E&OE.........................................................
PRESENTER:
The Prime Minister, John Howard, is in Perth today. In fact, he
has joined me in the ABC studios and he'll also take your calls.
John Howard, good to see you again.
PRIME MINISTER:
Hello Peter, good to be here again.
PRESENTER:
Unemployment and interest rates edging up this morning, that's
quite a potent combination, isn't it?
PRIME MINISTER:
Unemployment is around 8 per cent. It was 7.9 last time, it's
8.1 this time, it was about 8.5 per cent when we came to power.
We have created about 170,000 - 180,000 new jobs over the last nine
months so there's employment growth. We'd like it to be
better. We knew that it would bounce around a bit around the 8 per
cent figure. We hope that it will go lower. Obviously that depends
on Australia remaining competitive and making whatever further changes
are needed, particularly in the taxation system to ensure that in
this rather turbulent region in which Australia is located, we get
our fair share of exports because it's through getting more
exports to the rest of the world that we can generate some more
jobs.
PRESENTER:
What about interest rates though, the sign there is that they are
going to head up?
PRIME MINISTER:
Peter, for reasons that I am sure you will understand at this time
of debate about the currency and coverage of the dollar and matters
related to interest rates and the dollar, I am not going to talk
about the direction of interest rates. It's never a wise idea
for a Prime Minister or anybody else senior in the Government to
talk about the direction of interest rates and I just won't
do that.
PRESENTER:
But you would concede that.....
PRIME MINISTER:
I don't concede anything. I don't assert or concede anything
on the interest rate front.
PRESENTER:
Wouldn't rising interest rates though be counterproductive
to what you've been trying to achieve over the past couple
of years?
PRIME MINISTER:
I am not going to assert or concede anything on the interest rate
front.
PRESENTER:
What about unemployment, what about employment targets, job targets?
PRIME MINISTER:
Well I have said from the very beginning that setting a particular
target means nothing. I noticed this morning that Mr Beazley said
that if he had been in Government, he'd have had unemployment
at 6 per cent. Well he had 13 years to be in Government and it was
at 8.5 per cent when he lost office and he actually took it to 11.2
per cent when he was Employment Minister in 1990. So it is very
unwise to build those sorts of targets. Our objective is to give
a job in this country to every person who wants one and setting
a particular target means nothing other than generating an enormous
debate about how close or how far you are from that target. It is
much better to adopt policies that will reduce unemployment and
that is what we are obviously endeavouring to do.
PRESENTER:
My studio guest the Prime Minister, John Howard. Prime Minister,
what about the health issue? You spoke at the hotel lunch at the
500 Club a short while ago, a demonstration of nurses outside there
to greet you and by the way, of course, you had some caustic comments
when the Premiers walked out of the Premiers' Conference earlier
this year. With regard to the health issue, where is it going, the
funding of health, where's it going?
PRIME MINISTER:
Well, the dispute here in Western Australia is a matter between
the nurses and the State Government. I am not going to buy into
that. That's a matter that I am sure the State Government is
handling appropriately and it is a matter for the State Government
to handle. Federally.....
PRESENTER:
The State Government has said they would like to pay the nurses
more but their hands are tied because they can't get enough
money from the Commonwealth for the public hospitals.
PRIME MINISTER:
I am not going to get into a long debate about this issue today.
The pattern, I guess, of Commonwealth/State relations is often that
State governments will say that they'd like to do certain things
if only they had more resources from the Federal Government. We
made a good offer at the time of the Premiers' Conference,
it did involve an increase of 15 per cent in real terms over five
years, and in anybody's language at a time of zero inflation
that is a very genuine offer. However, it is something that we continue
to talk about. I had a meeting with the Premier this afternoon,
we talked about a range of things and obviously health was an issue
that was discussed. I am not wanting to raise any expectations or,
indeed, dampen them. You should see that meeting, I guess, as being
part of an ongoing willingness on the part of both of us to talk
about issues that are important to the Federal Government and important
to the West Australian Government.
PRESENTER:
But public hospitals are said to be in crisis in several of the
States, particularly it's been said with regard to Western
Australia. What's the way out?
PRIME MINISTER:
Well you say they are in crisis. Now, I think public health standards
are enormously important to Australians all over the country. In
a Federation the Federal Government has responsibilities and State
governments have responsibilities and without wanting in any way
to sharpen the debate I have to make the gentle point that public
hospitals are the responsibility of State governments within our
system, not the responsibility of the Federal Government. It is
our responsibility to provide a reasonable level of funding to the
States. It is also our responsibility to provide proper support
for private health insurance. We have direct responsibilities in
health, they are particularly related to private health insurance.
The States have responsibility with public hospital. Now we believe
that the provision that we have made is reasonable. It is fair.
We believe it contains a significant increase. I mean we've
got zero inflation in this country at the moment and we have made
an offer which represents a 15 per cent increase, that's 3
per cent each year in real terms over a period of five years. Now
the States have said, although I should point out that Queensland
and the ACT have signed the agreement, the States have said they
would like more. I guess I simply respond by saying that the matter
continues to be discussed but I do believe the offer we have put
on the table is a very reasonable one.
PRESENTER:
Can I just ask you the matter about elections which I am sure you
would be surprised if I didn't ask you. You've got the
mechanism there for a double dissolution election if you want it,
how committed are you to a double dissolution election?
PRIME MINISTER:
Well I have never been committed to a double dissolution as such
but I have been committed to getting certain pieces of legislation
through.
PRESENTER:
Well you've got the machinery there to do it haven't
you - a double dissolution?
PRIME MINISTER:
Yes I have.
PRESENTER:
Are you going to use it?
PRIME MINISTER:
Well that's something I'll make up my mind about at the
weeks and months go by.
PRESENTER:
How tempting is it though to take the Senate out as well as the
House of Representatives?
PRIME MINISTER:
Well Peter, I don't have a desire for a double dissolution
as an end in itself. The only reason that you have a double dissolution
is because the Labor Party and the other parties in the Senate have
twice rejected crucial legislation and the legislation I have in
mind is the Native Title legislation. And we have tried on two occasions
to get this through the Senate and Mr Beazley and the Labor Party
and the Democrats and the other minor parties have combined on two
occasions to block a resolution of this long running native title
problem which is of enormous significance to the State of Western
Australia. No State is more in need of having the native title issue
fixed up than Western Australia. And Mr Beazley, more than anybody
else in the Commonwealth Parliament, himself from Western Australia,
is determined to block a resolution of this very, very difficult
issue. Now, I simply say this to the people of Western Australia,
if you want the native title thing resolved without a double dissolution
then you put pressure on the Democrats and the Labor Party representatives
from Western Australia to change their mind and allow our fair,
compromised, principled Bill on native title to go through.
PRESENTER:
All right, the onus is on them then to change......
PRIME MINISTER:
The onus is absolutely on them because our Bill already represents
a compromise. It's not as if we've adopted a radical,
hardline position. We didn't go as far as some of our supporters
wanted us to go in relation to native title. We adopted a middle
ground position and what the Labor Party wants us to do is to sell
out the interests of farmers and miners and go even further towards
them. Well we won't do that and there is no way that the Coalition
is going to alter its current position on native title, the right
to negotiate, which the Labor Party wants to maintain thus giving
privilege to Aboriginal land claimants that other Australians don't
have, we will not agree to that in relation to pastoral leases.
PRESENTER:
No further compromise, does that literally mean not a word, not
even a comma of your Wik legislation that you'll change?
PRIME MINISTER:
We are not prepared to change anything of substance in it, no.
PRESENTER:
Nothing of substance?
PRIME MINISTER:
Nothing of substance, no. That's been our position for months
and people should understand that we are serious about that. There
seems to be this funny idea now that there's concern about
whether or not One Nation Senators might be elected in Queensland
in a double dissolution, that that's a reason for us to cave
in. I would have thought that if people are worried about One Nation
supporting Queensland the last thing they want to do is for the
Coalition to cave in on native title because if we were to do that
we would deliver hundreds of thousands of additional votes to One
Nation in States like Queensland and Western Australia. I think
it would be a stupid thing tactically as well as being a quite unprincipled
sell-out of farming and mining interests and the interests of the
Western Australian people generally.
PRESENTER:
Prime Minister, when is the tax reform package going to hit the
decks?
PRIME MINISTER:
It will be ready soon. I am not going to put a time on it.
PRESENTER:
Are you talking weeks or months?
PRIME MINISTER:
I am not going to talk weeks or months, it will be ready soon.
I mean this obsession with trying to pin people down to dates consumes
an enormous amount of air time. Obviously I am going to announce
that package when it's finished and when I am ready. It's
like the date of the election, I'll announce that after I have
been to see the Governor General.
PRESENTER:
What's the Liberal Party polling telling you about attitudes
to a GST?
PRIME MINISTER:
I never talk about Liberal Party polling whether it's good
or bad.
PRESENTER:
Well given that John Hewson lost the unlosable election in 1993,
said to be because of the GST, I mean what makes you think you won't
lose your near record majority in one hit in an election fought
on GST?
PRIME MINISTER:
What I want to do is to give the Australian people a fairer tax
system. I am not proposing the introduction of a GST on top of the
existing taxation system. What I am proposing is a fairly basic
change to the system that will address the unfairness in the present
system. It will also address some of the difficulties of Commonwealth/State
relations and I can assure the Australian public that when it comes
out they will see that it is a very fair and balanced package and,
above everything else, it won't involve any overall increase
in the tax take. I don't think anybody who seriously looks
at taxation in Australia can believe that a system that is riddled
with the unfairness and the inequities that beset the present system
where, for example, if you're a half a dozen people in Western
Australia who can afford to buy a Lear jet, you don't pay any
wholesale sales tax but, if like you and me and most of the listeners,
our main mode of transport is the family car, we pay 22 per cent
wholesale sales tax. Now I could spend the whole afternoon regaling
you with examples like that which indicate the present system is
unfair and we want a fairer system.
PRESENTER:
Right, Prime Minister, let's go to the phones now and our
first caller this afternoon is Peter of Duncraig. Peter, good afternoon.
Are you there Peter? Not much luck with Peter. Let's see if
we can get Cameron from Wilson, Cameron are you on the line there.
We are having a little bit of trouble with the phones Prime Minister.
PRIME MINISTER:
Well I'll have to be content with Peter of Perth then.
PRESENTER:
You might have to be content with Peter of Perth but now, I mean,
with regard to tax reform. I mean you didn't include a GST
in your campaign in 96, I mean what's the reason of doing
it this time? You won in 1996, it could put you.....
PRIME MINISTER:
I believe it's in Australia's interests to change the
present taxation system and give us one that makes us more competitive
and is also a fairer system. And isn't it my responsibility
as Prime Minister to do things that are in the best interests of
Australia and not just do everything on the basis of short-term
popularity? I mean do you want a Prime Minister who calculates every
decision that he takes on the basis of whether or not the public
is going to like it or do you want one who on occasions on important
issues says to the public, that I as Prime Minister believe very
sincerely that this reform is needed for the long-term benefit of
Australia and I am prepared to lay out a plan for it and I am prepared
to seek the approval of the people before I implement it. Now that
is exactly what I am doing and I would have thought that the correct
response from Mr Beazley would be to engage me in debate on it,
not just to adopt this negative scare campaign that he is clearly
going to do. But, that is his decision and the Australian people
will decide it.
PRESENTER:
Prime Minister, let's go to the phones again and let's
go to Brett from Perth. Brett good afternoon.
CALLER:
Good afternoon, good afternoon John how are you?
PRIME MINISTER:
I'm very well Brett.
PRESENTER:
Brett if you'd ask your question of the Prime Minister then
we'll listen to the Prime Minister's response.
CALLER:
Just in regard to the lead up to the next election, I was wondering
whether or not the Liberals have a policy for contemporary music
at the moment and will they be making a commitment to protecting
Australian musicians?
PRIME MINISTER:
Well the best policy we have for contemporary music is to have
cheaper CDs for young music lovers and that is why we support changes
that will allow young music lovers in Australia, well not just young
music lovers, but I particularly think of the youth market, we're
all music lovers, access to cheaper Cds. The Labor Party is intent
on stopping Australian consumers from having cheaper CDs by maintaining
a system which is particularly beneficial to multi-national music
companies and very detrimental to music lovers. We prefer the ordinary
Australian battler who likes a cheap CD to the profits of multi-nationals
so that's our policy.
PRESENTER:
Brett, thanks very much for the call. We'll move through to
George from Esperance. George hi.
CALLER:
Hi, yeah Prime Minister.
PRIME MINISTER:
Yes George.
CALLER:
Can you tell me why you and your other federal politicians refuse
to get off to Kalgoorlie and have a look around that area? I mean
you get frightened.....
PRIME MINISTER:
Well, we don't refuse George, we don't refuse. I was
planning to go to Kalgoorlie in the middle of last year and I got
pneumonia....
CALLER:
.....you just about had a heart attack....
PRIME MINISTER:
I beg your pardon?
CALLER:
I thought you just about had a heart attack.
PRIME MINISTER:
No my heart's very sound - it's not only sound but it's
good.
CALLER:
When it comes to going to the gold country......
PRIME MINISTER:
Well I'll get there - George, George, it's not that I
refuse, I will get there but Australia's a big country and
I will certainly try and get there soon and I come to Western Australia
on a very regular basis, I'll try and get there soon, but I
did have a well laid plain and unfortunately the bug got me last
year and I was in the Mater Hospital for a few days with pneumonia
when I was meant to be in Kalgoorlie. I'm sorry, I'll
get there soon.
PRESENTER:
George you'll see the Prime Minister in Esperance before too
long. Let's go to Mandurah now - Margaret, how are you Margaret?
CALLER:
Oh, good thanks. May I speak to the Prime Minister please?
PRESENTER:
He's listening.
CALLER:
Oh hi Prime Minister.
PRIME MINISTER:
Hello.
CALLER:
Look I was just wondering if you could come up with some idea of
helping people like myself who have been in the private health scheme
for fifty years, and now that I'm a pensioner I'm still
struggling to stay in it but luckily at this stage I don't
need to...my health is still good, but I was wondering if the Government
could assist the HBF societies to pick up the gaps if and when we
do need that to ......
PRIME MINISTER:
You're concerned about the gap. We are looking at a number
of things that affect the operation of private health insurance
at the present time, including that very issue that you raise. There
are a number of things we've got to take into account but I
do understand that a lot of people feel if they have private health
insurance that they really pay three times. They pay the Medicare
levy, they pay their private health insurance premium and then they
end up getting a bill for the gap. Now I can understand the concern
of people about that. It concerns me. I talk to a lot of people
about this and I understand exactly how they feel. We are looking
at ways and means of dealing with that - I mean that very genuinely
- and we're doing that at the moment. Now I don't know
what the outcome of that examination will be but I can say to you
that the concern that you have expressed is both understandable
and common.
PRESENTER:
Margaret thank you very much for the call. Let's go to Tom
from Carlisle. How are you Tom? You there Tom? No we seem to have
missed Tom. Let's go south to Albany. How are you Paul?
CALLER:
Good. How do you do Sir? I'd just like to give you a bit of
background. As a kid I knew Pig Iron Bob - Bob Menzies. The first
aircraft I flew in belonged to a man called Fairly, the Minister
for Air that was killed in an air crash. I've been a dedicated
Liberal all my life. But with your stewardship up there, all I can
say is with the GST that you're talking about bringing in,
I've researched it very much, even back in John Hewson's
day and I just could not abide by it, so therefore you have lost,
and your whole group have lost my vote forever and a day, and also
on top of that I would say that the debit tax would have been a
damn sight better but you didn't even look at it, did you?
PRIME MINISTER:
Yes, are you finished sir?
CALLER:
Yes, I'm a very angry voter and as far as I'm concerned,
good on Pauline Hanson and Graeme Campbell - so you might as well
have it straight.
PRIME MINISTER:
That's all right I don't mind that at all, I was just
wondering if you'd finished, that's all.