KEIRAN GILBERT: Ms Gillard, thanks for your time this morning. Can I start by getting your reaction to the death of New Zealand icon, Sir Edmund Hillary?
JULIA GILLARD: Certainly Sir Edmund's name is synonymous with adventure, with achievement, with dreaming and then making those dreams come true. I am sure there will be many Australians today who reflect on his death. It was obviously a long life well lived. People always looked at him as a man of achievement and I think people today will mark his passing with regret. But for generations to come people will study what Sir Edmund achieved by being of course, the first to get to the top of the world, and to successfully conquer Everest.
KIERAN GILBERT:And as part of the New Zealand national identity I suppose one of their proudest and greatest heroes.
JULIA GILLARD: I think the statement today from Prime Minister Helen Clark captures that well. Obviously Helen Clark, as the leader of New Zealand is reflecting the views of the New Zealand people. Sir Edmund Hillary was one of New Zealand's giants, of course a name known around the world and someone of whom they were so rightly proud.
KIERAN GILBERT:Of course we will spend most of the day looking back at the life of Sir Edmund Hillary. But for the moment can we return to the issue of domestic politics, Julia Gillard and this report today that the Federal government is going to spend $20 million on security for at risk schools, particularly Jewish and Islamic schools. How significant is the risk for these particular religious based schools around Australia?
JULIA GILLARD: I certainly don't want to over put it and I don't want to generate concern. But we are aware from consulting with school communities that there are security issues that some schools face. And I think all Australians would say, every Australian child has the right to go to school and to be safe when they are at school; safe when they are learning and safe when they are at play. So this $20 million is to work with schools who have particular needs and who are at particular risk to make sure that children are kept safe.
KIERAN GILBERT:I note that you refer to particular needs. Will this initiative be means tested before public funds are spent?
JULIA GILLARD: This initiative is about an applications process; all schools will be able to apply. Obviously we have available to the Federal government, considerable expertise in assessing security risk in the form of the Australian Federal Police and other security agencies. So we would be working with them to assess the real level of risk and provide assistance to schools who may have some particular risk needs, to make sure security for those schools is adequate.
KIERAN GILBERT:This week we have seen some of the major banks lift rates independent of the RBA movements. Can I get your reaction to Peter Costello's suggestion that the banks have taken advantage of the relative inexperience of Wayne Swan and that, Mr Costello himself says, and I think a correct statement, that he was able to keep a lid on those movements both sides of the RBA rises in official rates?
JULIA GILLARD:I thought it was quite an extraordinary statement from Peter Costello. Peter Costello's track record in government of course was to see interest rate rise after interest rate rise despite in the 2004 election pledging to the Australian community that he and the then Prime Minister, John Howard would keep interest rates at record lows. So I think Australians when they listen to Peter Costello will remember that track record. I am also a bit surprised given that Peter Costello appears to be a man on his way out of Australian public life that he would be making such statements. Wayne Swan of course has been doing everything he can to deal with the high inflation environment that the former government and Peter Costello himself as Treasurer has left the incoming Rudd Labor Government. We understand that we need to keep downwards pressure on interest rates in this high inflation environment which we've inherited and we will do that by being very prudent with government funds. Both Wayne Swan and Lindsay Tanner as Finance Minister have made absolutely clear how rigorous our approach will be on expenditure matters. And of course we will be investing in the things that will make a long term difference for prosperity; dealing with skills shortages and the infrastructure bottlenecks which also put pressure on our economy.
KIERAN GILBERT: Can I turn to international matters now and there has been another devastating suicide attack in Pakistan. Are the hopes for democracy there, they don't look good do they?
JULIA GILLARD: My colleague Stephen Smith has made some statements about this matter this morning in his capacity as the Minister for Foreign Affairs. Obviously our concern as a nation is to see democracy come in full form to Pakistan. As Stephen has made clear, we want to see the elections which are scheduled, obviously they have been deferred because of the problems in Pakistan, but we want to see the elections as scheduled actually deliver a democratically elected government to Pakistan. We want to work with that government in securing the region. Obviously there are considerable issues in Pakistan and in the boarder region with Afghanistan, on terrorism; we are of course still deployed in Afghanistan fighting Al Qaeda. We want to work with the incoming Pakistani Government on defeating terrorism in the region as well as seeing Pakistan mature as a democracy.
KIERAN GILBERT: But given the fragility of the situation there don't you suspect that it might be better if the General Pervez Musharraf does maintain power and does maintain control over what is clearly a volatile situation there, rather than take the step towards democracy if it's going to be so fragile?
JULIA GILLARD: As Stephen Smith has made clear, obviously we've got an aspiration to see democracy in Pakistan. We have got an aspiration to see democracy there because obviously be believe democracy is the best system of government. Clearly that's part of our national belief but also we believe that through democracy stability can come. It is a difficult situation, it's a fragile situation, it's a fragile situation. Stephen Smith as Foreign Affairs Minister is being well briefed on the situation. We will continue to monitor what is happening in Pakistan but we obviously want to see the nation get to a stage where there is a democratic government and there is security within Pakistan and the government there is making a contribution to security in the region generally.
KIERAN GILBERT: Acting Prime Minister, Julia Gillard, just one final question now ahead of the return of Parliament next month. How are things progressing and specifically, in relation to the big legislative item ahead of the return of Parliament, that being the IR transitional bill?
JULIA GILLARD: We've been working hard on the industrial relations legislation we will bring to Parliament in its very first week. That transition bill will end the ability of anybody to make an Australian Workplace Agreement. Of course these agreements which the Liberal Party brought to this country as part of its industrial relations extremism, allows people to be ripped off, very basic conditions were lost; penalty rates, overtime and the like. The first week of Parliament will see us bring the transition bill to Parliament. We are clearly working on the drafting of it now and we are doing that in a very consultative way with all the industrial relations stakeholders.
KIERAN GILBERT: Julia Gillard, thank you for your time today.
JULIA GILLARD: Thank you very much.
ends