PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
15/08/1998
Release Type:
Interview
Transcript ID:
10667
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP QUESTIONS AND ANSWERS SOUTH AUSTRALIAN LIBERAL PARTY STATE COUNCIL

E&OE.............................................................................

QUESTION:

John, congratulations on an excellent speech. Over the last 20 years

I have heard most of your outstanding speeches and this has beaten

them all, and I think it is the most credible, brilliant package that,

it does fulfil all that we have been striving for. And with all of

the themes that you mentioned, one of the best you didn't happen

to include just now, and that was what we are doing for average families.

Could you say something about our family package?

PRIME MINISTER:

Well, it does represent a huge further level of support for families.

I am well known for the commitment I have for a greater sense of tax

justice and choice for Australian families and the biggest benefits

under the income tax changes are for families in low and middle income

brackets. One of the very, very strong features of the package is

that we have a 30 per cent marginal tax rate for everybody who earns

less than $50,000 a year. And can I remind this audience that that

is 81% of all Australian taxpayers. Eighty one per cent of all Australian

tax payers earn less than $50,000 a year. At the moment, only 30 per

cent of Australian taxpayers have a top marginal, are on a top marginal

rate of 30 cents in a dollar. As result of this plan that will now

become 81 per cent of all Australian taxpayers. On top of that, we

have doubled the tax free threshold from $1000 to $2000 for each child

under our family tax initiative. We have also doubled from $2,500

to $5,000 the additional tax free zone that a single income family

with a child under five can have. And that means that the aggregate

tax free zone for a single income family with a child under five,

at least one child under five, will be $13,000.

Now the purpose of these changes is to increase the choice available

to parents. It is not the role of the government to dictate a stereotype.

It is not for the government to say that one parent should be at home

when children are young, or that both parents should be in the workforce,

that's not our business, that's the business of the parents.

But it is our business and it is our responsibility to facilitate

choice. And I think young parents now want greater choice. They want

the opportunity, if they so choose, for one of them to be out of the

workforce for a period of time while their children are young, and

then perhaps when the youngest child has gone to school, or even before,

the parent at home might move back into the part-time workforce and

then over another period of years, back into the full time workforce.

In other words they want choice, they don't want the government

saying, you will do this, or you will do that and rigging the tax

scales to bring about that result. And what we're in the business

of doing is to facilitate choice, and I think this plan will do it

to a much greater extent.

QUESTION:

Thank you Mr Chairman, Di Wilkins, Chairman of Women's Council.

Prime Minister, Baden has actually pre-empted what I was going to

ask you, but I would like you to scotch a nasty rumour that is around

in the media, print media and the talk back radio, even in today's

Advertiser, that the one which says that we, the Liberal Party,

really want all women to stay at home behind the white picket fence

looking after children. I wanted you to reassure me and the many women

around Australia that the new tax system acknowledges the diversity

of today's family unit and continues to enable choice for women

today. Thank you.

PRIME MINISTER:

Well, of course it does. But I mean what is on at the moment, I mean

you should understand that there are a section of our critics and

sections of the media who look at everything that the Government does

through the frame of reference of the Labor Party, through the frame

of reference of the Labor Party, and therefore they make these outrageous

allegations that in some way we are trying to stereotype a particular

kind of behaviour. Of all the revolutions that have occurred in the

way people lead their lives in the last 30 to 40 years, none has been

greater than the change in the role of women. I have said in a speech

I delivered in Melbourne a few months ago that when I thought about

the three women that have influenced my life most, my mother, my wife

and my daughter, and I think of the social circumstances into which

each of them had been born, and the way in which they conducted their

lives, one could see the progression and yet one could also have a

sense of continuity that each of them has, in the circumstances of

their period of time and the age into which they were born, a deep

commitment to the importance of family in their lives.

But they would exercise that deep commitment and they would express

it in different ways because of the circumstances of their time. And

I have often talked to my 24 year old daughter about this, and she

is a person who has a commitment to family but also has a commitment

to a career. And she's a woman of the 1990s and understands the

importance of career choice but also understands the immense value

of the stable home environment, as all of us do. And what you have

to do is to find, to set a paradigm that allows people to freely choose

how to organise their lives. And we don't want one side of the

argument saying what the others are doing is wrong. I am fed up with

people attacking women who stay at home full time to look after their

children. I am fed up with those people being sort of treated as somehow

or other they're second class citizens.

Equally, the women who have a career and who are looking after their

children and are making their own arrangements in the way that they

think fit for their own families, they shouldn't be told that

they are neglecting their parental responsibilities. So, in other

words, we all ought to recognise that what we should be on about is

choice and respecting the decisions that parents make. It's for

parents to make the decision. It is for us to set the framework to

allow them to make the full range of the decisions that they want

to make.

QUESTION:

Hi, Alex Smith, Young Liberal President. Mr Prime Minister, last night

the Young Liberals tried to move a motion through this body to reaffirm

South Australia's support for one of your early and very great

achievements upon coming to office in 1996, and that was your gun

legislation. Given that debate on this motion was adjourned last night,

I was wondering if, here today, you would like to reaffirm your support

for the gun legislation moved a couple years ago.

PRIME MINISTER:

Well, that's very easy. I mean, I know there are some people

who didn't agree with that, but can I say, I am proud of that.

I think it was a good thing for Australia. I think it has delivered

a safer Australia. I think it has something that has particularly

strong support from the women of Australia. And I won't budge

an inch on those gun laws. Now I don't want to influence the

debate in any way, but there are some things where you, people should

be in no doubt, I am not interested in any compromise on those gun

laws. I am sorry if that offends anybody, but I am not interested

in changing the Government's position and I won't.

QUESTION:

Gene Lorry, Price FEC. John, when the election comes along, health

is going to be a major issue. It seems to me that we're trying

to do something to bring people back into private health. But when

I go into a supermarket and pay for my goods, I pay for them. When

I go out the door I wouldn't like to be asked to pay for them

again. And it seems to me that that's the problem with out health

system. I think, if we could have a system whereby people either pay

the levy or pay for a private fund, we would find people would come

back in droves to support the private funds. Is there any possibility

that we could make such a change?

PRIME MINISTER:

Well, no. We are committed to the maintenance of the Medicare system.

And we can't afford to leave any doubt, and I will not leave

any doubt in the minds of the Australian public about our support

for the basic Medicare system. Our health policy is built upon support

for the basic Medicare system, and I don't use that "basic"

in any qualifying sense. It's unqualified support for the Medicare

system, supplemented by very strong support for the private part of

the health system, through the sort of incentives that will be provided

under the plan announced a couple of nights ago. You need a balance

between public and private. We recently announced the injection of

an additional $915 million into the public hospital systems of the

states.

That now means that over the next five years there will be a real

increase of 17 per cent across Australia in federal money flowing

to the state governments for the public hospital system. You need

a strong public hospital system. You also need to give people more

incentive to take out private health insurance. And we are doing that.

This initiative will mean that from the 1st of January

next year, from January next year, and this health initiative starts

next year - you don't have to wait until July of 2000, the health

initiative from January of next year, if you have a policy of say,

$2000 you will be able to get $600 of that off your tax. And that's

30 per cent of the cost. And that applies to everybody. There is no

income test. Let me repeat that - there is no income test. And that

means that it will be available to everybody, irrespective of their

income. And it will be available for people at the low end of the

income bracket who don't pay enough tax to get it back through

their tax, to get it as a direct payment. Indeed anybody will be able

to get it as a direct payment.

But, there is a lot of public support for the essential thrust of

Medicare, there really is. And I don't think it is not good policy,

and nor is it intelligent political management to be canvassing any

kind of change to the essentials of Medicare. What we have to do is

to build on it. And what we have to do is improve the weaknesses in

the private area, and one of them is to give people more incentive,

and I know people have concern about gap insurance, I understand that.

I have frequently said in the past when I have been asked about those

things that health is an area where you never completely close the

book on making further change. But the change that I announced on

Thursday was a very big one and I am sure that it will result in a

large number of people coming back into private health insurance.

QUESTIONER:

I hope so John.

PRIME MINISTER:

Thank you.

QUESTION:

Thank you, Margaret Wilson from Eastern Metropolitan Convention. First

of all Prime Minister, I would like to congratulate you on the courage

for, to reform the taxation system before an election rather than

afterwards. Secondly every three or four years I have a trip to New

Zealand, and I have always noticed that supermarket prices over there

have been higher than here in Australia. And I thought that that was

partly because of the exchange rate difference, partly because they

have a smaller market, and partly because I don't have the opportunity

to shop around. But this time in June when I was back there, there

was the added GST, in their case of 12.5 per cent. So I was expecting

prices to be of the order of more than 30 per cent higher than they

are in the supermarkets here. And I was pleasantly surprised to find

them only 10 per cent, maybe 15 per cent and in many cases, much cheaper.

Now could we please ensure that that message gets through to the general

population that a GST is not going to make their supermarket prices

12.5 per cent higher, because there are many other factors come into

it as well. Including the reduction of these other taxes and they

may even find many of them, including food prices lower for having

a tax on it.

PRIME MINISTER:

We certainly will. And the point that has to be made again, and again,

that the GST will replace existing taxes. I mean there are many services

that will be cheaper. Medical services will be cheaper because they

are GST free, and the people who provide them will be able to deduct,

get back the taxes paid on their inputs. Same with dental services.

The same with child care. Three very critical things where the cost

of those services ought to fall. Fall. Not just relatively but in

absolute terms ought to fall. And if there is enough competitive pressure

that will happen.

As far as the supermarket is concerned, the average increase in costs

across the whole community is going to be about 1.9 per cent. We will

be undertaking, and it has already started, an extensive public education

programme. You will have seen the three full page advertisements in

The Advertiser this morning listing the features of the plan,

listing the tax scales with individual cameos. We started a television

advertising campaign last night, and that is going to go on for several

weeks, so that people fully informed. This is not propaganda, it's

providing people with information. I mean, they are entitled to know

what's involved in this big change. And one of the things they

will get is a householder booklet, sixteen pages long. Everybody will

have it within two weeks and it will explain the detail of the plan

and it will also point out that the GST replaces existing taxes and

as a result, many things will fall in price. Others will go up but

in net terms, people will be fully protected and better off because

they will either get an increase in their pension or benefit plus

a tax cut, or if you are a self funded retiree, you will get a number

of other individual benefits. But I agree with you, it's an important

message to communicate.

QUESTIONER:

Mr Howard, thank you for what you are doing for us. This room here

who has never been hungry, are going to benefit in enormous ways but

taxi drivers – I have had two or three recently and their agony

and their talk is, but what about these poor people who don't

have enough food half the time. It's going to be more. I think

from what you just said, you are sending the booklet out but can you

do a simple ad directed to people who are often hungry, that they

are going to be better off. The taxi drivers need reassurance.

PRIME MINISTER:

I am quite certain that the advertising campaign will be comprehensive

enough to include that information. We must accept that our opponents

are going to run a fear campaign. They are going to try and exploit

fear. Remember in 1993, Mr Keating said you can have a tax cut without

a GST. And when he got back into office, he and Mr Beazley, what did

they do? They took away the tax cut and they gave the poor of Australia

a GST without any compensation. I mean, let me just spell out to you

that the impact of a GST is virtually the same in percentage of GDP

terms as the indirect tax increases that were brought in by Mr Dawkins

in the 1993 budget. They brought in their own GST after then 1993

election, they provided no compensation to pensioners, there were

no 4% increases, there was no compensation for the elderly, no compensation

for the unemployed, and for good measure they took away the tax cut

that they promised before the election.

And Mr Beazley is going to do the same thing. You can see it coming

down straight at you like an express train. In a couple of weeks he

will stand up and say, you can have this tax cut and you don't

need any of this GST business. Forget about that. You can have this

and you don't need any reform. And he will cross his fingers

and he will close his eyes and he will hope it will work because he

will remember what Keating did in 1993. Remember L-A-W law. You can

have the tax cuts, we're not going to have Hewson's GST.

We're going to give you all of these goodies without any reform.

Now we all know that's not possible. That's unrealistic.

But Mr Beazley is going to try it again. You can see it coming. I

can write the script. I could almost do the first interview. Because

he's got a lot of form on this. I mean, he was there by Mr Keating's

side. I mean, it was really the greatest con job of all time. You

offer a tax cut, you say no GST. You win the election, you take away

the tax cut and you give them a GST without compensation and you wonder

why people don't trust you.

Now they are shaping up to do it again and I just hope that the Australian

people on this occasion, and I have great confidence they will recognise

that and they will know that if you really want serious reform, if

you really want benefits, you've got to have serious reform as

well. And I think we can succeed on this occasion in doing that.

Thank you.

ENDS

10667