TRANSCRIPT OF THE PRIME MINISTER, THE HON P J KEATING, MP
DOORSTOP, TURRAMURRA, SYDNEY, FRIDAY, 27 AUGUST, 1993
E& OE PROOF COPY
J: Morning, Prime Minister. What ground are you prepared to give on the Budget
to appease the union movement?
PM: Well, look, the Budget is like many other things I think the Government has
done over the ye--rs, and that is, that we want to meet a set of objectives, at the
same time where we think that there are real problems with some of the
measures, we can see in which way they may be amended or varied, provided
that the strategy and the substance of the Government's fiscal policy is there. I
mean, remember this, that the Government had a mandate to reduce marginal
rates of taxation, secured a mandate for that, and also to bring the Budget
deficit down. Now people are entitled to have their views about how that might
best be done, and Governments listen, generally, we do listen to people. Now
in the middle 1980s when I introduced many tax changes, I varied many of
them, but kept the sense them things like tax on motor cars, or the way the
fringe benefits tax operated or many other things. Provided that they are
sensible then the Government will consider them.
J: Are they sensible, the demands they are making?
PM.-Well, I mean, again it is a matter or some are, and some may not be consistent
wth our strategy. But the Government has a commitment to bring the Budget
deficit down for the good of the whole country, and at the same time reduce
marginal rates of taxation. Now I am sure we can meet all these objectives, it is
only a matter, I think, of having some sense about it. It is because of the sort of
balance of numbers in the Senate that this year these kind of changes have
taken on a bigger moment then they would have in other years. That doesn't
mean they are less legitimate.
J: ( inaudible)
PM: The Labor Council of NSW is entitled to its view about these things, but the
best way to deal with the Government in the Accord is to deal with it
persuasively. And that is, talk to us in private and not in public.
J: Is this union revolt threatening the Accord?
PM: No.
J: Does the ACTUs, opposition to the Budget reforms make it more likely the
Government will compromise with the Democrats?
PM. No. Let me just make this clear. Now look, Senator Kemnot is the leader of a
minor party in the Senate, she is entitled to a view. But the Government will be
governing, I mean we wAIl talk to the Democrats as we are talking to other
organisations and bodies. And we will, a week has gone by now, get the gist of
peoples objections and try and understand them. And to see in which ways
we can redesign some of the changes so that the sense and integrity of the
Budget is there. So the Democrats will be dealt with, appropriately and
sensibly. But again, It will be the Government deciding about its budget as
Governments should.
J: Mr Keating, the Democrats do seem to be a force to be reckoned with over the
budget. In your view, are they?
PM: Not in all the years that I have been a Minister did the Government have control
of the Senate. And it was my job to pilot many other changes through the
Senate, and with the Democrats of those days. And it is like everything else, I
mean, we will get there.
J: Mr Keating, isn't it time for a wholesale change to the Budget given that it has
been attacked from so many quarters, and within the Labor Party?
PM: That is just another way of asking what other people have asked. No, the
government has got a mandate to reduce the Budget deficit and reduce the
incidence of tax. I mean people need to remember that we are talking about
people be-tween $ 20,000 and $ 50,000. With the bulk of the people around
$ 25,000-35,000. Now despite what Senator Kernot says these people are not
wealthy people, this Is absolutely middle Australia and that's why I think the
commitments which we have given them on tax are important. But why again,
we want to govern sensibly so that when these changes are in and fiscal policy
Is Improved so that we can see more employment, we will try and get the
balances right.
J: What does it say about the power of the Democrats though? Until Wednesday
you were saying that the budget was pretty much non-negotiable, now you are
negotiating
PM: Well I don't think that a Government should ever say, well the moment someone
first raises one note of criticism, ok, we will go and change things. But again,
we have always has negotiations in the Senate in some of the measures,
always.
J: But do you think they do have a renewed power at the moment?
PM: No, no I don't. I mean they have got minor party status in the Senate and they
will be dealt with appropriately, courteously by us.
J: Can you just explain something of the split which is developing between the
union movement and the Government?
PM: Well I don't think there is a split developing. It is just the fact that on this
occasion people have been more vocal, perhaps than past. And they think
because there is a view by some Senators that they have common ground on
some of these things, that they can perhaps more noisily put their point of view.
J: Does it worry you that Michael Easson has written to Senator Kemnot and Brian
Harradine and called on them to reject certain aspects of the budget?
PM: Well I think evoking the Senate to use its powers against the Government and
the House of Representatives is a very un-Labor like thing to do. And I don't
think that he should be doing that. But that is not to say that he is not entited to
a point of view and that point of view may coincide with other peoples point of
view.
ENDS