Subjects:Australia Week; tax reform; Wimbledon
E&OE………………………………………………………………………………………
REYNOLDS:
First of all Prime Minister, what’s your assessment of the trip?
PRIME MINISTER:
I think it has been very successful. I think we’ve powerfully reinforced the very positive economic views about Australia in Britain. I’ve had contact with all the leading British industrialists and financial leaders, I don’t think an Australian Prime Minister ever has had such concentrated access to the decision makers in business in this country and bearing in mind Britain closely rivals America as the largest overseas investor in Australia, that’s important, very important. And the combination of my being here with the Premiers I think means more business for Australia, more British investment in Australia and the dividend on that account alone out of this visit is enormous.
REYNOLDS:
Mr Howard, was this trip worth the stinging media headlines back home?
PRIME MINISTER:
Yes, it was. I think those headlines have been in many cases quite adolescent. They have just set out to be negative without understanding both the economic gains from such a focus as this. I mean, this is the financial centre of Europe, rivalling New York as the financial capital of the world and we’ve had an opportunity for a week to put Australia on very positive display. Now, that’s good for Australia and I think those people who criticise it are very, very short sighted. I mean, I’ve been over here talking up Australia and people like Mr Beazley have been talking Australia down over the last week and I think that’s ridiculous.
REYNOLDS:
The Murdoch press has run particularly scathing headlines like Hail King John, John’s Junket. Does that sort of coverage hurt?
PRIME MINISTER:
No, I don’t get hurt by those things. I think what that does is to trivialise something that has done Australia a lot of good. I mean in the end it’s in Australia’s interest to be seen in a major country and Britain is a major country for us because, alone because of her investment, and to be seen in a very positive light. And you have seen the impact the visit has made, and there is a very positive reaction to Australia. And that will mean a lot more investment and a lot more for Australia in the future. Now, that’s all quite separate from the importance of the historical events that we have observed.
REYNOLDS:
Well it could be argued that Australia has received $2 million worth of good trade talks, ministerial talks. Did you really need to bring two personal secretaries, two private secretaries, four advisers and an official photographer?
PRIME MINISTER:
Well I have brought no more people on this occasion than any Prime Minister has taken when he goes overseas. Look my party is no bigger on this occasion, that is a ridiculous question, because my party is no bigger on this occasion than it has ever been in the past. And indeed it would compare entirely with parties that my predecessor brought. But if we are going to sort of get down to that kind of specificity I can’t do my job as Prime Minister travelling without some kind of staff support and if people are going to start quibbling about that I’m sorry I’m not going to apologise for having done that because I think it is entirely reasonable and I think those sorts of attitudes with great respect are trivial and even adolescent.
REYNOLDS:
But the media exposure here in Britain has been almost non-existent. Does that disappoint you?
PRIME MINISTER:
No, I’m not interested in media exposure. I’m interested in talking to the decision makers, particularly the economic decision makers and I’ve had access to all of them in a very big way and the reaction has been extremely positive.
REYNOLDS:
Do you think that Australians share the same enthusiasm for our British ties as you clearly do?
PRIME MINISTER:
Well I don’t know. Some may, some mightn’t. It’s not so much the ties, it’s rather some of the things that we’ve inherited. I try and deal truthfully with these things and we have inherited a lot of good things from the British and a few things we have inherited we could have done without such as their craft union system. I’ve done my level best to try and change it. And what’s been the genius of the Australian achievement is that we have picked the good things out of our heritage and tried to discard the not so good. And the craft union system is something we could have done without from Britain.
REYNOLDS:
Has this week in any way hardened your resolve against Australia becoming a republic?
PRIME MINISTER:
No. Look it’s, this week has been republic neutral. It’s perfectly possible to appreciate what Britain, the inheritance from Britain and also be a republican. You don’t, I think the republic is quite separate from this observance. It’s neither hardened nor softened my view. It hasn’t altered my view.
REYNOLDS:
The Queensland Premier, Peter Beattie, says that with all the pomp and ceremony was a good reason in his mind to restart the debate, that the States should take the lead and experiment with constitutional arrangements. Would you be prepared to consider that?
PRIME MINISTER:
Well, this is something that must always be done at a national level, he knows that. But, look, we had a referendum in November last year. I don’t think the Australian public at the moment is the least bit interested in revisiting that issue, I’m not. But Mr Beattie is entitled to his view and others are entitled to their view. The Australian people had a vote on this less than a year ago. I can’t imagine for a moment they want to revisit it at present. They might in the future, I don’t know.
REYNOLDS:
Well while you have been away you’ve been monitoring the implementation of the GST, you’ve sounded pretty buoyant this week about how it’s been going in Australia, it’s been coping very well. Is the worst over for your government?
PRIME MINISTER:
Well I’m not complacent. We still need time for it to be fully bedded down, but the early reaction is very positive. And the very negative campaign run by the Labor Party has been a flop. Mr Beazley has been narking negativity for a couple of years. And the public are now going to turn around again and say well what have you got to offer that’s positive. It’s easy to try and tear down and destroy but at least the government is trying against the odds to implement a new system. It’s now in place. And the reaction so far is very positive. I know Mr Beazley’s a bit devastated by that, but he chose to be negative.
REYNOLDS:
He has put out his platform, as I understand. Mr Beazley has been looking at ways of rolling back the GST. Do you think that it is in any way possible?
PRIME MINISTER:
Well, if you start rolling back you create confusion. You threaten the revenue base that the new system gives to the states. He talks about alternative revenue arrangements for the states. Does that mean he is going to undo what we have given the states. I don’t think the states, including the Labor states, are going to be very amused at that. Look, I think the Australian public would dread the idea of further major change in this area. We’ve had a very big change and I don’t think in the end Mr Beazley can do anything other than keep the GST.
REYNOLDS:
That sounds like you’re going to leave tax reform alone for the time being, does that mean that there is no option for perhaps bringing down the top marginal tax rate in the future?
PRIME MINISTER:
Well, Fiona, we’ve just reformed the tax system. It’s a week old. And people are still getting their tax cuts. It really is incredibly premature to be talking about another tax reform. Asking me? I’ve spent the last three years of my political life putting in place the biggest reform in fifty years, and you say is there any more?
REYNOLDS:
You have spoken this week of looking at a wider reform agenda that there is some unfinished business for you?
PRIME MINISTER:
There is always unfinished business when you are Prime Minister.
REYNOLDS:
You’ve mentioned industrial relations reform. You’ve mentioned social welfare, the system there. What other areas could be in need of an overhaul?
PRIME MINISTER:
Well, Fiona, we need a bit of clear air. We have just implemented a new tax reform and I’m not going to go into detail about other areas at this time. But you can rest assured that the reform process carries on. You never rest, you never go into idle, you always keep moving forward.
REYNOLDS:
You said that you have got a few ideas in mind though.
PRIME MINISTER:
I have quite a number of ideas in mind, but now is not the time to let you in on them. I think we ought to get the new system bedded down and get some clear air. But you can rest assured that we will putting forward further positive ideas, we won’t be just negatively trying to sabotage what the other bloke tries to do.
REYNOLDS:
Aren’t Australians a bit reform fatigued though.
PRIME MINISTER:
I don’t think Australians are reform fatigued if they see the national benefit and the reform is fair. One of the reasons why Australians supported tax reform was that they knew it was good for the country. And I think they are finding out with their tax cuts that it is quite a fair reform. Therefore, they’re supporting it.
REYNOLDS:
And finally Prime Minister, Pat Rafter has made into the Wimbledon mens’ singles finals. Will you be going along to watch?
PRIME MINISTER:
Well, I haven’t quite settled my programme for the weekend but it would be great for Australia and a great end to Australia Week if Pat, who I congratulate on getting into the final, were to take it out, wouldn’t it.
REYNOLDS:
It is enticing for you to go along?
PRIME MINISTER:
Well, I think anybody would if possible, but I have just got to have a look at my programme.
REYNOLDS:
Prime Minister, thank you.
PRIME MINISTER:
Thank you.
[Ends]