PM Transcripts

Transcripts from the Prime Ministers of Australia

Gillard, Julia

Period of Service: 24/06/2010 - 27/06/2013
Release Date:
12/11/2010
Release Type:
Speech
Transcript ID:
17475
Released by:
  • Gillard, Julia
Transcript of press conference Seoul, Korea

PM: The G20 Summit has obviously come to an end and I am very pleased by the outcomes of the Summit. I was pleased to be here representing Australia, and I'm very pleased at what has been achieved. The G20 was the forum that made leaders work together so that the world didn't tip from a global recession into a global depression.

What has been achieved here at Seoul is building on what been achieved at earlier G20 meetings.

At the Washington Summit, there was the comprehensive plan for financial sector reform to stabilize the financial system following the global financial crisis.

In London, there was the agreement for coordinated fiscal stimulus to inject growth into the global economy and to support jobs. Then, of course, there was also the agreement to inject $1.1 trillion into the IMF to restore credit flows.

In Pittsburgh, the dialogue of the G20 moved to global recovery. Now, this coordinated action before Seoul, in stopping a great depression, has saved 21 million jobs around the world. That's the estimate of the International Labour Organisation. That means the number of jobs that have been saved around the world is almost equal to the total population of Australia.

We came here to Seoul to build on those foundations, and particularly focus on global growth and jobs for the future and that is what has been done at this Summit.

When I came here, I came with three specific objectives. First, to deliver Basel III, the new financial stability rules, and that has been achieved. This is good for consumers, to make sure that the financial system is stable. It's a prudent measure to prevent in the future the kind of financial crisis we saw in the past with the Global Financial Crisis. I came here to ensure that these rules were delivered in a way which did not justifyAustralian banks talking about this Summit, and increasing interest rates as a result of it, and that has been achieved. What has happened here in Seoul does not justify interest rate movements by Australian banks, above and beyond the Reserve Bank increases.

Second, I came here to ensure that the reform of the International Monetary Fund that Australia had worked on so hard was delivered. We had co-chaired a Working Group with South Africa. This matter had been in deadlock and now it is resolved. This means that the resources of the IMF are increased to enable it to go about its work and the voting shares between developed and developing countries have been allocated more fairly. This resolves any questions of legitimacy about the structures of the IMF and now our attention can turn to the IMF going about its work and, particularly, going about its work so it acts early, before countries fall into crisis, not afterwards.

Third, I came here to support the global framework which is about global growth and about jobs. It is about undertaking hard reform to economies, including our own. It is about moving towards more market-based exchange rates. And we have outlined here in Seoul a clear path, in 2011, to addressing global imbalances. That won't happen overnight, but the reform work is underway.

In addition to these three direct measures from the Seoul Summit, I came here to advocate for increased trade. Trade is good for Australia, it's good for jobs and I am very pleased that the Summit communiqué makes it clear that Leaders here are committed to bringing the Doha Trade Round to the end-game in 2011; to getting the job done with a level of ambition.

I am also very pleased that here in Seoul we have reaffirmed our commitment to not go down the path of protectionist measures. As I've indicated in my earlier statements at this Summit, I think that that will be hard. I think that there will be protectionist sentiment abroad in many nations. I am very pleased that global leaders here in Seoul have re-confirmed their commitment not to succumb to protectionism that would hurt the world, hurt global growth and hurt Australia. We are a trading nation, and trade means jobs.

I am also very pleased, that here in Korea, under the leadership of President Lee, the G20 had a good discussion about development. There's no better place to do it than here in Korea, which is such a shining example of what development can bring to a nation, and the prosperity of its people.

All in all, here in Seoul what we have worked on is ensuring we've got a stronger global economy. We've got stable financial markets. We've got a commitment to sustained growth. We've got a commitment to increased trade. All of these things are good for Australians. Global growth is about Australian jobs. Financial stability, it's about security for the future. Increased trade, that's about Australian jobs. And correcting the imbalances in the global economy is about sustaining growth over time. Good for the world, good for Australia.

So I'm very pleased with the outcomes here, and I'm very pleased to take any questions.

JOURNALIST: Prime Minister, how have you saved the banks from facing higher costs, and justification for raising rates, and what do you think of the past two rises by last two big banks

PM: To take your second question, first, I would say to the two banks that have moved their interest rates today that there is absolutely no justification for doing do. Australians will judge them very harshly for it. I believe people who bank with those banks will judge them very harshly for it. We are determined to increase competition in the banking sector. We've already made some moves to increase competition and we will make more. And the message to banking customers is, I can understand that you're not happy with the conduct of the banks, and we will be facilitating your ability to go out and get a better deal. So, very very critical of today's move by the two banks on interest rates.

Here in Seoul, in terms of the Basel III rules, there were obviously some questions about how these rules would be implemented for economies like our own, where we have low government debt, and consequently the rules about holding debt and holding bonds were not going to work well in Australia. And through implementation processes, we will be able to deal with that matter, so there isn't an impact of these rules on our banks in the same way that there will be an impact in other economies where there is more government debt.

JOURNALIST: On the review of countries' current accounts. The timetable has been rather stretched out compared to the earlier focus, is that right?

PM: The timetable is that the matter will be discussed in the first half of 2011, and that the first assessment will be done during the period in which France is chairing the G20, that is, in the next twelve months. This has been a step forward. This has obviously been a difficult issue in the lead up to the Summit and at the Summit itself. It's to seek better balance between those countries that consume and spend too much and those countries that save too much. Adjustment isn't easy, but we are committed here, through this communiqué, to an assessment process of current account deficits and surpluses and that assessment will happen in the next twelve months.

JOURNALIST: Given the rhetoric that is coming from the government in the last couple of weeks, do you feel, from the government's perspective, insulted by what (inaudible) that they continue to ignore you?

PM: At the end of the day, it's about making sure that the people who matter most to banks - their customers - have the most ability to make a choice and put pressure on. That's what we're determined to deliver and do.

JOURNALIST: Prime Minister, how confident are you that this new commitment on Doha is going to be anything more than just another commitment to join the list of failed efforts.

PM: I can understand that scepticism, and you're right, there have been references in earlier G20 communiqués to injecting life into the Doha Round. But I would specifically point you to the fact that this commitment from Leaders talks about the end-game in 2011. Now, those words are deliberate and they are important. It is inevitable in negotiations that people keep a bit back, a bit in their pocket, until they think the deal is imminent. And then they get the last chip out of their pocket and put it on the table. By using the terminology "end-game", leaders are saying to their respective negotiators: 'Don't keep holding back, get it done now. Don't keep an offer that you were going to make in reserve. Put it on the table, get it done.'

JOURNALIST: Prime Minister, how do you assess the outcome on the so-called 'currency wars', and what's your assessment about the dynamics between the United States and China, on that issue, and more generally in the Summit.

PM: The US and China came into this Summit with different views about the best way through in the Summit; those view have been obviously worked through over the last day-and-a-half, and we have reached what I think is a good step forward. It does mean that there will be an assessment process of imbalances, and that assessment process will happen in the next twelve months. So, this has been a sensitive question, no doubt about it, and a way has been found through.

JOURNALIST: Is the language strong enough for your liking?

PM: Look, a way has been found through. My language has been about clear pathways and timelines, I didn't want to leave this Summit with 'diplomat-ese' - with greatest respect to those who assist us with writing the communiqués. I didn't want to leave this Summit with 'diplomat-ese' that had no sense of time in it. I used, when I spoke in the meeting itself, the language of clear pathways and timelines. There's a clear pathway, and there's a timeline; I'm satisfied with that.

JOURNALIST: What do you think about Doug Cameron's (inaudible)

PM: Well, Doug's just not right on that matter.

JOURNALIST: Can you tell us what you discussed with President Obama in your own meeting today?

PM: I've had the opportunity to have a couple of discussions with President Obama during the course of the Summit, here. I should say, I've also had the opportunity for a meeting with Prime Minister Cameron, I had the opportunity for a brief conversation with President Hu.

As you would be aware, the Summit is constructed so Leaders spend some time by themselves, and that has enabled me to meet a number of people that I hadn't had the opportunity to meet before, including President Obama. I anticipate when I meet President Obama tomorrow, we will be talking about the outcomes of this Seoul Summit. We will be talking about America's engagement in our region, following our very successful AUSMIN talks in Melbourne just last weekend. And we will be talking about the future strategy in Afghanistan, particularly given that the NATO Summit is in Lisbon next weekend.

Thank you.

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