WILKINSON: Mr Rudd good morning to you past week the price of oil has been falling but all of a sudden we get to a long weekend and bingo we're looking at a $1.70 a litre. Can I remind you of what you said on the show two weeks ago. Take a look.
PM: I can't control the global price of oil. That's been fuelled by a whole range of factors, the rise of China, the rise of India, the fact that the Iraq war has impeded for sometime the global supply of oil. These are factors way beyond the control of a national Government such as ours.
WILKINSON: Prime Minister, do you stand by those comments because it would appear that there's still a lot of profiteering going on?
PM: On the question of what the oil companies do, that's why you need a petrol price commissioner. We didn't have one under the previous government, we've got one now, to put maximum competition policy pressure on to the big oil companies. And that's what in part this debate about FuelWatch has been and the Liberal Party have voted against it.
We've simply said, ‘why shouldn't motorists, for example in Sydney, know today that there is something like, or yesterday that there was about a 16 cent per litre difference between what one petrol station was offering in one part of Sydney, to what another petrol station was offering at the other'.
That's consumer choice, that's consumer power. We've sought to act in support of the consumer in a very difficult environment where world oil prices are going up.
Our opponents have said, ‘no, we don't like that, we've voted against it'. That's what happened in the parliament this week.
WILKINSON: Well, this price is not just affecting motorists either. Qantas is cutting back on flights and Virgin Blue could go bust because they're refusing to increase prices. In the past 24 hours we've learned - sorry could I just get your comment on that?
PM: Well it's very difficult. I was speaking with representatives of the aviation industry this week. If you step back from all of this, what we are facing is a genuine global challenge.
Every government in the world is struggling with this at the moment, for motorists who are under real pressure because of prices going through roof, but also key elements of industry as well, particularly those most sensitive it to like aviation.
We're keeping in close contact with the aviation industry, given their challenges. But can I say, it's a very, very difficult period we're going through. We haven't had this sort of pressure on global oil prices since the 1970's - 400 per cent they've gone up since the Iraq war.
And what we need therefore is a long term strategy for dealing with this apart from helping families and individuals in their and pensioners and carers with their financial needs through the Budget now.
WILKINSON: Particularly if that price does hit $2 a litre which they're saying will happen by the end of the year.
PM: That's just horrific. That's why we are seeking to do what we can through Budget support and that's why the measures were brought in through the Budget, but also longer term.
And can I say, one of the things I was talking about in parliament yesterday is what can we do now to make sure that we work with the automobile industry to manufacture hybrid fuel efficient cars in Australia so that we can produce more savings for motorists and more fuel efficient transport.
And secondly, hasn't the time come for some decent, decent public transport systems invested in by the national Government across our major cities so people don't burn their petrol prices each day on the way to work.
WILKINSON: Ok, moving on now. We've learnt that the AFP has smashed an international child porn ring. They've arrested more than 90 Australians and 1,500 are under investigation. Are you surprised at this extent of this problem?
PM: I think everyone who sees these sorts of actions by a law enforcement agency, not just in Australia but around the world, are saying this is very important work by our agencies because everyone, everyone, has a view that we should protect always the interests of children.
This is enough to make your stomach turn when you look at the number of people who by these reports have been involved. But because it is an investigation, because it is subject to legal processes, I'm reluctant to comment further.
WILKINSON: Well your stomach did turn two weeks ago on the show when you described the photos that Bill Henson took as revolting. Now the classification board has given them the all clear and it seems unlikely that charges will be laid.
Are our censors and police, aren't they supposed to reflect community standards, it sounds like they're not reflecting your standards?
PM: Well I think on your program, I think it was Karl who asked me the question, what my attitude was as a parent to those photographs and my reaction was very clear cut.
I've been asked many times since then have I changed my view and let me say on your program today I have not changed my view one bit. I also said on your program that when it comes to the independent processes of the law, they are completely separate from what any individual politician may think, feel or respond to by way of their own individual judgments.
And independent processes of the law are on foot, dealing with this and other matters and we should not interfere with that one bit whatsoever.
WILKINSON: But do you think the classification board got it wrong?
PM: You know something, organisations like that are at arm's length from politicians, it's a matter for those bodies independently including the legal authorities, to evaluate these matters and reach their own determination. We as individuals may have our own private views; the virtue of our democracy is that we can have that.
I said on this program what my views were as a parent. I don't budge from that. But I'm not able to go around and start dictating to the legal authorities what they should or shouldn't do. That's quite a separate matter.
They've always been independent. In fact that's what I said on your program from day one.
WILKINSON: Ok, another subject this morning - Paul Keating and Bob Hawke, former Labor Prime Ministers have criticised your plan for a European style union in Asia. They've called it unachievable and inappropriate. Do you pay much attention to former Labor Prime Ministers these days?
PM: Well the great thing about this country is, always going to have an open debate. I think, look it's very important to do two things here.
Try and not just get caught up the day to day of international politics and look longer term about where we need to be in a decade's time. What I'm concerned about in our region here in the Asia Pacific region, is that we want to avoid two things: one, any drift towards long term conflict; and two what we want to do is to encourage greater economic and integration.
That's what we should be aiming for. My proposal which I put forward is, at present, we don't have a single body in our region which does both those things, and I've set an ambition for 2020, that we as a region should start moving in that direction.
I also said explicitly by the way that we should not be looking at the European Union as some sort of identikit model, our region is vastly different.
But we do need, we do need to work towards a body in our region long-term which at least has the states of the region talking together, discussing together, cooperating together, on political, security and economic and trade matters.
That I think is a reasonable aspiration for the future. There'll with a lot of debate about it, some will think it's too far. But I'd say to Hawkey by the way, when he kicked this thing off back in 88, 89 with the establishment of APEC and his work there and Paul's very important work on the top of that when Hawkey started this process they all thought it was unachievable as well - where he got. I'm simply trying to take it one step further.
WILKINSON: Ok well I am sure he will take that advice on board Prime Minister. Now finally, have you worked out what was behind your sickness, the other day? Was it a dagwood dog, a party pie, pork roll, or was it actually what a lot of people think, a bit of a porky pie?
PM: Oh yeah, yeah, yeah, yeah. Well, I don't know the last time you had - let's call it politely on national television an upset stomach, but when you have an upset stomach let me tell you, the evidence is graphic.
All I know is, when I was at the football the night before, I don't pay a whole lot of attention to what I eat. Someone hands me something and I stick it in my mouth. So, a problem with that.
Whether it was a dagwood or a party pie or someone told me this morning it could have been a chicken Kransky? What is a chicken Kransky for goodness sake.
WILKINSON: Chicken Kransky, I don't know. You have got to watch more closely what you're putting in your mouth Prime Minister?
PM: Well if you are watching the game you don't.
WILKINSON: Well Karl said that he saw you at the footy last Friday night and you were drinking heavily, but apparently it was tea?
PM: Yeah, yeah. I was about to say. You go and plead the fifth Karl Stefanovic! Hey, it was a great game though, wasn't it?
CARL: It was a good game, good result.
PM: Broncos came in just five seconds after the hooter. You know, all I know is it was a graphic and unpleasant morning that morning but I think a lot of your other viewers would have had a stomach bug of one description or another, what caused it, who knows? But it was not fun.
WILKINSON: Ok well you are off to Japan so make sure you take a bit of notice PM, it might help?
PM: Ok, thanks very much.