PRIME MINISTER
11k'fi-XCRLP-k OF IlEIRVIEW WITH QUERTN DEMOSTMR 1.30 REPoRT,
1o M4ARCH 1~ 9
i~ 0 E PROOF ONLY
DEMPSTER: Priime Minister a siciiv imprcvement on the
current account deficit. Yiour -i-action please.
VM: ia~ p icased i: hat 11-nas come i~ i Oi Leower end -of the
.; anqe of E--Xectatioris Quentin. titpcrts are down which we
w-, ant to see.. But there's nit room for roornpiacency.
DEMPSTER: Do yiju s~ tand by yvour oredict lun In the ' Western
Australi-an election that interc! ast rater will cone. downYA.
Yes I was asked a ques tion to which the ans%-7er was
obvious. I was asked " would interest rates come Jown before
the end of the Year?"'. The ans~ er was yes anid it'ts z; till the
answer. DEMP-: TFR: Well You can guarantee they'll be dow -n by the time
your colleague, Wayne Goss, faces the people or Queensland in
November?
PM: Well what will happen to interest rates will be a
function of the success ol our policy in lowering off the
level of demand to reduce the demand for J., qports but at a
level which will. still keep economic a-ctiv'ity going and
employmenl.. if it works out as .1 expect it vili Ithn
by that staae they'll be coming doi.. n b-ut I don't make
immediate projections abouit it. lIt's tcot hel~ pful to anyone.
DEMPSTER: Airiaht. Are the tax cuts still right tor July?.-
PM: Yes.
DEMP'STER: ; s Australia [ acing a recession?
PM: No.
DEMPSTER: A recent survey by Blue Chip Economic Indicators
in the United States shows that 659 of ' Leading UJS economists
beiieve a3 LS recession to be Imminent but most forecasts
tagettinq the last quarter of 1989 and the first quarter of
1990. It that is so Australia won't be able to avoid
recession will we?
PM: I don't accept the accuracy of those assessments and
indeed Quentin if you and I would sit here now and review the
forecasts of economists, bot~ h international and Australia as
to wohat was going to happen in the future you would show a
picture of chaos. They very rarely get it right, and are
well paid for not getting it right I might say. I have a
reasonable degree of confidence the United States economy is
going to keep going in 1989 at a reasonable head of steam and
into 1990. What we've got to remember is -that the world has
a vested interest in the United States economy going well and
the rest of the world has shown a preparedness to co-operate
with the United States. I think the critical issue Quentin
in regard to the United States economy, is President Bush
going to be prepared to take the sorts of decisions not
fundamentally drastic decisions but get the debt position
going the right way. I think the evidence is that he's
prepared to do that.
DEMPSTER: Why are you dithering on privatisation?
PM: I'm not dithering on privatisation. The processes are
under way in the Party to look at this. I've given a gentle
indication I think it's a pretty important issue.
DEMPSTER: Well it was on the agenda last year and off the
agenda and now it's on again.
PM: It hasn't been off the agenda. As a result of the
initiatives that I took last year I think we got a decision
by the Conference to establish these committees. I just
wanted to let them know I think it's a pretty important issue
they're dealing with.
DEMPSTER: Well we're used to action in Queensland not just
namby pamby it it's in the national Interest now, why
not do it now?
PM: Well I'm glad you make the point. The difference
between my Government and what's happening in Queensland I
operate in a democracy.
DEMPSTER: Well that may be so but why not do it now if it's
in the national interest?
PM: I haven't got the power just to say, " bang" like that,
as to what will happen. I'm serious in making a point about
it. It's a democracy.
DEMPSTER: I thought you were a statesman. You lead, the
others will follow?
PM: Yes but we do have a democracy. I cannot just say,
" 1this is what will happen". T mean that's what characterised
Queensland for a long time and look at the price you pay.
DEMPSTER: Couldn't you use the prest. Ige of the Prime
Ministership, get the nervous nellies into the Lodge, give
them tea and scones and twist their little arms?
PM: I don't operate like thdt. I mean there might be some
tea arnd for those who want something stronger, they might
have some of that, but I'm quite happy with the way the
processes are going.
DEMPSTER: Will you be helping Wayne Goss by campaigning in
Queensland in the forthcoming State election?
PM: Well he's been kind enough to indicate that he regards
me as an asset and I'd like to be up here. Let me say this,
as you know because w.. e've known one another a long time
I've got a longstanding love affaii with Queensland. And
probably I've spent more time in Queensland, relatively
speaking, than just about any other State. And I'll be here
if he wants me and I'd certainly like to be here.
DEM4PSTER: Can you give M4r Goss an assurance that you won't
call an election before the scheduled November State
elect ion?
PM: That's very unlikely, very unlikely, very unlikely.
DEMPSTER: Prime Minister, how much more of our prime
coastal and rural land must we sell off to overseas?
PM: Well of course the question of how much land within a
State is sold off to overseas interests is a matter
essentially for the States. But let me make this point and
I say it directly to all moy friends here in Queensland
which I hope really is everyone because they mightn't all
agree with me but I hope they regard me as a friend, I regard
them as friends but let me say this to the people of
Queensland. The worst thing that we as the current
generation of Australians with a responsibility for the
future the worst thing we can do is to become
nationalistic, xenophobic people who say we don't want
foreign investment, particularly if we direct it at any one
country. This country needs foreign investment, because we
need it to develop the country and, most particularly we need
it to increase those areas of strength,...... the
manufacturing industry and in tourism..
DEMPSTER: But it's into the property, it's beach front
real estate and prime rural land.
PM: But let me say this in regard to tourism. That's our
biggest growing industry and the future of this country
depends upon development which is going to provide jobs and
income. Now that doesn't mean..
DEMPSTER: But they buy the the Japanese particularl. y
are buying the resorts, say, and they're repatriating the
profit. They're one off sales and they're repatriating the
profits, to back home.
PM: If you want to get sue into an anti-Japanese campaign
you've got the wrong bloke. Let me say this quite clearly.
As far as Japan is concerned. it's our most important trading
partner and that trade that very substantial trade, the
two-way trade that we have with Japan is fundamentally
important to the strength of this economy. And so both on
economic grounds and moral grounds you are not going to find
this Prime Minister discriminating against one nation
DEMPSTER: So on foreign investment, in short, you won't
stop. PM: No, I was just going to make the point if you would've
allowed me, you'ye got to make the political distinction. We
do have a Foreign Investment Review Board and we will invoke
the national interest. Loo'k at the other day, for instance.
Keating stopped a two hundred million dollar foreign
investment aupplication, it happened to be from the Japanese,
it wasn't because it was from the Japanese, in regard to a
development in Sydney, because he said that was
environmentally unacceptable. The difference between us and
the Tories is this that we favour having a Foreign
Investment Review B~ oard which will invoke the national
interest. We've done it. Howard and the National Party say
no Foreign Investment Review Board, " twe'll abolish it just
, Free for all". Now that's the distinction. We will protect
the national interests by having the appropriate institution.
W~ e've demonstrated that. Our opponents won't.
DEMPSTER: Prime Minister, thank you.
PM: Thanks very much.