JA2W
PRIME MINISTERA
TRANSCRIPT OF THE PRIME MINISTER, THE HON P J KEATING MP
DOORSTOP, MELBOURNE, 27 APRIL 1995
E& OE PROOF COPY
J: How did the meeting go?
PM: It was very good I think. We've will run one of the most successful
income policies In the world. The Accord is now 12 years old when
we first started, people didn't think it would become 12 months old.
Now, it's 12 years old and we are now looking at this Budget and the
economy for the balance of the nineties, and this is the time to have
another discussion about the next variation on the Accord's model.
J; What issues did you speak about?
PM: The general ones obviously, the Budget specific ones about wages
the wage system about inflation we have h: cd very good
underlying inflation numbers today -we are very happy about that.
And going back where we were with Accord Mark VII recording the
progress we have made. We were seeking then half a million jobs
over three years we have got the half a million jobs In two years
we got to the target In two-thirds of the time. And so we went... . we
reconnoitred back over the Accord Mark ViIl looked at the success
we have had with it, what things we need to do differently.
J: Was there any understanding on the issues discussed?
PM: We had a good general natter, and we are going to probably meet
again and say more to one another.
J: Will there be a superannuation tax cut this year?
PM: I'm not here to discuss the Budget, and we didn't go to that sort of
detail at the meeting.
J: How happy are you with that inflation rate?
PM: Well, the underlying rate actually came down, so it's a very good
result it vvy: 1.9% thP underlying rate and It's the underlying rate
that matters. The headline bounces around, depending on wh1ats in
ft in any particular month, but the underlying rate even though the
headline rate went up because It has now got mortgage interest
payments and other payments heavily weighted in the basket of the
index, the underlying rate, with those one-off's taken out of it. gives
you the steady view of inflation. And the steady view on inflation is
very steady, as those National Accounts in December showed. You
see the non-farm product deflator in the National Accounts was 0.9%
for the year. Can you believe that? The National Accounts in
December have the broadest measure of inflation under 1% the
private consumption deflator in the National Accounts puts Inflation
at And so that's why, in calculating the underlying rate at
1.9% that is, dis-aggregating the CP'I to look at the underlying rate
is confirming those very good numbers we saw about two weeks ago
in the December Quarter Accounts.
J: Do you have any concern that the Unions can push a wage claim on
the strength of the headline rate?
PM: We have, I think, so much... the wage policy of the Government is
working now very, very well indeed. That is, the Enterprise
Bar-gaining is working well there have been some terrific bargains
struck. There was one in the metals this week it might have been
yesterday a terrific bargain, and this is the sort of wage system we
could have only dreamed about a few years ago. Thank you.
ends.