E&OE...............................................................................................
PEACOCK:
Prime Minister, it's been a dramatic year, a long hard year
I guess but certainly the economy has been doing extremely well
given the vicissitudes in the rest of the world. When you got re-elected
you said you'd be a different Prime Minister this term. What
sort of things can we expect this next year?
PRIME MINISTER:
Well, you are always different the second time around. There's
no doubt the Australian economy, as you say, has performed very
well. I don't think the Australian economy has been as strong
for 30 years as it is now and a lot of that is due to the policy
measures the Government introduced when it came to power in 1996.
If we had not got the budget back into balance we would have been
knocked for six by the Asian economic downturn. And the Australian
public realised that and as we move into Christmas and people understand
just how strong the Australian economy is and how lucky we are compared
with the rest of Asia there's an even deeper realisation of
that reality.
PEACOCK:
Of course it's not just luck, it's Jeff Kennett's
friendly advice according to him. He's had a tremendous impact
on your success in some of these areas like taxation reform.
PRIME MINISTER:
Oh, I have appreciated the support that Jeff Kennett has given
and others have given to the campaign for tax reform. Most people,
however, know that I have supported reforming the Australian taxation
system for a long time and I have probably been involved in more
attempts to reform the Australian taxation system than any politician
on the current or recent political landscape. But I have certainly
appreciated his support and I want to take the opportunity of paying
tribute to Peter Costello's role as Treasurer in helping to
put the taxation package together. These things are team efforts
and one of the great strengths of the Government I am privileged
to lead is that it is a very good team and it's an even stronger
team in the second term than it was in the first term and that is
becoming increasingly apparent in the Parliament.
PEACOCK:
Now, speaking of your Treasurer, next year we recognise could be
a lot harder, growth will be slowing down as Asia and the rest of
the world bites on the Australian economy. You have now read the
taskforce report that you appointed to look into international finances.
Are we still vulnerable to the kind of meltdown that occurred this
year and what action should Australia take now in keeping the task
of reform highlighted?
PRIME MINISTER:
Well, you should never be complacent and you should always press
on with further necessary reforms. The reform effort is never over.
There's never a point at which you can rest and say, we don't
need to do anything more. You'd have to do it in a way that
takes the public with you but the idea that there's a point
at which the reform process is over is wrong and that's why
tax reform is so necessary.
PEACOCK:
But specifically on the overseas matters like the flow of international
capital, is there something that Australia can take the initiative
on.....
PRIME MINISTER:
Well, Australia....we had an investigation of this straight
after the election and there are a number of reforms particularly
in relation to certain aspects of the activities of hedge funds
that we have put to the international financial community. And there
was quite a lot of support for them at the APEC meeting and I hope
that in the not too distant future there can be further action in
the group of 22 which is really a group of leading countries and
middle economies such as Australia which cover geographically all
parts of the world. And I think if there can be more concerted action
we can smooth out some of the bumps that have occurred without in
any way undermining the fundamentals of the global market system.
I mean, we are not going back to controlled exchange rate system
because if ever you have had an illustration of the advantage of
a flexible exchange rate it's how it's worked in Australia's
favour over the last year. One of the reasons why Australia has
been able to adjust so well and to absorb without real damage the
shocks coming from the Asian-Pacific region is that we have had
a flexible exchange rate and we have been able to take the adjustment
through our exchange rate. Now, if we have had a regulated approach,
a controlled exchange rate, we would have been knocked around a
lot more because the decisions that are taken daily in a micro way
in a flexible exchange rate system just won't be taken in that
way in a controlled exchange rate.
PEACOCK:
Now, you have been saying that your even more enthusiastic about
your taxation reform. Now, on top of the recent survey that shows
that two-thirds of Australians oppose it being on food, are you
concerned by Brian Harradine's toughening comments about taxation
on life's necessities?
PRIME MINISTER:
Matt, we had a nationwide survey on the 3rd of October
and the Australian public voted for our plan. I really think references
to opinion polls and surveys and everything after you have had an
election in which our tax reform plan was the main issue nominated
as the main issue by both the Government and the Opposition and
the Government's been returned. Our total responsibility then
is to get it through and I am very committed to getting it through.
I notice some reference in the introduction to the programme about
further elections. Look, I am not talking about further elections
I am talking about getting this platform through. We have just had
an election so let me make it clear, I am not talking about further
elections. I think the Australian public has had enough elections
for a while but it does want the Parliament to pass the legislation
it voted for in a nationwide political survey of the highest order
on the 3rd of October.
PEACOCK:
But if the Senate were obstinate enough to block having the tax
on food you'd have no alternative....
PRIME MINISTER:
Matt, I am not going to get into hypothetical situations, one thing
at a time. We are positive, we are hopeful, we are reasonably confident
about getting our legislation through. I don't take anything
for granted. Naturally I understand there's a Senate committee
process to be gone through and I'll go through it. The Government
will go through it and we'll make all the information available.
But, gee, we have just had an election let's not start talking
about fresh ones.
PEACOCK:
In the meantime, Peter Reith seems to have blown it with Senator
Colston. How sneaky was that do you think enabling the small business
unfair dismissal regulations to be disallowed over Christmas when
he could have put it to Parliament?
PRIME MINISTER:
Well it wasn't sneaky. That sort of thing has been done by
governments over the years. If you've got a regulation making
power you use it. And we used the regulation making power because
the Senate refused to pass it in a legislative form. I don't
think he's blown it at all. And the onus will now be on the
Labor Party and others in the Senate when it reconvenes in February
of next year to decide whether they are going to vote out of existence
up to 50,000 more jobs, because that's what's at stake
Matt. What's at stake here is not some rhetorical debate between
the Democrats and the Labor Party on one hand and the Government
on the other. It's up to 50,000 jobs.
PEACOCK:
Isn't the question here certainty though? I mean, neither
small business nor the people who could be sacked know where they
stand at the moment.
PRIME MINISTER:
Matt, 50,000, up to 50,000 jobs can be created and it's not
my word, it's the word of people in small business. Everybody
talks about small business, how important it is to job creation.
And here we're trying to do something to encourage small business
to take on more staff.
PEACOCK:
Yes, but that's my point Prime Minister, if you'll pardon
the interruption. On this programme a couple of days ago we had
industry saying: well we don't know what to advise our members
because quite possibly this will be reversed and they might get
into trouble if they do take action.
PRIME MINISTER:
Well whose fault is that?
PEACOCK:
Well surely....you're the Government, I mean, [inaudible]
situation.
PRIME MINISTER:
But Matt, who is threatening to strike it down?
PEACOCK:
So you're saying that because the other side's bad you
can be bad too?
PRIME MINISTER:
But how is it bad to want to create up to 50,000 jobs? How's
it bad to implement a policy that you took to the election?
PEACOCK:
Prime Minister Howard, does it help if people don't know where
they stand?
PRIME MINISTER:
I'm sorry, please don't interrupt. I said before the
election that if we won the election we would implement these changes.
We have a mandate to make these changes and there are up to 50,000
new jobs can be created and the Labor Party and the Democrats are
threatening to destroy those jobs, the potential for them to be
created, by voting down this regulation. Now, that's their
decision. But there's been nothing sneaky, nothing improper
and if only the verdict of the Australian people would be respected
by the Democrats and the Labor Party in the Senate we might have
some more jobs created in the new year.
PEACOCK:
Prime Minister, ABSTUDY has gone. Pauline Hanson wants it back
yet the Minister says that nothing much has changed in that system.
What has? Will any indigenous child be worse off next year?
PRIME MINISTER:
Well what's happened Matt is that we're going to treat
all Australians equally except where there is a clear collective
disadvantage for Aboriginal students, they will get a bit extra.
That's what's happened.
PEACOCK:
And the republic. You've said that people shouldn't underestimate
your resolution to campaign against the republic. So, you are not
changing that [inaudible]?
PRIME MINISTER:
Well once again I don't...this must be based on some newspaper
report I've not seen presumably based on an interview I gave.
Look, my position on the republic is this, that I'm not going
to be involved in a day-to-day campaigning sense. I've said
that. I'm not going to be making statements on the thing every
day. But I have a view on it and people will know that view.
PEACOCK:
And will there be 10 questions?
PRIME MINISTER:
Ten questions, no. There certainly won't be 10 questions.
I think it's a stupid idea. I think it should be fairly straightforward.
But, Matt, we're going to follow very closely what the Convention
decided because that was the promise I made to the public and to
the people who came to that Convention. I've said that I would
put the Convention model if a clear consensus emerged for it to
the Australian public. And that's what I'm going to do.
I'm committed to doing that. I'm not going to alter that
model. I mean, people are making suggestions that it ought to be
altered, or it ought to be refined. We gave a pretty clear commitment
at the Convention that we would put what the Convention adopted.
Now, I feel honour bound to do that. There maybe some tiny things
that are left to our discretion but what was decided by the Convention
I'm honour bound to put and the members of the Government will
have a free vote. I don't see myself being involved in a day-to-day
sense in the campaign but if people ask me my view I'm duty
bound to give it. I don't, incidentally Matt, find any great
interest in the Australian community at present in the issue. I
can't remember in the last six months one person, other than
members of the media, raising the issue of the republic. It is never
raised by Australians I mix with, and I mix with a very wide cross-section
of the Australian community. The issue is never raised on either
side. There is no great passion against it but equally there's
no great passion for it.
PEACOCK:
I guess the passion will be over cricket and the appearance before
the Pakistanis this week, and next week you're on holidays.
As a creature of habit, does it upset you no longer going to Hawks
Nest?
PRIME MINISTER:
Well, in a nostalgic way Matt it does. But we've been going
there for about twenty years. We found that some sections of the
media last year, not might I say the ABC, but some sections of the
media last year rather over did it and spoilt it, which is a pity.
So we've decided we won't go there this year. We're
going somewhere else but for reasons I'm sure you'll understand,
we're not talking about that. But that's one of the reasons.
There are other reasons too. It's a great spot and we have
very fond family recollections of it because we have been going
there for the last twenty years.
PEACOCK:
Prime Minister, thanks for joining us. Merry Christmas.
PRIME MINISTER:
Well Merry Christmas to you and all of your listeners Matt. It's
been nice talking to you again.
PEACOCK:
Talk to you again next year.
PRIME MINISTER:
I hope so.
[ends]