WYLIE:
I';ve asked my listeners here on the North Coast to ask me some of the issues that are most concerning them today and my first call came from a pensioner who was very concerned that the CPI and the pension will continue to be linked and that it will continue to increase.
PRIME MINISTER:
You mean she';s concerned that it will increase, or she';s worried that it may stop increasing?
WYLIE:
Well, all this talk of pensions eventually not being able to…
PRIME MINISTER:
Oh, no, that is… can I just put her mind completely at rest – we are completely committed to indexing the pension on a half yearly basis and on top of the indexational linkage to the consumer price index we';re also linked to the guarantee that it will be not less than 25 per cent of male average weekly earnings. So there';s a double guarantee and I want to assure pensioners listening to this programme that there is absolutely no suggestion of any kind the Government will reduce the indexation of the pension.
WYLIE:
As the baby boomers are retiring though they';re being told that in the future there may well not be a pension.
PRIME MINISTER:
Well, I don';t know who';s telling them that. What we do need to do over the years ahead is to manage the economy in such a way that we can afford, and I';m sure we can, we can afford to look after a larger retired population. There';s no suggestion from the Government or no credible suggestion that we won';t be able to afford to continue to pay the pension for people who are entitled to it.
WYLIE:
Mr Howard, another carer rang up who';s on a pension, he just gets $45 a week for 20 hours work with a local woman. Are you looking into that area and seeing if more money can go that way…?
PRIME MINISTER:
What she getting the $45 a week for?
WYLIE:
Just 20 hours of caring.
PRIME MINISTER:
Well, who';s paying her? Is that a pension? Or is she employed? I';m sorry, I don';t quite…
WYLIE:
She says she';s on a pension.
PRIME MINISTER:
Oh, it';s on a pension. Well, the carers'; pension, like all other pensions are adjusted from time to time and the question of whether there are any other improvements in that area is something that we keep under constant review. I';m not in a position to make any promises on the run, but carers do make a mighty contribution to a more compassionate society and I';m very conscious and the Government';s very conscious of their contribution.
WYLIE:
Mr Howard, rents are increasing here on the north coast as property values go up. But rent assistance hasn';t been raised. Will you be looking at this issue?
PRIME MINISTER:
Well, rent assistance has been raised in the past. You say it';s never been… I don';t know it';s right to suggest it';s never been raised. Rents, of course, are… do vary around the country, generally speaking one of the reasons why we maintain a commitment to negative gearing and why we think the tax changes introduced by the New South Wales Government are bad is that they could have the affect of further increasing rents. Now at the moment market conditions generally are more favourable for lower rents than they have been in the past because there';s been a heavy investment in investment properties. But if governments take decisions that reduce the amount of money going to investment properties that could over time lead to an increase in rents.
WYLIE:
I know you';re heading to Tweed Heads this morning and we';ve received a lot of calls from that part of our listener area about the Tweed-Tugun bypass and the Gold Coast Chamber of Commerce is calling on you to intervene so that it can be built. Are you able to do anything at all…
PRIME MINISTER:
Well we have made a commitment of Commonwealth money for the Tugun bypass, we have made a commitment. I think the amount of money, we';ve committed $120 million for the Tugun bypass, Queensland is responsible for settling the route and obtaining necessary approvals. Queensland and New South Wales disagree on the preferred route. I mean the Commonwealth is there offering the money, Queensland and New South Wales are disagreeing over the route. Now they have to sort that out, we don';t construct the road, we only provide a lot of the money and it really is up to the New South Wales and Queensland Governments to bang their heads together and fix it and decide where the route is, it';s not the Commonwealth';s responsibility to decide the route, we don';t construct it, this is just another example of where state governments are trying to shift responsibility to us. We';re providing money and the two governments have got to agree on the route.
WYLIE:
On that state power issue, what about the fact that some of our areas here on the North Coast are developing so fast and they just don';t have the infrastructure to cope with the population growth. Can the Commonwealth Government step in there and help some of these areas like Byron Bay?
PRIME MINISTER:
Well we have a system of government, Fiona, in Australia where the State Government has certain responsibilities and the Federal Government has certain responsibilities. Development, local planning decisions, all of those things are within the control of the state and local government and if state and local governments take decisions that allow growth to occur too rapidly then they have to grapple with the consequences of it. We don';t ask the states to help fund the Army and it';s not reasonable for state governments if, through decisions they take or allow to be taken difficulties are created, to turn around and say well it';s the Federal Government';s responsibility. Generally speaking we have defined responsibilities in a Federation and it really is up to state governments to meet theirs as we must meet ours.
WYLIE:
Of course you have the power because you collect the tax…
PRIME MINISTER:
No we don';t have the power, we give all of the GST to the states, we collect the GST but we give all of the GST to the states, every last dollar of the Goods and Services Tax goes to the states and the states have certain responsibilities and we expect them to meet their responsibilities as quite properly we are expected to meet our responsibilities and many of the things that I get asked about are really state and local government responsibilities, understandably people don';t have a clear idea of who is responsible and it';s my job to see that our responsibilities are met and it';s the state government';s job to see that its responsibilities are met.
WYLIE:
How satisfied are you with the tax system we have? ACCOSS this morning is calling for tax loop holes to be tightened up benefiting high income earners.
PRIME MINISTER:
I saw that report, I don';t share all of the views of ACCOSS on this. What they regard as a loop hole many other people would regard as an incentive, unless you give people incentives to invest and take risks and employ people, you don';t generate wealth and you don';t therefore generate the tax revenue that is needed to pay the pensions and to look after our health system and to provide GST revenue to the states to look after roads and police and public schools. So you can';t just look it at in isolation, you have to take into account the value of providing entrepreneurs and risk takers in our community with incentives because without business activity you don';t have employment and without employment you don';t have taxpayers.
WYLIE:
I understand a Senate inquiry is travelling around the country this morning to gauge public opinion on whether Australia should become a Republic. Do you believe that Australians want to be a Republic?
PRIME MINISTER:
Well we had a referendum on this four years ago and I don';t find anybody raising the issue with me, I';m sure many people do want a Republic, I';m sure many people don';t, I';m sure that in a low level way the debate will go on for a long time. But I can';t recall anybody having raised the issue with me over the last six months.
WYLIE:
What about the children overboard inquiry, one of our listeners called and said why didn';t Peter Reith give evidence. Are people talking to you still about that?
PRIME MINISTER:
No, nobody is, but the answer to that question is that it was an inquiry set up by the opposition parties in the Senate. Ministers do not appear before those inquiries, Labor Ministers didn';t appear before those inquires when the Hawke/Keating Governments were in office and the motive for that investigation and inquiry was entirely political and the Government saw no reason to alter that long standing practice.
WYLIE:
We took calls too from people asking if you would consider national service or conscription with the situation as it is at the moment with our involvement in Iraq.
PRIME MINISTER:
There';s no military need of any kind flowing out of Iraq to have national service, none whatsoever. My general view on national service is that I would only support its introduction if there were a defence or military need and there is not one and I have never received in the eight years that I';ve been Prime Minister, I';ve never received any advice suggesting that there was a military need to have national service.
WYLIE:
The situation in Iraq, people are getting concerned about the growing number of people who have been killed, 700 Iraqi lives I understand and I know that there is a ceasefire now in the city of Fallujah, but how are you feeling about the fact that German aid organisations have withdrawn, there';s been this foreign kidnapping?
PRIME MINISTER:
Well I'm like everybody else, I';m watching the situation with concern. The kidnappings are clearly directed in an indiscriminate way against all foreign nationals irrespective of whether their government supported military operation in Iraq or not. You can';t, however, give in to that kind of behaviour. It would only encourage it to spread and the history of dealing with terrorism over the last 30 years tells us that you achieve nothing, you only make the situation worse by giving into hostage taking.
WYLIE:
Are you of the opinion though that Iraq(inaudible), taking what the situation is at the moment?
PRIME MINISTER:
Well, the latest advice I have is that progress is still being made to the hand over to an Iraqi Government on the 30th of June. Clearly, what is happening at the moment is a determined attempt by minority of people to delay that process, indeed to stop it altogether. And the people who are involved in the hostage taking, the people who are involved in terrorist attacks are the people who want to deny Iraq a democratic future and I think that point has to be kept in mind. If they succeed, if they put things off, if they delay things indefinitely, the cause that will suffer most is the cause of a free and democratic Iraq.
WYLIE:
Mr Howard, German aid organisations are looking at pulling out. What';s your advice to Australian NGO's?
PRIME MINISTER:
Well, I always take the advice of our security people and the advice we have to date is that there';s not been any suggestion that people should withdraw and we';re not advising them to. Obviously individual organisations take their own decisions. But I';m advised by our security people on those matters. I don';t make an independent judgement myself.
WYLIE:
Mr Howard, would you visit Iraq?
PRIME MINISTER:
Well, if I were – I';ve been asked this question before – if I were to plan a visit, it';s not something that I';d telegraph in advance.
WYLIE:
Mr Howard, your visit to the North Coast, what';s planned?
PRIME MINISTER:
I beg your pardon?
WYLIE:
What are your planning…?
PRIME MINISTER:
I';m attending a series of community gatherings and talking to local community leaders; talking to local business people; I';m talking to the local media, as I am now; talking tourist operators and generally getting very familiar with, again, with the needs and the interests and the concerns of the people of the northern rivers part of New South Wales, which I know very well.
WYLIE:
On that, I know that farmers are, particularly sugar cane farmers are feeling really let down by the talks and the trade agreement with the US. Will we… what offers can you make of subsidies for our farmers?
PRIME MINISTER:
We are looking at a new support policy for the sugar industry. I';ve had very extensive discussions with the industry and others and when I';m in a position to make an announcement about that, I will.
WYLIE:
Mr Howard, thanks for your time this morning.
PRIME MINISTER:
Okay then, thank you. Bye bye.
[ends]