation would
have its impact in lowering the volume of imports and gradually
creating a better environment for exports is working and that is
good for Australia. We will not simply as a result of one month's
figures relax our firm policy position because what we are
committed to is creating the environment within which we can be
as certain as possible that the longer term requirements for
Australia's best interests are satisfied.
MCMINN: It seems an extraordinary drop though Prime Minister,
from $ 1.5 billion to $ 685 million. I am wondering if that could
have anything to do with the new computer service that is
this month's figures?
PM: It can't in any sense explain all of the massive drop. The
Opposition I understand is saying that you can't rely on one
month's figures. I must say I have a very healthy belly laugh
when I hear them say that because when the one month's figures
were very high they latched onto them and said that that is proof
that the Government's policies are not right. They wanted to say
we do attach weight to one month's figures. They seem to want now
to say, oh well, this is an aberration, you can't take any notice
at all.
MCMINN: I was just iondering is there any particular area that
you can pin point why there should be such a drop in our current
accounts? PM: ' Well, you have got to say, I think what the Treasurer and I
have been saying that it is inevitable that with the depreciation
that has taken place that there would be an impact upon import
volumes. Now there clearly has been and that is working its way
through and whether there is some particular element this month
which has played some part in this very dramatic reduction you
can't be sure. But what you can be sure of is that taking this
figure into account with the underlying trend of what has been
* happening you can be certain that import volumes are falling and
that export volumes are rising over the period. And that is
precisely what Australia needs.
MCMINN: Would you see the trend continuing in the next figures
to come out?
PM: Both Paul and I have been saying that we had to expect
reasonably tough figures as we went into 1987. It may be that now
the trend is accelerating a little bit faster than we thought. If
that is so that is welcome but it is a reflection of the fact
that the both the Treasurer and I are cautious about these
things. We have said that there should be cautious optimism about
the Australian economy for 1987. And all I can say is that these
figures certainly justify the expression of cautious optimism by
the Treasurer and myself.
MCMINN: On another set of figures Mr Hawke, the unemployment
figures, they fell slightly as well. Is that due to the same
policy setting or is
PM: What we have seen there is a drop in the unemployment rate
down to 8.3% but that is a reflection obviously in part of the
decline in the participation rate. But we have said that in
regard to the general employment and unemployment figure that we
couldn't expect significant continuing growth in employment and
significant reductions in the unemployment rate given the fact
that we have got to contain the level of economic activity in
this country so that we don't suck in imports at a more than
sustainable level. But again I think we have to take some
cautious optimism from these employment figures.
MCMINN: Well, both sets of figures obviously come at a very good
time given that the parliamentary year is at an end. At the start
of next year you are going to the middle East. I was wondering if
I could ask you how you would see that trip?
PM: Well, the trip has two components if I can put it that way.
I have been invited to give the keynote address at this very
prestigious meeting in Davos in Switzerland which is attended by
leading political figures from many nations as well as
outstanding business leaders from around the world. And I am
going to take the opportunity there of making a major speech in
regard to the international trading situation including the
position affecting agriculture which is of fundamental importance
to Australia. And I am taking the opportunity while going there
to deliver that impotitant address to make a brief visit to the
Middle East. I will be going to Israel and Jordan and Egypt and
let me just make these points about that visit Ian. Firstly, I
don't want any overstatement of Australia's capacity to play any
sort of mediating role in the Middle East. I am not going there
in that sense but we are in the fortunate position where we are
regarded favourably by Israel and by the moderate Arab states, by
Egypt and Jordan and so I am sure that the leadership of these
three states will talk fully and frankly with me about how they
see the current and future situation in the Middle East. I hope
that in that context I can become better informed about the
possibilities in that region. And if in any way they believe
there can be some in put in Australia, but only if they so
believe, then of course Australia is prepared to make whatever
input to such processes that they would seek of us.
MCMINN: Of course Israel, Prime Minister, has been something
very close to your heart over a number of years and I am just
wondering whether or not there is some danger in the trip so far
as that you are closely aligned to the motivations of the
Israelis and there might be an expectation that you might if you
like not maintain a balance, that you might go their way rather
than the way of moderate Arabs?
PM: Oh well, in part the answer to that is that I have a long
standing invitation from both Jordan and Egypt to visit their
countries and I am accepting their invitation as well as the
invitation of the Israelis. While it is true that I have had some
fairly long standing association with Israel I have also for a
very long period had good relations with Egypt and Jordan. I have
been to Jordan twice. I visited Egypt when I visited there the
late President Sadat was in power but I did have the
opportunity then of meeting as he was Vice-President Mubarak. I
established good personal relations with him and he is now the
leader of Egypt. And I recognise the very real problems that the
people of Egypt and of Jordan and the policy of my Government
recognises also the interests and the rights of the Palestinian
people as well as our total commitment to the right of Israel to
exist behind secure and recognised boundaries. So we go there
with a position of integrity which is accepted and recognised by
all the countries that I will be visiting.
MCMINN: You don't see a danger of an expectation that Bob Hawke
might solve the problem?
PM: Well, that is why I made the first comment that I did. I
want to emphasise as strongly as I possibly can. I don't go there
with some assumption about playing the role of the great
international mediator. I am simply saying that we are a country
and I think I am a person who is respected by Israel and by Egypt
and by Jordan. It is for that reason that-I think as I say they
will talk fully and frankly with me and I simply say that if it
is the view of the countries themselves that Australia even in
some small way can play a part in what will be a very complicated
process of achieving a peaceable resolution of the Middle East
conflict then of course Australia stands ready to help. But I
don't in any sense overstate either the capacity or the role of
Australia. MCMINN: OK, moving along to domestic politics. Prime Minister,
the Senate last night knocked back the Australia Card as everyone
expected them to. A double barrel question first of all this
obviously would give you a trigger for a double dissolution if
you wished. The second point, Senator George Georges saying that I
he is prepared to quit the ALP. I was wondering if I could get
comments on that?
PM: Well, in regard to the first. It is of course a tragedy that
the opposing political parties that is the Liberal Party, the
National Party and the Democrats have rejected a piece of
legislation which the overwhelming majority of Australians
recognise as being necessary if as a community we are going most
comprehensively to fight the war on the one hand against tax
avoidance and on the other against social security fraud. And
so those opposing parties have clearly put themselves in the camp
of those who don't want to fight the fight as hard we can against
tax avoidance or to fight the fight as hard as we can against
social security fraud. They have made a gross error of political
judgement. They have acted manifestly against the interests of
the ordinary people of this country and we will continue to
fight. Let me say, however, I make it clear that I am going to
ensure that this Parliament runs it full term. They will pay, in
my judgement, a heavy political price for their refusal to
identify themselves with the great wish of the Australian people
to fight tax avoidance, to fight social security fraud. Now, your
other question was about Senator George Georges. I think that the
Australian Labor Party will reasonably, comfortably survive
whatever George Georges may perceive as the trauma of his
defection. MCMINN: So you don't see Senator Georges, an ALP Senator, his
quitting of the ALP over this issue as an embarrassment to the
Labor Party?
PM: No.
MCMINN: No way?
PM: I think my answer was pretty unequivocal.
MCMINN: Another thing a personal message if you like. As I
understand it there is a lady listening to the program right now.
She is 112 years of age. Her name is Carolyn Mockridge or people
call her Carrie the oldest living Australian. And I understand
you have a message for her.
PM: I have indeed. Carrie, first of all, my very, very sincere
and great congratulations to you on achieving your 112th
birthday. This is just truly remarkable and as I understand it
that makes you the oldest Australian according to our Federal
Government records. I congratulate you not just on your longevity
but I would like to say how thrilled I am to be told that you
retain a very vivid interest in current affairs, that you listen
to parliamentary broadcasts. I think it is absolutely fantastic
that you are able to do this and that you like to do it. I am
told that your father Carrie, came to Australia with the British
Army, that he was at the Eureka Stockade as a soldier at the age
of 19. When I think Carrie, of the fact that you are a 112, that
means you were in fact 55 years of age when I was born back in
1929. You span a truly remarkable period of Australian history
and I suppose one of the things that you -must just wonder about
as you look around you today is the absolutely immeasurable
IL nature of the change that has taken place in the world and in
Australia since your early days. It is an unrecognisably
different country and different world. But I guess the basic
considerations, the basic values remain unchanged and I just hope
that you will see in the sort of things that are happening today
moves that are going to make for a better Australia. You
obviously Carrie, would also have a great pride in your family
and particularly some names that come to mind. I understand that
your great nephew was Russell Mockridge the famous cyclist and
also John Mockridge, an architect who amongst other things has
designed several buildings here in Canberra. So I hope Carrie
that as you look back over those 112 years you will have very,
very many fond and happy memories and I certainly hope that you
continue to enjoy the capacity to involve yourself in what is
happening in Australia today and I wish you all the best for the
future. MCMINN: Thank you Prime Minister.
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