PM: Thanks very much Brendan and Tim and Premier John Brumby and Albo, the Minister for Infrastructure, Maria Vamvakinou, everyone else. It is good to be here. The Government is committed to nation building. Nation building is about infrastructure and what we see here is a first class piece of infrastructure being laid out for the people of Melbourne and the people of Victoria.
And our Government is proud to be partners with the Victorian Government in building this infrastructure.
We are investing some $900 million in this great project for this part of Australia. And this is going to be a good thing. Good infrastructure but also at a time like this, a good investment in the national economy.
If you put together our investment with that of the Victorian Government, we are creating here, construction jobs in the order of about 6500 over time and some 5500 flow on jobs. Important stimulus for the economy at the time of the global financial crisis into the future and secondly, importantly also laying out critical road infrastructure for this important part of Australia's national economy. The other thing of course is this - it helps people in their work a day lives. It helps people get to where they need to get quicker. And that is what we are on about as federal and state governments in partnership with each other, delivering better services for the taxpayers of Australia.
And that is what this piece of road infrastructure is all about. Specifically, what we the Federal Government have done is bring forward our commitment. We said last year that we would invest $900 million into this road and we are going to do that.
Today we are honouring that commitment given to the people of Victoria, the people of Melbourne, prior to the last election; a commitment of nearly one billion dollars. But beyond that, because of the challenges that we face in bringing forward infrastructure to support the national economy, we have also brought forward some of that money to construct this early part of this road here with the Victorian Government and also invested a further allocation of funds to do the project design and detailed design work on the rest of the road early, so that construction for the entire system of the road can be brought forward as well.
That is why we are here today. So this national Government of ours is proud of its partnership with the Victorian Government because we together with the Victorian Government, believe in nation building. We believe in infrastructure. We believe in putting our shoulder to the wheel and making infrastructure work. Critical for the economy long term, critical for stimulus of the economy in the shorter term and importantly, delivering services to working families, trying to get to work on time. Over to you John.
BRUMBY: Well thank you very much to the Prime Minister and to the Federal Ministers who are here today to Brendan, to Anthony Albanese, to Tim Pallas, the state member and Federal Members. It is absolutely fantastic to see the Prime Minister in Melbourne today.
And of course this day last week, we were in Canberra for the historic COAG meeting.
And it was an historic meeting because it was all about the Federal Government working in partnership with the State Governments to end the blame game, to bring forward works, to bring forward funds, to do more for Australia and to work together in an era of cooperative federalism.
And you see that again today with this project. This is a project of course which was, as we have heard, promised by the Prime Minister when he was Opposition Leader. But today what we are doing is starting work bringing forward this project, the first $12 million of this project and then as you have heard from the Prime Minister, bringing forward the second part of that, $900 million from the Federal Government, $300 million from us, in a project which will generate something like 6000 direct jobs and 5500 indirect jobs.
And so it is a great example of working together. It is a great example of when Governments work together. You can bring forward projects, you can make the investment and you can generate the jobs that we need at this time of global economic slowdown.
Can I also say it is great to see Anthony Albanese here and it is only a couple of months ago, we were in Wodonga when we were both operating the (inaudible) the digger there for a $501 million partnership on North East rail standardisation. And again, couldn't have happened under the former Howard Government.
Funding provided by the Rudd Government: $501 million of investment in nation building rail infrastructure. Improving our freight system, improving the efficiency of it, improving the economy and generating jobs on the way through.
This is a key road for our state. I said to the PM a few moments ago I would say something about his home state of Queensland and I will. We love Queensland but -
PM: Why are you saying but?
BRUMBY: But the point I want to make, it is an important point to make for the Prime Minister while he is here in Melbourne. The last six months, the state which has added more people than any other state in Australia is Victoria.
You know, twenty years ago, if you said that Victoria was going to be outgrowing Queensland in terms of population, people would have laughed at you. But the last six months Victoria has added more people than any other State in Australia. And the reason I mention that is because it puts pressure on our transport system.
It means congestion in our transport system unless Governments work together to tackle it. And that is why the bring-forward of this road project is so important. This road, the Western Ring road is about 140,000 vehicles a day. 16 percent of those vehicles are freight. And so the investments we make here don't just mean that families can spend more time together. I don't just mean that motorists will save 20 minutes when this project is complete, 20 - 25 minutes.
It makes the efficiency of the freight system in our State and across Australia so much better than it would otherwise be. And at a time when we need to compete against the rest of the world and a more competitive era than ever before, this sort of investment, giving families more time and making our freight system more efficient is so, so important.
So Prime Minister we are delighted with your leadership, we are delighted that you have brought forward this project and this road, which so many Victorians use every day. This road will be immeasurably improved by the bring-forward of funding and the substantial investment that we are partnering together on today. So we thank you for that.
PM: Thank you John. Any questions from the ladies and gentleman of the press?
JOURNALIST: Prime Minister what is the and how do you reconcile this with the news earlier this week that Victoria is growing at a rate it can't sustain?
PM: Well this is a growth State as Premier John Brumby said before. There are two alternatives for the Federal Government. One is the script used in the past which said, basically ‘over to you John, you are on your own' or our approach, which is how can partner with you. We take the second approach. It costs us money.
What we did in the Premiers conference - Council of Australian Governments meeting last Saturday - was decide as an Australian Government to provide an addition $15.1 billion to the states and territories for the four to five year period ahead. On top of what was provided in the past.
That is partnership, putting your money where your mouth is, it is bringing about a series of national reforms, but on infrastructure, also indicating clearly that we will partner with the states and territories as well.
I am for growing the national economy. Victoria is a huge slice of the national economy. In a time of global financial crisis, we want to support every state and territory and this one here has so much to give to Australia into the future.
JOURNALIST: (inaudible)
PM: Well I am not across the detail of the State Government's transport plan, I am sure Albo has been over it and up it like a rat up a drainpipe, have you mate? (Inaudible)
So we will take each thing step by step but I say this loudly and clearly that in the past the Australian Government said on infrastructure this was not a job for the Australian Government, it was only a job for State Governments.
When you have growth, where you have massive pressure on roads, rail, ports, broadband, hospitals, universities across the country because of growing population, the conclusion we have reached as the national Government is that there is only one path for the future and that is for us to be partners in infrastructure into the future.
But can I just add one thing on that. At a time of global financial crisis, we the Government stand for nation building and at this time the Liberal Party federally are divided right down the middle on nation building. And they can't even agree on who should build a sand castle. They can't even agree on who should have the bucket and who should have the spade.
We have a clear strategy for the future, it is called nation building. They have none. They are divided right down the middle.
JOURNALIST: (inaudible) ANZ has announced today that they are cutting more jobs than earlier stated, trade unions say they are using the financial crisis as an excuse to sack workers, do you think that is right?
PM: Well on the details of ANZ's announcement, I am not familiar. Any person losing their job during the global financial crisis, it is a difficult and awful time for that person and for the families who depend on that person for an income and for support.
Our job as a community and through our systems of support is to do whatever we can to soften the blow with individual firms, to help where we can and to help also through the income payment and support systems offered by the Federal Government.
This will be a tough year ahead. I have tried to level with the Australian people about this. '09 will be very hard on employment and unemployment. One of the reasons John and I are here today is to say, in the midst of the pile of global economic gloom, we are helping to step into the (inaudible) supporting infrastructure now because it generates jobs.
In this case, 6500 direct, some 5500 plus indirect, over time. That is doing something constructive about the global financial crisis.
JOURNALIST: Do you feel a bit ripped off by the ANZ, you guaranteed bank deposits (inaudible)
PM: Every individual company faces different circumstances, our first responsibility has been to do whatever the Australian Government can do to underpin the stability of the Australian financial system. Bear this fact in mind. Worldwide right now I am advised, something like 13 AA banks remaining, AA rated banks.
Australia has four of that 13 globally. It is partly because we have run the regulatory system in this country in a conservative way. But it is also because we the Australian Government have been keen and active in supporting our regulators doing their job.
On top of that, the stability of the financial system, we have acted also decisively to guarantee 15 million individual deposit accounts around the country, for all Australians. And secondly to provide a guarantee for the banks to be able to raise money offshore so that businesses out here in this part of Melbourne can still have the possibility of accessing corporate finance into the future.
If the finance dries up, and in many parts of the world it is drying up, then you have a massive problem on your hands. This is going to be hard, it will be difficult, I accept that and I have said that from the beginning. Our job is to make a difference.
JOURNALIST: The finance sector unions says that the bank guarantees (inaudible)
PM: As I said before, each individual banks' circumstances are different. We would encourage and urge the banks to continue to provide maximum employment for their workforces. That is the right thing to do.
JOURNALIST: (inaudible)
PM: And it is important that we as Governments, state and federal also do what we can to support economic activity in the economy. Can I say, as of Monday this week, the 8th of December, there begins to flow through some eight to nine billion dollars in stimulus to the general economy through our economic security strategy.
Why are we doing that? Because we know that out there in the economy, small businesses, right through to the financial institutions themselves are feeling the pressure arising from a reduction in demand in the economy.
That is why we are injecting nearly $10 billion through measures for pensioners, for families and to support first home buyers.
It is step one in our economic security strategy to help support growth and jobs into the future when the global financial crisis is reaping its havoc.
JOURNALIST: Are you disappointed that ANZ has made this announcement not only after it got (inaudible)
PM: I would urge all the banks to do whatever they can to maintain their employment levels into the future. This is a very difficult set of economic circumstances for everybody. It is very difficult for families as well.
Our job in the economy is to provide continued support for growth and for activity at a time when we are going to see a whole lot of trouble out there in the workforces of Australia because of the global financial crisis. There is no single silver bullet solution to this. Our job as the Government is to continue to support economic activity through the measures that I have outlined.
JOURNALIST: (Inaudible)
PM: Well Australia's superannuation laws have been long established.
JOURNALIST: What about infrastructure, would you like to see State Governments have more of a focus on providing public transport rather than continuing to focus on providing more roads?
PM: Can I say, that belongs squarely within the province of the Victorian Government. In terms of -
JOURNALIST: (inaudible)
PM: No let me just answer that in this broad sense. Effective infrastructure planning is done at the state level. What I have seen in infrastructure planning in the state of Victoria is they are pretty good at it. We can all do better, and that is us as well at the federal level in terms of what we do.
But the integration of what is best done for road, what is best done for rail, what is best done for freight rail, what is best done for passenger rail, these are detailed questions which are particular to every locality.
JOURNALIST: (inaudible)
PM: Look our attitude is very simple, there is a global financial crisis under way, it is having a huge effect on the global economy and its impact will be felt on the Australian economy. Step by step we will take every action we deem to be necessary to continue to support growth and jobs.
This will be very hard, there are global forced bearing down on us. We have done an economic security strategy, ahead of the curve ahead of most other countries and that represents some $10 billion.
We have also released this $15.1 billion to the states, some $3 billion plus of which will flow additionally in the year ahead. Beyond that we have further infrastructure announcements to make ourselves. Can I say we will do this each step of the way, mindful of what needs to be done to continue to support growth and jobs. But the task will be really hard. And let me repeat one thing I said before.
At a time of global financial crisis, what the nation expects is strong leadership on nation building. And what we have is a Liberal Party divided right down the middle on nation building and on infrastructure and I thing at a time like this, is an absolute disgrace.
JOURNALIST: (inaudible)
PM: I say that it is relevant to use because it affects votes in the Senate. Minister Albanese has been burning the midnight oil to secure passage of the legislation which underpins our future ability to invest in national infrastructure projects. The Liberals can't work out whether they are Arthur or Martha in the Senate.
It's not a question of making a political comment, it is a basic fact of the numbers in the Senate to ensure passage of support for the legislation which underpins our ability to invest in infrastructure in the future. That is why it is relevant and that is why I am making the comments I have.
JOURNALIST: (inaudible)
PM: Well firstly on the detail on the funding arrangements, I would prefer to be better briefed on that. That's the first point. The second is on these sorts of decisions, are best done on the basis of the (inaudible) advice of medical specialists dealing with individual women. If politicians were to get involved in those processes I think is frankly, a recipe for disaster. It is the right thing that this be handled sensibly, properly and professionally by medical specialists who know what they're talking about.