PRIME MINISTER:
I have something to say, to start off with, I will be leaving shortly to go to New Zealand for the regular bilateral discussions I have with the New Zealand Prime Minister. I go to New Zealand one year, she comes to Australia the other. Although the relationship is in very good shape and the countries are very close, we must always keep our close friendships in good repair as we are reminded by the famous diarist, so that's the spirit in which these discussions take place. We'll talk about trade, economic matters, I'll meet not only the Prime Minister, but also the full Cabinet on Monday morning, address a parliamentary lunch, meet the Leader of the Opposition, Dr Don Brash, and senior business figures tomorrow evening at a reception in Auckland.
JOURNALIST:
Is there anything specific you are hoping get out of trip?
PRIME MINISTER:
A reaffirmation of the forward momentum of the economic relationship, it's a very close economic relationship. CER has been an outstanding success, it's been beneficial to both countries, and I would hope that the talks I have will further strengthen that economic relationship.
JOURNALIST:
Will you be discussing with her at all the case of the two Israeli diplomats expelled [inaudible]?
PRIME MINISTER:
I don't have anything at all to say about the removal of the diplomat from Australia, and I respect the fact that diplomatic issues between New Zealand and Israel are a matter for New Zealand and Israel, and are really no business of Australia's, and let me say this, that Australia's friendship with and close relations with Israel, remains completely unimpaired, we are close ally and a good friend of Israel, and nothing has happened to alter that.
JOURNALIST:
Have you discussed the matter with Philip Ruddock?
PRIME MINISTER:
I don't talk about those matters.
JOURNALIST:
Will you be discussing Gallipoli?
PRIME MINISTER: I am sure we'll talk a little about the arrangements because both the Prime Minister and I are going. It will be a commemoration, not dissimilar from the one that took place in the year 2000. I will be attending, the New Zealand Prime Minister will be attending, and we will both participate in the dawn service and then as is appropriate, I will participate in the service at Lone Pine and she will participate in the service at Chunuk Bair, which particularly marks the New Zealand contribution to the landing.
JOURNALIST:
Do you agree with Mr Costello that it would be inappropriate for John Farnham to be performing [inaudible]?
PRIME MINISTER:
Mr Costello? I didn't know he had said something about it, but let me say this, that I think it is appropriate that you have the right tone, and I don't think anybody is having a go at John Farnham, I think John Farnham is a well liked and respected entertainer, but most Australians would believe that the appropriate tone should be preserved and if that's what Mr Costello was saying, I haven't heard, I certainly do.
JOURNALIST:
Prime Minister, the Department of Foreign Affairs have issued a new travel warning for Aceh, warning specifically foreign aid workers, is the government doing anything about that, is the army taking...
PRIME MINISTER:
Mr Downer has issued a statement that he's holding a press conference about it this afternoon, it will be better if he responded to the government on that issue.
JOURNALIST:
Prime Minister I was just wandering, has the Lebanese government [inaudible]?
PRIME MINISTER:
You will have to talk to the police about that, it is an operational matter, I don't normally talk about operational police matters, if you want some advice on that you will have to talk to the Australian Federal Police.
JOURNALIST:
I was wondering if you are aware whether or not those men may have been [inaudible]?
PRIME MINISTER:
If you want to talk about the matter, talk to the Federal Police, clearly the Federal Police have kept the Government informed, but it's appropriate on an operational matter if you talk to the Federal Police and not to me.
JOURNALIST:
Mr Howard, why won't the Government end the speculation about the expulsion of Amir Laty and say whether or not he was expelled for being a spy?
PRIME MINISTER:
There's a long standing approach taken to these maters, and I don't have anything to add to what the Attorney-General has said.
JOURNALIST:
Prime Minister, interest rates are set to go up, part of your election campaign last year was that they would stay stable, so I mean what...
PRIME MINISTER:
No, our election commitment was that they would always be lower under a Liberal government than a Labor government, and they will and I am very happy to repeat that commitment. But let's keep a sense of perspective, we are talking here about the possibility of small adjustments to interest rates, the question of when they occur and if they occur, and to what extent, is a matter for the Reserve Bank, but we are not talking about going back to interest rates at 17% that existed under Labor. I mean this attempt to say that a minor movement, would be the same as what they were under the Labor Government is ludicrous, we will never go back to those 17% interest rates under this government, no way approaching that.
JOURNALIST:
Are you concerned though of the impact, they are talking about two possible interest rate increases, [inaudible] that might have on Australian families?
PRIME MINISTER:
I think Australian families will continue to enjoy by historic standards, very low interest rates in this country, no matter what happens over the next few months, the interest rates that Australian families will have, will continue to be in historic terms, very low interest rates.
JOURNALIST:
The Reserve Bank Governor has said there [inaudible] economic reform, is that a bit of slap in the face for the Federal Government?
PRIME MINISTER:
No, most of the things that he said I agree with. I agree with Labor market reform, I think we do have some supply bottlenecks, we do have a shortage of skills, that was addressed in the election campaign, we do need to get people off welfare back into work, we have been trying to reform the disability support pension scheme, so just about everything that the Governor mentioned yesterday is on the Government's reform agenda.
JOURNALIST:
Is there a need to direct government, re-direct [inaudible]?
PRIME MINISTER:
Housing is very important to the Australian family, having a home is the core often of family stability and family unity, and I will always place a very high premium on home ownership. It's not a matter governed by economics alone, it goes to the kind of people and the kind of country we are, and the family home is very important to the average Australian, and it should always be something that is kept within the reach of Australians on modest incomes.
JOURNALIST:
[inaudible]
PRIME MINISTER:
Well I do worry that some are finding it harder, and that's why some moderation in the price of housing is a good thing and something that I welcome, as does the Governor. Thankyou.
[ends]