PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
25/05/1998
Release Type:
Interview
Transcript ID:
10742
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP AM PROGRAMME, ABC RADIO

JOURNALIST:

Prime Minister, the Opposition's offer must look more attractive

to a GST surely to the battlers?

PRIME MINISTER:

I think every battler in Australia has got to ask himself or herself

what would be the use of a personal tax cut from the Labor Party

if it were more than eaten up in higher interest rates. And one

of the indisputable facts, and this is not rhetoric, is that my

Government has been the Party that has delivered the lowest housing

interest rates this country has seen for 30 years. Mr Beazley had

13 years. Housing interest rates went to 17% under his government,

20.5% for small business. Under my Government, housing interest

rates have fallen to the tune of $300 a month off the repayments

for an average loan, and that is the equivalent of a pay rise of

$100 a week for the average wage and salary earner. So, let me say

right at the beginning to the taxpayers of Australia, a tax cut

more than eaten up with an interest rate rise, and if Mr Beazley

were to win the next election, interest rates would go up again.

I mean, that's the biggest risk for the average Australian

about a future Labor Government. This is not political assertion

and rhetoric, this is fact. When we took over, interest rates were

at this Himalayan level and over the last two-and-a-quarter years,

they've fallen in the way that I've described.

JOURNALIST:

But he's pledged to keep the Budget in the black and he's

said that this measure will do everything....

PRIME MINISTER:

He said the Budget was in the black before the last election. I

mean, you've got to look at what people do in Government, not

what they say they will do if the public puts them back. Now the

facts are clear. We are the party that has delivered the lowest

interest rates in 30 years. He was the Finance Minister of a Government

that delivered the highest interest rates in 30 years. Now, against

that backdrop, the biggest risk of all of a future Labor Government

is the way in which through their big spending approach and their

high deficit approach they would once again plunge this country

back into higher interest rates.

JOURNALIST:

It would help all the voters, wouldn't it, if this shadow

boxing would stop and you both put your cards on the table. When

are we going to see your tax package and their tax package, and

will there be enough time before an election to scrutinise them?

PRIME MINISTER:

There will be time for people to digest what is in our tax reform

approach, plenty of time, and in any event, Mr Beazley has not really

put anything on the table. I mean, all he really says is that he'd

like to give a popular tax cut. Well, I mean, what Opposition leader

wouldn't say that. What Opposition Leader wouldn't like

to do that, but that has to be put against the ordinary reality

of the impact of higher interest rates that would inevitably follow

the election of a Beazley government on those tax cuts.

JOURNALIST:

He's said he'll show his if you show your's. I mean,

when is it going to be out there?

PRIME MINISTER:

Matt, we have said all along that we will unveil our tax reform

plan, and it will be comprehensive, it will be the logical next

step in providing security, safety, and stability to the Australian

economy in a sea of Asian economic turmoil, and all of our policies

are against that background. All of our policies are about delivering

safety, security and stability to the Australian economy in a very

difficult regional economic environment and our tax reform plan

is the next necessary element in providing that safety, security

and stability.

JOURNALIST:

And presumably a cut to Diesel Fuel Excise, we see?

PRIME MINISTER:

Well, I'm not going to get into specifics, but I can say to

the people of rural Australia that when they see the total tax package,

they will see it as a fair one, and unlike the policies of the former

government that were brutally insensitive to men and women on the

land in Australia, it will be a policy that rural Australians will

like.

JOURNALIST:

What about health, education, those kinds of things. I mean, we

do have a problem with health don't we? The AMA says it's

given up talking to Michael Wooldridge, it's focussing its

attention on you.

PRIME MINISTER:

Well, that's not correct, that is not correct. I mean, let

me say that Michael has done an outstanding job as Health Minister

and under his leadership we've seen some remarkably innovative

programmes. I mean, look at the lead that he's taken on child

immunisation. When we became the Government, we had immunisation

levels that were at third world standards. They were disgraceful,

and we've done something about that.

JOURNALIST:

Health funds are still bleeding to death...

PRIME MINISTER:

Well, health funds would have been in a far more parlous state,

far more parlous state then they are now if we hadn't introduced

our incentive. But that is one of those areas where no sensible

government ever closes the book and says that you can never do more,

you can never make further changes, but you've got to bear

in mind that compared with the health systems of other developed

countries, ours is still a remarkably good and remarkably strong

one with very high quality health care, provided by our doctors,

and by our hospitals, and by our other health professionals.

JOURNALIST:

Is part of the problem, as the Treasurer says, that people walk

into a doctor's surgery expecting the service to be free when

in fact the taxpayer is paying?

PRIME MINISTER:

Well, there are a combination of views that different people have

on it and I'm not going to conduct a seminar on health policy,

much and all as I respect the AM programme, I don't think it

is quite the right environment for it.

JOURNALIST:

Prime Minister, you are under some pressure in the Senate in terms

of the GST for example. You've even indicated that if they

knock it back as the Labor Party has certainly promised, that you'd

be prepared to go to the polls a second time. Is that a real prospect?

PRIME MINISTER:

Well I don't know about being under pressure. I mean, the

obvious...

JOURNALIST:

Well, there's Telstra, there's GST....

PRIME MINISTER:

The obvious thing Matt, is that despite the huge mandate we got

at the last election, the Opposition parties in the Senate have

been obstructionist and what the height of that obstruction was

Mr Beazley's claim that even if at the next election we are

returned along with a tax reform plan we take to that next election,

then he - if he is leader of the Labor Party - will encourage the

Labor Party to block any tax changes even though the people may

have approved them. Now, the point I made then and I make again

is that is the height of arrogance. I mean we are meant to have

a democracy where if the people speak, politicians listen. There

is one thing that the Labor Party didn't understand at the

last election was that it had stopped listening to the Australian

public. And it sounds as though it hasn't learnt anything from

the last election. It still refuses to listen to the Australian

public. I mean our view is that we've put a tax reform plan

down and if we win the next election with that tax reform plan,

we ought to be able to get it through the Parliament without obstruction

from the Labor Party and the Australian Democrats or, indeed, any

other minor parties who may be gathered along the way.

JOURNALIST:

And if you don't get through with that or Telstra......

PRIME MINISTER:

Oh look, we'll deal with that if and when it arises.

JOURNALIST:

It's certainly possible though is it not?

PRIME MINISTER:

Matt, what I'm drawing attention to is the arrogance of an

Opposition Leader who says : "I don't care what the Australian

people say, I will have my way whether they like it or not".

Now that is political arrogance. That's the sort of arrogance

that caused Paul Keating to suffer at the hands of the Australian

people at the last election and Mr Beazley is repeating the Keating

arrogance.

JOURNALIST:

Do you agree with the idea of changing the tax mix, the prospect

that social services is objecting to?

PRIME MINISTER:

I agree with getting rid of an outdated, old-fashioned wholesale

tax system that imposes a penalty on our exporters and makes them

very uncompetitive with other countries. I believe in getting rid

of other unfair elements of our tax system that penalise effort

and hard work. I am not going to get into the intricacies of the

plan that we will be bringing down except to assure you and your

listeners that we are not going to introduce a plan that hurts poor

people and we are certainly going to be very sensitive to the needs

of the underprivileged in the plan that we bring down.

JOURNALIST:

I notice the Maritime Union and Chris Corrigan were in talks over

the weekend and last week. Does that surprise you, it certainly.....

PRIME MINISTER:

Nothing surprises me on the waterfront Matt.

JOURNALIST:

Your redundancy package is still on the table is it?

PRIME MINISTER:

Well look, our position is as it has always been and that is that

we want reform on the waterfront because that would be good for

the Australian economy. We want to get rid of compulsory unionism

on the waterfront because that is bad for the Australian economy

and, as far as I am concerned, if plans emerge, understandings emerge

that meet those criteria, then it's fine. I mean, we have never

wanted as the end result the destruction of a union. We've

never wanted people to lose their jobs but we have wanted a productive,

competitive waterfront that is good for the Australian economy.

JOURNALIST:

So if these talks result in some of the work being contracted out,

you'd be happy?

PRIME MINISTER:

I am not going to make any advance judgements on what might come

out of the talks or whether those results meet the criteria that

we've laid down. We've specified certain policy positions

as a Government in relation to the redundancy payments and those

policy positions remain. What is being discussed.....

JOURNALIST:

But the deadline was today was it not?

PRIME MINISTER:

What is being discussed between Mr Coombs and Mr Corrigan is a

matter for them. I'm not privy to those discussions and, quite

frankly, it's appropriate that the parties to the dispute talk

it out between themselves without the interference of the Government.

JOURNALIST:

A quick question before Indonesia. Do you have a media black list

as it's been reported.

PRIME MINISTER:

No, I don't have a media black list.

JOURNALIST:

So you don't know anything about it?

PRIME MINISTER:

Well Matt, I mean I talk to you on a regular basis.

JOURNALIST:

You talk to me, exactly.

PRIME MINISTER:

I mean we have very civil exchanges don't we?

JOURNALIST:

What about Indonesia, Prime Minister. President Habibie is somebody

that you and everyone else thought was political ‘dead-meat'

last week, is now running the country. How long do you think he'll

last and are you encouraged by this apparent opening up of the prisons?

PRIME MINISTER:

Well, just before I talk about the opening up of the prisons, you

made a few heroic assumptions in that question about ‘dead-meat'

and so forth. The line I took last week and the line I now take

is that the Government of Indonesia is something for the people

of Indonesia and not for the people of other countries to decide.

I am encouraged by what I see in relation to the political prisoners

but it's early days yet and whilst, on the basis of what has

been reported and on the basis of what has occurred on the surface,

it is better that political prisoners be treated in a liberal fashion

than in a harsh fashion. It would be premature to jump to too many

conclusions. We want to see more openness in Indonesia, we've

made that clear all along. We recognise that that's not going

to occur overnight. His prime responsibility is to restore stability

to Indonesia, to ensure that international respect for the management

of the Indonesian economy returns as soon as possible and along

the road I also hope that there is more openness, more freedom and

more capacity for people to speak their minds than there has been

in the past. I think we would all welcome that. Now whether it comes,

and at what pace it comes, is a matter for the Indonesian people.

But we will always be on the side of urging the Government of Indonesia

to open the place up, recognising that the culture there is different,

and also recognising that countries don't appreciate hectoring

from the sidelines. And one of the things I believe Australia has

been able to do is to quietly get its point of view across. You

always know in Indonesia where Australia stands in relation to something,

but at the same time retain the channels of communication with the

power authorities in Indonesia and the channels of communication

with the Indonesian Government. I think that's the right and

the most diplomatic way to handle it.

JOURNALIST:

That being so, nonetheless, is it time even given that the Information

Minister there now presided over the deaths of five Australian journalists

in East Timor. Is it time for an act of self-determination in Timor,

is it time for the Australian Government to go public?

PRIME MINISTER:

Well, we have said repeatedly and, indeed, the last time I was

in Indonesia, this subject was raised again that we want movement

by the Indonesians in relation to East Timor and it remains now

a major irritant to the rest of the world and legitimately so. And

it would obviously be to the increased reputation of the Indonesian
iously be to the increased reputation of the Indonesian

Government. And it would obviously be well received if there were

movements in that direction in East Timor.

JOURNALIST:

Prime Minister, thanks for joining AM.

PRIME MINISTER:

Pleasure.

ENDS

10742