PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
17/07/1998
Release Type:
Interview
Transcript ID:
10689
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP INTERVIEW WITH NEIL MITCHELL 3AW

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

MITCHELL:

Mr Howard good morning.

PRIME MINISTER:

Good morning Neil, good to be with you again.

MITCHELL:

Apologies about the delay.

PRIME MINISTER:

No problem at all.

MITCHELL:

We'll take calls in a moment. Mr Howard, would you agree that

this is probably the most testing time of your leadership as Prime

Minister?

PRIME MINISTER:

Well, there are a few challenges around but I've got my eye

focussed on what is good for Australia.

MITCHELL:

Is it the toughest time do you think?

PRIME MINISTER:

Oh, it is always tough being Prime Minister. It is always tough

being a party leader.

MITCHELL:

We've got these ructions in the Coalition. I mean, it really

does look as if you are going to have to fight to keep the Coalition

together.

PRIME MINISTER:

I don't think the Coalition is in any danger at all. What's

happened is that people, particularly from Queensland were unsettled

by the result of the Queensland State election. It was after all

a State election and it was the judgement of the people of Queensland

on the politics of Queensland and whilst you can never completely

isolate these things to one state you have to take care not to draw

too many federal conclusions, but what is important at the moment

is what is good for Australia, and the reason that I continue to

support the sale of Telstra, and I noticed that the former National

Party Deputy Prime Minister Doug Anthony this morning came out strongly

in favour of that policy too, is that it is good for Australia.

MITCHELL:

But we do have obviously a disagreement about what is good for

Australia. We have the federal President of the National Party criticising,

well, asking questions over the tax policy saying we should delay

it. Now, over race power as well. We have the economy, by some reports,

heading into trouble. Telstra not settled down yet, the polls not

good. Now you put that all together and it looks like a pretty bleak

picture for John Howard.

PRIME MINISTER:

Well, one thing at a time. Let's deal with Telstra. Now, the

reason that I support the sale of Telstra is simply this, that the

30th of June this year, Australia's federal government

debt was $82 billion. If you sell Telstra you'll get about

$40 billion, so in one hit, you'll get rid of half the national

debt of the Federal Government of Australia, and just think of the

money you could spend on schools and roads and hospitals and all

sorts of other desirable things with the interest saving on that

$40 billion.

MITCHELL:

But surely the point is that you still have your partners, or at

least, part of your partnership resisting these things. Now, how

does the partnership survive when you've got argument over

so many areas?

PRIME MINISTER:

There are thousands of members of the National Party around Australia

and there are thousands of members of the Liberal Party around Australia

and you are not going to get everybody saying the same thing all

the time on every issue. The thing that counts is that the policy

making section of the National Party which of course are the elected

members of Parliament which are part of the Coalition, they are

part of that policy. Now, there's nothing strange about people

from time to time having some disagreement, individual members having

disagreement with a position taken by the Government. That happened

with Labor Governments, it's happened with Coalition Governments

in the past. This is not an easy time for the National Party, I

understand that, but what really counts is that you look at what

is good for Australia, not whether John Howard is being stubborn,

or John Howard's being inflexible, or John Howard's willing

to do this or that. I just simply ask the question when you look

at Telstra, when you look at tax, what is good for Australia? And

what is clearly good for Australia is to get rid of that huge federal

Government debt and also to have some money over to spend on additional

communications infrastructure in the bush. The same thing applies

to taxation.

MITCHELL:

So are you confident the parliamentary party, the National Party

parliamentary party will support you?

PRIME MINISTER:

Yes.

MITCHELL:

And if they don't?

PRIME MINISTER:

Well I just believe they will.

MITCHELL:

But if they don't?

PRIME MINISTER:

Well, that's hypothetical.

MITCHELL:

Okay, on tax. And I asked you about this last weeks ago. There

is nervous environment in the country, that nervous environment

continues. In that sense, does the National Party president have

a point. If you go ahead it increases the nervousness if there's

GST?

PRIME MINISTER:

No, I think now, because of Asia, it's all the more important

for Australia that we change our tax system. If things were more

settled in the Asia-Pacific region there may be a slightly lesser

argument but it is all the more necessary for us to go the next

step for our own sake once again, not because I want to have my

way or because people are being inflexible but it is good for Australia

that we have a fairer taxation system because that makes us stronger

and makes us more competitive. So, I don't accept for a moment

the argument that because of Asia we have to go easy on giving Australia

a better tax system. It is because of Asia that we must press ahead

and give Australia a better taxation system.

MITCHELL:

Because of what's happening in Asia and the economy in this

country, does it affect the way, the type of tax reform you look

at?

PRIME MINISTER:

Not a great deal. It makes it all the more necessary, for example,

to change the tax system so that our exports are more competitive.

And the present tax system makes Australian exports uncompetitive

and our new policy will make Australian exports more competitive.

Now isn't that a reason for the sake of Australia, forget about

the party politics of it, but for the sake of our country, we should

give it in these difficult economic times a more competitive taxation

system.

MITCHELL:

But what about race power. This is another area where the National

Party president is...

PRIME MINISTER:

Well, there is no intention by the Government to sponsor any referendum

of any kind on that subject.

MITCHELL:

Do you have the support of the National Party parliamentary party

then?

PRIME MINISTER:

Well, it's not even been raised with me.

MITCHELL:

Would you raise it with them?

PRIME MINISTER:

No, because it is not on my agenda.

MITCHELL:

It's not going to happen?

PRIME MINISTER:

No.

MITCHELL:

Okay, you make the point ‘what's good for Australia'.

Obviously there's a difference of some views on what's

good for Australia. Is the National Party overreacting to the One

Nation thing?

PRIME MINISTER:

I do think it has unsettled the National Party in Queensland. I

just say again, that in Queensland, that election was a judgement

on the Government of Queensland. Now, I'm sorry that the Borbidge

Government was defeated. But I don't take One Nation lightly,

but you deal with One Nation by having good policy and doing things

that are good for Australia. The Australian public will support

the Coalition if it does the right thing by the country and we have

to go out and argue that. And the right thing by Australia at the

moment in relation to tax is to give us a more competitive and a

fairer tax system.

MITCHELL:

Is it correct that you would rather resign than back away from

tax reform?

PRIME MINISTER:

Well, I used that... I made that statement, yes I did, but in

the context of simply saying, look I'm not going to.. if people

say to me "Look John you've got to stop doing this, even

though you think it is good for Australia because some people may

like it" my answer to that is No, I'm not going to do

that. I'll continue to do what is I believe, and what I know

is good for Australia, irrespective of the political consequences,

because that is, in the end, that is what you are in public life

to do: to argue those things that you think are good for the country,

and then the public makes a judgement. And if the public decides

that what I'm arguing for is not in their opinion good for

Australia, well, they won't support me, but if they do, they

will. But you don't all the time calculate as to what might,

for the next two weeks, have more support than something else. You

just sit down and you say what is good for Australia, and then you

go out and argue for it, and that is what I'm doing.

MITCHELL:

This is the point I'm getting to about leadership though I

suppose, that if, and as you say, if necessary, you are putting

yourself of on the line aren't you?

PRIME MINISTER:

Well, all political leaders who believe what is good for their

country do that, otherwise you are of no use to your country. I

mean, what is the point of having a political leader, whether as

Prime Minister or Opposition Leader, argues things entirely out

of political calculation and never out of the public interest.

MITCHELL:

Do you have the total support of your own Party?

PRIME MINISTER:

Yes.

MITCHELL:

Are you aware of some mumblings in Victoria, the belief that you

couldn't win an election?

PRIME MINISTER:

Well, I don't know about that. There are always mumblings,

always people get nervous about...

MITCHELL:

Has anybody raised that with you?

PRIME MINISTER:

No.

MITCHELL:

Are you aware of it happening?

PRIME MINISTER:

No.

MITCHELL:

Hmm. So you are confident you are leader ‘til the next election?

PRIME MINISTER:

Well, I would imagine so. I certainly expect so.

MITCHELL:

Yeah. Do you feel it personally testing at the moment?

PRIME MINISTER:

Not more than on some other occasions in the past. I've been

through a lot, Neil.

MITCHELL:

But as Prime Minister?

PRIME MINISTER:

Well, it is challenging at the moment but we are dealing with some

big things. There's a lot at stake. The future strength of

the Australian economy is at stake.

MITCHELL:

Well, let's look at that. Dun & Bradstreet, a very pessimistic

report today heading into a recession. Are we?

PRIME MINISTER:

No, I think that's too gloomy. But we are obviously being

affected by the Asian downturn and it is all the more reason to

have, as a Government of this country, a group of people who took

the decisions that had to be taken two years ago.

MITCHELL:

The Federal Treasurer seems to be suggesting they'll review

the economic forecasts, will you?

PRIME MINISTER:

Well, that's something that we will be influenced by the advice

that we receive, but we took some measures a couple of years ago

which were attacked by the Labor party and opposed by the Labor

Party but if they hadn't have been taken we would now be in

an awful mess. If we had followed Mr Beazley and Mr Evans'

advice, the Australian economy now would be much more vulnerable,

our interest rates would be higher, our inflation would be higher,

our debt would be greater.

MITCHELL:

But are your forecasts for economic growth achievable?

PRIME MINISTER:

The forecasts that were in the Budget have not been revised by

the Treasury. We naturally have to rely on the expertise in the

Treasury in relation to economic forecasts. You don't manipulate

economic forecasts, you rely on the advice of your experts.

MITCHELL:

Well, your Treasury yesterday seemed to be saying they would be

revised, it's down to 2.75 growth forecast.

PRIME MINISTER:

Are you saying the Treasurer?

MITCHELL:

Yes.

PRIME MINISTER:

Well, what Peter was doing was obviously always keeping open the

possibility as has always been the case and always will be the case

that economic growth forecasts could be varied, but we have not

received any advice from the Treasury, I certainly haven't,

and I don't believe the Treasurer would have either, because

he'd have told me, that we have to revise them downward.

MITCHELL:

Even if it is not a recession which is I think, are we heading

into a period of negative growth?

PRIME MINISTER:

Well, I wouldn't even say that Neil. What is obvious is that

the Asian economic downturn is huge, and it can't leave Australia

unaffected but it won't damage Australia as much as it would

have if we hadn't have done what we did two years ago, and

if we were to be replaced by Mr Beazley and Mr Evans who believe

in returning to deficit and debt and high interest rates, the Australian

economy would be far more damaged than would otherwise be the case.

And that really is the biggest political decision that will need

to be made over the next few months. Do you want Mr Beazley and

Mr Evans back in charge of the economy with their high deficit,

high debt, high interest rate policies or do you want the present

Government with its willingness to do things for the good of Australia

such as taxation reform?

MITCHELL:

The next few months we'll have to decide that will we?

PRIME MINISTER:

You'll have to decide.. well, the next election has to be

held by the first half, first bit of next year and we are now into

July but I don't know when the election is going to be. We

are going to release the tax policy soon, and we'll spend a

lot of time explaining that to the Australian public.

MITCHELL:

Is next week a chance for the tax package?

PRIME MINISTER:

No. No chance at all. I can tell you that.

MITCHELL:

Yes, good, thank you. We'll take some calls. Hello Bill go

ahead please.

CALLER:

Good morning Mr Howard.

PRIME MINISTER:

Hello Bill.

CALLER:

How are you?

PRIME MINISTER:

I'm pretty good.

CALLER:

That's good. Look, from out in the average suburbs of Melbourne

I've been looking at your performance on television, plus your

Ministers. I can't get a handle on solid direction from your

position and it is getting to the stage now, Sir, where I think

the Liberal Party, with due respect to Tony Staley, is becoming

crippled.

PRIME MINISTER:

Well, I obviously, Bill, don't agree with that.

CALLER:

Well, I just see that we are not getting any decisive pointers

saying where we are going, and everything is being put off consistently

and the despondency in the ...outside here in Victoria is getting

larger and larger against the Liberal Party.

PRIME MINISTER:

Well, you say we are putting things off. I thought we've been

criticised for not putting things off. I've just spent 10 minutes

talking to Neil about suggestions that we ought to put things off

and the implication is that I'm wrong because I don't

put them off and now you're coming on and saying that you're

hearing all the time I'm putting things off. I don't know,

you must be tuned into a different program. I mean I thought the

criticism of me at the moment was that I'm not willing to put

tax reform off, I'm not willing to put off the sale of Telstra,

I'm not willing to put things off, now I won't put them

off because they're good for Australia. Not because they're

my prized personal possessions.

MITCHELL:

Okay, thanks Bill, thank you for calling. John is next, go ahead

John.

CALLER:

Yeah, Mr Howard how are you...

PRIME MINISTER:

Might do better with this name.

CALLER:

Oh, this name, it's one thing we've got in common.

PRIME MINISTER:

Good. Is that all?

CALLER:

That's about it I'm afraid.

PRIME MINISTER:

Oh dear me, another one!

CALLER:

Okay then well look the problem is that you've introduce a

15 per cent surcharge on superannuation on incomes over $75,000.

PRIME MINISTER:

Yes.

CALLER:

Okay. The only problem what you've done is you've calculated

that on gross income not on the actual person's superannuation.

Now my superannuation is only calculated on my standard salary which

is $40,000. I have no option, I can't go any higher than that.

But I got a bill this week for a $1,020.

PRIME MINISTER:

I don't understand that. If you'd like to send all the

details of that to my office, just on the face of it it doesn't

sound plausible because the purpose was to introduce that on peoples

whose incomes were much higher level around the $70,000 mark.

CALLER:

Well, no....

PRIME MINISTER:

If your real income is only....

CALLER:

My salary is up around the $78,000 because.....

PRIME MINISTER:

I thought you said 40, I'm sorry.

CALLER:

No, my super is fixed at 40.

PRIME MINISTER:

Your super is fixed at 40, yes.

CALLER:

My super's fixed at 40 because overtime does not come into

it.

MITCHELL:

I see.

CALLER:

So with my employer right it's your superannuation is....

PRIME MINISTER:

But you still earn $78,000 a year do you?

CALLER:

That's right.

PRIME MINISTER:

I see, well $78,000 a year means that you are amongst as an individual,

you are amongst the 10 per cent of the Australian population which

are the highest income earners.

MITCHELL:

Okay. Thank you John. Michael go ahead please.

CALLER:

Good morning Neil, and good morning Prime Minister.

PRIME MINISTER:

Good morning.

CALLER:

Mr Howard, are you or Mr Costello aware of the Australian Tax Office

change in position regarding investment in film production tax deductibility

and that the intention of the Australian Tax Office is a four year

retrospective tax reassessment of investors tax returns?

PRIME MINISTER:

Well we certainly haven't authorised any retrospective application

of tax in that area. I often get people who ring me up saying are

you aware of what the tax office has done. You've got to understand

the tax office under the law acts independently of the Government...

CALLER:

And they're not accountable to you.

10689