PRIMETRMINITE
TRANSCRIPT OF DOORSTOP, PARLIAMENT HOUSE, 20 FEBRUARY 1989
E 0 E PROOF ONLY
JOURNALIST: Prime minister you suggested this morning that
pensioners would have more reason to vote for you at the
next election. Why should that be?
PM: Well I didn't really say something then that I haven't
said before. I've indicated that I have two processes
going. one is the review being conducted now under the
leadership of the Minister, Brian Howe, consulting with
various organisations around the country in the light of the
Bettina Cass report on retirement incomes. The second thing
I've established is the backbench committee, which is going
round the country listening to and talking with pensioner
groups. Out of these processes there will come decisions
calculated to and which will in fact improve further the
position of pensioners in this country. Now that's what's
going to happen and all I said this morning is to remind
them that that's going on, that will happen.
JOURNALIST: On another subject Prime Minister, Senator
Button suggested over the weekend that there ought to be
action taken to encourage Australians to save rather than
spend. Do you support such moves?
PM: Well he said that this is something that is worth
considering, this is not new of course. It's a matter that
we've considered in EPAC. It is the case here as in some
other countries that the savings ratio is too low. It's
legitimate for Senator Button to raise that. As I say it's
been considered in EPAC, it's something that the Governmen.' t
may consider.
JOURNALIST: inaudible
PM: No I'm not going to any details of that.
JOURNALIST: Do you think you can overcome the tax avoidance
problems that most such schemes raise?
PM: I mean you're getting you're trying to take me beyond
what I'm prepared to do. I'm saying that the question of
the relatively low savings ratio is something of a concern.
It's something that's worth looking at. But I'm not saying
we are going to be looking at a tax deduction scheme. It
may come into the consideration.
-2-
JOURNALIST: Are people saving for a home being penalised by
having their savings taxed?
PM: Well I suppose that anyone who is saving for any
objective, whether it's for a home or something else, wou]. d
say that they would rather not be paying tax on their
interest, that's understandable.
JOURNALIST: When you say the issue is worthy of
consideration does that mean that any incentive might be
linked to the announcement of tax cuts?
PM: No, again you're just trying to unsuccessfully take me
further than I'm prepared to go. I've said no more than
that the level of the savings ratio is of some concern, so
much so that it's been considered by EPAC before. I haven't
got anything on the agenda about it.
JOURNALIST: Will the Government take up Senator Button's
suggestion and at least look at the matter or do you think
that that's already been covered in the EPAC situation?
PM: Well there's been some reference to it in the EPAC
paper. It was considered. If the Senator wished to raise
it in the Cabinet well of course he would have that right.
But I'm not being coy or tricky about this. It's something
that's not on our agenda at the moment.
JOURNALIST: Mr Hawke do the airline pilots have a case to
strike today?
PM: No. That's an act of gross irresponsibility.
ends 1