PRIME MINISTER
11I March 1997 TRANSCRIPT OF THE PRIME MINISTER
THE HON. JOHN HOWARD MP
DOORSTOP INTERVIEW, CARDINIA SHIRE COUNCIIL, PAKENHAM
VICTORIA
E OE Ladies and gentlemen, at this, the first of our Cabinet meetings in outer metropolitan or
regional Australia, we've taken some very important decisions about the shape of the
work for the dole scheme. I can announce that the legislation to change the Social
Security Act to enable the Department of Social Security to require people to do work in
return for the dole, that that legislation will be introduced into Federal Parliament on 18th
March. We will be seeking a speedy passage of the legislation. It is in the national
interest that the legislation goes through quickly. We want the pilot schemes beginning in
September of this year. We plan to have 10 000 young Australians initially between the
ages of 18 and 24 involved in work for the dole schemes, the pilot schemes over a period
of 12 months.
I can inform you that we have already had great expressions of interest. Dr Kemp and his
staff have had presentations in committee rooms in Parliament House from community
groups of proposed work for the dole schemes. So the legislation will be introduced when
Parliament goes back next week on 18th March and we will be asking the Parliament to
pass that legislation this session and it's in the national interest that it go through. The
public supports the work for the dole proposal. We will have ten thousand people
involved in the pilot. It's a fair scheme. They will be paid award rates of pay strictly in
accordance with the principle I enunciated a few weeks ago. This will be a valuable
supplement to the armory of policies the Government has developed to deal with the
problem of youth unemployment.
Ladies and gentlemen, Dr Kemp, who is the expert on the work for the dole scheme and
of course has Ministerial responsibility is with me and he will help me if the questions you
ask me are too complicated but we had a very important discussion. The details are very
well advanced and I am personally very anxious and all members of the Government are
very anxious to have it up and running as soon as possible and we hope the Parliament will
pass the legislation, no mucking around, no messing about, sending it to committees. Let
it go through this session. A very simple change to the Social Security Act so that if
people are required to do something in return for the dole they can be. The law precludes
that at the present time. We've obviously got to change that in order to give us the option
of having an element of compulsion so far as the work for the dole scheme is concerned.
JRNLST: Are there any capital injections coming to this local community to carry out the projects?
PRIME MINISTER:
No, that's not intended. We estimate that the total cost of the scheme will be about
million and we've already had a large number of proposals put forward involving that but
there is no capital injection associated with the scheme but of course proposals may relate
to other schemes in some way which involve the injection of funds.
JRNLST: Can you tell us how many hours the people would be required to work and some more of
the details of the scheme?
PRIME MINISTER:
On average, two days of six hours a day. On average, two days at six hours a day.
JRNLST: And it would be compulsory?
PRIME MINISTER:
Well it will be compulsory in certain cases, yes. We've made it very clear that we are
going to change the law to enable compulsion. Some of the schemes will be based upon
purely voluntary participation. Others will be based upon a mixture of volunteers and
some people being required. Others might be fuly compulsory but I've made it clear from
the outset that we always were reserving the right to require people to do it. Now in
many cases that won't be necessary because I think local conditions and the attraction of
the scheme and the value it will bring to the young people will be such that that will not be
necessary. But I have never disguised the fact that we want to amend the law so that
people can be required to do something in return. I mean, this is based upon the principle
of mutual obligation. Society has a mutual obligation built into its ethic. We look after
people who need help and who can't get a job and in return it's not unreasonable to ask of
those people who can't get a job that they do something in return for that help and
provided that is on reasonable awards rates of pay, which it will be, and provided the
schemes have a community base and they don't involve the replacement of private sector
jobs, which they won't, that's an entirely sound principle, the principle of mutual
obligation and it's a principle I will argue and defend in any circumstances anywhere in
this country and I think it's a principle that the Australian community will very strongly
support.
JRNLST: Can you envisage extending the programme beyond ten thousand young people?
PRIME MINISTER:
Well these are, the ten thousand is in the pilots and if it works very well, the answer is yes,
we will extend it but it depends on how well it works. I have to stress that these are pilot
schemes that we have in mind, about 50 70 pilot schemes focussing initially on areas, in
areas that have the highest concentration of unemployed people. We will give priority for
participation in the schemes, for people who have been out of work for more than 6
months and the question of whether we extend it will be governed very much by how the
pilots go.
JRNLST: What about to older people?
PRIME MINISTER:
Well at this stage we're focussing on the 18 24 group.
JRNLST: How will you determine which of these projects are compulsory or which of them will be
( inaudible)
PRIME MINISTER:
Well it would depend upon the character of the tender. We will be inviting people when
they put forward projects to express a view about whether it should be compulsory or
voluntary or a mixture and of course, the selection process, and we will be adopting a
competitive approach. We will be inviting groups to compete against each other insofar as
the proposals are concerned and that decision will be made according to the circumstances
of the proposal. The assessment made by the panel that makes the decision of the needs,
the locality and the profile of the unemployed in that particular area.
JRNLST: And Prime Minister would you expect these projects to have a trickle down effect on
youth unemployment?
PRIME MINISTER:
Look I would expect that these projects will have a lot of benefits. They will give the
young people involved a greater sense of self esteem. They will undoubtedly improve
their work skills. They will fulfil the desire of the community to see a mutual obligation
principle applied in relation to benefits in this area. But overall, I think they will help to
break the cycle of despair and despondency and dependency that so many young people
feel in relation to unemployment. That is why my overwhelming experience since this
announcement was made has been one of great support from young people for the
proposal. JRNLST: Over time you wouldn't expect to see an ( inaudible) decline in youth unemployment..
PRIME MINISTER:
This is not designed to manipulate the unemployment figures. It is designed to help young
people. It is designed to involve the community in challenging a great national problem.
If it does have the trickle down effect that you describe, well that is an additional benefit
but I assure you the purpose of the thing is not to manipulate the figures, it is to help the
young people. And could I just note in passing, on the employment front that the ANZ
Job Index today showed a further improvement and it's the third month in the last four
that the ANZ Job Index has reacted in a very positive fashion and I gather a spokesman
for the ANZ not noted for buoyant statements in this area has said the figures aren't too
bad. Thank you, I think we ought to go to lunch.
JRNLST: The Business Council of Australia has joined South Australia and New South Wales in
criticising as unconstitutional the 15% superannuation surcharge. Are you facing another
half a billion dollar blowout in your budget deficit?
PRIME MINISTER:
No. JRNLST: But if the opinion from Rose QC which, as they have, indicates that this is
unconstitutional, what are you going to do to get that..
PRIME MINISTER:
I can tell you that all the advice we have is that the measure is quite constitutional and in
any event I haven't had it suggested from any quarters up until now that the
unconstitutionality relates other than to its application to certain state judges and certain
state officials. Look, there's a very simple principle involved in this. We brought down a
budget that shared the difficulty around and we are now hearing from state premiers that
you should have a budget that is watered down by removing some imposts that reduce the
concessionality of taxation for very high income earners in the community. I mean, what
sort of Australian sense of fair play and justice is that? Are you having the Premiers
saying that it's all right to knock the not so well off in the community but when you talk
about imposing any kind of surcharge that reduces an already high rate of concessionality
that we've got to stop that. I don't think they will seriously maintain it but can I just make
it clear, we are not backing down on the superannuation surcharge. It's a fair measure,
it's a good measure. It added to the balance and the social justice of the first Coalition
budget and we have no intention of backing down, no intention at all.
ends