PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
12/05/1999
Release Type:
Interview
Transcript ID:
11021
Released by:
  • Howard, John Winston
12 May 1999 TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP INTERVIEW WITH TRACEY GRIMSHAW TODAY SHOW, CHANNEL NINE

Subjects: Federal Budget 1999

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

GRIMSHAW:

Prime Minister, good morning.

PRIME MINISTER:

Good morning, how are you, Tracey?

GRIMSHAW:

Very well, thank you. Any surprises for you in the response to the

budget today?

PRIME MINISTER:

No, I think the responses have been reasonable. It is a good budget

for the long-term future of Australia. It's very responsible.

It pays off a lot of debt. That's very important because if you

really want to set up our children for a strong 21st Century

we want to deliver them a government debt free 21st Century

and that's a very important element of the budget. We do have

a strong economy. We have performed a lot better than most people

expected but we're not complacent. And we've found room

for some very important initiatives in areas like health and medical

research, which is going to get a doubling of funding over the next

six years. We've put more resources into education. We've

put more resources into the bush. And we've introduced some very

good reforms in the private health insurance area that will provide

people with a greater incentive to enter private health insurance.

GRIMSHAW:

You have had, as you say, a reasonable response overall but there

are, of course, some voices raised in protest. One of the key points

of consternation is unemployment, that you are not doing enough if

you're prepared to have unemployment hover at around seven-and-a-half

per cent for the rest of the year.

PRIME MINISTER:

Well, that's the lowest it's been for a decade. And we can

make further progress on the unemployment front if the Senate will

pass legislation to reform the unfair dismissal laws and if the Senate

will agree to further changes to the labour market to make it more

flexible. We have come a long way. We've generated 400,000 jobs

in three years. We've got it down to its lowest level in 10 years.

We want to go further. We've set up the conditions for strong

economic growth but we need to make some more changes to the rules

that govern the employment of people so it's easier to take on

more staff without fear of facing expensive unfair dismissal suits.

GRIMSHAW:

You also want the Senate to pass a GST and you might have expected

to get Senator Harradine on side with some of the measures that you've

made in the budget: porn crackdown, Tasmanian schemes and expanding

the youth allowance. But, in fact, you seem to have irritated him

more by pinning the expansion of the youth allowance to the passage

of the GST.

PRIME MINISTER:

Well, I don't make a habit of giving a running commentary on

Senator Harradine's reactions. Senator Harradine and I have discussions

from time to time about matters of mutual interest and of concern

to the Government and of concern to him. I never believe in communicating

with him over the airwaves.

GRIMSHAW:

But you need Senator Harradine on side, don't you? You're

not going to get a GST unless you get Senator Harradine on side.

PRIME MINISTER:

Everyone knows that we need a majority in the Senate to get the GST

through. And everyone knows that we're coming to the decision

day, I guess, on that issue and it really doesn't achieve anything

for me to be endlessly speculating about this or that nuance of somebody's

reaction. If I want to say something to Senator Harradine or to Senator

Colston or to the Australian Democrats I'd prefer to say it first

in private to their faces.

GRIMSHAW:

All right, but does it alarm you when he makes comments that what

you've offered is too little, too late and you've improperly

pinned it to a GST? He's almost saying that you've tried

to blackmail him into voting for the GST.

PRIME MINISTER:

Well, I didn't hear him say that but beyond that I've got

nothing else to say.

GRIMSHAW:

Okay. The Opposition says that you're relying too much in this

budget on the sale of the rest of Telstra and the passage of the GST,

is that a fair point?

PRIME MINISTER:

Well, it is true that we want to sell the rest of Telstra in two stages

– 16 per cent first, then a review to satisfy us that all the

community service obligations are being met. That's true but

we went to the public saying that. That's our policy. That's

what we were elected to do. Governments normally go to the public,

they say this, ‘if you re-elect us, we'll do this.'

And what we've done is, we went to the public last October. We've

said, ‘if you re-elect us we'll do this,' and last

night we delivered on every single promise that we made in October

of last year. We produced a booklet saying, ‘Keeping Our Promises

for a Stronger Australia.' Of course we want to go through with

our programme. Of course we want tax reform but we want it because

the country needs it. And if we can get our plans on Telstra through

the Parliament we can have, by 2003, that's in three-and-a-half

years time, we can have no net Federal Government debt and it will

be the first time for almost 100 years. Now, think what that means

to the future prosperity of Australia. Think what that allows future

governments to do by way of additional spending on schools, on research,

on all the sorts of things that you would like to spend money on but

you can't because you don't have enough of it. I mean, I

can't believe the resistance that this is meeting in the Senate.

I mean, here is a heaven sent, once in a generation, opportunity to

free this country from the shackles of government debt and these characters

are against it even though the Australian people voted for us.

GRIMSHAW:

It's a fine claim to say that we'll be debt free in 2003

if the remainder of Telstra is allowed to be sold and if the GST passes

but they are two huge ifs.

PRIME MINISTER:

No, well, the GST is not related. I'm sorry, the GST, Tracey,

is not so related to debt. The GST is related more to lower personal

income tax cuts and us being a more competitive nation.

GRIMSHAW:

You talk about the promises that you've delivered on in the budget.

Analysts are making the point this morning that many of your rural

promises rely on the further sell-off of Telstra and that's not

looking likely.

PRIME MINISTER:

Well, that was said last October. I mean, we didn't say last

October they were unconditional and now, seven months later, we're

hitching them to Telstra. What we said were unconditional last October

have been delivered unconditionally in this budget. Those that were

subject to the sale of 16 per cent are still subject to the sale of

16 per cent. We haven't changed our position. We've kept

our faith. We've delivered on our promises in full, on time,

without exception.

GRIMSHAW:

You said you weren't going to offer any more compensation to

families and to low-income earners who are adversely affected by a

GST and you haven't but will some of that $5 billion surplus

end up going in that direction inevitably, do you think?

PRIME MINISTER:

Well, there's always, there's already been a very big provision

for families in the tax package. Our position on the GST, Tracey,

is that we're not going to put and take the essential principles

of it. I've always said that we would be willing for some fine-tuning,

as I've put it, but it is already a very significantly –

it's a generous package. There are $13 billion of personal tax

cuts, 80 per cent of the Australian community will be on a top marginal

rate of 30 cents in the dollar. You'll be able to go through

about $20,000 to $30,000 of increases in income without passing into

a higher tax bracket. Now, that will really be a ripper incentive

for middle Australia. And that, in many ways, is the nugget of gold

in our taxation policy.

GRIMSHAW:

Can we talk about education? State schools are screaming about the

education measures announced in the budget. Sharon Burrows from the

Australian Education Union quoted some figures last night. She said

that private school students will get between $76 and $220 each out

of the budget measures while 70 per cent of Australian children who

attend State schools will get just $10.

PRIME MINISTER:

Well, that's a very dishonest comparison. You know why? Because

in our country, State governments are the principle sources of funding

of government schools. That's the arrangement. And it is quite

dishonest, absolutely dishonest of anybody just to look at the direct

Commonwealth payments to independent schools and the direct Commonwealth

payments to government schools. Because it has traditionally been

the responsibility of the Federal Government to provide the great

bulk of direct government funding for independent schools and it will

always, on a per capita basis, look bigger. I mean, the States are

getting a five per cent increase in the general tax revenue from the

Federal Government this year. And the major call on State government

budgets and, therefore, the major call on that money is government

education. It has always been the case in this country that State

governments provide the lion share of funding for government schools

and the funding that is provided from governments to private schools

comes from the Federal Government. Now, that's the system obtained

under my Government and obtained under the Hawke and Keating governments.

And these statistical comparisons which always occur on a per capita

basis between government schools and private schools according to

the Federal Government sourcing, they're quite dishonest and

they ignore the fact that the great bulk of funding going to government

schools is at a State government level. I mean, we have helped the

needy independent schools significantly. The poorer systemic Catholic

schools and some of the poorer country schools and newer schools whose

parent population are only able to pay annual fees of $2000 or $3000

a year, we've helped them significantly but in the process we

haven't disadvantaged any of the others.

GRIMSHAW:

I guess the main argument, though, is that you haven't really

advantaged the others in as much as private schools seemingly enjoy

a greater – I mean, private schools have a revenue stream, for

example, from fees that State schools can't access.

PRIME MINISTER:

Well, that's the nature but nobody has to go to a private school.

But, hang on, that's the principle of our society that you have

free education, well, it's not totally free, nothing's totally

free, but it's more or less free for everybody. If you choose

to go to a private school then you have to carry a financial burden.

I mean, the purpose of this is to provide parental choice. That's

the principle. That is the goal to be achieved. That is the interest

to be served. Not the ideological views of people who support a private

or a government system. Why we support independent schools and government

schools is that we believe in freedom of choice. We think that parents

should have the right to decide where they send their children. Now,

if you are paying very high fees at a so-called very well off school,

you don't get much help from the Government and you have very

high fees. Now, I think that is probably fair enough, although perhaps

some of the parents in that situation wouldn't agree with me.

But we provide a lot of help to the poor parish schools because they

need it and the State government support government schools that are

available to everybody. And over and above their support we provide

literacy and numeracy support. I mean, we're putting almost –

this budget will provide an additional, I think, $300 million of additional

support to government schools over and above the money that is typically

provided by State governments.

GRIMSHAW:

Okay. Let's talk about health insurance. The consensus is that

you have indeed provided an incentive for membership but the gap will

still encourage people into public hospitals despite the fact that

they have private health insurance.

PRIME MINISTER:

Well, Tracey, we're working on that. One of the understandings

we essentially reached with the medical profession when the private

health insurance rebate was brought in earlier this year was the progressive

elimination of the gap. And for a lot of procedures in some parts

of Australia the gap has now been all but eliminated and we continue

to work on that. It is true that what we announced last night will

provide an additional incentive for people to go into private health

insurance and that is good. And the message out of it last night to

young people is join now while you are fit and healthy and not likely

to make any claims so that when that changes at some stage in the

future it won't be as expensive for you. A great incentive for

30 year olds to join.

GRIMSHAW:

Would you agree, though, that you're not going to ease the burden

on public hospitals until you fix the gap problem?

PRIME MINISTER:

I wouldn't agree that that is the only thing that constitutes

a burden on public hospitals. The fall in membership of private health

insurance funds is a problem for private hospitals. That's why

we brought in the 30 per cent rebate. All of these things play a part

and no one thing dominates the others.

GRIMSHAW:

All right. We'll leave it there. Thanks for your time this morning,

Prime Minister.

PRIME MINISTER:

A pleasure.

[ends]

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