PM: It's great to be in this beautiful part of Perth with Sharryn Jackson the local member, Anthony Albanese the Minister for Infrastructure and Local Government as well as the Mayor of the City of Swan.
This is about practical action we take on the ground to build the infrastructure for tomorrow and to create jobs for today. That's why we're here. This is practical action at work. Dealing with the challenges of the global economic recession, dealing with the challenges created with the impact of this recession on Australia and acting locally to make a difference. Jobs today and creating the infrastructure we need for tomorrow.
Today what we're announcing is a $2.4 million funding contribution to this 15 hectare Swan River Regional Park development, a project to create a new, significant recreational facility in Perth's east. Importantly this project is the first project we are launching nationally out of the $800 million community infrastructure program that we announced earlier this year. Projects like this in this beautiful part of Perth, we intend to announce, release and get the action going on the ground right across Australia in the days and weeks ahead. And it's all part of doing two things, acting locally to build jobs now and create the facilities and the infrastructure we need for our communities for the future.
If you look to the detail of this proposal it's fantastic. This beautiful recreational reserve and the spirit behind it, backed by our local member and by the city council is how do we open this up and make it even better for the local community. A huge tract of walkways which is going to be constructed involving jobs and work for our local people as well, as well as some of the restoration work which is occurring here with local lagoons off the actual Swan River itself.
This is the sort of project which local communities want. It's evidence of what we do as a Government acting in partnership with local government across the country. And we intend to do more of this across Australia, across West Australia and across of course the city of Perth. To make a difference locally, create jobs locally and build the infrastructure that we need for tomorrow. Albo? I might ask you to make some remarks as well.
ALBANESE: Yeah thank you Prime Minister, it's good to be here with you and with Sharryn Jackson and with the Mayor who I met with last night, along with a number of other meetings with local government representatives I've had here in Perth during this visit.
This $800 million community infrastructure program has three objectives; creating local jobs, stimulating local economies in the short term and medium term, but also in the long term providing long lasting benefits for communities. And there is no better example of it than this project just here.
We have a view that local capital works is an excellent way to ensure that we stimulate local economies as part of the cushion against the global recession and that's why we're partnering with local government. Previously local government was regarded as something that was not engaged with the Commonwealth. Last year we brought every Mayor in the country to Canberra for the first meeting of the Australian Council of Local Government to start the new partnership between the national government and local government. And we'll continue to do that.
The first phase of the community infrastructure program was the $250 million component where funding went to each of Australia's 565 local government areas in proportion to their size according to the local government funding formula. That has produced approval for some 3,600 projects, that's 3,600 community infrastructure projects on the ground where people are being employed, where local economies are being stimulated and where long lasting benefit is being created for local communities.
This is the first announcement of the strategic projects section, $550 million. Where projects had to be, each council could put forward a single project of value above $2 million. We've gone through a rigorous assessment process and cabinet has now approved a list of projects and those projects will be announced right around the country and they'll be in proportion to the entire country.
Previously we saw with the former Government's regional partnerships program, which was about $70 million, we saw just 10 Coalition electorates get two thirds of the funding. That is not Labor's approach. Labor's approach is to have a rigorous assessment and to provide funding based upon need so electorates right around the nation will benefit through a number of these projects being rolled out and that will be good for jobs in these local communities. This project here is a good example of one which we can see is supporting these local jobs being created here but one which will have that long-lasting benefit for the community.
The projects which have been approved are across a range of areas, particularly sporting facilities, recreational facilities, community centres, libraries, all of these projects will be given funding as a result of the $800 million community infrastructure program. One of course which was voted against by the Opposition in the parliament when the Rudd Government's economic jobs plan and economic stimulus plan went forward to the parliament earlier this year. But we will roll out these projects, I believe they will be well received by local government. Because they've been selected by local government there is rigour in them. There is no project here that are for private profit, these are all projects selected by the elected local representatives of the community - put forward, gone through a rigorous process and one which I think will be of long-lasting benefit for the nation.
PM: Just before I take your questions I'll just add one or two other things about the release overnight of the IMF Report. The IMF Report paints a very bleak outlook for the global economy and puts beyond doubt that this is the toughest budget in our lifetime to frame. According to the IMF Report out today, advanced economies are expected to shrink by an unprecedented 3.8 per cent in 2009. This is the fifth downgrade in global growth from the International Monetary Fund in just over six months. Five downgrades in global growth in just over six months is an ominous sign of the depth and complexity of the severe global recession we all face.
As the IMF itself has said, by any measure this downturn represents by far the deepest global recession since the Great Depression. The International Monetary Fund has confirmed that this global recession is the deepest recession the world has seen since the Great Depression.
2009 therefore will be a tough year for Australia, a tough year for framing our Budget for Australia as well. Some of our key trading partners have far worse recessions projected for 2009. In the European area the economies are forecast to contract by a massive 4.2 per cent, in the United Kingdom by 4.1 per cent and Japan by a massive 6.2 per cent. These are stunningly disturbing figures. The IMF's bleak assessment presents the most challenging global economic backdrop to the framing of an Australian budget in recent memory.
The deepening global recession will have severe consequences for our Budget and our forecasts for growth, for unemployment and for taxation revenues. We are in the deepest global recession since the Great Depression and we are at the cusp of the longest and deepest global recession of our lifetimes.
One other thing is this, this is a difficult time for Australia but the forecasts for growth for our economy for the year ahead are nearly three times better than the forecast growth for all other advanced economies together. And four times better than what is projected for Japan.
One of the factors at work here for Australia has been our unapologetic investment in nation building and infrastructure for the future to cushion Australia from the global recession which is unfolding. To make that possible, to make the investment in nation building and jobs that we have done, of course the Government has had to engage in temporary borrowing and temporary deficit. That is the responsible course of action embraced by this Government and governments right around the world.
However, at times like this is when you do see some of the shonkiest, snake-oil arguments come out about why governments shouldn't borrow temporarily and shouldn't engage in temporary deficits in order to support jobs and investment when the private sector is in retreat. Unfortunately, Mr Turnbull and Mr Hockey have become the ‘dodgy brothers' of Australian politics. On the one hand attacking the Australian Government for temporarily borrowing to support infrastructure and jobs but when pressed themselves admit that they would borrow $170 billion themselves. This is fundamentally inconsistent.
I would simply say to you all that this Government is determined to continue to implement our strategy for the future, we believe we've got the balance right, we will continue to implement that strategy with one objective - to cushion the blow from this global economic recession across Australia and on communities like this.
I conclude with this. As the Minister has just said, what we've just launched here today, this $2.4 million investment, one project among $800 million worth of community infrastructure projects, we will now roll out across the country.
This project was voted down by the Liberal Party and the National Party in the Australian Parliament. And every one of the other projects as well.
We're in the practical business of rolling up our sleeves and making a difference with our friends in local government.
The alternative is simply to sit back and to do nothing, and to carp hypocritically from the sidelines.
Over to you folks.
JOURNALIST: Did the latest IMF report give you a better idea of just how long or how deep this Australian recession could be?
PM: The stark conclusion by the IMF is contained in this quote, and it is a quote of historic importance.
The International Monetary Fund says today and I quote - By any measure, by any measure, this downturn represents by far the deepest global recession since the Great Depression.
Those are words not used lightly by the International Monetary Fund. It means that we are in the midst of the deepest global recession in three quarters of a century. It's therefore going to take time to chart our strategy to see Australia out.
But against the performance projections for the other advanced economies, Australia is doing nearly three times better than the rest of the advanced economies together. And in part, that is because we've had our sleeves rolled up with early, decisive, strong action to invest in economic stimulus across the country, building jobs today, but creating the infrastructure we need for tomorrow.
JOURNALIST: Will you be winding up the first home owner's grant by July?
PM: Well as I said in a community gathering last night, we should all underline the fact that all good things at some stage come to an end.
We embraced the trebling of the first home owners grant, what we call a First Home Owners Boost, to up to $21,000 for one reason alone. And that is to provide a shot in the arm to the building industry across the nation and here in Western Australia, in order to make a difference.
And in terms of the difference that we have made, it's significant. I was looking at some figures from this morning in Western Australia itself. 4,205 recipients of the First Home Owners Boost in WA in just four months.
And that means $62.5 million delivered here in WA to first home owners. What are we trying to do?
Give a helping hand on the way through, add to confidence in the economy, and on top of that boost jobs for our tradies right around the states.
As I said, we've been very clear in our announcements about how long this program would last. And as I said before, all good things do come to an end.
JOURNALIST: Is the Government considering means testing the 30 per cent private health insurance rebate?
PM: You know, there is the usual blizzard of pre-election, it's not pre-election, pre-Budget speculation. And there's just a blizzard of it.
And guess what? It happens every year. You know it happened to our predecessors as well. And consistent with what Mr Howard and Mr Costello said time in, time out, I will not be engaging in pre-Budget speculation.
JOURNALIST: Are we going to hit eight per cent unemployment?
PM: What we've said consistently is that based on the emerging tale of global economic doom, it follows that Australia will be affected and that our forecast unemployment will be higher.
The impact on our taxation revenues as a result of that will be even more significant. These things follow from lower economic growth.
And what you see in the IMF report is a clear statement of what's going to happen with global economic growth, their forecast for growth in advanced economies including Australia, and the roll-on consequences for that which means higher unemployment than forecast because of the global economic recession, and significantly, lower taxation revenues as a result.
JOURNALIST: Do you think unemployment won't reach double figures this year or next year?
PM: We have said consistently that the unemployment figures will go higher, and our mission in government through practical projects like this and the blokes I've just met up here, is to make a difference.
I would rather be here on the banks of the Swan River, investing $2.4 million to make sure that these blokes have a job in the year ahead.
That's the difference. And I intend to make a difference like that in local government areas right across Australia. I want to make a difference in the local school up the road here.
That school up the road, whether it's a secondary school or a primary school, is going to get a direct injection of funds from the biggest school modernisation program that Australia has ever seen.
Each of these things is designed to provide opportunities and jobs for tradies, for sparkies, for electricians, for plumbers, and to in turn inject that money back into local communities.
I cannot stop this global economic recession. What I can do, through a continued strategy of economic stimulus to build the infrastructure we need for tomorrow, is reduce its impact and to boost jobs.
JOURNALIST: Asylum seekers picked up yesterday are believed to have originated from Sri Lanka. Given the recent turmoil in the past day or so, are you concerned that more might be coming?
PM: Clearly we have a global spike in people smuggling and therefore that is why Australia is on high alert concerning further boat arrivals.
In terms of specific global factors in Sri Lanka, it is clear that with the intensity of the civil war in Sri Lanka, that you are seeing push factors at work as well.
Push factors in the Middle East. Push factors still through the war in Afghanistan. Push factors through the civil war in Sri Lanka. As well as other disturbances in wider south east Asia. Adding to that, the impact of global economic factors as well.
This has been the focus of discussions I have had in recent days with the President of Indonesia. A day or so ago with the President of Sri Lanka. And of course, with the Prime Minister of Malaysia as well.
This is a global spike in people smuggling. Reinforced by global factors which I note the Liberal Party say are driving this as well. And we therefore as a response must deploy every necessary asset, every necessary naval asset, air asset, surveillance asset, as well as our Customs and Border Protection authorities to meet the challenge as it unfolds.
JOURNALIST: You must be concerned Prime Minister that a boat that was tailed for that long can get to WA's oil and gas fields?
PM: Well can I say that our naval and maritime surveillance authorities are doing a first-class job. They are out there, making interdictions, and doing their job enormously effectively on the way through.
Look at the map and see how vast this ocean expanse is. And we have our men and women in uniform, and our staff and our surveillance authorities, our intelligence agencies, as well as those working for Border Protection Command, doing a highly professional task.
Surveilling vessel, interdicting them, doing their job. And I'm proud of what they're doing.
JOURNALIST: (inaudible)
PM: Well the operational challenge for our surveillance authorities differs with every vessel. That's just the bottom line.
The key thing is that the vessel is interdicted. They've done their job. But let's be realistic. As the Immigration Minister has said in recent days, there is a global spike in people smuggling activity. And on top of that, we have therefore real new challenges emerging. That's a fact confronting us, confronting Indonesia, confronting Malaysia, confronting countries across the world.
Our challenge is to marshal all of our resources as effectively as possible to make a difference.
And folks, I have got to zip.
Thank you very much.