Subjects: bilateral meeting; social security agreement; defence; Indonesia; trade; pensions; petrol prices.
E&OE................................
PRIME MINISTER CLARK:
We've had a good two-hour discussion this morning ranging over many issues. Clearly the finishing touches are on the social security agreement which the full details will be out about tomorrow. We've had a good talk about Timor and our commitments there; about developments in Indonesia generally; discussion about the Bush Administration and the various possibilities for trade initiatives there. And we've [inaudible] on what needs to happen with the new World Trade Organisation round. We've broadly ranged over a lot of issues and it's been a very worthwhile two-hours
PRIME MINISTER HOWARD:
Yes I'd agree very much. We've covered the whole gamut of the bilateral relationship as well as regional issues. And obviously tomorrow there'll be details announced of the social security agreement. We won't be going into the detail of that this morning. But these regular bilateral visits which have been a feature of our political relationship now for some time are very beneficial and it's important to invest not only regular time but lengthy periods of time to talk at a prime ministerial level on the relationship and it can only make it even more effective and helpful.
JOURNALIST:
Prime Minister Howard, do you believe that the social security issue is now [inaudible]?
PRIME MINISTER HOWARD:
Well it was something that needed to be addressed and the good thing is that it's a win-win. It's good for New Zealand and it's good for Australia.
JOURNALIST:
What's the win for New Zealand?
PRIME MINISTER HOWARD:
Well we're going to talk about it tomorrow okay.
JOURNALIST:
Prime Minister Howard, did you raise Australia's defence concerns with Ms Clark?
PRIME MINISTER HOWARD:
We talked about defence and what New Zealand decides to do on defence is a matter for New Zealand. I don't give public advice to other countries about what they ought to do in relation to their expenditure priorities. As I indicated in Sydney that whatever decisions countries take is a matter for them. There are implications and consequences of decisions countries make. We have put more money into defence and over a ten year period there's going to be a build up in Australian defence spending starting this coming year and it will build steadily over the remainder of the decade and we've laid out in a white paper where we stand.
JOURNALIST:
[inaudible] New Zealand's Air Force and Naval defence capabilities. Did you raise that with Ms Clark?
PRIME MINISTER HOWARD:
We talked about the whole gamut of things. But let me repeat that what New Zealand decides to do in the end is a matter for New Zealand. And that is a matter that is between the New Zealand government and the New Zealand people just as what we decide to do is a matter between us and the Australian people. We've made our position on defence very clear and after careful consideration we're putting a lot more resources into defence.
JOURNALIST:
Can I address question to both of you please?
PRIME MINISTER HOWARD:
Certainly.
JOURNALIST:
In view of this being the 50th anniversary year of the ANZUS agreement, do you see any benefit in reviewing the treaty arrangements [inaudible]?
PRIME MINISTER HOWARD:
Well if I may to presume to answer it first. We didn't discuss that no. We have a very strong bilateral relationship with the United States. We have a very strong bilateral relationship with New Zealand. And I don't see the need in terms of Australia's position to re-negotiate anything.
PRIME MINISTER CLARK:
I agree completely. We have a good bilateral relationship with Australia. We've not had a defence alliance with the United States. For the record New Zealand is having a very substantial reinvestment of its defence forces at the moment starting with the army which had the most [inaudible] equipment, not having substantial investment for many years. We're looking at the moment at the ten-year forward spending program. There is a lot to be done. New Zealand is not looking at cutting its defence spending. If anything it's likely to increase.
JOURNALIST:
Prime Minister Clark, Is Australia essentially creating future New Zealand migrants who are second class citizens under the new welfare arrangements do you think?
PRIME MINISTER CLARK:
Well they're not citizens. The issue is that there has been a quite disproportionate flow from New Zealand to Australia in recent years and at some point you have to face up to implications of that. Our message to Kiwis is if you go to Australia, just the same as if you go to the States, Britain, Japan or anywhere else, you can't expect your government to [inaudible] with social security arrangements across the board. We're very happy to pay for our share of superannuation where people spent part of their working life in New Zealand. We're very happy to provide support for people with long term and severe disability. Realistically we can't be expected to fund wide social security needs for New Zealanders who have chosen to move, and nor would we expect to impose an obligation on the Australian government.
JOURNALIST:
Prime Minister Clark, do you think that the 'Bondi bludger' is actually a myth?
PRIME MINISTER CLARK:
It is a bit of a myth because the unemployment rate of Kiwis in Australia has been rather low compared with other groups in Australia. It's certainly no higher than that for the Australian born population. But it's been a bit of a whipping boy and I think one of the gains of it, this new relationship, will be that there can be no substance given to such a myth. It is, by the way, win-win. For New Zealand there are significant savings over time in this agreement.
JOURNALIST:
Prime Minister, is it a bit mean to be cutting the excise adjustment to the pensioners by 2%, undercutting..?
PRIME MINISTER HOWARD:
Well we're not. We're not cutting anything. What happened was that an increase was paid in advance and the discounting that's occurring merely ensures that it is not paid again. There's no cut, and this was made very clear at the time. And in addition Australian pensioners will always be 2% better off in real terms than they would have been under old arrangements. There is no cut. These arrangements were fully explained - as the Labor Party knows - at the time of the GST's introduction. And if the Labor Party is arguing there's been a cut will they now promise if they win the election to increase pensions by the amount of the claimed cut. They won't because there's been no cut.
JOURNALIST:
Ms Clark, did you raise with Mr Howard the issue of [inaudible] Australian tax system recovering money of New Zealand people [inaudible] Australia?
PRIME MINISTER CLARK:
We haven't discussed that today but there is some early exploratory discussion going on between officials around..
JOURNALIST:
How does this effect Australians living in New Zealand?
PRIME MINISTER CLARK:
We haven't proposed any change with respect to Australians coming to New Zealand. In all truth the numbers are rather small and the administrative inconvenience of making the change could well outweigh any saving involved. We're not in the mind to discourage Australians coming to New Zealand. We're rather like more skilled and talented Australians if I could make that broadcast right now.
JOURNALIST:
[inaudible], Indonesia and East Timor. Given the arrangement of [inaudible] Indonesia, given the continued [inaudible]?
PRIME MINISTER CLARK:
We are both expecting Mr Wahid to visit. We've got concrete proposals around dates which are broadly satisfactory with the beginning of April. That gives us both a chance to engage directly at the highest level on what is happening in Indonesia. Our main focus obviously has been Timor and seeing a durable...border arrangement settled down there. As for the rest, one obviously looks with some concern that the level of dissent around the regions of Indonesia but I think in reality we are a little more than onlookers and observers.
JOURNALIST:
Prime Minister Howard, on free trade you're looking at an agreement with the US. Was there any discussion about New Zealand coming into that...?
PRIME MINISTER HOWARD:
Well there was a lot of discussion about that issue and also the very strong common views we have about a new World Trade Organsiation round. As far as a bilateral agreement between Australia and the United States is concerned we are obviously prepared to see whether progress can be made towards that. I think it's important not to unduly raise expectations because there is no gain for Australia in such an arrangement unless there is significant give by the United States on critical issues. And obviously we're going to keep New Zealand fully informed of those discussions as they proceed.
PRIME MINISTER CLARK:
Any trade agreement with the United States needs to cover agriculture and as we're both engaged at the moment in litigation through the WTO. With respect to American protectionism clearly that's a very big barrier in the way of reaching agreements. But we're all hopeful. Australia's making its approach, we're making our approach. We still have hopes for a P3, a P4, a P5 if that's at all possible. But at this stage it's not entirely clear just what priority the Bush Administration will give to bilateral agreements, what priority it will give to say the Asia Pacific as against Latin America. So at the moment the approaches are probably best described as exploratory.
JOURNALIST:
Mr Howard, are you concerned by a new poll in your electorate showing [inaudible] Liberal and Labor is now at 36% each?
PRIME MINISTER HOWARD:
Well that poll didn't surprise me in the slightest after the last couple of weeks which has been politically the worst couple of weeks the Government's had, certainly since its re-election. Given the newspaper coverage, the publicity of the last few weeks any poll at the moment will be lousy and they're likely to be lousy for a while. That happens in politics. And nothing in the poll arena at the moment would surprise me.
JOURNALIST:
How are you going to reconnect with your heartland [inaudible] ?
PRIME MINISTER HOWARD:
Well that makes a number of assumptions, requiring a detailed response which perhaps is not appropriately given in another country.
JOURNALIST:
Can I ask you specific question?
PRIME MINISTER HOWARD:
That was a very specific question.
JOURNALIST:
Could you clarify your position on the fuel excise? Newspaper reports of course [inaudible] that you were wavering. Is the whole [inaudible] under review this very weekend and will you be announcing any changes or [inaudible]?
PRIME MINISTER HOWARD:
Well I am totally preoccupied with the very important bilateral relationship between Australia and New Zealand this weekend. And of course I observed as I drove in from the airport the price of petrol in New Zealand and it's not essentially dissimilar after you make an exchange rate adjustment with the price in Australia which does underline the point that the main driver of high petrol prices in Australia is the world price of crude oil. Look I was asked this question or something very similar to it by Neil Mitchell and I gave an answer which you should take completely as indicative of my thinking on the subject.
JOURNALIST:
So the interpretation in papers..
PRIME MINISTER HOWARD:
Well I don't comment on interpretations. Just have a look at what I said when I spoke to Neil Mitchell.
JOURNALIST:
[inaudible] suggest that [inaudible] about disruption [inaudible] regions of Indonesia. Does Australia also [inaudible] as just an observer?
PRIME MINISTER HOWARD:
Of what is occurring..?
JOURNALIST:
Yes, or do you see yourself...
PRIME MINISTER HOWARD:
Well we certainly don't see ourselves interfering in Indonesia's domestic affairs, no. And we recognise the sovereignty of Jakarta over the archipelago. I mean we certainly are not in the business of giving public advice to the Wahid Government. And our relationship with Indonesia obviously went through a difficult phase because of East Timor. But we've worked hard to build a stronger and more realistic relationship in the future. I hope that President Wahid does come to Australia and New Zealand. It will be a very welcome visit and he'll be treated in a very hospitable fashion.
JOURNALIST:
Ms Clark, do you believe the Australian government should also meet with [inaudible]?
PRIME MINISTER CLARK:
That's entirely up to Australia who it meets with.
[Ends]