PM: Well we said we'd get down to work and roll up the sleeves and get on with the job of Government and that's what we've been doing today here in our first Cabinet meeting here in Brisbane.
On Monday we dealt with a range of matters concerning climate change, including our decision to honour our pre-election commitment to ratify the Kyoto Protocol. That's a core challenge, of course, for the economy and for the environment.
What we have been deliberating on today here in Brisbane are matters of equal importance and they relate of course to the economy and to education. The key challenge for the future is to make sure that we have a proper set of policy settings in place to deal with Australia's long term economic policy challenges. A core part of that is to ensure that we have proper monetary policy settings and proper monetary policy arrangements with the Reserve Bank. And what Wayne Swan and I are announcing today are a new set of arrangements to further underline the independence of the Reserve Bank.
What the Treasurer has outlined in correspondence with the Governor of the Reserve bank is our proposal, first of all, to underline the independence of the Reserve Bank by ensuring that both the positions of Governor of the Reserve Bank and Deputy Governor become independent statutory appointments. This would ensure that the Governor and the Deputy Governor enjoy status equivalent to other statutory office holders. At present, the Governor and the Deputy Governor exist effectively at the Treasurer's whim. We believe that we need to enhance further the statutory independence of those roles.
The second measure to enhance the independence of the Reserve Bank is as follows to ensure that when it comes to future appointments of the Board of the Reserve Bank that the appointees are taken from an agreed register or panel of possible board appointments put together conjointly by the Secretary of the Treasury and the Governor of the Reserve Bank.
We are keen, very keen, to avoid any future politicisation of the Reserve Bank Board. We're aware of controversies which have arisen in the past. We believe that by approaching it in this way in the future we will underline and enhance the independence of the Bank. An effective monetary policy is crucial for Australia's economic future and we believe that these measures to enhance Reserve Bank's independence are the right way to go.
On broader economic policy settings of course, we've been warned recently by the Governor of the Reserve Bank about continued inflationary pressures in the economy. There are three ways in which we can address this challenge. One is to ensure we have an effective independent monetary policy anchored still in the independence of the Reserve Bank plus the continuation of the Bank's inflation targeting regime.
The second is to ensure a disciplined approach to fiscal policy and we believe that a hardline approach to fiscal policy will be necessary into the future. That's why we've commissioned, for example, work already on the operation of a razor gang within the Government to deal with problems of any administrative excess and cost cuttings where they can be implemented in the administrative functions of Government departments. We are committed to budget surpluses, we're committed to robust budget surpluses and part and parcel of that is to ensure that we are properly implementing a regime of razor gang type disciplines against unnecessary outlays.
The third element of effective policy in confronting the inflationary challenge in the economy is to ensure that we maximise our investment in skills and infrastructure. And today, again consistent with our pre-election commitment of this first meeting of the Labour Cabinet, we have considered and decided upon a submission put forward by Julia Gillard, the Deputy Prime Minister, on the implementation of Labor's pre-election commitments for the digitisation or the introduction of the digital revolution for Australian schools. This is an important program to ensure that our young people in the future have all the skills that they need to compete in the current Australian economy and in the global digital economy of tomorrow. This is core Labor business. It's part of building up the skills profile of the economy. We've already seen recent reports how against international scholastic benchmarking, our achievements are already under international challenge.
The other measure I would announce today before asking Wayne and Julia to comment further on what I've just touched on is consistent with what I have said in recent days I would also be releasing today the Code of Ministerial Conduct. I'll draw that to your attention, particularly in terms of some changes which have been made.
First of all, lobbyists will be required to register their details publicly on a register of lobbyists to be established by the Department of Prime Minister and Cabinet before seeking access to ministers or their offices.
Secondly, ministers will be required to undertake that when they leave office, they will not seek to have business dealings with members of the Government, the public service of the Defence Force on any matters they have dealt with in an official capacity in the preceding 18 months, one and a half years.
Thirdly, electoral fundraising at the official residences of the Lodge and Kirribilli House will be prohibited.
And fourthly, ministers will be required to divest themselves of all shareholdings other than through investment vehicles such as broadly diversified superannuation funds or publicly listed managed or trust arrangements.
The code of conduct is there for your perusal. If I could get Wayne to add to my comments on the independence of the Reserve Bank and Julia to add to my remarks on the roll out of Labor's Education Revolution. Wayne.
TREASURER: Thank you very much, Kevin. I'll be very brief. Can I just say I'm delighted to be announcing these measures which have been agreed with the Reserve Bank Governor to strengthen the independence of the Reserve Bank.
The Reserve Bank is absolutely critical in the fight against inflation, absolutely critical to having a modern economy where we can create wealth without inflationary pressures. So its inflation targeting regime is absolutely critical to a healthy economy, along with strict budget discipline and of course spending which invests in the productive side of the economy.
So, this is a very good announcement, recognising the fact that the Reserve Bank is a world class institution (inaudible). These measures today have been agreed with the Government. I'm delighted to be making this statement today on the conduct of monetary policy because it puts us where we need to be in the fight against inflation.
DEPUTY PM: I think it's very important that the first Cabinet submission that is considered by a Rudd Labor Government is about the implementation of such an important part of our Education Revolution.
Immediately after the election, Kevin instructed our Labor colleagues to go to schools in their electorate and to report on what was happening with computers in schools. Unfortunately they found too many Australian schools don't have adequate internet access. Some don't have internet access at all. Too many schools don't have enough computers for senior secondary students, those in years 9-12, to have access to a computer. And too many are crying out for the sort of technology aid that can make a difference in classrooms like interactive white boards and digital projectors. Today Cabinet has agreed that we will implement our $1 billion fund to bring computers to year 9 to 12 student in each Australian secondary school. We will immediately audit what is out there so we have a full picture of the starting point and we will immediately commence discussions with our state and territory colleagues and with the independent and catholic school sectors so that we will be ready to roll out to commence during the course of the financial year. In the course of this financial year, there will be expenditure of $100 million on grants for schools to assist them with getting computers into classrooms, internet access and other information technology aids. This is the first part of our $1 billion fund which of course will be delivered over the coming four years.
PM: Thanks Julia, thanks Wayne and over to you.
JOURNALIST: (inaudible)
PM: Answer the second question first. We'll be taking the Cabinet out of Canberra a lot and we've already got plans to visit various other parts of the country over the coming months. I think it's very good for Cabinet colleagues to be exposed to the entire country and I think it's also very good for our senior public servants have the same experience.
In terms of Queensland, in case any of you have missed it, it's my home town and it's Wayne's and it's good to be back and this is an important part of Australia's future and we want to recognise that by holding our first Cabinet meeting here. Can I say when you look more broadly across the country and the dynamic contribution by the West and by South Australian and the other states, its' important that the Cabinet go out to meet the people rather than being always locked behind closed doors in Canberra.
JOURNALIST: (inaudible)
PM: Well Mr Nelson the other day I thought was supporting our decision to finally ratify Kyoto after a curious period of opposition to Kyoto ratification. Now he seems to be adding to his comments of the other day.
We have said consistently that our approach to interim carbon targets will be based entirely on the submissions and the recommendations of the Garnaut committee of inquiry into the national emissions trading regime that we've proposed to establish. That's due to report in the first half of next year. A lot of the secretariat work for that now is being underpinned by the Commonwealth Treasury. And that is the basis upon which we will establish an appropriate set of interim carbon targets. I think speculation of individual numbers prior to that is not productive and I would suggest that it would be better for all concerned if we waited for the outcome of that properly deliberated document.
JOURNALIST: Mr Rudd, in your conversation with the Chinese Premier last night, (inaudible).
PM: Well my discussion (inaudible) focussed on strategic dialogue between Australia and the People's Republic of China. It focussed on the continuation of free trade agreement and negotiations between the two countries (inaudible) and focussed on climate change. The Chinese Premier specifically congratulated Australia on its decision to ratify Kyoto and noted that we'd be attending the Bali conference.
I think it's really important that Australia act not just nationally but internationally on climate change and I will say and say again that our job in the future is to do whatever we can to try and bridge the gap which is currently enormous between developed and developing countries. This is an enormous task. In fact in some areas there are reports that the gap is widening but this is an area where we will work and work hard, together with our nominated minister for climate change, Penny Wong, and those supporting Penny.
Bali is in large measure about agreeing on a negotiating pathway for the future. And that's a critical outcome for Bali - to make sure that it sets in train a process over the next couple of years with the endpoint of bringing about agreement on comments for the future commitment period.
What role can we play? We'll be as active as we can, we'll be as constructive as we can, positive as we can because climate change is a challenge not just for Australia but for the region and the world.
JOURNALIST: (inaudible)
PM: The target that you referred to, 25-40, is in fact contained in what is described generally as the Vienna Declaration. It's a document from August of 2007 negotiated by officials. Many states have publicly recognised the work of the IPCC in putting together that report but in so doing, states have also indicated that they do not necessarily accept those targets, nor do they accept those targets as binding targets for themselves. That has been a reality since the Vienna Declaration was issued in August of this year. That is also the position of the Australian Government. Therefore we will be determining, based on the merits, based on the advice that we get from the Garnaut commission of inquiry, the interim targets which are appropriate for Australia. And the reason for doing it in the methodical way in which we've outlined is to ensure that those targets are meaningful environmentally and responsible economically. And that's the way ahead.
JOURNALIST: (inaudible)
PM: There will be a publicly declared list of lobbyists and it will be updated as I'm advised on a six monthly basis and therefore it will be clear cut from that list which lobbyists are working with the Federal Government and on behalf of which companies. And therefore, if lobbyists, for example, change their clients, there'll be a six monthly obligation at a minimum for that to be updated.
JOURNALIST: (inaudible)
PM: The proposal we have contained here is for a declaration of the lobbyists themselves (inaudible) an advance on where we are at the moment and who they represent which is another further advance of where they are at the moment as well. That's where we propose to take it at this stage. We think that is a good step forward in terms of transparency and accountability and also of regular updates (inaudible).
JOURNALIST: (inaudible)
PM: The question of legislation of the type that you speak, it's always been our view as the Labor Party that that lies properly within the (inaudible) of the states. And that remains (inaudible).
JOURNALIST: (inaudible)
PM: Well, Queensland has been a big contributor to the nation's economic prosperity and I think what I would like to do, and I'm sure Julia and Wayne would be on this bus as well, is to make sure that when it comes to international political meetings, when it comes to major international economic conferences that are not just concentrated in the triangle but are actually spread around the country - whether it's Brisbane, whether it's Perth, whether it's Adelaide or Tassie. Because every part of the nation in contributing to the nation's prosperity. In Queensland here, we see this part of the national economy as growing strongly but we would like to see of course more and more international focus delivered to those parts of the country beyond the triangle.
JOURNALIST: Prime Minister, Professor Garnaut's going to Bali with you next week and do you see a broader role for Professor Garnaut working in the region on climate change (inaudible)?
PM: I have enormous respect for Ross Garnaut. Ross was my ambassador in China years ago back in the mid-80s. I've known him since then and prior to that he was a key economic advisor to the Hawke-Keating Government and I think they would accept that he was a key architect of so many of the measures which resulted in the internationalisation of the Australian economy at the time.
Now, as for Ross' current role which relates to the emissions trading regime, and Wayne can add to this, that commission of inquiry is now being supported by the secretary (inaudible) across the Commonwealth Treasury, supplemented by continued contribution by state officials.
In terms of Bali, based on my current advice, he's not attending Bali but I'm open to that and I'm sure I've got further discussions with people to concur on that. In terms of the wider role for Ross into the future, he's a very talented guy and he's a bloke who knows his economics, is passionate about acting on climate change and I'm sure subsequent to the conclusion of this report there'll be further work for Ross Garnaut to do for Australia.
JOURNALIST: Stolen generation (inaudible).
PM: In the Cabinet discussion today, no, but we have further Cabinet meetings planned and work is underway as far as all those matters are concerned. And we'll be speaking to appropriate representatives groups from Indigenous Australia, Aboriginal Australian, Torres Strait Islander Australians, but we'll also be seeking advice from those people good will across the country and across the political divide. You know something? This all works if the country gets behind it. And I'm determined it's going to work and work well.
JOURNALIST: (inaudible)
TREASURER: (inaudible) there was a regrettable problem a couple of years ago with the appointment of a Reserve Bank Board member and the perceived conflict of interest and we said at that stage that it was very important to strengthen the independence of the board. We've talked for some time about the need for greater transparency. We've talked about strengthening the independence and we think this is a very good time to do it because traditionally when governments change, they do enter into such an agreement with the Reserve Bank. We've done that. The discussion with the Board has been very useful. They've been very friendly and I'm delighted we were able to reach an agreement with the Governor yesterday, published a whole lot of transparency measures which will mean that the Board's practices are first class and world class and we think that the measures that we've announced today further strengthen their independence. The last thing anybody wants to see is the Reserve Bank politicised and these measures today will further strengthen their independence.
PM: You see, the Reserve Bank is a first class economic institution by global standards. It doesn't matter who you speak to around the world in the (inaudible), our Reserve Bank of Australia is a well regarded institution, well regarded. And therefore we have a responsibility to the nation to continue to strengthen and to underpin and to underline its independence. These are practical measures which the Treasurer has discussed and agreed upon with the Governor of the Bank which we believe sends a powerful signal out to the country that we have not only confidence in the Reserve Bank but we believe it is integral and fundamental to Australia's future economic well being to ensure that we have independent monetary policy.
JOURNALIST: (inaudible)
PM: Well on the first point I've said prior to the election and subsequent to the election that there'll be a razor gang. The last time I looked at the way in which razors operate they can be (inaudible) painful. Let's not hide from that. I understand that. But you know? It's part and parcel of the price to pay when it comes to maintaining a strong fiscal position, maintaining and advancing budget surpluses particularly when we face economic challenges in the period ahead. So we make no apology for that. Independent monetary policy, strong fiscal policy, committed to budget surpluses, as well as enhancing the national economy productive capacity through investment in skills and infrastructure. As for the proposal for the staff cuts in terms of ministerial staff. (inaudible) The answer to your question is yes, we have done that.
JOURNALIST: (inaudible)
PM: Could I just add to that? You know, ministerial staff have sort of grown like (inaudible). You've got to lead by example here. You just rein it back a bit. You've heard us all say from time to time how obscene government advertising was in the previous government. Well it was obscene, absolutely obscene. It's unhealthy for the democracy and a waste of taxpayer's money and having you know something equivalent to a battalion strength detachment of ministerial staff and advisors, frankly I think it is getting over the top. So there will be 30 per cent cut and that's what we've implemented.
TREASURER: Sorry, if there's waste out there, we're going to find it (inaudible)
JOURNALIST: (inaudible)
PM: We have been deliberating on that internally since the election. In fact we had some much earlier consideration of it by Lindsay Tanner and the Expenditure Review Committee of Shadow Cabinet prior to the election. This is something we are determined to do. We think it's the right way to go. We hope it sets the appropriate example for government at large because we believe it's far better to spend scarce taxpayers' dollars on building an education revolution not in providing us with 27 press secretaries.
JOURNALIST: (inaudible)
PM: Look, roundabout is what I would say (inaudible)
JOURNALIST: (inaudible)
PM: (inaudible) could I say 30 per cent is a big slice and we're determined to prosecute that and you will see us adhering to that ball park.
JOURNALIST: (inaudible)
PM: On the Haneef matter, our pre-election commitments remains and that's that we believe there should be an independent judicial inquiry. We're obtaining advice within the government about how best to proceed on that front and we will. The reason for it is not simply to rake over the coals for the sake of raking over the coals. We've got to make sure that with these tough anti-terrorism laws that we've got in Australia that we've got the proper institutional arrangements necessary for their enforcement and the proper checks and balances are in the system as well. So what we're on about is actually establishing the facts for all of that. On the timetable for it, I cannot advise you today, but we are seeking advice on it.
On the second point, I'd rather not comment.
JOURNALIST: (inaudible)
PM: I believe, that correct me if I'm wrong colleagues here, but our consistent position for a long period of time has been on these matters that states and territories are answerable to their own jurisdictions and I'm unaware of any such commitment (inaudible).
JOURNALIST: (inaudible)
PM: On our approach to these questions, state and territory governments are elected to govern and are accountable to their constituencies. The ACT Government's indicated it wishes to head in a particular direction and the ACT Government is therefore in a position to be accountable to its citizenry for that. We've got to run. Thanks very much.
ends
Attachment
Standards of Ministerial Ethics - available on the Department of the Prime Minister and Cabinet website