PM: First of all, it's great to be in Geraldton. I'm advised by the Mayor this morning that the last Prime Ministerial visit to Geraldton was when young Mr Menzies was Prime Minister in 1954. So it has been a long time between drinks. It is good to be back. And for me it is of course my first visit here.
The reason we are here though is to talk about the nation's economic future. The Australian Government strategy for dealing with the global recession is to support jobs and business and apprenticeships for today by investing in the sort of infrastructure we need for tomorrow.
And that's what we're here in Geraldton to talk about. This is a most significant proposal because what we are dealing with is a major new economic project for the nation. We are looking at, how do we actually take this development and turn it into the next chapter of Australia's national economic vision.
We are talking about Oakajee and the Mid West. We are talking about a new port, we are talking about a new industrial zone and we are talking about a new minerals province and wrapping these together. That's why we are here at different levels of Government, to support this project going ahead.
At a time of national economic difficulty, at a time of global economic recession, it's critical to lift the nation's economic vision for the future, and part of the vision for the future is Pilbara, a big name from the past and for the future, the North West Shelf. A big name from the past and for the future. Oakajee and the Mid West, a very big name now, for the future as well.
Pilbara, the North West Shelf and now Oakajee and the Mid West. These will become names in the economic history of Australia and what we are here today is to launch that third big name. Oakajee and the Mid West, part of Australia's economic future. Of course in making projects like this work, they don't just come about like that.
The Premier here has explained to me on the plane up from Perth today, that he has been investigating this project for 15 years?
BARNETT: Ten.
PM: Ten. Fair old stretch. And I imagine others in this region have been looking at it for some time longer. And I understand that some of the original examination of Oakajee as a possible port occurred way back in the 60s. Am I right?
Therefore, it has been around for a while as an idea. Getting the private sector together into this project is important. But what the Premier and I discussed prior to the Australian Budget was the absolute necessity of Government making the difference in getting this project going.
So, we the Australian Government are proud to be co-investors with the WA State Government in making Oakajee and the Mid West part of Australia's future economic vision.
You go to the ingredients of what's being talked about here. These are really important developments. It is not just the jobs that will be generated in this construction of a brand new port. It is also the jobs that will be generated through the running of that port in the future as well.
Secondly it is about also a new industrial zone attached to the port. And thirdly providing that common user infrastructure for the associated minerals and resource projects right across the Mid West province.
I am a proud Queenslander. In Queensland, we have this fantastic port and industrial zone called Gladstone. That's on Australia's Pacific Coast. We are now about to build something as big, with as much potential for the future, on Australia's West Coast.
And that's why I think the whole nation should pause for a moment and reflect on where this great project takes not just the great state of Western Australia, but Australia itself in the decades which Iie ahead.
So we are proud to be co-investors with the WA government.
One or two other things before I ask the Premier to speak about this project, another reason that I am here in Geraldton today is that Australian Government has announced that the HMAS Sydney Memorial in Geraldton has been recognised now as a national memorial.
The HMAS Sydney Memorial commemorates of course a tragic event in Australia's military history, the loss of HMAS Sydney and the entire crew of 645.
HMAS Sydney as you all know, was the pride of the Australian fleet during the second world war before she was tragically lost in November of 41. The memorial here at Geraldton was dedicated in November 2001, on the eve of the 60th Anniversary of the sinking. As you know, the wreck was located in March 2008, off the coast of WA.
The Government recognises memorials as being of national significance if they commemorate a significant aspect of our war history and HMAS Sydney Memorial does just that.
And this declaration today of the HMAS Sydney Memorial as a national memorial is in part a reflection of the efforts by the Geraldton area, the city of Geraldton and the civic groups such as the Rotary Club of Geraldton in constructing and maintaining this fitting tribute to the crew of HMAS Sydney.
So Mr Mayor I would congratulate you and the local authority and the local community for your efforts over a long period of time, and part of the purpose of my visit today is to affirm this new national declaration of this Geraldton memorial for HMAS Sydney, as a memorial of national significance, a national memorial.
And finally before I ask the premier to talk, could I also mention our friends in Queensland who are going through some terrible flooding, in South East Queensland.
I spoke with the Premier of Queensland yesterday afternoon about the situation there, and I am advised that parts of South East Queensland have now been declared a natural disaster zone by the Queensland Government.
This automatically means that Commonwealth assistance for these areas has been activated and will be available for victims of the flooding.
I was briefed as I said by the Premier late yesterday on this and our two Governments remain in close contact with each other.
The Government in Queensland is concerned that the weather could get worse before it gets better and I would urge everyone in flood-affected areas in Queensland to follow the instructions of the emergency authorities on the ground, because this is still a very difficult and in some areas, dangerous environment.
State and Commonwealth funded Natural Disaster Relief and Recovery Arrangements under the NDRRA have been operating since 6pm last night. Under these arrangements, individuals can apply for a number of personal hardship grants and they are consistent with the normal arrangements.
To conclude where I began, this is an important day for WA's long term economic development but equally an important day for Australia's long term economic development. And the Australian Government is proud to be a co investor with the WA Government in making this project happen.
Over to you Premier.
BARNETT: Thank you Prime Minister and can I say, I agree with what the Prime Minister has just said. The Oakajee port development, with the industrial estate and the rail, is truly a project of national significance and it does give Australia a new deep sea port on the Australian West Coast.
The West Australian economy for a long time has been known as a dig it up, ship it out economy. And there is a lot of truth to that. But Oakajee allows for a multi user, multi product port, where you will see the further value-adding, the processing of minerals, of natural gas, even other products.
So this is a big step forward in terms of more sophisticated, more value-adding to the economy.
The other aspect about Oakajee is that this is a great example of collaboration. An infrastructure provider and developer in Oakajee port and rail; the state Government and the Commonwealth coming together to fund the $680 million worth of the major breakwater, the turning channels, the dredge channels, to ensure that it's a common user, everyone on an equal basis, port.
That will give great confidence and will see the project go ahead. The other, and final distinguishing feature of this project, and I can say so Prime Minister, this to me at least represents perhaps the greatest example of a truly joint project between Australia, Japan and China.
And it is the start of I think of a new generation of Australia's commercial relationship in that part of the world. So in every box I think this just stands out as just a great project and I thank you Prime Minister for the Commonwealth support for this project.
To Chris and Oakajee port and rail, you now have the job in front of you, but you have the Commonwealth Government and the State Government backing for an important national project.
Great thing for Geraldton, great thing for Western Australia and it will prove to be a good investment Prime Minister, I guarantee it. More money for the West.
PM: Mr Mayor, do you want to say something?
MAYOR: Mr Prime Minister and Mr Premier, this is indeed a historic day for the city of Geraldton. To see the level of cooperation that has been brought to bear here is just fantastic. The State Government, the Federal Government, we have got Australia, Japan and China all working together, private enterprise, Government, just fantastic and from the City's point of view, this is going to bring a great deal of prosperity here. There is absolutely no doubt about that. There is a lot of work to be done yet and we are looking forward to the challenges, I know Chris is.
So on behalf of the City, thank you very much for what you have done for us here today, and Mr Prime Minister, also thank you sincerely for declaring the Sydney Memorial a national memorial, it is most important to us.
And we are very proud of that. We are going to take you up there a little later and I am sure you would be very impressed. So thank you very much.
PM: Folks, any questions for the Premier or myself? We are very happy if there are none (inaudible).
JOURNALIST: Much of the iron ore mines in the Mid West are magnetite and that's something that I guess uses 15 per cent less carbon emissions than perhaps steel produced from hematite. With the Government's emission trading scheme is there any, are you looking at maybe giving some concessions to these miners so that we can protect the investment in the Mid West and therefore investment in Oakajee?
PM: On the Carbon Pollution Reduction Scheme, we are faced with big national challenges. What system do we have in place to provide predictability for business for the future, given that we are in a global environment which is moving towards a lower carbon world?
And secondly, making sure that we provide sufficient transition and support for our major industries on the way through. Therefore, within the overall scope of the Carbon Pollution Reduction Scheme, we have of course, provisions for energy intensive trade exposed sectors of the economy.
We also have specific provisions through our Climate Change Adjustment Fund for other industries and we continue to work our way through the implementation of those as it affects every industry group across the country.
Our job is to get the balance right. You cannot simply say, let's forget about carbon pollution reduction because the rest of the world, gathering in Copenhagen at the end of this year, is not going to forget about it.
They are going to take action of one form or another. So what business is saying to us, the Business Council of Australia, the Australian Industry Group, together with the Climate Institute, the WWF and the ACF, is we need predictability for the future and rules which provide business with confidence for the future.
This is tough, most governments doing this around the world are finding it tough. Particularly in the difficult global economic environment. And we are confident we have got the balance right and we are continuing to work its implementation through with all the affected industry groups.
JOURNALIST: On the employee share ownership scheme, you've indicated that there might need to be some changes to that. What will the changes be (inaudible) moving the threshold (inaudible).
PM: What we have done in the Budget is take a series of tough decisions. As I said before, our strategy is this - to support Australia at a time of global economic recession, by a strategy of nation building, supporting jobs, business and apprenticeships today by investing in infrastructure for tomorrow.
Rail, roads, ports, hospitals, school modernisation, National Broadband Network, as well as investing in critical developments in various parts of the country concerning water security.
This is what we are doing. That's one arm of our strategy. The other arm of our strategy is to return the Budget in the medium term to surplus. And that means taking tough savings decisions.
In the Budget we announced $22 billion worth of savings decisions; these are in the large part, controversial and will involve some pain. On each of those decisions, as we have done in the past, we will continue to work through the implementation arrangements with affected industry, and industry groups and those consultations continue. That is the right way to do it, we have always done it that way in the past.
But you need a clear strategy of nation building for recovery now, so that we get Australia lifted out of this global recession as rapidly as possible and secondly a strong Budget strategy to return the Budget to surplus in the medium term.
That is what we are on about. Tough business, but we intend to do it.
JOURNALIST: The unions are worried that their members won't have access to these share schemes. Can you clarify (inaudible)
PM: Well I think obviously there's been a number of concerns raised by various people in the industry and various people in the unions but they are not Robinson Crusoe there about various other concerns which have been raised by a whole range of measures we have taken in the Budget.
Budgets are about tough decisions. I imagine when the Premier brought down his state Budget the other day, there were a few complaints from various people around the place. Or maybe his was universally popular, I am not sure.
I haven't followed the press reporting of the Premiers' state Budget.
But you know something - Budgets are tough. They involve choices about the deployment of available taxation revenue. And therefore, we have had to take a series of tough decisions and we will not resile from taking them into the future.
JOURNALIST: You have indicated that there might need to be some changes there. Will you lift the threshold?
PM: No, what I have said is that together with every other measure that we've implemented in the past on the revenue side, including those outlined in the Budget, the normal thing to do is to work your way through the implementation arrangements with the affected industry groups. Those consultations are under way, as they are in other areas of intitiatives that we have put forward in the Budget as well.
JOURNALIST: Malcolm Turnbull has been on morning radio this morning (inaudible)
PM: I am not surprised by that. I think it has happened before.
JOURNALIST: (inaudible) the exact figure?
PM: I have been talking about that on radio ever since I have been here. Here is a question though that I might sort of throw back in the other direction, which is on the, we have been having a debate about how you fund the Budget returning to surplus.
One of the measures we have put forward are changes to private health insurance and these are controversial, like the ones you have just been asking about.
But there is a part of that which also goes to the future of the dual system of public and private health that we have in Australia. So let me go to this.
Today, we had the opposition, federal opposition health spokesman say that, and if I get the exact quote right, that under his proposal, “we need” and I am quoting here, “to get private patients out of public hospitals”, let me quote that. “We need to get private patients out of public hospitals”.
Now I think the 40 per cent plus of Australians who have private health insurance would be surprised to learn that that is now federal Liberal policy. That goes to the heart of public financial management.
Our proposal on private health insurance is clear. It is out there, it is being debated. What we now have is this extraordinary statement by the federal Liberals, that they want to see private patients out of public hospitals. I think people will be surprised to learn that.
That is part and parcel of the Budget debate at present and that is part and parcel of the debate that we will have when parliament resumes.
But we all need to know where the consequences go. And this is a new departure in federal Liberal policy and I am quite stunned by, absolutely stunned by it.
Okay, are we ready to rock and roll?
JOURNALIST: Just lastly, what about your response, Bob Brown has called for a parliamentary inquiry into the entitlements, for an audit -
PM: Bob often calls for many things. What I have said also in radio interviews I think this morning is that we will always look at practical proposals to have a greater transparency in terms of parliamentary entitlements. The current arrangements have been around since Mr Howard was Prime Minister, I think in the mid-90s. Where there are further practical proposals in terms of greater transparency, we will always work our way through those. And particularly if they make sense and stack up.
Thanks folks, gotta zip.
JOURNALIST: And the woman in Thailand?
PM: Okay, one more, here we go.
JOURNALIST: Annice Smoel has come back from Thailand. Are you relieved?
PM: This is a, this has been of great distress to this woman's family and with little ones involved, everyone understands the anguish which families go through at this time.
Let me say this. What the Foreign Minister and the Department of Foreign Affairs have done is first class work, behind the scenes, helping the family, helping the individual and negotiating quietly with the Thai authorities to make sure that this can be dealt with.
And they have done a very good job and I congratulate them for them and I would say to the family concerned, that we are pleased that the little ones have that anxiety removed.