Subjects: HIH Insurance; Maralinga; Alwyn Johnson; INCAT; Peter Hodgman.
E&OE................................
JOURNALIST:
Prime Minister what's your reaction to this morning's reports that HIH actually knew about its problems five years ago?
PRIME MINISTER:
Well I'm going to investigate those reports. Look, this is a very serious collapse. It is not possible for the Government to give a long term and comprehensive response until we have all of the information in front of us. And when we do have that we are going to give a serious response. We do want to help people who are real hardship cases. We intend to give the resources to the Securities' Commission to really throw the book at people who have been involved in wrongdoing and I want to make that very clear that if people have been involved in any wrongdoing the book will be thrown at them. And until we have all of the information in, it's easy for people to call on us to do things but we really need to have it all so that we can give a comprehensive response.
JOURNALIST:
The Victorian Government and the New South Wales Government have announced packages. What's .?
PRIME MINISTER:
Well they see, they have a direct statutory responsibility in relation to motor vehicle, third party insurance .
JOURNALIST:
They have ..
PRIME MINISTER:
No well because their responsibility is as of a direct statutory kind that's the reason.
JOURNALIST:
Do you agree with the Governor of the Reserve Bank that the insurance industry perhaps has been lax in agreeing to proper reform and regulation of the industry?
PRIME MINISTER:
Well he would make that comment based on his dealings as a supervisor and a regulator. Certainly the Government itself has been pressing very strongly for change and you would have to acknowledge that the Governor of the Reserve Bank would have a better understanding then just about anybody else.
JOURNALIST:
What's your reaction to claims this morning that the British Government has said that testing with regard to people and clothing did go on at Maralinga?
PRIME MINISTER:
Well I only heard that this morning and we once again having just got that report will be talking to researcher and investigating it. And we will certainly want to provide whatever assistance that ought to be provided, but that means compiling a lot of the histories of the people who were involved and I understand that a decision was taken by the former government, the Labor Government in 1986 not to compile a register of the people who were involved in the tests. That being the case, because of that decision by the Labor Government we would be in a sense in compiling a register starting from scratch.
JOURNALIST:
On another issue, when you were in Tasmania in August last year you announced there would be an investigation into the circumstances surrounding whistleblower Alwyn Johnson .
PRIME MINISTER:
Oh yes. Yes.
JOURNALIST:
What progress have you made with that investigation?
PRIME MINISTER:
Well quite a bit. There has been an in principle agreement entered into to settle the matter by arbitration and it's a question of appointing the right arbitrator and agreeing the terms of reference. As you know I have been a long term supporter of Mr Johnson. His case and the injustice of it attracted my attention while I was an opposition shadow minister, before I became leader again and certainly before I became prime minister. And I won't be happy until the man is given justice and a fair go and that's the reason why I pushed for the thing to be, as it were reopened and I think we're making progress and I want to see the man given a fair go. I don't think he was treated fairly and it's one of those cases where injustice needs to be addressed.
JOURNALIST:
Who would the other various parties be in the arbitration process other than Alwyn Johnson of course?
PRIME MINISTER:
Well obviously the bank would have some role in it but beyond that I don't think I should comment.
JOURNALIST:
What's the reason for the delay? [inaudible]
PRIME MINISTER:
Well because when you have an allegation and a denial of that allegation it always takes time and I think we've made huge progress to reach a situation where we can have some kind of agreed arbitration. I mean that is a huge step forward, it means that the end is in sight and it means that there is a real prospect that the man will be treated decently and fairly.
JOURNALIST:
Mr Howard, do you think it's fair that a state politician draws a salary from the state to run in his federal election campaign?
PRIME MINISTER:
Well it would not be fair if while campaigning he ignored his state parliamentary duties and knowing Peter Hodgman he's the last person in the world to ignore his state parliamentary duties. He will discharge then to the full and I certainly can point to many examples on the Labor Party side of this having happened. And he will do his job as a state member.
JOURNALIST:
Mr Howard, unemployment in Tasmania remains the nation's highest. Yesterday the announcement of INCAT workers cutting back. What will the Federal Government do? What can the Federal Government do on unemployment? And is this going to be the decisive factor in the next election?
PRIME MINISTER:
Well if it is it will work to the credit of the Coalition because unemployment in Tasmania and in Australia is much lower now than what it was when we came to office. It is still too high, but it is much lower now than what it was. We have done a lot to create the right economic climate for INCAT - lower company tax rate, lower interest rates, lower inflation, a tax system that takes GST and indirect taxes off exports, a big reduction in the company tax rate from the 1st of July so we've done a lot of things. Look there is a world wide surplus of ships of this kind, that's the reason why they're having difficulties. I've talked to Mr Clifford this morning and I think people are taking a sensible attitude at the moment. I'm very concerned about the welfare of the workers so is the management of the company but there are too many ships and not enough buyers at the moment and it's a world wide problem, it's got nothing really to do with the difficulty of economic conditions in Australia. In fact economic conditions in Australia now are more conducive to the success of a company like INCAT than they've ever been.
JOURNALIST:
Did he ask you why you didn't buy his HMAS Jervis Bay on a long term basis?
PRIME MINISTER:
Oh he thought the arrangement the company had with the navy was excellent.
JOURNALIST:
Why didn't you continue it?
PRIME MINISTER:
Well because we needed it for a particular purpose.
JOURNALIST:
Just back to Maralinga for a moment. Are you or have you committed to establish a register and therefore an investigation?
PRIME MINISTER:
No I have at this stage, having just heard about it, I'm getting more information and when we get that information the Minister for Veterans' Affairs will have something to say about it. But the point I make is that a decision was taken a long time ago by the former government not to establish a register. Now if you were to seek, seek to find out what's happened to people you would have to start with a register and we would be starting in a sense from scratch.
JOURNALIST:
Are you supporting that? Are you supportive of heading down that path?
PRIME MINISTER:
Well I want to get more information about it, I only heard about it yesterday.
JOURNALIST:
In keeping with what commonwealth payments are made for passenger equalisation subsidies on the sea, do you have any philosophical commitment or interest in a national highway status being extended to airline passengers?
PRIME MINISTER:
Oh Barry I think what I'll say on that at the moment is that we will have some Tasmania-specific policies to be announced when the election campaign is near or has started and we'll obviously take things like that into consideration in putting that package together.
JOURNALIST:
Can you give us a hint Prime Minister?
PRIME MINISTER:
No not at this stage, no. It's too early. We've got months and months of good government ahead of us before we get into an election campaign.
JOURNALIST:
Pre-selection has been delayed for the Liberal Party for the seats of Denison and Lyons. What's the problem in attracting candidates?
PRIME MINISTER:
In Lyons? We have a candidate. We have an excellent candidate, a candidate by the name of Page.
JOURNALIST:
I beg your pardon. Pre-selection has been delayed in Denison then, what's s .?
PRIME MINISTER:
Well no, well there's no . I mean if you just, I think we've got excellent candidates and we've got a field developing in Denison and you wait till you get the right field.
JOURNALIST:
The hoary old, the chestnut called Franklin Dam compensation.
PRIME MINISTER:
Yes it is a hoary chestnut, you've put it well.
JOURNALIST:
It's been sixteen or seventeen years, there's still an outstanding 61 megawatt factor worth some people put it at $100 million or $200 million worth. Peter Nixon a few years ago said it ought to be resolved or expedited. What's your feeling?
PRIME MINISTER:
Well I think the federal government has treated Tasmania in relation to that and other matters very fairly.