PM: (inaudible). The first of them will be completed in 2014, the new HMAS Hobart. There have been two previous HMAS Hobarts. Both have served with distinction. One of course was laid down in the United Kingdom in the 1930s, a modified Leander Class frigate, and served the Royal Australian Navy with distinction throughout World War II. The second HMAS Hobart was a guided missile destroyer built in the United States. She also served with distinction in the Vietnam War and was one of the first ships to come to the assistance of Darwin in the aftermath of Cyclone Tracey.
Unlike the previous HMAS Hobarts, the third ship to have the honour of bearing that name will be built right here in Australia. The Air Warfare Destroyer Project is the largest defence project in our nation's history. The $8 billion project is a massive undertaking. The project will see at least three AWDs constructed utilising some of the world's most sophisticated defence systems and components.
To ensure success in this undertaking, Government and industry must work together in innovative ways. That's why we've put together a cutting edge alliance-based contracting strategy by bringing together the Australian Submarine Corporation, the Defence Materiel Organisation and Raytheon Corporation to this alliance. This project is also a chance for Australia to demonstrate our technological and ship building capabilities to the world.
Work on the project will be spread right across Australia, helping to develop our national skills and infrastructure base. Steel here at Port Kembla will be fashioned into hull blocks in northern NSW, South Australia and Queensland and the final ships will be assembled in South Australia. In doing so, we will enhance our defence industry and build a stronger national economy.
And today we mark an important step in that process because today we can announce that BlueScope Steel, an Australian company with a proud and long heritage, has beaten the world to win the contract to supply steel to the Air Warfare Destroyer Project. Congratulations BlueScope.
This is a great achievement. It shows that Australian companies can not only compete for defence projects with the best in the world, but they can win and win on their merits which is what BlueScope has done. So I want to congratulate BlueScope on this first class achievement. The contract will supply about 3,000 tonnes of high quality, specialist steel for each ship and in doing so it will importantly support jobs here in the Illawarra.
This steel plant, our nation's largest, is a major employer in this region. It produces steel for Australia and for the world. It's a business of which we can all be proud. And today I am pleased to be here to congratulate the company and all of the workers on their latest achievements.
Australian steel for Australian ships for Australia's defence. Australian steel for Australian ships for Australia's defence. That's what we're here today to celebrate. Australian jobs for Australian contracts for Australian defence, won on merit against global competition. Congratulations again BlueScope. Congratulations to the Illawarra and congratulations to the Navy.
I'm happy now to take your questions.
JOURNALIST: (inaudible)
PM: Well we the Government are in constant discussion and negotiation with BlueScope about this industry's long term future and this is a fantastic first class Australian industry, look around you. This has been built with blood, sweat and tears over many decades and what they've done in recent times in particular is turn themselves into a world class, world competitive industry. The Government has great confidence in the industry's future and in this company's future, that's why we're working very closely with them on their proposals for the future and how we can be partners with them and we are confident we're going to get a good outcome with the company.
JOURNALIST: (inaudible)
PM: When it comes to the provisioning for the Air Warfare Destroyers and the proposed doubling of the Australian submarine fleet, I am confident that we'll be able to obtain maximum local provision for this construction project, maximum local provision consistent with obtaining the best price and best value of course for the Australian taxpayer. These are multibillion dollar projects. We've got to make sure that we maximise in terms of the tax payer, build the defence assets we need for the next 20 years and ensure that we get maximum take-up by Australian industry.
JOURNALIST: So steel won't be the only building material -
PM: I am confident that it's going to be a maximum delivery of Australian project content in this project and in others.
JOURNALIST: Do you accept that the Government's carbon trading scheme might make it difficult for companies such as BlueScope Steel into the future?
PM: Well on that question we the Government have been in continued discussion with BlueScope. Those discussions are proceeding well. I note that the company has welcomed what the Government has said recently about its approach to a slower start to the Carbon Pollution Reduction Scheme. And we will continue to work through a range of technical issues with the company over time. This is a good professional working relationship and we're dealing with a tough set of challenges, sorting out things globally, acting locally, making sure that we're doing all that is necessary to support local jobs.
JOURNALIST: Mr Rudd, unemployment is almost 10 per cent now in the Illawarra, what do you think is the key to reversing that and do you think there is a possibility for more regional stimulus packages?
PM: Well can I say the reason I am in the Illawarra today is twofold. One is to visit our good friends here at BlueScope and celebrate this great success for an Australian steel company. Secondly, to then speak at a Community Jobs Forum here in the Illawarra because we take seriously the fact that this region is experiencing higher levels of unemployment.
It's the same reason I've been attending local jobs forums in south western Sydney, in the southern suburbs of Perth, in the north eastern suburbs of Adelaide, north western Tasmania and the south eastern suburbs of Melbourne in recent weeks because the impact of this global recession has been felt across so many regions in the Australian economy.
Secondly, our response to that is to boost our investment through what we've done already, through our national stimulus strategy and our nation building plans and our infrastructure plans. So here at the local level we're also going to talk to the local community today about what we can do in addition to support local jobs in this area. The same discussion I had in south-western Sydney last week, the same discussions I've had in other major cities in recent times.
Can I just give you a fact or two? Total Australian Government stimulus investment in the Illawarra region now: $660 million. Total infrastructure investment alone, $374 million into this region.
Let me give you a couple of examples - 1,374 social houses in the Illawarra region will receive repairs and maintenance; 26 new houses belonging to social and community housing will be built, total value nearly $12 million.
Under the Building the Education Revolution, round one of the Government's National Schools Pride Program - 52 minor infrastructure and maintenance projects worth $7.4 million across 53 schools here in the Illawarra. Also under the Building the Education Revolution, as my colleagues, your local members, announced last week - $48 million for 32 major infrastructure projects including libraries, multi-purpose halls, classrooms in schools in the Illawarra region. Road, rail and community infrastructure - $5.5 million for black spots, $2.9 million for the Cliff Road Promenade project and a massive $38 million direct investment in the University of Wollongong in the Smart Infrastructure Facility.
Can I just say, put these things together - you asked the question, what more infrastructure do you want? I've always got an open mind and my good friends in the Illawarra, pay attention to $374 million which we have ourselves directly put in, in very recent times in the categories I've referred to. What's the overall principle here, how do we build and support jobs and apprenticeships today while constructing the infrastructure we need for tomorrow? That's what the Government is doing.
JOURNALIST: Prime Minister, are all these good news announcements to distract us from the size of the deficit that is coming?
PM: You know something? There is a global recession, every government around the world is engaged in temporary borrowing, to thence temporary deficits, in order to plug the gap which has been left by the private sector in retreat and to do so temporarily. That's what governments around the world are doing.
Governments around the world are investing in short, medium and long term infrastructure. That's why we're investing in the biggest school modernisation program Australia has seen. That's why we're investing in a national broadband network for the long term. All to generate jobs, apprenticeships and training opportunities today, while building and investing in the nation building infrastructure we need for tomorrow. That's our strategy. We think it's the right strategy for Australia, it's also a strategy being employed by practically every responsible government around the world.
JOURNALIST: Mr Rudd, can I ask you about paid parental leave and your thoughts on how the scheme has been received?
PM: Well I noticed today on paid parental leave that Mr Hockey said the Liberal Party would make radical changes to what Government has put forward. They've refused to indicate that they will support the Government's paid parental leave plan and therefore I can only assume they are saying they will vote against it in the parliament.
Can I say for all those parents out there, this creates huge uncertainty. For businesses out there, this creates huge uncertainty. Paid parental leave is necessary in order to provide extra support to parents with little bubs at home and secondly on top of that it also helps boost productivity in the long term. But we've got a proposal out there for paid parental leave. The Liberals today have said and signalled strongly they're now going to vote it down. I would just say to them it is time for them to stop blocking everything that we put into parliament, it's time we got ahead and got on with the business of putting through good reforms for the economy and for parents and for businesses dealing with the challenges of the future.
JOURNALIST: Mr Rudd the means testing has been set at $150,000 (inaudible)
PM: Sorry I can't hear you.
JOURNALIST: (inaudible)
PM: Well we believe that the important thing for the future is to make sure that if you look at the current scheme, frankly a very small proportion of families on low incomes have any access at all, any access at all to paid parental leave. When you go to the higher end of the income spectrum, more of that is available through employers.
What are we on about? Giving a fair go, frankly, to all parents and making sure that there's a proper system in place to encourage those on low to middle incomes to have a decent, a decent program for them. This is a good reform for parents, it's a good reform in particular for low and middle income earners, it's a good reform for the economy and I challenge the Liberals to stop acting as negative blockers on everything and get behind a positive proposal for parents and for businesses and for the economy.
JOURNALIST: Prime Minister, you say it's an advantage for low and middle income earners but by putting the means test at $150,000 that's taxing a lot of upper income earners as well -
PM: Can I just say? My advice is that something like only 10 per cent at present of those on lower incomes, lower income spectrum have access to PPL of any significance, paid parental leave. My overwhelming concern is how do we fill that gap?
Secondly, the recommendation that we obtained from the Productivity Commission did not contain within it any form of means testing. We've actually believed that it's appropriate to introduce a level of means testing. But what are we on about overall? Making sure that we've got a system for the future which gives incentives for parents to look after their kids at home and ensure that we also boost long term productivity in the economy.
There's no magic in these particular numbers, we think we've got the balance right but what I'm particularly concerned about are those on the lower-middle income spectrum who frankly have very little access to anything.
JOURNALIST: Why $150,000 though?
PM: If you look across the range of measures that we've put in, in recent times, we have said including in the last Budget that this is a, this is a reasonable number in many income support systems provided and other entitlements provided by Government.
As I've said before there's no absolute magic in a number but you know something? You've got to draw a line somewhere, that's what we've done. My concern principally is with the figures which suggest themselves to us, which is only a small proportion of low to middle income earners have access to any form of paid parental leave now. We're about to change that. My challenge to the Liberals is, stop blocking this like you block everything else in the parliament these days and get on with the business of ensuring that this important reform for parents, for families, for businesses and the economy can get going.