PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
18/06/1999
Release Type:
Interview
Transcript ID:
11067
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP INTERVIEW WITH ALAN JONES – RADIO 2UE Subject: Cricket, industrial relations - workers’ entitlements, Warren Entsch, Sydney hailstorm damage,

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

JONES:

Australia's number one cricket supporter is on the line, Prime

Minister John Howard. Prime Minister, good morning.

PRIME MINISTER:

Good morning.

JONES:

What about that?

PRIME MINISTER:

Fantastic. Can I say, I think the real sort of turning point for the

team and the thing that made last night possible in the first instance

and really sets us up to win on Sunday was Steve Waugh's century

in the encounter last weekend against South Africa.

JONES:

Absolutely.

PRIME MINISTER:

I think that is the best one-day innings I have seen not only for

the circumstances in which he batted but also the pressure that he

was under. And I'd like to join I'm sure millions of other

Australians in congratulating the team, in wishing them luck for Sunday.

I don't think everybody will be at work first thing on Monday

morning and I think everybody will understand that. But this has been

an extraordinary series and for sheer excitement you couldn't

beat last night. And you couldn't, I think, beat – you couldn't

but feel enormous admiration for our team because they were being

bucketed, they were being written off and to win all of those games

in a row – and only a couple of weeks ago people were talking

about them being out of the final six and certainly not in the semi-final.

JONES:

When Herschelle Gibbs dropped that catch, Steven said to him, because

they'd been sledging one another, Steven said to him, you've

just dropped the World Cup.

PRIME MINISTER:

And I agreed with what he just said a moment ago that the ball that

bowled Gibbs last night was a fantastic ball and I think psychologically

that would have had an enormous impact on the result last night.

JONES:

So the Prime Minister's feeling a bit dusty, he's been up

all night too.

PRIME MINISTER:

I'm very tired.

JONES:

Very tired. Well look, I'm going to tire you a little bit more

because now to the tough stuff. It is a quadrella now in Industrial

Relations – Cobar last year, Woodland Lawn, Austel Pacific last

year, now Oakdale. How many more companies will go under leaving employees

in the lurch before someone tells employers this can't happen?

PRIME MINISTER:

Well, I can't answer that but I can say that we are already discussing

with the States changes with to the Corporations Law to deal with

companies that arrange their affairs to defeat their obligations to

employees. We are, in relation to the latest one, we are asking the

Securities Commission to investigate whether there has been a breach

of the securities law. I don't allege that there has but I'm

asking, the Government is asking that that be investigated. And you

will remember that in relation to Cobar we ended recovering a great

bulk of the money that was owing to the men as a result of action

being taken by the Securities Commission to chase the company. And,

I mean, you are right in saying that in relation to Cobar they were

left in the lurch at the beginning but as a result of action taken

by the Government 85 to 90 per cent of the money outstanding to them

was recovered. And I wouldn't want your listeners to think that

that didn't occur.

JONES:

But I just want to make a point to you, because the CFMEU, the union,

and often they are quite militant people but on this one...

PRIME MINISTER:

[Inaudible]

JONES:

Quite, well let me just say to you, they've been campaigning

for some time to develop a structure where worker entitlements are

secure in the event of the collapse of a business and they say that

coal miners already enjoy protection of their long-service leave entitlements

by having a central fund...

PRIME MINISTER:

They do.

JONES:

...to which all coal companies are required to make a contribution.

Now, why wouldn't such a fund be available so that no workers'

entitlements will be lost or all workers' entitlements are protected?

PRIME MINISTER:

Well, we are going to discuss the feasibility of establishing that

sort of thing on a wider scale.

JONES:

But don't you reckon you're being a bit slow on this, I

mean...

PRIME MINISTER:

Well, you can criticise. I mean, I mean I am very sympathetic to what

has happened to these men.

JONES:

But that won't pay the bills, will it?

PRIME MINISTER:

No, no, it won't pay the bills. I accept that. And one of the

things that we're seeking to do is to investigate whether we

have any, there are any avenues of pursuit against the company. And

I'm not saying there are because...

JONES:

The union tell me that Peter Reith's Department is trying to

dismantle the central long-service leave fund.

PRIME MINISTER:

Well look, can I just say, in relation to that, we're not going

to do things that are going to remove existing security for workers

in relation to their basic entitlements. Now, as to the ultimate impact

of other changes to the industrial relations law there, of course,

is a long running debate between the union movement and the Government

and it's probably not productive to go into that now...

JONES:

No, but I mean, isn't this the business about the difference

between the workers and the employer at the end of the day is that

the employer makes a big quid, he can drive the Rolls Royce and have

the boat on the harbour and the holiday home in the south of France.

Now, he can't then say...

PRIME MINISTER:

They're not all [inaudible]

JONES:

No, I know they don't but what I'm saying to you, if you'll

just bear with me, they are now saying that, oh well, we inherited

this problem and this was all part of the collapse of Clutha, all

those years ago, the Clutha Group in February 1995 and the subsequent

funding of a new $2 company to operate the Oakdale mine using employee

entitlements and the employees knew about all this. I mean, that's

surely not an employer defence, is it?

PRIME MINISTER:

No, I don't think that's an employer defence but I also

don't think it's a correct categorisation of every one of

these situations to talk about Rolls Royce's and the south of

France. I mean, many...

JONES:

Well, we're speaking metaphorically but I'm simply saying

that's being an owner and employer.

PRIME MINISTER:

But it also conveys an image that whenever a business goes broke the

proprietor of the business waltzes away with the money. I mean...

JONES:

Well, this bloke owns other coal mines [inaudible]

PRIME MINISTER:

That is one of the reasons why we are asking the Securities Commission

to have a look at the matter. I make no judgements. And I remind you

again, in relation to the Cobar situation, that as a result of action

taken it was possible to recover a lot of the money that was owing

to the men. Now, I'm not saying that is going to be duplicated

in this case.

JONES:

But see, if you could have a central fund into which long-service

leave entitlements are paid, why can't you have a central fund

into which annual leave's paid and severance pay is paid and

retirement pay is paid? It's so simple.

PRIME MINISTER:

Well, that is being examined at the present time. Now, there are pluses

and minuses. I know at the moment it sounds all plus but the more

money that small businesses are not able to invest in the day-to-day

running of their businesses the lesser will be their operations.

JONES:

Oh yes, but it's not their money. I mean, your industrial laws,

that's employee money.

PRIME MINISTER:

I know but the point I'm making, Alan, is that in reality because

of cashflow needs many companies, many firms actually use this money

for the day-to-day operations of their business...

JONES:

Shouldn't, shouldn't employ people if you can't pay

them.

PRIME MINISTER:

I understand, I understand that but you often, quite rightly, argue

the case of business and commercial reality, I'm saying to you

that the business and commercial reality of many small firms is that

they need this cash for their day-to-day operations.

JONES:

But part of employing someone and going into business is knowing that

you must pay the wage plus.

PRIME MINISTER:

As long as you understand, and those who support such an approach

understand, that if you apply that kind of system in relation to all

of those entitlements you will have less money for small business

to invest in its operations.

JONES:

People listening to you would say it is not their money to invest.

PRIME MINISTER:

No...

JONES:

They are holding it in trust to the workers.

PRIME MINISTER:

I understand that but I would say to them in reply, that is correct

but in reality what happens, because of the cashflow needs of small

businesses, they effectively use that in their day-to-day operations.

JONES:

So I can't afford to pay my electricity bill so I'll go

and take John Howard's weekly pay and that will help me pay the

electricity bill...

PRIME MINISTER:

We're not talking about weekly pay here because...

JONES:

Well, the blokes would be better off taking it in one lump than having

all these appropriations put aside.

PRIME MINISTER:

Well, I mean, look Alan, I'm not disagreeing – I mean, you

are arguing a very strong case but I am pointing out to you the consequences

of it and that is a judgement that we will have to make and the community

will have to make.

JONES:

So what do we say to these miners right now, Prime Minister of Australia,

just have a good weekend?

PRIME MINISTER:

No, I don't say that. I don't say that. I'd point out

to them that we are investigating the behaviour of the company. We've

asked the Securities Commission and I'm not making a judgement

that the company's done anything wrong at this stage. I don't

know enough of the circumstances. And as has happened in other cases

it could well be that as a consequence of that investigation something

will occur.

JONES:

When will the miners know?

PRIME MINISTER:

I can't tell you that. I may be able to tell you that next time.

JONES:

Is this urgent?

PRIME MINISTER:

Well, it's certainly urgent...

JONES:

While these people are being sacked you are having a dogfight in the

Parliament over Warren Entsch. I'm not suggesting it's of

your making but can you understand how the public see the misplaced

priorities...

PRIME MINISTER:

Well, I couldn't agree with you more on that. I mean, while the

Labor Party was raising Warren Entsch I was trying to get a decent

deal for Australia's lamb exporters by talking to President Clinton.

I mean, I couldn't agree with you more. That was a complete waste

of time. The man's not done anything dishonest. He's not

taken a penny. He's not taken the public down. He's not

doing anything wrong. He didn't try and use his position to win

that contract. I mean, it's an absolute load of nonsense.

JONES:

And can I also just say to you, and I know that you and Jenny Shipley

were doing excellent work in relation to the lamb issue...

PRIME MINISTER:

Well, I hope so, I'm not sure yet.

JONES:

Well, you don't know. I mean, they are putting...

PRIME MINISTER:

We don't know the outcome yet.

JONES:

Well, they are putting American business and American farmers first

and perhaps we have to think some time down the future about doing

that as well. But could I even say something to you, that as all this

was going on are you aware, and I'm sure you're not, that

there could be up to 20,000 homes in hailstorm damaged Sydney that

will not have a roof over their heads before Christmas and when they

get a roof over them they will not then have a house underneath them

because what is underneath is unliveable? I'm just wondering

if the Prime Minister of Australia is aware of the appalling trauma

that these people are suffering and no one, not a person from Federal

Government, not a person from the New South Wales Government, has

actually stepped foot inside one of these homes.

PRIME MINISTER:

Well, that's not right, I have.

JONES:

How, you couldn't possibly have set foot inside those homes.

PRIME MINISTER:

Well, Alan, I'm sorry, I mean, I'm not making a big deal

of it but I actually visited the area the weekend after it occurred.

I know the area very well.

JONES:

Do you know these people won't have a home to live in until after

Christmas?

PRIME MINISTER:

Yeah I know, but I mean, let's just...

JONES:

Okay, well you've been there.

PRIME MINISTER:

I'm not saying I've got the answer to every one of the nation's

problems. But I mean, don't say to me that I haven't –

nobody's set foot and the Prime Minister has. I mean, I'm

not saying that's the answer...

JONES:

Then I can't believe you wouldn't have been...

PRIME MINISTER:

[Inaudible]...in proportion.

JONES:

I can't believe you wouldn't have been moved.

PRIME MINISTER:

I was and I was also...

JONES:

To do what?

PRIME MINISTER:

I was also tremendously, I was impressed by the, as always in these

situations, by the resilience and co-operative spirit of the people

that were involved.

JONES:

But they don't have a house, can you believe this, they don't

have a house until after Christmas? They won't have a roof until

Christmas if they're lucky. Now, under the roof there's

no home. These are Australians. This is not Kosovo or Macedonia.

PRIME MINISTER:

I understand that Alan but I can't, I mean, no individual in

public office is responsible for natural disasters but what we are

responsible for...

JONES:

For the response.

PRIME MINISTER:

Well, the response – and I'm not trying to evade our responsibilities

– but the response is primarily at a State level as you know.

We offered the resources of the army from the very beginning and they

weren't taken up. And I'm not trying to score a political

point on that but I have to say in defence of the Government that

we were willing to do that. And all of the ordinary natural disaster

relief arrangements that come into operation on an occasion like this

were available and in operation. I am very much aware of the difficulty

in which those people are living. I've spoken to people who've

lived in that area. I'm very familiar with that area and as I

said earlier, I've visited it and I'm personally very conscious...

JONES:

That's the rhetoric, where's the action? What are we doing,

what are we doing?

PRIME MINISTER:

Well, in the great bulk of cases, as I am told, insurance claims are

being processed. There are some where are there are disputes and some

of those disputes arise from the fact that some people elected not

to take out insurance.

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