PRIME MINISTER:
Well before I take any questions I just want to congratulate the Socceroos on a terrific performance. To hold The Netherlands to one each given the Dutch are ranked number three; very good, very good performance. It bodes well for what might be in front of us over the next few weeks. Good luck.
JOURNALIST:
Prime Minister is Jim Peacock going to head the nuclear inquiry?
PRIME MINISTER:
No, he won't be heading it. He will be involved in it. I will be talking to my colleagues about this tomorrow. And we are going to have an inquiry which will include a lot of experts and it will also include a provision for peer review of the conclusions that are reached by the experts. I want this issue debated. I know there's going to be a fear campaign and people are going to be running around saying 'rule out this site, rule out that site.' It's quite premature to be talking about sites and in the end, if there's private sector investment involved in power stations, if they do come about, then obviously the private sector investors would have a little bit to say in relation to sites.
But let's have the inquiry first and determine what the facts are and then if there is sufficient economic momentum for the construction of any sites that will be the time to talk about it.
JOURNALIST:
Labor says you can't compare notes on the debate if you're not going to talk about the sites?
PRIME MINISTER:
Well because you're putting the cart before the horse. The first thing is to work out whether it's economically feasible or not. If it is economically feasible, then people will come forward with investments, then you start talking about sites.
JOURNALIST:
(inaudible) already has located some possible sites in the submission...
PRIME MINISTER:
No, I'm sorry that thing at the weekend was a complete furphy. That was about the site for the building of the new reactor which had been at Lucas Heights. We decided to have it at Lucas Heights again. So let's understand that that was something that was determined and dealt with, what, seven, eight years ago.
JOURNALIST:
How will the experts be chosen for the inquiry?
PRIME MINISTER:
Well they will be chosen by the Government on the basis of their expertise. That normally happens. When you have experts you make a judgement as to who will be the best people and that's what we're going to talk about tomorrow.
JOURNALIST:
Will they be from industry or academia?
PRIME MINISTER:
They will be experts. I am not going to limit myself.
JOURNALIST:
Is there a concern about the reaction from the states? I mean just to go to the next step you'll need the support of the states and I would imagine that...
PRIME MINISTER:
Oh I'm quite certain that the states will react in a sensible fashion if they are required to react, Jason. I think what we ought to do is take this one step at a time. This is an important long term issue. Political leaders are frequently criticised for only worrying about the short term and never about the long term. I want to know whether there's a long term future for the nuclear fuel cycle in this country. I want to know whether we should enrich uranium, I want to know whether it's viable economically, whether it is safe, what contribution the nuclear industry if it were viable and can be done safely would make to combating greenhouse gas emissions in Australia. I want answers to all of those things. I have an obligation to provide those answers to the Australian people and I don't intend it to be knocked off course by a fear campaign waged by the Labor Party which only worries about tomorrow or the next opinion poll but not about the next generation.
JOURNALIST:
Its reported today Prime Minister that you plan to go to Indonesia at the end of this month?
PRIME MINISTER:
I would expect to meet the Indonesian President very soon. When I am in a position to make a formal announcement about it I will. But I did speak to him on the phone last week to convey my concern and condolences and sympathy in the wake of the terrible earthquake in his country. I like him. We will get together quite soon. Just exactly when I can't tell you at the moment and when I can I will.
JOURNALIST:
Do you believe it's a thaw in relations since Papua?
PRIME MINISTER:
Well I don't think relations ever completely froze over. There are difficulties over the Papuan issue, I can't deny that. The relationship between Australia and Indonesia is a complex one because we are very different societies, very, very different. You could hardly find two societies more different cheek by jowl with each other.
But there's a lot of goodwill at a government level between the President and myself. I respect him greatly. He's the leader of the largest Islamic country in the world; he has presided over the completion of the transfer to democracy in that country. He deserves more praise for that than he gets around the world and I am quite sure that the relationship will continue to be very strong, but it will always have challenges and difficulties.
JOURNALIST:
What sort of issues do you what to talk to him about?
PRIME MINISTER:
Issues affecting the bilateral relationship.
JOURNALIST:
Prime Minister how would you describe the situation in East Timor?
PRIME MINISTER:
Well the situation in East Timor is very challenging for the Australian Army. I spoke to Brigadier Slater on the phone on Friday night. Mr Downer went there, as you know, over the weekend and talked not only to Brigadier Slater but also to the political leadership of the country. The important thing is that a large number of weapons have been taken out of the hands of people who shouldn't have them. There has been a reduction in the bloodshed since the military have gone there and I think it has to be done bit by bit in accordance with the judgement of the military commanders on the ground.
I certainly don't intend to interfere in any way with their judgements about where to put troops and how to handle the locals. That is their job, they're the professionals. But there does need to be a concerted effort by the political leadership of East Timor. It came to this path because of poor governance and the responsibility is on the political leaders of that country, and I have a right as Prime Minister of Australia given the commitment we have made, to say to the political leadership it carries a very heavy responsibility and it's in their hands to deliver a better future for their people.
JOURNALIST:
What will you be saying to Prime Minister Alkatiri?
PRIME MINISTER:
Well I'm not planning to meet him in the immediate future. Mr Downer spoke to him over the weekend. He spoke to the President and he spoke to the Foreign Minister and I'll get a detailed report from Mr Downer at the Cabinet meeting tomorrow.
JOURNALIST:
On that matter can I ask you about Asian involvement?
PRIME MINISTER:
Asian involvement?
JOURNALIST:
Would you be urging other Asian countries to become involved?
PRIME MINISTER:
Well there are already troops from Malaysia involved and we would welcome contributions from other countries. We're not saying it should only be Asian, that would be foolish. But obviously if other countries in Asia would like to contribute that would be very good.
JOURNALIST:
There are comments in the Sydney Morning Herald today that the Australian troops should be wearing riot gear?
PRIME MINISTER:
That's not the advice I have received. You don't want to believe everything you read in the newspapers.
JOURNALIST:
Prime Minister what's your reaction to this morning's report that the states have spent tens of billions of their GST on public servant wages...
PRIME MINISTER:
Doesn't surprise me in the slightest. I think the states, by and large, have squandered the GST bonanza. GST is the greatest thing that the states have had revenue-wise in my political lifetime. For the first time they where given access to a growth tax and by and large they have not used that bounty wisely in the interests of their people. I think what they have done is to largely squander it and have very little to show for it and I think that is a great shame because the GST was designed to liberate the states from the constant restriction of not having access to a growth tax.
They complained for years that their expenses continued to rise but their tax revenues didn't rise because they didn't have access to a growth tax. We give them access to a growth tax, they don't spend it on tax relief and infrastructure, they spend it on expanding their administration. And that report from the IPA is a very damning report and it ought to be read by every person interested in state governments around Australia.
Thank you.
[ends]