E&OE……………………………………………………………………………………….
(Tape break)
…here we are with historically low levels of inflation. We still have an economy that has a good deal of economic growth in it. There have been some recent surveys suggesting the job outlook is better than some have feared it might be. And on top of that we have a quite outstanding inflation result, described as such by independent, economic and market commentators. And it does, yet again, remind the entire Australian community of the quality of the Government’s economic management over the last two to three years because this result would not have been possible if we had adopted a weak attitude towards the budget deficit. This result would not have been possible without the economic management of the Coalition Government over the last two to three years. And it’s very dramatic evidence, to some, unexpected evidence, of the strength of the Australian economy and the quality of the economic management that my Government has given to this country since it was elected almost three years ago.
JOURNALIST:
Mr Howard, does this sort of inflation result give you the scope to put new emphasis on other areas of economic endeavour, perhaps job creation for government spending?
PRIME MINISTER:
I think what it does say to the rest of the world is that we have an economy which still is very low inflation in its caste. It is still growing quite strongly. And to be able to have an economy that has got those two things working together is quite a remarkable achievement. Now, I don’t want to extrapolate too far and too much but obviously if you are running an economy which is in such a low inflationary caste it does mean that you can do things and you can aspire to do other things that might not be the case if you were running a medium or high inflation economy.
JOURNALIST:
What sort of things do you now aspire to do with that…?
PRIME MINISTER:
Well, I was making the general comment. I’m not going to start predicting individual things and I don’t have anything particularly in mind. But of all the foundations and of all the fundamentals of an economy none remains as important as price stability and the security that that involves and the certain ring that that gives to the rest of the world. And I think the Australian community can rest assured that we have a stable, strong, predictable economy. And today’s inflation outcome is a dramatic reminder of that.
JOURNALIST:
The inflation result has prompted the media to some speculation that interest rates will fall, that the Reserve Bank, perhaps within a day, perhaps within a few days, will cut interest rates.
PRIME MINISTER:
Well, I don’t talk about the future level of interest rates. I am never reluctant to draw people’s attention to past performances in that area. And it’s one of the jewels in the crown of the Howard Government’s economic achievements, the falls in interest rates that have occurred over the last two to three years. What lies ahead is not something on which I will comment or speculate.
JOURNALIST:
Would you pleased to see cut number four?
PRIME MINISTER:
I’m not going to speculate and answering that question involves speculation.
JOURNALIST:
Mr Howard, you’ve been accused by the Labor Party and the Democrats of breaking your first election promise by trying to speed up the inquiry into the GST, how do you feel about that?
PRIME MINISTER:
Well, we haven’t broken any promise at all. And can I just make one thing plain, there would be all the time in the world for all the discussions under the sun if the Democrats and others weren’t intent on frustrating the will of the Australian people. I mean, let’s get one thing straight. We went to the Australian people at the last election three-and-a-half weeks ago with a bold plan of taxation reform. We went through the fire, we won and we’ve got a right to put it through. As far as I’m concerned, every legitimate means will be used by the Government to secure passage of that legislation for one reason and one reason alone and that is the Australian people voted for us. I mean, what on earth are we going on with. We’ve had an election campaign and we won, they lost, and what are they trying to do, they’re trying to frustrate the will of the Australian people. Now, I will use and my Government will use every legitimate means to secure passage of that legislation.
JOURNALIST:
Has Mal Colston expressed an intention yet to you?
PRIME MINISTER:
I haven’t spoken to Mal Colston.
JOURNALIST:
Who is doing the talking, Prime Minister?
PRIME MINISTER:
Nobody that I’m aware. Look, you must understand that my experience with Mr Colston, Senator Colston and Senator Harradine is that you don’t know to the end, until the end, as to what they’re going to do. But I’ve not had any discussions with Senator Colston or, indeed, Senator Harradine about our tax plan. We’re doing what we said we would do.
JOURNALIST:
So when will you start [inaudible]…
PRIME MINISTER:
Oh look, I don’t care to speculate about that at the present time.
JOURNALIST:
Mr Howard, during the election campaign you said there was plenty of time to discuss details of the GST, a year-and-a-half, two years, why the rush now, why a two week only inquiry?
PRIME MINISTER:
Well, we’ll need to get the legislation in as soon as possible. And one of the reasons we need to get it in as soon as possible is that the Democrats and the Labor Party and others want to knock it off. I mean, what are supposed to do? We go through the pain and the political difficulty of putting our bodies on the line to win an election with this plan and, what, are we meant to sort of wait around and allow it to be knocked off by the Democrats? I mean, it’s a ridiculous proposition. We won the election. We said we were going to change the tax system. We came clean with the Australian people and what we’re now trying to do is get the legislation through the Parliament. And, as I said, we have a right to use every legitimate means to get the legislation through the Parliament as soon as possible because the Australian people voted for us on that understanding.
JOURNALIST:
Even the man you chose yourself to head your early inquiry into the GST says he’d like to have more than two weeks.
PRIME MINISTER:
Anybody who runs an inquiry always wants more time than they’re given. I have never known an inquiry chief in the history of mankind not to want more time to complete the inquiry.
Thank you.
[Ends]