PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
18/12/1997
Release Type:
Interview
Transcript ID:
10563
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTERTHE HON JOHN HOWARD MPRADIO INTERVIEW WITH ALAN JONESRADIO 2UE, SYDNEY

JONES:

Prime Minister, good morning.

PRIME MINISTER:

Good morning Alan.

JONES:

Are you looking forward to a break?

PRIME MINISTER:

Yes. I will be having a couple of weeks off like so many others

and spending it with my family and I certainly hope that Australians

have a very restful and happy Christmas. I hope those of us who

are able to spend it in happy circumstances and comfortable circumstances

will remember that there are many Australians who don't have

that kind of Christmas.

Perhaps all of us can help those magnificent organisations, like

the Salvation Army and the Smith Family, who do so much to help

the less fortunate in our community at Christmas time. It is a time

of celebration and thanksgiving but it should also be a time of

remembering those in our community who are not as well off as the

rest of us.

JONES:

At the end of the year do you write your own report card?

PRIME MINISTER:

Do I write it, yes I do, in a very private sense. It has been a

tough year and I have had some ups and downs, but the important

thing is that the fabric of the Australian nation finishes the year

in very good shape. Economically, we are probably the fastest growing

economy in the industrialised world - Can I say that again - Australia

is probably the fastest growing economy in the industrialised world.

In a short period of time we have turned a $10.5 billion deficit

into a prospective surplus of probably a couple of billion dollars

in next financial year. We have lowered interest rates to levels

they were at in the late 1960s. We have got one of the world's

lowest inflation rates. We have seen a turn around in the last few

months in employment growth - 145,000 jobs created in the last three

months. We have seen record levels of business investment. We have

seen the Australian economy weather the financial turbulence which

has swept through the Asia-Pacific region so much so that we are

able to help the weaker economies of that region from the position

of pride and strength. And you add all of that together, I am entitled

to say that, the Australian economy and therefore the economic fabric

of the nation finishes the year in very good shape. That is not

said complacently but it is said proudly against the background

of the year in which the Government has had many critics, but in

which it has attended to the things that are really important to

this nation's future, and that is, building a sound economic

framework on which we can be base further economic expansion.

It has also been a year in which we have seen a record level of

average Australians buy a share - that is in Telstra - of one of

the largest corporate floats this country has ever seen. 600,000

Australians for the first time in their lives bought shares this

year and 92 per cent of the employees of Telstra bought shares in

that company under the special offer that the Government made available.

And they are the battlers and the workers the people - that you

say - many of whom come from struggle street. They were able to

participate, 92 per cent of them, that is a thumping endorsement

from the employees of that company in the wisdom of the Government's

policy.

JONES:

Do you think there is a weakness within the Government in its capacity

to sell that story?

PRIME MINISTER:

I guess you could always say that. A Government never sells its

story well enough and if you are saying to me we have got to sell

even harder, yes, of course, that is the answer.

JONES:

What about the negatives? Has the rorts affair, the travel rorts

affair - not that you were pioneers of that, as you know, it has

been going on for years but you seem to pay the price of it - has

that been damaging?

PRIME MINISTER:

That was damaging, of course, it is always damaging when you lose

ministers of great quality like John Sharp, of course it is.

JONES:

And is there a way back though for John Sharp?

PRIME MINISTER:

Well there is always a way back for people of ability and fundamental

decency, of course there is.

JONES:

In the short term or long term?

PRIME MINISTER:

Well, I can't talk about that, we haven't had the Auditor

Generals' Report yet. The important thing about that is that

I enforce very high standards at a considerable personal cost. But

I told the Australian people that we wouldn't have the temporising

on these issues of the Hawke and Keating Governments. We did enforce

tougher standards. I paid a price in the short term but in the long

term I think the Australian people will respect that.

We didn't handle the nursing home situation well but that

problem is now behind us. The family home is rock-solid safe and

guaranteed and I think the other thing that people can look forward

to in the New Year is that we will be offering the Australian public

a dramatically improved taxation system where rates of personal

income tax will be lower and the competitive position of Australian

business under its taxation system will be vastly improved and that

means jobs and more exports.

JONES:

I am just suprised that, on the tax front, that you haven't

seemingly embraced a wider debate. There is a lot of scholarship

happening internationally about alternatives to the GST. It seems

that we are equating the GST with tax reform.

PRIME MINISTER:

No, I am not doing that. I am not talking about a GST. There is

no way that we are going to have a GST, alone, that's crazy.

This is a total tax reform. You have got to fix up the business

side, you have got to fix up the personal income tax side, you have

got to rationalise the indirect tax system. Anybody who seeks to

describe what we are doing, as just about the introduction of a

broad-based indirect tax, is wrong.

JONES:

I know you know how bad it is, but I had a letter from Joe, who

works at Safeway and he was pretty excited because he got a promotion

- he is only on $23,500 - but he got an extra $3,000. His wife is

a full-time carer and she is at home looking after the two kids,

but because of $3,000 he went in at 35.5 per cent in tax, he lost

$1,065 and he lost 50 cents for every dollar. He finished up with

$435 out of the $3,000. Now that is no encouragement for work is

it?

PRIME MINISTER:

The only way you will fix that and help Joe and give him the incentive

to get another $3,000 raise is to reform the personal income tax

system. At the moment what happens is you get onto an ordinary wage

and you are paying the top marginal rate of tax. When I left school

you had to be earning 19 times average weekly earnings - not that

I was on that when I left school - to pay the top marginal rate

of tax. You now have to only earn 1.4. Now that is disgraceful and

that will stifle incentive, not only of the Joes' but of every

other person who is trying hard to get ahead and look after their

families. What we want is a tax system that gives those people the

incentive to work harder, to know that if they get a rise then they

will keep the great bulk of it themselves. You can only do that

if you reform the whole system.

JONES:

Well no one has read the Act. The Act is a shambles for a start.

We better pay our way. So we will take a break and come back talking

to the Prime Minister.

[TAPE BREAK]

ALAN JONES:

Prime Minister it seems that in spite of all those things you say,

the country has been very disillusioned about this whole Wik, Mabo,

nasty language, and I see that Noel Pearson has said that if

you don't change your tune, there will be war between indigenous

and non-indigenous Australians. What does the leader of the nation

say to the rest of the nation about that?

PRIME MINISTER:

Well that kind of language is inflammatory, it's unhelpful

to the cause that he's meant to espouse, and that is the cause

of reconciliation. There won't be war between indigenous and

other Australians.

ALAN JONES:

And will you be backing down?

PRIME MINISTER:

I won't be backing down because our legislation is already

a fair compromise. I mean if I'd been like a trade union leader,

I'd have produced a piece of legislation as a ridiculous ambit

claim and then bit-by-bit made concessions and then reached a mid

point. But I didn't do that. I spent four or five months travelling

around Australia talking to people, including probably four or five

meetings with Aboriginal leaders, including Mr Pearson, and including

an initial meeting of just Mr Pearson and myself. Now I started

off in good faith wanting to reach a result, a middle point that

was fair to both sides, and I've done that. I mean what I've

produced was not universally satisfactory to the farming community

of Australia. You remember when I went to Longreach the people holding

placards at Longreach weren't leaders of the Aboriginal community,

they were people who thought I was being too accommodating to the

Aboriginals.

Now I've produced a fair, decent, balanced outcome. It preserves

the right of indigenous people to make native title claims over

pastoral leases. It guarantees the principles of the Mabo decision.

It guarantees...

ALAN JONES:

Let's come back to that point about the native title over

pastoral leases. Are you conceding that there will be circumstances

in which they can co-exist?

PRIME MINISTER:

I'm conceding that the principles of the Wik decision and

the Mabo decision will be maintained in my legislation, yes. I am.

I mean this is the extraordinary thing that I'm the bloke that's

actually produced legislation that upholds the principles of Mabo

and Wik and for my pains I'm being called racist. Now that

is wrong and the more people do it, can I say, the more determined

one becomes to maintain the fairness and the integrity of my position.

ALAN JONES:

Racist scum, not just racist. Is there a place in this kind of

so-called pursuit of reconciliation for that sort of language?

PRIME MINISTER:

Well that sort of language is completely negative to the cause

of reconciliation. But you have to understand that Noel has a long

history of espousing the Labor side of the argument. I mean it's

not a surprise. What I find a bit interesting is that the Labor

Party has apparently not embraced him with the alacrity with which

they embraced Mrs Kernot.

ALAN JONES:

You'll be putting this legislation back to the Senate without

change?

PRIME MINISTER:

I will.

ALAN JONES:

Right. What do you say to pastoralists, I've just had one

on here this morning and Noel Pearson has made public statements

to say that they will not in any way seek to claim pastoral leases

in the area covered by the Land Council of which he's Chairman,

yet they are doing just that. Massive ambit claims for exclusivity

in possession and use. Now these people are out there trying to

make a quid, they face a Christmas of massive uncertainty, they

don't really know where they stand. What do you say to them?

PRIME MINISTER:

What I'm saying to them is that if we hadn't had to deal

with the Labor Party and the Independents in the Senate we'd

have fixed this thing up months ago. The people who are delaying

the resolution of this issue are the Labor Party, the Democrats,

Senator Harradine and people like Mr Pearson who want the debate

and the rancour to go on. And they keep arguing that they seek reconciliation,

and we all do. We all want to live in peace and harmony with each

other, irrespective of the colour of our skin and irrespective of

where we came from. And everybody has a compassion for the original

Australians, I certainly do and all of my Party members do.

But we've got to get this thing fixed. It's in everybody's

interest to bring certainty and predictability and unless our legislation

goes through we're going to have years of rancour and argument

and endless litigation and that is why, I just say again to those

who oppose it, let the legislation go through, let us put this issue

behind us, and let us focus on the future instead of endlessly debating

the past.

ALAN JONES:

You started here this morning by saying that you hope people have

a wonderful Christmas and there would be people in different circumstances

to you and others. Could I just put a couple of plugs in here. One,

in the first instance, for carers who work 365 days a year, 24 hours

a day. They get no holiday pay, no sick pay, no superannuation,

no car allowance, no transport, no nothing.

PRIME MINISTER:

None whatever.

ALAN JONES:

What kind of benefit can you find out of billions of dollars that

exist from Telstra sales, there's money to be spent on Aborigines

and land funds and God knows what, and the carers just seem to be

left behind.

PRIME MINISTER:

Well we have made a number or changes, we have provided increased

support for respite care, and the thing that many carers want is

to have a few weeks off. They're very happy to do it, they

do it out of love and concern for the people they're looking

for, but they do want to rest every so often and we are providing

more resources for that. And we're also significantly increasing

the Domiciliary Care Allowance, I know that's a jaw-breaking

description but it's really the allowance that assists people

who are looking after loved ones who have a profound incapacity

or a profound disability. Now those two items were announced I think

in the last budget.

It's an area that remains under constant review and I do agree

with you that some of the most heart-rending stories that I've

had from people who've sat in my office and talked about the

personal trauma and difficulty of caring for, particularly an intellectually

retarded family member. You're trying to hold a family together

in a small residence. One woman spoke of her difficulty, she had

a 25 year old profoundly handicapped adult son, and another 17 year

old son who was trying to sit for his HSC, and she said in a very

small dwelling the strain and attention, and yet she wanted to go

on, what she wanted above all was some kind of relief, some kind

of respite from it.

ALAN JONES:

You also said at the beginning that it's a time for families,

you've been a strong advocate of the family. And yet we live

in a world where it seems that young people face increasing alienation,

drug addiction and suicide and so on. Are there any circumstances

in which you would introduce a home-maker's allowance, where

one of the spouses would be given a choice to stay at home for a

figure of approximately say $350 a week, acknowledging that that

may well be in contemporary society the most important job the country

can do.

PRIME MINISTER:

Well we've already gone down that path with our family tax

initiative, it's not as much as that.

ALAN JONES:

No it's not.

PRIME MINISTER:

But it is a start, and one of the things for which I've been

criticised by some sections of the media, but for which I defend

very strongly is that we've tried to give men and women, parents,

a greater choice as to the kind of childcare that they provide.

Now that's not to say that John Howard seeks to dictate a lifestyle,

but what it does say is that John Howard is in favour of giving

men and women, mothers and fathers, greater choice. And those who

seek an arrangement whereby one parent cares full time, they ought

to be given more help.

ALAN JONES:

We've got to go to the news. One final thing, I spoke to the

chief executive of a disability home for disabled children and the

Commonwealth State Disability Agreement is up for grabs, you may

not have been across this yet. But there's talk about many

of the services having to be cut back because the money isn't

available. Surely it's this time of year too when you'd

look at those, there's not a lot of them, but by gee they have

a tremendous (inaudible).

PRIME MINISTER:

Well I've had a look at that and I can guarantee that the

Commonwealth will provide generously for a renewal of the Commonwealth/State

Disability Agreement. The Ministers met at the end of November,

they made good progress, and they hope that an agreement will be

signed in February. It's too important to be damaged by any

Commonwealth/State wrangling.

ALAN JONES:

We've got to go to the news. Thanks for your time, and have

a good Christmas and we look forward to seeing you in 1998.

PRIME MINISTER:

Can I wish all of your listeners a very happy and peaceful, and

of your listeners a very happy and peaceful, and

above all safe Christmas and New Year.

[Ends]

10563