DOYLE:
Prime Minister, good morning and welcome to you, thank you for joining us this morning.
PRIME MINISTER:
Nice to be with you both.
DOYLE:
Now the experts are saying this budget is aimed strategically at swinging voters. So when do you think we might see the election?
PRIME MINISTER:
Well I don't know when the election will be, some time later this year. This Budget is a good Budget and it does contain a lot of benefits for Australian families in particular, but it has been made possible because we have a very strong economy and what you saw last night is what happens and what a government can do when it runs the economy well and there's a warning in that, that if you hand the economy over to people who don't run it well then many of these benefits are simply not affordable. We've done all of this in so many areas and yet our Budget will still be in surplus, we'll have one of the lowest if not the lowest levels of national government debt of any developed country in the world. We've paid off more than $70 billion of the $96 billion of debt that was left to us by the former Labor Government in 1996; and I'm very proud of the family focus of last night's budget, I'm also very proud of the fact that we've put a record amount into helping the aged care sector and all the while of course we've continued to provide strongly for intelligence and for defence.
DOYLE:
Alright. We will go into some detail on the budget in just a tick but I'd like to bring you back to my original question of the election, you said later in the year, is there any way you can be more specific? Can you give us any preferred time that you would like?
PRIME MINISTER:
I don't know, I don't know. The election is due in the second half of this year, theoretically it can be held in the early part of next year but the more normal time would be to be hold it some time in the last six months of this year. Now there's no secret about that, everybody knows the possible dates and timetables, but if you want to know, if your viewers want to know if I've made up my mind when I'll call the election is the answer is no I haven't.
BERETTA:
Okay. Prime Minister we asked a few of our viewers to email in to talk about some specific cases. Richard has emailed in from Canberra, he says he's working as one of Australia's few full time soccer coaches. Now he earns around $35,000 a year, he's wondering whether he'll be getting a tax cut.
PRIME MINISTER:
Well does he have any children?
BERETTA:
He doesn't.
PRIME MINISTER:
He doesn't have any children. Well clearly this budget gives more benefits to people with families and we decided this year as far as the tax cuts were concerned to really go for those people who were getting into a higher tax bracket even though they weren't earning a big income. Now last year, the last budget, we had an across the board tax cut, a very modest one, this year as far as the tax cuts are concerned we've set out to stop a large number of people getting into that 42 or 47 cents in the dollar tax bracket and that has been the target. As far as Richard is concerned of course if he's saving for his retirement, he mightn't be thinking of that, he doesn't sound as though he's very old, but you've go to start early, he will get the benefit, particularly at $35,000 of the enhanced superannuation co-contribution and that will be very valuable, and of course if he's young, again he probably looks forward to retirement, being married and having children. You have to look at budgets like this very much in a life cycle way and not just at a particular point in time.
DOYLE:
Yes, we noticed that the Treasurer did urge people to go and do their bit for the nation and have families.
PRIME MINISTER:
Well I'd endorse that very, very strongly, all those Richards out there, come on, come on, your nation needs you.
DOYLE:
Gee, that's a tough task isn't it? One that has already done is that is Vanessa from Western Australia and she wants to know about the new baby bonus, what it means to mothers who've already had babies in the last two to three years, will they still be entitled to the payments that they were promised under the old scheme?
PRIME MINISTER:
Yes. Yes. Yes, we're grandfathering or grandmothering the existing baby bonus and if you were better off under that well obviously you keep it and anybody who's entitled to that will retain that entitlement. But the new payment, which is non-means tested, a flat amount irrespective if your means, irrespective of whether you were in or out of the workforce, that comes into operation on the 1st of July 2004, in other words in about seven weeks' time.
BERETTA:
Okay. Jenny from Brisbane wants to know why the pneumococcal vaccine for all children wasn't included in last night's package?
PRIME MINISTER:
Well we do already provide help for the most at risk groups of people in relation to this vaccine and that has been the decision that the Government has taken to date. The issue does nonetheless still remain under consideration and certain discussions are going on regarding it. But we've taken the view to date that the at most risk groups, particularly those most at risk at a very early age, they are being fully funded.
DOYLE:
Alright. Now Prime Minister we can't let you go this morning without asking you a question about leadership, it has been in the headlines a lot lately and it's the one question that always comes up. Can you say how long you intend to stay in the top job after the next election? Will voters be voting for you for the full term?
PRIME MINISTER:
Well the question of whether I remain prime minister will be decided by the Australian people. I've got to face them at the next election as Prime Minister and as leader of the Liberal Party and I've said before, and I just say it again, that I'll remain leader of the Liberal Party for so long as the Party wants me to remain in that position and it's in the party's best interests that I do. Let me say that I fully understand the aspiration of my friend and colleague Peter Costello to lead our party, he's made a fantastic contribution to the Party over the years and it was demonstrated again last night and there's a very strong view in the Party that if a vacancy arises in the top job then he's the logical person to fill it. But as far as my own position is concerned, I like the job, I'm enjoying it, I hope I'm doing it well, my masters the Australian people will decide that when the election is held and as far as the Party is concerned, well I've indicated I'll stay in the position for so long as they want me to and it's in the best interests that I do.
DOYLE:
But you've got to understand how voters feel, they're a bit nervous, particularly when the Opposition is constantly saying a vote for you at the next election is essentially a vote for Mr Costello. I mean you've got to understand the confusion that some voters might be feeling because of this now.
PRIME MINISTER:
I don't think it's as big, I think people understand that when you've been in politics for a few years as I have it's a perfectly logical thing to give the answer that I've given, it's a very honest answer, it's very straightforward, I mean I'm very fit, I'm lucky, I enjoy good health, I hope that continues, and I like the job but in the end the Australian people will make a decision as to whether they want me to continue and I think voting for a team that includes me as Prime Minister and Peter Costello as Treasurer, may I hope not immodestly say that we together have guided the Australian economy to the strength that was demonstrated last night, you haven't had 17 per cent interest rates under Howard and Costello, you haven't had a union dominated government under Howard and Costello, that is what you would get under Mark Latham and people have to understand that.
BERETTA:
So no plans for retirement, Prime Minister, that's the bottom line...
DOYLE:
Prime Minister, thank you very much for joining us this morning, we do appreciate your time.
PRIME MINISTER:
Thank you.
[ends]