PM: Good afternoon. We've just concluded the G20 meeting, and this G20 meeting came in uncertain circumstances for the global economy given the concerns in Europe.
Over the past two days the G20 has made significant progress to send a signal of confidence to markets. Most importantly the G20 has begun the work of putting in place firewalls to protect contagion from Greece spreading throughout other parts of the global economy.
Now this is an important result and should be viewed that way. If I can take you to four aspects of the result which I believe are important.
First, this G20 meeting shored up the plan, outlined by European leaders on the 27 October, and ensured that rapid steps are taken over the next few weeks to detail and implement that plan.
Second, this meeting brought Greece back from the brink; the uncertainty surrounding Greece earlier this week has been reversed.
Three, strong steps have been taken to get Italy back on track.
And fourth, and most significantly, this meeting laid the basis for IMF resources to be increased, so the IMF can play its role as bulwark of the global economy.
Now this was a view that Australia put some weeks ago and it has now finally been embraced by leaders.
However I do need to be clear that there is still more to be done. It's a point I made very strongly to my counterparts and which I stand by. But that shouldn't detract from the important results this meeting has delivered.
In total, the outcome is consistent with my strongly held views that Europe needs to get its own house in order, but equally the rest of the world has a role to play in shoring up the global financial system.
Australia is a great trading nation, so on the area of trade I am very pleased to report progress was made at this meeting. Trade means jobs and there is nothing that I'm more focused on as Prime Minister than creating jobs.
Australia has been at the forefront of arguing that we need to find a way forward on trade. We need to get that done because that will mean extra jobs in Australia and around the world.
At this meeting we achieved what we set out to achieve. Firstly a recognition that consensus on Doha is eluding us, and that we need to find a way to move forward.
An agreement that retreating to closed markets is not the answer to the challenges we face, and an agreement therefore to take a fresh approach to move Doha forward by breaking it into manageable goals.
At CHOGM when I spoke on trade last week in Perth, I said we can't just press rewind and replay on trade, we can't press pause either, we need to stick a new disk in the machine and that is what the G20 has agreed to do.
This is a breakthrough. It's a win for Australia which has been advocating a new and practical approach to advancing the trade agenda. Then, on the action plan for jobs and growth it is encouraging to see that action plan agreed today. It's the first time that countries have committed to each other and the world to properly pursue steps that they have identified to bolster growth and jobs in their own economies.
So these are steps that countries have indicated that they are prepared to take, but now there will be a way of every country being monitored by other countries to make sure that people hold to their pledges and promises.
Leading international organisations have also been tasked to work together to ensure that nations are taking the most effective action possible to create jobs around the world.
Of significance to Australia in the action plan for jobs and growth is the recognition of the importance of market based exchange rate systems, given that has been an issue for Australia as we trade in, and work within our region.
The G20 also identified Australia's decision to transition to a clean energy economy through an effective carbon price as a critical structural reform.
And then, finally, can I say, I am very proud to announce that Australia will host the G20 in 2014.
This is a significant opportunity for Australia and it's recognition of our economic strength and leadership.
It will bring world leaders and business leaders to Australia at a time when our economy is the envy of the world. It will give Australian businesses a boost, it will give Australia a central role in shaping the G20 agenda and therefore shaping the agenda for the global economy, not only in the year in which we host the meeting but for the two years either side of that year because this G20 meeting has formalised what is called the Troika, that is each set of three chairs of the G20 working together.
So this is a fantastic opportunity for Australia to showcase itself to the world by hosting the most important meeting that the world has for the global economy, to bring business leaders to Australia because alongside the G20 comes a set of business events to shape the agenda for the G20 in 2014, but to also play a role in shaping the agenda working with other chairs in 2013 and 2015.
So I am delighted to be able to announce that this G20 meeting has agreed that Australia will host the G20 in 2014. I am very happy to take any questions.
Yes, Andrew.
JOURNALIST: Prime Minister, on the IMF resourcing, have we got any quantum on what the leaders have agreed to as a whole and what Australia will do, and can you confirm that Perth would be the ideal-
PM: -Nice try on Perth, but, what we will do when we return back home is I'll obviously consult with my state colleagues, with state premiers. No decision has been taken yet about which city in Australia the G20 would be hosted, and I'll seek views from state premiers about which city would like to be involved in being the venue for the G20 in 2014, so that's the answer to the second part of your question.
On the first part of your question, it's dealt with in paragraph eleven of the communiqué and in that paragraph leaders have committed and I'll use the words ‘to ensure the IMF continues to have resources to play its systemic role to the benefit of its whole membership, building on the substantial resources we have mobilised since London in 2009. We stand ready to ensure additional resources could be mobilised in a timely manner.'
What that means is that leaders have come together and said that they stand together ready to provide additional resources to the IMF.
Finance Ministers, which in our parlance means the Treasurer Wayne Swan, will come together with his counterparts in February, or potentially earlier, to focus on that question of additional resourcing.
Now I want to be very clear about this, we've said all along, that Europe needs to get its house in order, and Europe does need to get its house in order, the eurozone needs to resolve the problems within the eurozone.
But Australia put the issue of IMF resourcing on the agenda some time back now. We thought it was important that the world addressed the issue of making sure that the IMF had additional resources to face any contingency that may arise and that has been dealt with in this communiqué and will be dealt with by the finance ministers.
JOURNALIST: You wanted some sort of quantum I gather, so it's not, are you disappointed by the fact that you haven't got actual commitments from member nations?
PM: I'm pleased that having put the issue on the agenda, we have now got it acted upon, and acted upon in a timely way. That is you've got the statement in the communiqué and finance ministers coming together, either at the scheduled meeting in February or potentially earlier.
JOURNALIST: Just on the Jobs Taskforce that has been set up. What's your understanding of how that will work in terms of Australia? And will there be any Australian involvement in that? And just more generally, how effective do you think that will be?
PM: Look the purpose of all this is to make sure that people have got the benefits that come with work, the dignity that comes with work, across the globe following the global financial crisis.
We've got millions and millions of people unemployed. In Australia compared with nations that are comparable to us we have a relatively low unemployment rate, but around the world, tens of millions of people need work and there is always a challenge for every economy to keep creating the new jobs it needs as young people come of age and they need that first opportunity in the labour market.
So in the lead up to the next G20 meeting in Mexico, there will be a particular focus on jobs and youth unemployment. That means countries will share experiences, policies, practices, plans that have made a difference.
I think we've a pretty good story to tell. We are on a journey of change in relation to youth unemployment. We've particularly focused on learn or earn, on making sure that our education and our support systems work so young people are either in training or they're in the workforce, they're not just lost on the margins of society and left by the wayside.
So we will be sharing that work that we have done. But of course we are always open to looking at good ideas from around the world and this will be the way of sharing those good ideas.
JOURNALIST: Will there be an Australian representative on that taskforce? Does every G20 country get (inaudible)?
PM: We will certainly be working with Mexico as the G20 agenda is shaped by Mexico. So we will have an official, for example, who will work with the Mexican Government, and of course across the Australian Government, the right linkages will be made, so on the policy settings for youth unemployment that is particularly, the Department of Education, Employment and Workplace Relations.
JOURNALIST:Prime Minister, you've said that Wayne Swan will probably fill in the gaps in the details about the increased IMF commitments, maybe as early as January. Events may precede that but there is a potential need for billions and billions for Italy, possibly Spain if things go badly.
Are you prepared for Australia to put extra money in very, very quickly to the IMF should that eventuate?
PM: Let's just be clear on the sequence here, because I think that's important and I'll directly address your question.
We came into this G20 meeting saying that it was vital that Europe get its house in order, that the eurozone resolve its problems, and that in particular leaders drive through to make sure that all of the details of the October 27 framework are agreed and that the October 27 framework is implemented.
Of course, coming into this G20 there were some new factors to consider arising out of the statements made by Greece about the referendum. And as I said at the outset, we're pleased to see that Greece has come back from the brink.
But that still means that the details of the October 27 framework need to be put down and agreed. And out of this G20 meeting, the eurozone has said it will do that at a meeting of its own finance ministers in December. That's very important. So that's number one in terms of resolving the problems in the eurozone.
Separately, we raised the issue of IMF resourcing and IMF resourcing has been addressed by leaders in this communiqué and will be addressed by finance ministers, the regular meeting's in February but it is possible for the meeting to happen earlier than that.
So that's the work program forward. First and foremost, the eurozone sorting itself out, and then, leaders having made this statement today, tasking finance ministers to deal with it at their meeting.
JOURNALIST: Prime Minister, the G20 has recognised Australia's progress on carbon pricing. Would you have liked to have seen more discussion about climate change at this conference and a bit more advance from other G20 members?
PM:There was a session of the discussion which was on climate change questions so, in the room there was discussion of climate change. There was a report from South Africa on outlooks and prospects as we move to the meeting in Durban at the end of the year, so climate change was on the agenda.
The substantial talks about climate change will happen at that meeting in South Africa. I'm pleased to see that leaders did note the progress we've made in Australia to change our emissions intensive economy to a clean energy economy so we can have a clean energy future and that jobs that come with it.
JOURNALIST: Prime Minster, this was clearly a difficult summit for the delegates including yourself. A short time ago lots of non-government organisations held a press conference.
They have described this summit as a wasted opportunity; they say that Greece and the Euro has been served a financial feast while the world's most vulnerable people are left with the crumbs. How do you respond to that?
PM:There was a discussion about development questions in the room and some important agreements about developments issues. Bill Gates reported to G20 leaders on development work that he is doing and his perspectives for development generally. And there was, I raised myself, the question of remittances and making sure that money can flow around the world more cheaply so that people who are earning money can send it to their families back home and not lose too much on the transaction.
So there was a discussion about development. For Australia's part, of course, we are substantially increasing the amount of resources we put into aid and development as part of meeting our Millennium Development Goals, and that does mean we are able to do a lot of good work. For example, the announcement I made last week about better participating in the program to eradicate polio so children no longer have to suffer death or disfigurement as a result of a disease we know we can prevent.
JOURNALIST:But would you personally have liked this to be a more proactive summit as opposed to a reactive one dealing with these crises that are being discussed over the last few days? Clearly, Greece has stolen the show, for want of a better phrase.
PM: In the circumstances, I believe the G20 did what it needed to do to weigh up the amount of time that was required to respond to immediate circumstances. Of course, you would expect the most important body in the world that addresses issues in the global economy to be focusing on the risks to the global economy from what is happening in Greece and what is happening in the eurozone.
And I don't think we can just say well there is a hard barrier between talking about those things and talking about aid and development. We know from the global financial crisis, that if problems develop in the global economy, it is often people in the poorest parts of the world who pay for those problems through the loss of employment.
So sustaining the global economy is important to everyone, including important to the poorest countries on Earth. So the meeting did focus on those questions, as it should, but it did also discuss a range of broader questions.
JOURNALIST:Prime Minister, with regard to the extra funding for the IMF, were there non-European countries that also agreed to come forward, like Australia, with more money? Because it has been reported that in fact that hasn't happened in the way that was hoped, and markets have apparently responded negatively to that. And in particular, what's the situation now with China?
PM: Well you wouldn't get a statement from leaders that says we stand ready to ensure additional resources could be mobilised in a timely manner. You wouldn't get that statement from leaders, if there hadn't been a preparedness amongst a number of countries to step forward to assist with additional IMF resourcing, and around the G20 table there are a number of countries that have indicated in the discussions that have happened through the G20 their preparedness to do that.
JOURNALIST:Are they non-European countries?
PM:Countries around the table. Let's be clear, I mean Europe needs to focus on resolving the issues out of the eurozone. So that has to be the focus of European leaders.
Then there is a role for the G20 generally and for non-European G20 leaders to play a role in ensuring that the IMF has the resources it needs to respond to any emerging problems in a timely way, to play its proper role as a cushion for the global economy.
That's what Australia has been advocating. Effectively this issue of IMF resourcing was dormant until Australia commenced to raise it in the lead up to this G20 meeting as an important way for the world to respond to circumstances in the global economy.
So against that backdrop I'm very pleased that it became an issue of discussion between leaders, that we've got this section of the communiqué and that finance ministers will be brought together to deal with this specific question of IMF resourcing.
JOURNALIST: (inaudible) the only country that has actually promised, the only non-European country to actually promise that it will to cough up more money?
PM:No, no, other countries - we've got to be a bit clear here. What I've said, as Australian Prime Minister, so I don't want you to misunderstand what it is that I've said, I've said Australia would be prepared to make available additional IMF resources.
There are a number of leaders including from non-European nations who have indicated in discussions around the G20 a similar preparedness. Leaders have put together these words about standing collectively together, ready to provide more resources, and finance ministers have been tasked to address that specific question.
JOURNALIST:Prime Minister, on monitoring, you mentioned that it would be a country by country monitoring to check (inaudible). Can you give us a little more detail of what commitments that will be monitoring and what was China's attitude given that they have previously resisted monitoring within China?
PM:Well that is a reference to the Action Plan for Growth and Jobs. And that Action Plan provides that there will be annual reporting against this and it will be done, not just countries doing it themselves, but if you like, the whole making sure that each individual nation is following up on what they have agreed to do.
In terms of China's attitude, they obviously have agreed to this Action Plan and they have made some substantial commitments in here. The commitment about more flexibility in exchange rates comes from this Action Plan, the commitment about looking to increasing domestic consumption, domestic sources of growth, comes from this Action Plan and the commitment to social protections actually comes from this Action Plan too.
JOURNALIST:Are there any targets in that or was that (inaudible)?
PM:Well you can have a look at all of the words yourself. I'm not sure what you mean by targets in that sense.
JOURNALIST: As far as jobs targets or growth to (inaudible).
PM: OK, well I can take you to the words:'China will rebalance demand towards domestic consumption by implementing measures to strengthen social safety nets, increase household income and transform the economic growth pattern. These actions will be reinforced by ongoing measures to promote greater exchange rate flexibility to better reflect underlying economic fundamentals, and gradually reduce the pace of accumulation of foreign reserves.'
So that is a significant commitment I would draw your attention to.
JOURNALIST:Prime Minister, did you get a sense-
PM:-Sorry we'll just go to the back, you haven't had a question. We'll be fair.
JOURNALIST:I believe agriculture is something that has been bought into the G20, and I believe that there is some-
PM:-Sorry I didn't hear your - something bought into the G20, but I didn't hear-
JOURNALIST: -Agriculture.
PM:Agriculture.
JOURNALIST:Agriculture and there was some concern about, I haven't had the benefit of reading the communiqué, but there's some concern about speculation and derivatives markets in agricultural exports. That's something Mr Sarkozy has been talking about and it's something I would have thought that would be an issue for Australia with a big farm sector.
PM:In the lead up to the G20, President Sarkozy made it very clear that he had a focus on food security. He was concerned about food prices and concerned about the circumstances for the many of millions of people around the world who don't have enough to eat.
We participated in an agricultural workshop. We played a leadership role there, bringing our expertise in agricultural productivity to bear in that workshop and the G20 leaders did discuss food security questions and agriculture questions in the room, so you'll see that in the communiqué too.
Once again Australia can help other nations around the world here. If we look at the circumstances, for example, of Africa, where our hearts have been touched by what's happened in the Horn of Africa. When you look to the long term solutions for food security in Africa, it does mean we need to increase agricultural productivity, and we've got a lot of expertise at doing that as a great agricultural nation.
JOURNALIST:Prime Minister, did you sense around the table that there's going to be a new round of austerity measures in the G20 members, as sort of budget cuts and so on and what effect might that have on, into the forward estimates?
PM:Well, there's no doubt that a number of G20 countries need to engage in fiscal consolidation. And standing here, of all places, after the few days we've been through, the importance of fiscal consolidation should be right at the forefront of people's minds, which is one of the reasons we are so determined to bring the budget to surplus in 2012-13.
Australia is in a far happier position than so many of the G20 countries around the table. We've got strong public finances and we've got our commitment to bring the budget to surplus in 2012-13.
Our public finances and our ability to bring the budget to surplus are things many nations around that table wouldn't even dream of, it's so beyond their ability to imagine being in that position. But standing here I think it reinforces in us how important fiscal consolidation is and we will get on with our own fiscal consolidation and clearly other nations, including the US and Japan are looking to drive fiscal consolidation as well.
JOURNALIST: International union leaders had a press conference earlier today and they were saying that more austerity measures are going to lead to more of this social unrest we're seeing around the world, and that - they call them the deficit hawks - shouldn't rule, shouldn't be in charge. What's your response to that?
PM:Well, my response to that in the context of what the G20 has decided is to point to the language and discussions about social protections. That is significant, to have G20 leaders talking about social protections which has often been viewed as just something that countries are too different from each other, so countries wouldn't come together and talk about social protections.
That has been broken down at this G20 and social protections have been squarely talked about. In the language of President Sarkozy, that means we have broken through the psychology that you can do growth or you can do fairness, you can't do both.
This G20 is effectively saying you can do both and that social protections play an important role in looking after individuals and families but they also play an important role in building economic resilience because they put a floor under demand, even in the most difficult economic circumstances.
Last one.
JOURNALIST:Prime Minister, the US President looked very pleased to see you on the summit floor. What did he say to you about his upcoming visit to Australia?
PM:Well, I was pleased to see him as well and we're going to be pleased to see him in Australia in not too many days time.
Thanks very much.