PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
03/05/1999
Release Type:
Interview
Transcript ID:
11162
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP TELEVISION INTERVIEW WITH TRACEY GRIMSHAW TODAY SHOW, CHANNEL NINE

Subjects: Tax reform, budget, women in the workforce, private health

insurance, East Timor, aid workers in Kosovo, heroin trials, injecting

rooms.

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

GRIMSHAW:

Mr Howard, good morning

PRIME MINISTER:

Good morning.

GRIMSHAW:

You're a week and a day off handing down a budget that will presumably

be predicated, at least in part, on a GST that the Senate isn't

showing any signs, at this stage, of passing. Are you going to have

to bend on compensation?

PRIME MINISTER:

Well, every budget is predicated on the Parliament passing the legislation

to give effect to the budget measures. So it's no different in

that sense from any other budget. Tracey, everyone knows the position

with the Senate. We don't have the numbers. We fought an election

on major tax reform, not because it was good for this or that section

of the community but because it was good for the whole country. I

mean, we put that plan up because we believed it was good for Australia's

long-term future. Now, that's far more important than its impact

on this or that section of the community. In the long run, if we don't

have tax reform of this nature, we'll be a weaker, poorer, less

competitive country into the next century. It's that important.

And that's why we poured so much political effort into it and

that's why we took such a tremendous risk in the national interest.

And that is really what I want the Australian people to focus on,

that this is about securing the economic future of Australia. It's

not just about how it affects this or that section of the community.

We've lost sight of the national interest objective over recent

months. And that's not surprising but in the long run I believe

Australians will rally behind a reform that they know is good for

the long-term benefit of their country.

GRIMSHAW:

Well, I suppose it could argued as since Australians did rally behind

it, you won an election in which it was a key issue, but the Senate

is not rallying behind it and Senator Harradine said as recently as

Friday that the package remains structurally unfair. You need his

support, don't you?

PRIME MINISTER:

Well, it is true, as you say, that the public voted for it. And I

would like every member of the Senate to remember that. I mean, we

fought an election on this. We didn't hold back any detail. We

didn't fudge it. We didn't say one thing and do another.

We've done exactly what we said in the election campaign we would

do. I rejected all the conventional political advice in going to an

election campaign proposing what some people said was a new tax. It

was not a new tax. It was an entirely new tax system. And in those

circumstances we'd actually believed that the Labor Party and

the Democrats, indeed, everybody in the Senate should listen to what

the public said. It's not just Brian Harradine. I mean, Brian

Harradine would not have all this focus on him if the Democrats and

the Labor Party had accepted the verdict of the people, would he?

GRIMSHAW:

And yet he does have this focus on him and he has said to you, he

has challenged you, to say publicly what you will do to rectify what

he describes as the structural unfairness in the system.

PRIME MINISTER:

Well, everyone knows that we want to get it through. And obviously

there have been and there will continue to be discussions between

the Government and anybody in the Senate that shows a willingness

to consider the Government's position. Now, I'm not going

to go into the details of what may or may not be said and how it will

be said to Brian Harradine or to Mal Colston or, indeed, to anybody

else. But suffice it to say we want to implement the plan because

it's good for Australia's economic future. We're prepared

to, as I've said repeatedly, do a bit of fine-tuning but we're

not going to pull it apart the way that the Democrats, at the moment,

are suggesting we do. Because once you pull an important element out

of it you undermine the whole infrastructure, the whole architecture,

of the package.

GRIMSHAW:

Will fine-tuning perhaps been eating into the budget surplus to provide

a greater pillowing effect, if you like, cushioning effect?

PRIME MINISTER:

Well look, it's a fair question of you to ask and anybody in

your position would naturally ask that but I'm just not going

to get into that except to say that self-evidently, we are talking

and we'll continue to talk to the various players in the Senate.

I mean, self evidently that is the case but I'm not going to

sort of speculate, except to say that it's an integrated plan

and we're not, for example, going to exempt food, that's

out. You can't have business tax reform without general tax reform.

I was glad yesterday that Mr Beazley said he supported capital gains

tax reform. Well, I'd say to him, you can't have capital

gains tax reform without all the other reforms. You can't just

pull one bit out and say, we'll have that but we'll reject

everything else. I mean, life's not as simple as that. And the

whole thing is an integrated package. And that's its virtue.

I mean, it's easy to sort of do a little bit here and there.

Governments have been doing that to our tax system for years, that's

why it's such a mess. This is the first serious attempt to renovate

the whole system and it would be tragic, economically, for Australia

if it fell over, particularly after we won an election on it.

GRIMSHAW:

Senator Colston has accused Labor of trying to hasten his death. Do

you believe that they are dragging out the debate awaiting that eventuality?

PRIME MINISTER:

Well, they're certainly dragging out the debate and I think the

attacks on him are appalling. I have never heard such language used

about anybody. I mean, it is just beyond reason. The man has cancer.

That is unarguable. The evidence has been given. Are people seriously

saying he hasn't? I mean, it doesn't matter what he's

done in terms of his rows with the Australian Labor Party. And there

does come a point where they ought to ease up and I just think the

attacks that have been made on him are just appalling.

GRIMSHAW:

If the GST fails is it back to the drawing board for the budget?

PRIME MINISTER:

The budget is unaffected. As I said before, there's nothing unusual

about a budget being based upon the assumption that the Parliament

will pass legislation giving effect to budget measures. So in that

sense there's no particular significance in that.

GRIMSHAW:

Mr Beazley suggested yesterday that if there's no GST and the

budget takes into account GST significantly then the budget will be

wrecked?

PRIME MINISTER:

Well, he wants to wreck it. He wants to wreck the tax plan. I mean,

just remember the Labor Party has embarked upon a political exercise

of stopping tax reform in the hope that will damage the Government's

credibility. They're not really paying much regard to whether

tax reform is good or bad for Australia. They don't really care

about that. They just want to score a political hit on the Government.

Now, that's fine I guess, if you want to be a negative Opposition

but I think the public wants a bit more than that. Doesn't the

public really want to know what is good for Australia? And we put

forward a plan that we thought was good for Australia and we won the

election. They agreed with us. And what we're really saying is...

GRIMSHAW:

But you haven't won the Senate.

PRIME MINISTER:

No, but in the long run...

GRIMSHAW:

You've got to win the Senate, haven't you?

PRIME MINISTER:

...what's more important, I mean, the will of the – I

mean, how do you run a country? How do you run a parliamentary democracy

if the results of elections squarely fought openly and candidly on

an issue are not listened to?

GRIMSHAW:

Now, we're looking for some budget leaks here.

PRIME MINISTER:

I'm the wrong bloke.

GRIMSHAW:

Some exclusive information, we are told that high tech medical research

and women returning to the work force will be among the big winners

in the budget. Can you confirm that?

PRIME MINISTER:

Well there's a lot of rumours. Look I neither confirm nor deny

rumours. But I can remind you that in relation to giving encouragement

to women to return to the workforce after they've been out for

a couple of years having children we made some policy commitments

on that in the election campaign so there's nothing new about

that.

GRIMSHAW:

So pretty safe to assume that the budget...?

PRIME MINISTER:

Well I'm not confirming or denying anything in the budget.

GRIMSHAW:

What sort of incentives could you give women who've been out...?

PRIME MINISTER:

Well one of the things that we want to do, we had in mind at the election

campaign, was to improve their skills in areas where there may have

been technological changes and advances while they've been out

of the workforce. Our whole policy in this area is to give women the

maximum amount of choice. If they want to stay out of the workforce

for a few years when their children are young, indeed indefinitely,

if that's there choice well they should be helped and encouraged

to do so. If on the other hand they only want to do it for a couple

of years, which many women wish to do. They like to stay out for a

while and then go back, they don't want to lose their skills,

they don't want to fall behind. And what we had in mind at the

election campaign was to try and give them a bit of help.

GRIMSHAW:

Okay. I want to get on a few issues during this segment. Health fund

premiums. We are told they are about to rise. Given that you have

just given us all a 30% rebate for being in private health insurance,

that must dismay you that news?

PRIME MINISTER:

Well I've never given a guarantee that there'd be never

ever be any rises in premiums in the future. There's certainly

was an arrangement worked out with the Government where the rises

were to be less frequent. And there's no doubt the 30% rebate

will take pressure off the funds to lift their premiums. They're

still suffering from the enormous exit of people over the last couple

of years. The other point I'd make is that the 30% rebate is

a rebate on the increased premium if there is an increase. So it's

not a fixed amount. So if your premium goes up by ‘x' dollars

you get 30% of that back.

GRIMSHAW:

And yet we were told that the rebate would bring more people into

the system and therefore make it cheaper overall. Now suddenly within

a short space of time of getting this rebate premiums are about to

go up.

PRIME MINISTER:

Well I don't know the extent of increases but, as I say, I've

never said increases would never occur.

GRIMSHAW:

Six per cent.

PRIME MINISTER:

Well that's been kicked around but nobody can guarantee that

there'll never be increases in anything. I mean that's ridiculous.

But the 30% rebate has made it cheaper. Health insurance premiums

will always be cheaper, by 30% cheaper as a result of the rebate.

And the signs are, although we haven't got the official figures,

the signs are that there has been a big increase in the number of

people going back into private health insurance. Now....

GRIMSHAW:

Might that drop of premiums go up?

PRIME MINISTER:

Tracey, I don't know. I mean we don't control these things.

In the end they are controlled by the individual market choices of

people.

GRIMSHAW:

All right. While we're on matters of health we were told that

church groups in Sydney, one in particular, is planning to open a

heroin shooting parlour, in contravention of the law, in contravention

of your personal principles. How do you feel about that?

PRIME MINISTER:

Well I'm against heroin shooting galleries. I don't think

there's any evidence that they're of benefit. I think they

send a bad signal. They involve potentially a breach of State law.

The New South Wales Premier for example, who's got responsibility

in Sydney. He's against it. He has the same view as I do on this

issue.

GRIMSHAW:

And yet it seems to be, these sorts of ideas seem to be gathering

momentum.

PRIME MINISTER:

Well they get a lot of publicity because they have a news value as

distinct from the health value. I mean, it's terribly easy to

get publicity on the drug issue by sort of thumbing your nose at the

law and some say, oh look I'm in favour of the heroin trial,

I'm in favour of the shooting gallery. It's terribly easy

to get publicity doing that. The long term valuable work that is being

done is the extra money that's going in to helping people break

the habit. I mean I've talked to people who are involved and

as recently as last Thursday I sat down and talked to some young people

at the Central Mission in Adelaide. And the message I got from them

was that the biggest single need was to have rehabilitation and treatment

facilities available for somebody when that person decided that it

was time for him to break the habit. And the absence of that, rather

than other things, was what was uppermost on the minds of these people

who had been grappling with a heroin addiction for years.

GRIMSHAW:

All right. Let's look internationally and as closely as East

Timor. You had a very successful meeting with Indonesia's President

Habibie last week. But the actions of the militia in the wake of that

meeting must worry you. I mean how easy is it, well not even easy,

how possible is it going to be to have a fair and safe vote on independence

for East Timor?

PRIME MINISTER:

Tracey, it's not easy. It's better now than it was a few

weeks ago because there's a far stronger, or prominent public

commitment from the Indonesians for an open ballot.

GRIMSHAW:

Not from the militia groups though.

PRIME MINISTER:

No, but Tracey, you have to deal with the possible here. The asset

Australia has to use in Indonesia and Timor is influence. If people

are running around saying you should do this, you should do that,

what are they saying we should do? Invade the place? I mean, that's

ridiculous. If we walk away and wash our hands of it, that's

not going to influence the Indonesians to behave in a different way.

It's more likely to thrust them in on themselves and encourage

them to give up any responsibility for East Timor in saying, well,

if the world is unfair to us then we'll turn our backs on it.

What we have to do is steadily and sensibly and strategically use

our influence and that's what we've done. Now I can't

guarantee there'll be no more violence. Of course I can't,

because I don't control East Timor. East Timor is part of Indonesia

whether we like it or not. We have to deal with that reality and respect

it, and I think we've come a long way in the fact that the Indonesians

are now publicly committed through the UN will put a lot more pressure

on them.

GRIMSHAW:

Sadly we're running out of time, but I want to ask you about

diplomatic efforts to release the two Australian aid workers in Kosovo.

Are you encouraged by the release of the US troops?

PRIME MINISTER:

Well I'm delighted for their sake, and for the sakes of their

families that they're out. And I congratulate Jesse Jackson and

all of those involved in it. Naturally I hope that the same thing

can happen for Pratt and Wallace. I mean it's....

GRIMSHAW:

Do you step up the diplomatic efforts?

PRIME MINISTER:

Well we've never relaxed on that but you will understand it's

one of those situations where sometimes the less said the better.

We're trying everything we can at a diplomatic level. Malcolm

Fraser has done a great job as the Chairman of CARE in going there

and talking to the Yugoslav government. I thank him for that and I

know how concerned he and other members of CARE are. We have worked

very hard at a diplomatic level. We'll go on doing so, we'll

go on arguing that these men are not combatants. They're humanitarian

people who've helped serve refugees as much as they've helped

refugees in other parts of the country and I hope in the end that

that will be realised.

GRIMSHAW:

We'll leave it there. Thanks for your time.

PRIME MINISTER:

Pleasure.

[ends]

11162