PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
21/08/1998
Release Type:
Interview
Transcript ID:
10723
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP TELEVISION INTERVIEW WITH ANNE FULWOOD 11AM, CHANNEL SEVEN

ANNE FULWOOD:

Good morning to you, Mr Howard

PRIME MINISTER:

Good morning, Annie.

ANNE FULWOOD:

Did you hear from Mr Clinton this morning, Mr Howard?

PRIME MINISTER:

No. The American government, after the attack had been launched,

informed us and informed, presumably, other countries. My understanding

is that there was overwhelming intelligence and material indicating

a link between the destruction and loss of life in both Kenya and

Tanzania as the result of the bomb outrages about 10 days ago and

that these targets are directly linked with people who the Americans

believe responsible for those terrorist attacks. Now on that basis

what the President has done and what the Americans have done is

justifiable and I support it.

ANNE FULWOOD:

So will Australia be called on at all for any support further to

this fight against terrorism?

PRIME MINISTER:

Oh, I wouldn't have thought that Australia would be called

upon to contribute anything. Australia, of course, has been willing

in the past in relation to other activities to join the Americans

but this represents an American response to the violent and murderous

attack on American citizens and American assets about 10 days ago.

And distasteful as it is, no country, including the United States,

can sit by idle when attacks are made on its citizens and its citizens

are murdered.

ANNE FULWOOD:

Alright Mr Howard we'll move on now to the big issue involving

Australia, the GST. Are you finding it a little harder to sell than

you thought it might be?

PRIME MINISTER:

No. I knew people would snipe at the margin. But what I say to

the Australian public is think of the long term interests of Australia.

We cannot go on forever with the existing tax system and I was fascinated

to learn last night that this is the view of a Minister in the Keating

Government who lost his seat at the last election.

ANNE FULWOOD:

I must say Mr Howard, I see Gary Johns says that but he supports

it ...

PRIME MINISTER:

This is what he said, "I'm coming down firmly on the

side of the Howard Government tax package because it's the

sort of package that Labor will have to introduce at some stage

in the future. Any honest, decent Government would". I can't

think of a more emphatic endorsement.

ANNE FULWOOD:

Do you think there might be others who support him as well from

that side of politics?

PRIME MINISTER:

I'm sure there are. I mean both Gareth Evans and Kim Beazley

supported Mr Keating's 12.5% consumption tax in the 1980s.

I know that in their hearts Labor know it's right to reform

the tax system but what they want to do is to sneak back into office

on the strength of a tax cut promise and nothing else. Now that's

not good for Australia, you can't have tax relief and tax cuts

without tax reform. We've reached that stage in our history

where we have to embrace reform, we have to look at what is good

for the country. You could always focus on one aspect of a plan

like this and say it's bad or you don't like it or you

wish it was something else. But if you think of the country and

the long term benefit of Australia and Australians you have to support

it.

ANNE FULWOOD:

Mr Howard, while you might say there's endorsement there you'd

have to say there's not too much endorsement if we look at

the headlines of the newspapers today and we'll just put them

on the screen. The Fin Review saying, "Tax package starts

to fray" "Nursing home GST backdown" "PM caves

in on GST for the aged" on The Australian. Do you see

that? That's certainly not endorsement is it? (inaudible).

PRIME MINISTER:

Well that headline in The Australian is wrong. We haven't

caved in on anything. We merely confirmed what was the case under

the plan and that is that the cost of providing nursing home services

will actually fall as a result of the GST and nursing home fees

will be free of the GST. Now that's what we confirmed and what

Mr Costello said yesterday was that we would make certain that those

two situations work their way through and that residents in nursing

homes were not adversely affected. I mean they shouldn't be.

If the cost of providing nursing home services actually falls there's

no justification for an increase in nursing home fees. I mean that's

a matter of common sense.

ANNE FULWOOD:

But if their fees rise as a result of a GST?

PRIME MINISTER:

Well, they shouldn't.

ANNE FULWOOD:

But how can you guarantee, can you stop them rising?

PRIME MINISTER:

Well Annie if your costs fall, if your costs go down you have no

right to put your fees up do you?

ANNE FULWOOD:

What about low rent housing for pensioners what about rises there?

PRIME MINISTER:

The situation in relation to that is that the people who are living

there will not be paying GST on the rent. But the question of future

levels is a matter for State housing authorities. We don't

control them and that is a matter that would be in the purview and

the responsibility of State housing authorities.

ANNE FULWOOD:

There is plenty of confusion about isn't there between State

and Federal responsibilities in this which must make it harder for

you to sell?

PRIME MINISTER:

Annie, it is a complex area and if you're gutless and indifferent

about the future you just walk away and you say it's too hard.

But if you really have the long-term interests of the country at

heart, you have the courage and the guts to try and do something

to reform the system and that's what we're doing. And

I ask Australians to put aside some of the petty politically partisan

sniping from the side and to focus on our long-term future. Of course

we will respond to detailed questions, we've provided enormous

detail and that's why we've got a government funded education

campaign. But the question people have got to ask is will this be

good for our country? And in their hearts even Labor members, former

Labor Ministers know that it will be and that is why we are pursuing

it.

ANNE FULWOOD:

Mr Howard, in your presentation of the tax package you said it

was interlocked. Taking things out, putting things back in might

dismantle it. Do you still stick by that or are you going to have

to make some changes?

PRIME MINISTER:

No, no, no, Annie, it is interlocked. For example, you can't

get a dividend out of the cash economy of $3 billion unless you

have a GST. You can't reform Commonwealth/State financial relations

without a GST. You can't reduce the price of fuel in the bush

without a GST. You can't reform the income tax system in a

lasting way without a GST. Labor tried to do that in 1993, Mr Keating

and Mr Beazley offered a tax cut and no GST. They got back into

office they took away the tax cut and they increased every indirect

tax they could lay their hands on and they provided no compensation

to the nursing home residents, the pensioners or the battlers. In

other words we got their GST but without compensation and no income

tax cuts. And they had to do that because they found that the tax

base was just ebbing away and unless we make this reform the tax

base will continue to ebb away and that was a point made last night

by the Reverend Tim Costello on behalf of the Baptist Church.

ANNE FULWOOD:

Mr Howard, the States say they're not going to be dropping

their payroll tax because there's not enough revenue coming

back to them in the GST. Now that might be a bit of a blow to your

plans is it?

PRIME MINISTER:

Well, it's not a blow because we didn't factor in them

dropping their payroll tax. What we said was that we can go this

far, we'd like to go further but that will have to await another

phase of reform. This is a huge reform that reduces by $10.5 billion

the cost of doing business in Australia and reduces the costs for

exporters by $3.5 billion.

ANNE FULWOOD:

But gee, dropping payroll tax, wouldn't that be a boost?

PRIME MINISTER:

Well of course it would but you've got to find some money

to pay for it and it's something, it's like $7-9 billion.

Now you've got to pitch the GST at an acceptable level and

to have got rid of payroll tax you'd have needed a GST of 13%

or more. Now we think that would have been too high, we think 10%

is the right level provided it applies across the board. You've

got $13 billion of personal tax cuts, you've got cheaper fuel,

a reduction in business costs. But it is an aggregate package and

it is a bold and courageous attempt to fix something that everybody

knows deep down needs fixing.

ANNE FULWOOD:

Mr Howard, the support of welfare groups and welfare lobbies is

very important to you and there isn't a great deal of support

at the moment from such organisations as ACOSS and so on which one

commentator described as political dynamite if you don't get

their support. Now how can you get their support?

PRIME MINISTER:

Well, it's not a question of getting the support of this or

that organisation. It's a question of getting the support of

the Australian people. ACOSS won't determine the acceptability

of this package, the Australian people will. And I notice this morning

that Archbishop George Pell, the Roman Catholic Archbishop of Melbourne

speaking on behalf of the Catholic Church made it very clear that

there is no such thing as a Catholic position on tax reform. He

quite rightly made the point that Catholics and Christians generally

will have different views according to their own personal attitudes.

And the idea that the Churches are for or against a GST is ridiculous,

and Archbishop Pell has made that perfectly plain and he also said

that his personal view was that we needed a broadening of the tax

base in order to support a decent welfare system. So I don't

regard that as a criticism I regard it as good leadership, good

leadership from Archbishop Pell asking people to look at the merits

of the package according to their own personal political convictions.

ANNE FULWOOD:

Mr Howard, you might have seen on our news, the Sydney Olympic

Chief Executive, Sandy Hollway showing some concern about the cost

of Olympic tickets after July 2000. Those bought before that won't

attract a GST, those after worry him with his budgeting. What would

you say to him?

PRIME MINISTER:

Well, he shouldn't worry and he should think of Australia

rather than taking a narrow view.

ANNE FULWOOD:

This is Australia's Olympics Mr Howard.

PRIME MINISTER:

Yeah, but hang on, but the people who will be buying the tickets,

the Australians who will be buying the tickets will have tax cuts.

I mean on the 1st July the tax cuts come into operation so any increase

in the price of things will be more than swapped by the increases

in after tax income that people will have as a result of the personal

tax cuts. That particular criticism is a classic example, if I may

say so, of a taking a very narrow view and only telling half the

story. Of course if you say I don't like a GST on this or that,

that sounds plausible but if you were then were to go on and say

but I recognise that everybody buying those tickets will have more

money in their pocket so therefore the Games won't suffer you

would be presenting a more plausible and more honest a picture.

ANNE FULWOOD:

Mr Howard, just in closing. Are you accepting any dinner invitations

say on the weekend of October 17th?

PRIME MINISTER:

Several, several. It's going to be a very, very enjoyable

night.

ANNE FULWOOD:

I see there have been a couple of little, there's a dog and

cat show or something that normally takes place on October 17th

where the tally room is in Canberra I understand it's been

cancelled. Have you heard about that?

PRIME MINISTER:

I saw some news report about it but I can tell you without any

equivocation I have not decided when the election will be. Like

any other Prime Minister I would like to have an election at a good

time. It won't be on the weekend of the grand finals, I can

certainly rule out the last weekend in September. No chance at all

of an election on the last weekend in September.

ANNE FULWOOD:

A lot of people will be very pleased with that Mr Howard. And what

about the fact that the English, your favourite cricketing opponent,

they're coming here late October for the Ashes tour, the first

Test is on November the 20th, Mr Howard.

PRIME MINISTER:

Yes. Well I'm looking forward to that. And I'm looking

forward to a great contest and I'm sure Australia will hang

on to the Ashes. I want to see a lot of cricket during the summer

as well.

ANNE FULWOOD:

So you might have to fit something in between October the 17th

and November the 20th perhaps?

PRIME MINISTER:

Well I always try and harmonise cricketing pursuits with others.

ANNE FULWOOD:

Mr Howard, thank you so much for giving us some of your very precious

time here on 11AM today, we really appreciate it.

PRIME MINISTER:

Thank you.

[Ends]

10723