PM: Good afternoon. At 1pm today the Minister for Defence tendered me a letter of resignation. I accepted his letter of resignation. Allow me to read that letter to you. It reads as follows:
“Dear Prime Minister, you'll be aware of questioning in Senate Estimates last night regarding meetings between Humana, my brother and the Minister for Veteran's Affairs and the Minister for Defence Science and Personnel. Having read the transcript of proceedings I decided to thoroughly examine the nature of any contact between Humana, my brother and my office.
“Having done so and despite having made it clear to all parties that it was important that I not be involved, I am not satisfied that contact between the various parties leaves it clear that I have entirely conformed with your Ministerial Code of Conduct.
“In particular, I have learned that one meeting between the parties was held in my Ministerial office. Further, I understand that members of my staff sat in on a number of meetings. Again, despite my decision to avoid being part of any discussions between the parties, I'm not absolutely satisfied that, that objective was achieved, to the extent necessary to ensure full compliance with your Ministerial Code of Conduct.
“On that basis and to protect the integrity of the Government I've decided resign as a member of the Executive effective immediately. Yours sincerely”
As I said before I've accepted the Minister's letter of resignation. I want to emphasise that at no stage has there been any agreement between the Government, Humana or NIB on any contract between any of those parties.
Let me place on record, what I believe to be a strong record of achievement on the part of a Minister. The Minister, as Minister for Defence has presided over the Defence White Paper which is a solid and fundamental piece of reform for the Government.
What we've done through that Defence White Paper is construct a Defence Planning Framework out to the year 2030, a basis for building Force 2030 in which the Minister has been directly engaged. I've worked with him on the National Security Committee of the Cabinet over a long period of time.
Furthermore, the Minister has successfully worked through the withdrawal of Australian forces from Iraq. Furthermore, the Minister has also directly engaged in the re-design of our Mission Statement in Afghanistan. The Minister in all three of these critical areas has discharged his functions as Minister in a first class manner which is why I've said before that the Minister has been a first class Defence Minister.
On top of that, the Minister is also engaged in a defence strategic reform program which has gone to the long term sustainability of Defence's Budget, its financial planning and its force acquisition program.
Nonetheless, as I've made clear to Ministers over a long period of time, the Government expects high standards of accountability on the part of its Ministers. All my Ministers' are familiar with that. And it is on that basis that the Minister has extended his resignation today and I've accepted it.
JOURNALIST: (inaudible) Was this offered to you or did you seek his resignation and do you have any idea who's the replacement for Fitzgibbon as Defence Minister?
PM: The Minister came to my Office at about one today. The Minister offered his letter of resignation. I accepted it. I believed it was the right thing to do. On the question of replacement Minister for Defence, we will make a statement on that very soon.
JOURNALIST: Did you or your party (inaudible)
PM: Both my Chief of Staff and the Special Minister of State, Senator Faulkner spoke with the Defence Minister this morning and as a consequence of that the Minister came to my office and offered me his letter of resignation
JOURNALIST: (inaudible)
PM: The Minister's decision was to extend his letter of resignation at his initiative. I accepted that decision. It was the right thing to do.
JOURNALIST: But Prime Minister, yesterday you said you were satisfied that that was that. What changed that led to Special Minister of State and the Chief of Staff speaking to him (inaudible)
PM: Well what were dealing with in previous days has been a matter concerning the Minister's pecuniary interest declaration. That went to the question of a under declaration or a declaration of a matter which was for $150 in excess of the normal declaration limit, hotel accommodation specifically in Brisbane.
As I said yesterday, this in my view constituted a minor breach, but I was unhappy about it. But, we let that matter rest. This is a different matter. It goes to the question of the undertakings which the Minister made publicly in March of this year concerning the relationship between himself, his office and this particular company Humana and NIB which of course is headed by his brother.
What the Minister has confirmed in discussions with my Chief of Staff today and with the Special Minister of State, as reflected in his letter of resignation is that furthermore, members of his staff had sat in on a number of meetings subsequent to that with the company NIB on the Humana matter. And furthermore, that one of those meetings occurred within the Minister's Office. It's on the basis of those two things which are different from what the Minister had declared before, that he concluded that it was right that he extend his letter of resignation, he has done so, it is the right course of action.
JOURNALIST: Have you put too much faith in Joel Fitzgibbon?
PM: Joel Fitzgibbon has been a first class Minister for Defence. Can I go to the question of substantive performance as a portfolio Minister? The Defence White Paper is the first done in a decade. This is a large undertaking, I have been integrally involved in it and the Minister has presided over the most far reaching set of defence reforms out to the year 2030 compared with any of his predecessors.
This is an important piece of work both in terms of the future design of the Australian Defence Force, its force structure, but in particular also the funding parameters which underpin it and also the defence savings program which underpins it as well.
Secondly, to obtain and secure the successful and well executed transition of our mission in Iraq and thirdly to redesign our mission in Afghanistan has involved him integrally, he has discharged these functions well. Obviously the Minister has made mistakes on the way through in terms of these matters of accountability and he's paid a high price as reflected in his resignation today.
JOURNALIST: Would you describe this as deliberate wrongdoing or just carelessness?
PM: Well the Minister has accepted responsibility for these mistakes, they are mistakes. They are mistakes in relation to accountability. There have been a number of them. This one does represent a significant departure from the undertakings the Minister gave publically in March on this particular matter.
I emphasise one other thing, that on the substance of any contractual agreement between either NIB, the company Humana or the Australian Government, there has been none, there is none. This simply goes to a question of the probity of the process which was engaged in.
The Minister indicated earlier on that he was not engaged in the handling of this matter, what he has informed us of today is that his staff did attend meetings with NIB on this matter and furthermore that one of those meetings occurred within his office.
The Minister therefore has acted appropriately in tendering his resignation.
JOURNALIST: (inaudible)
PM: Oh I think Joel Fitzgibbon has been a first class Minister but we take the standards of Ministerial accountability seriously. The Ministers who work in this Government know that and that is why this Minister has acted appropriately in extending and tendering his letter of resignation.
JOURNALIST: Prime Minister on different matter, has your office been involved in making representation to Treasury on behalf of car dealers, either Barton City Holden or John Grant from Ipswich?
PM: I am unaware of that so I am sure if you put those questions to the Industry Minister he might be able to assist.
JOURNALIST: Prime Minister can you tell us what is the message in this event today for your other ministers?
PM: It's important that anyone who has the honour and the privilege of acting as a Minister in the Australian Government conform to the highest standards of accountability. These are tough standards and the Minister has made a tough decision in extending this letter of resignation.
But it is an important reminder to us all that standards of accountability must be kept high, high because the responsibilities with which we are charged as Ministers and as cabinet Ministers are great.
JOURNALIST: Prime Minister the allegation of the use of the Minister's office for lobbying was one of the allegations I think in the Fairfax anonymous document that is mentioned in the press in the last few months. We read today in the Canberra Times that there was actually someone in the defence security branch who was doing this. What's your comment on all that? Is it just coincidence that so much of the document has proven to be right?
PM: Laurie I actually don't know the answer to that question. What I do know is what the Minister has presented me with, that on one occasion a meeting involving the company, that's NIB, involving his brother occurred in his office and furthermore that he had members of staff which were attending that meetings and other meetings which did not occur in his office.
And they are the two grounds upon which the Minister has I think correctly put forward as the basis that is his resignation. As to any surrounding factors Laurie, I do not know.
JOURNALIST: Do think there is a broader opportunity for a reshuffle or (inaudible)
PM: I think it's important just to take these things step by step. I take a deeply conservative view of these things which is that it's important to get on with the business of Government, there are many challenges out there for us as a nation, as a Government you've got to get on with it. I've never been in the business of saying change for change's sake, I am into the business of trying to deliver the best result possible for the Australian people.
But if a matter of accountability arises which has to be dealt with then we must dealt with it and I believe we have dealt with it in the appropriate manner.
JOURNALIST: Beyond Joel Fitzgibbon being a good Minister, he is the first Minister that you've lost during this term of Government. How do you feel about that?
PM: I always feel sad about these things because Ministers work hard in this government and they put their heart and soul into their work. This Minister has as well and I think on these occasions we're all human beings and we recognise the strength that people's individual achievements while recognising in our common humanity, the weaknesses we all have and the mistakes which can be made.
And so therefore obviously I feel sad about this but it's important that we maintain high standards of ministerial accountability. That's why I believe the Minister has acted appropriately.
JOURNALIST: Has he explained why his earlier accounts were wrong?
PM: The Minister has simply provided me with this information at one today, and therefore I simply take it as he has said but having read the transcript of Senate estimates last night he's further reviewed the matter and obviously had discussions with his staff as well.
JOURNALIST: Do you think Mr Fitzgibbon was the victim of white-anting by his department?
PM: I've no basis to reach that conclusion Steve. I believe the Minister has had a good working relationship with the Department of Defence and with the Australian Defence Force. I have been privy to many, many professional dealings between the Minister and the head of Defence and the head of the Defence Force, the Chief of the Defence Force Angus Houston.
These have been, this is a good relationship. They work well together. It follows that in any dealing with a very large organisation from time to time things are going to go wrong. That's just life, but he's not Robinson Crusoe on that front either.
But I would like again to reaffirm publicly my confidence in the Defence Department and the Defence Force, because I believe that they are highly professional institutions which have executed their functions well. This has been an error on the Minister's part, for which he has paid a high price through his letter of resignation.
JOURNALIST: There have been some warning signals about Mr Fitzgibbon earlier this year. Do you feel that you were too trusting in him and do you think you will now be less trusting in the rest of your ministry?
PM: Well Dennis this is a first class team. They are good people, the members of this Government. They work their guts out. They, I believe have the interests of the country at heart in what they do and I have seen nothing but diligence and application to the task on the part of all of them.
It follows however inevitably in the course of you know, human events, that mistakes are going to be made. That is just life. It happens in any large organisation and mistakes have occurred here and the Minister, through extending his letter of resignation has paid a high price.
JOURNALIST: Prime Minister, on that, do you regret not asking for Joel Fitzgibbon's resignation earlier?
PM: You must always act on the basis of the evidence which is presented to you. And as I said yesterday, in response, or the day before, in relation to the matter of the pecuniary interests concern, that I believe that a matter which was a $150 variation of a $300 declaration limit, was an error, was it a hanging offence - no. Was it an error - yes. Was I unhappy about it - yep. But these things happen.
This is of a different matter. It goes back to assurances given to the public and others in March about this particular matter. And the Minister has acted appropriately and correctly.
JOURNALIST: Prime Minister is there any hope for Joel Fitzgibbon in the future (inaudible)
PM: I don't believe in anything called life sentences for these sorts of things. It is a matter about how people conduct themselves and what work they do and what application they apply.
And as I said before in my remarks about the Minister's substantive performance, this has been a good minister, who has worked hard at his portfolio, worked with great diligence in the very complex tasks of the Defence White Paper, a piece of work which extended over more than a 12 month period and reached culmination in what I believe to be one of the most far reaching elements of defence policy reform that the country has seen.
JOURNALIST: Mr Rudd the Defence Minister of Joel Fitzgibbon as I understand is due at a NATO meeting late next week at which he was to receive I think quite important briefings on the US plan for Afghanistan.
Will Australia's new Defence Minister be there, and if so, how confident are you that they can cope with that level of detail and diplomacy.
PM: You betcha and absolutely, are the answers to those two questions.
JOURNALIST: (inaudible)
PM: Sorry I have got to Q Time. I imagine there will be a few questions in there.
JOURNALIST: Did you see last night's skit on the Chaser in which the Chaser boys poked fun and terminally ill children. And if so what did you think of it and should the Chaser be pulled from air?
PM: I didn't see it. I didn't see that. But it has been described to me. You know I actually don't mind the Chaser taking the mickey out of me or any other politician, at any time, in any place.
That is fine, that is fair game. But, having a go at kids with a terminal illness is really beyond the pale, absolutely beyond the pale. These guys, collectively, should get up and hang their heads in shame. It is just wrong.
I have enjoyed so much of what they have done over the years. Taking the mickey out of me and whoever else. That is fine. But this is just way beyond it, way beyond it, way beyond it.