PRIME MINISTER:
Thank you everyone for being here. I want to thank my colleague premiers and chief ministers and local government representatives for their participation in this meeting of COAG. I think I can say that it has been conducted in a very constructive and collegial spirit. Yes, we represent different levels of government, but we all want to do the right thing by our country, we all want to do the right thing by our citizens and I regard these COAG meetings as meetings amongst equals and I think for that reason certainly today and the previous one back in December have had a very, very good spirit.
I really just want to draw attention to two matters before asking Campbell Newman as the Chairman of the Council of the Australian Federation to speak and then briefly running across the table. I just want to draw attention to two matters. The first is the recycling fund which will be formally announced in the Budget, but which all of the states and territories have signed up to. This is a very important Commonwealth initiative to try to ensure that the states' own infrastructure priorities are expedited. This is a Government which wants to see Australia's infrastructure deficit addressed. I want to be the infrastructure Prime Minister and in order for me to be the infrastructure Prime Minister, people at this table have to be infrastructure Premiers and infrastructure Chief Ministers. This infrastructure recycling fund of which there’ll be more detail in the Budget is a very important way to encourage the States and Territories to do more when it comes to economic infrastructure. So I think this is a very important initiative. I think it's a very good example of constructive and cooperative federalism at work.
The other point I want to make is that this is a Government which is committed to improving our federation. We are a great country, there is far more that's right with Australia than is wrong with us. Nevertheless one of the reasons why we are a great country is because we are always asking ourselves how can we be better and I think we can improve aspects of our federation. I think we can make changes that will allow each level of government to be more sovereign in its own sphere. I think we certainly should be capable of considering changes that will make transparency greater will make accountability greater and we'll try over time to ensure that the people who spend the money raise the money. I think we can consider those sorts of changes in the months ahead. That's what the federation white paper is all about. It will be a constructive and collegial operation. It will be a partnership and there’ll be a steering committee chaired by the Secretary of the Department of Prime Minister and Cabinet on which the state and territory Directors-General and the Local Government Association will be represented to try to ensure that everyone is in this together. Because if we are going to have meaningful change to the way our federation works, it's got to have buy-in from all the jurisdictions. So it was a very constructive meeting. I want to thank my colleague Premiers and Chief Ministers for the spirit in which they have participated.
PREMIER NEWMAN:
Thanks very much Prime Minister, good afternoon ladies and gentlemen. Look, I certainly echo the Prime Minister's thoughts on the way the meeting has been approached and conducted today. In fact I’d go so far as to say in the two years I've been coming to these meetings it's probably the most productive and most cooperative and collegiate and I think we agreed on the issues that are contained in the communique quite quickly. I again echo what the Prime Minister said; I think the two things of greatest importance today are firstly the national partnership which is essentially an incentive scheme to build this nation's infrastructure. I think that's very important. My state is currently conducting a debate about the strong choices that confront the community and we've made no decision to selling, certainly not without going to an election. But we're happy to sign today and we'll put that out there as part of the debate we're conducting in Queensland, but we think it's a very important initiative from the Commonwealth and happy to get behind it.
In relation to the white paper on the federation, this is something that I think is incredibly important. I agree with the Prime Minister and other first ministers that we do have a very successful federation, but we should work very hard to make it even better. There are many challenges facing the nation and those financial challenges won't go away particularly and by dealing with duplication, overlap, waste and consequential inefficiency we can actually do a better job for Australians. I think Australians right across the country are sick and tired of government saying that they're not to blame and the other level of governments to blame. By approaching this in a very workmanlike way by deciding who does what, clearly defining the responsibilities and see which things can be adopted by one jurisdiction or another, I think that will be a very positive thing for the nation. So we're going to work with the Prime Minister in the way that he’s outlined to firstly develop a proper terms of reference and then together cooperatively, including [inaudible] develop the actual white paper itself. And I think that's something that down the track all Australians should take the opportunity to have a say on because it really will be a very important piece of work. But the thing that heartens me is there seems to be a genuine commitment around this COAG table to actually get some reform going there.
So thank you very much.
PREMIER BAIRD:
Thanks. Prime Minister, I echo the comments that have been made today. Exciting day, I think, not only for New South Wales but the nation, indeed every state that is here. The commitment that I’ve seen in infrastructure since I've had the privilege of being the Treasurer and more recently Premier of the state is incredible. There is real support from the Federal Government to build infrastructure across this country and the agreement today is a lot of hard work has gone into that over a considerable period but it is an incentive package to provide an opportunity to bring off the balance sheet assets that sit there in a lazy context to put them to work for individual states and for the nation. So those incentive payments provide further opportunities to do more infrastructure across the country and as the Federal Treasurer has said, the challenge that we have as the mining investment starts to come off, the non-resources sector needs to step up and infrastructure driven by the federal and state governments working together is a big opportunity to ensure the economy continues to grow. So that's a very positive development that has come out of today one we're very proud to support. And a very quick comment in relation to federal-state relations, I agree with Premier Campbell Newman the context of an exciting opportunity to look at revenues aligning with expenditures, to increase the sovereignty of states in terms of those reforms, is an incredible opportunity and one that we very constructively look forward to working with.
PREMIER HODGMAN:
Thanks Prime Minister. Look, I was very pleased to attend my first COAG meeting and to commence constructive and cooperative working relationship with my state, the Commonwealth and indeed my colleagues from the other states and territories. Tasmanians resoundingly voted for change on March 15 and they voted for a new government that has at its heart an agenda to make Tasmania a place that's easier to do business, that's more receptive to investment, a place where it's easier to get things done.
I was very happy with the outcomes of the COAG meeting, but particularly the emphasis that's being placed on the deregulation agenda. It's at the core of what we intend to deliver at a state level, but it can only be achieved by working cooperatively with our federal colleagues to ensure that the red and green tape that is a handbrake on business is minimised, the duplication that often exists between state and federal jurisdictions is minimised and it will certainly be a key part of the key work that we, as a new government in Tasmania, commence and again I look forward to a productive, constructive and cooperative relationship with my colleagues.
CHIEF MINISTER GALLAGHER:
Thank you, Prime Minister. I support the comments that have already been made. I think the ACT will look carefully around the asset recycling programme. We’ve got big infrastructure needs and I think the offer from the Commonwealth is very welcome and it was pleased to sign that agreement. In relation to the white papers on federalism and tax, these are some very complex issues to be worked through there and I think the way the conversation has started and the agreements reached today put those white papers on the right footing. That we're all agreeing to go in with a relatively open mind or even say an open mind and work through some of those issues.
The only thing I’d add to the day is I was really pleased that COAG agreed to proceed as agreed previously with the NDIS. I think that sends a very strong message from first ministers considering some of the speculation and the chitchat around that that, you know, as we sit today with the information before us we are proceeding along the timetables as agreed and I think that's a very good message to get out to perhaps the most vulnerable members of our community.
PREMIER BARNETT:
Look, I agree with what's been said I’d just add a couple of comments maybe on some social policy issues. I was very pleased that the COAG supported the principle of making adoption easier for Australian parents and there's strong support for Commonwealth taking the lead in terms of overseas adoption. I think we all agree that's a proper process to follow. I think also in terms of the paid parental leave, also some good discussions about how existing state schemes for public servants are integrated with the Commonwealth scheme and it's a mechanical issue, but I think everyone’s aware of what those issues are now and I think that will lead to an early resolution, but a good meeting.
PREMIER NAPTHINE:
I think today has been a very successful COAG meeting and congratulations to the Prime Minister and people around this table. Victoria’s very proud of the fact that we have a population that's growing faster than the national average and that means we need to invest in key infrastructure to meet the needs of our growing community. This key infrastructure is about improving productivity and efficiency, it’s about providing thousands of jobs for Victorians in building that infrastructure. It's also about improving the quality of life for people in Melbourne and Victoria and I'm very pleased to have signed up today to the asset recycling programme with the incentives provided by the Commonwealth to assist our very, very strong infrastructure programme. Already this week the Prime Minister has committed the Federal Government to $3 billion for one of our major pieces of infrastructure – the East West Link – and this agreement today will provide greater resources for Victoria to deliver on our infrastructure programme to meet the needs of our growing population.
PREMIER WEATHERILL:
At the recent state election we campaigned strongly on the question of maintaining momentum for building infrastructure in South Australia. We welcome the flexibility that the agreement provides to allow the Commonwealth to work together with individual state governments to meet their infrastructure needs. In that state election, we also made a pledge about not privatising some of our major strategic public assets, including our water utilities a we'll maintain that pledge. But there's sufficient flexibility in the relationship with the Commonwealth to allow us to continue to build infrastructure in partnership with the Commonwealth and we look forward to making some further announcements with the Commonwealth about those matters. In relation to Commonwealth-state relations, I agree with what's been said, but I think that the starting point, we need to remind ourselves, is that in international terms we have a relatively successful cooperative federalism. It's not destructive and competitive in the way that you see in some other countries in the world, for instance, the United States of America. In fact, many of them look to Australia as a model for cooperative federalism. So before we embark on this journey of discussing what's wrong with our federalism, we also need to have proper regard to what is right about it.
I think another word also by way of caveat about Commonwealth-state financial relations, we established an economic union at the turn of the century before last, and that was about one nation, not a series of competitive units that all went out on their own and it's the strength of having the Australian nation that's brought us to where we are now. So I think we need to make sure that we don't lose what it means to actually have a single economic unit which is at the heart of the formation of the nation. A lot of our Commonwealth-state financial relationships are directed at that. So it's important not to unravel that in our quest for reform.
PREMIER GILES:
Look, there's no doubt that the Northern Territory has somewhat of a sense of a weight of a nation on its shoulders in looking towards leading the development of Northern Australia. So it is very good to have the opportunity of coming together with both Colin Barnett and Campbell Newman and the Prime Minister and talking about Northern Australia, but particularly with the class of 2014 in talking about reforming infrastructure, the opportunity for recycling and harnessing new ways to get investment into developing Northern Australia. We're not going to develop Northern Australia unless we get investment into infrastructure. In a lot of ways we're 150 years behind the rest of the nation so identifying structures such as asset recycling presents an opportunity of having a debate in the Northern Territory and starting to see realisation of capital values in some of those assets and having a reinvestment process.
In regards to the white papers about the federation, I think presents an opportunity of removing duplication between the Commonwealth and the states or the territory in particular. I would like to see a significant advancement around indigenous affairs in removing some of that duplication in getting a greater level of responsibility towards the Northern Territory. So that we can remove a greater deal of the sense of the mendicant nature of the Northern Territory and be truly responsible for all of the constituents within the Northern Territory.
FELICITY-ANN LEWIS:
Thank you Prime Minister. It's always good to be here amongst the first ministers and having the opportunity to reflect the discussions and how they impact at the local level. It's fair to say our interest in infrastructure is critical. Whilst these reforms are looking at infrastructure of significant dollar spend, nevertheless, all of those decisions and how they play out have an impact at the local level and that’s important that all three levels of government are working where possible to ensure that we get the best outcome. So that discussion was extremely interesting for us.
Also the two white papers, I'm pleased that the Prime Minister has included ALGA in the discussions on that. Many of you would be aware of our thwarted attempt to see local government recognised in the constitution last year, but the issues around federal financing of local government haven't gone away and I think it's important that we take every opportunity to have an input into thinking about how the federation works into the future and how taxing regimes within the state and the Federal Government ensure that every local community has a guarantee of finances to be able to make local government in all communities sustainable into future.
QUESTION:
To Premiers Barnett and Napthine, on the federation reform stuff, are either or both of you attracted to the concept of the states having a hypothecated element of income tax and taking sole responsibility for health and education?
PRIME MINISTER:
The white paper process doesn't start with a whole lot of preconceptions and pre-conditions. We want to ask ourselves the question, how can we do things better? Now that's what sensible adult countries do, from time to time they ask themselves the question: how can we do things better? As Jay was very properly pointing out, we do a lot of things very well so we are not going to turn the world on its head here. But nevertheless we should be in the business of sensible incremental change, where it can ensure that services are delivered better in an accountable and transparent way. We saw the Commission of Audit report yesterday, obviously the Commission of Audit had something to say on this subject, I thought it was a useful contribution, but no one should assume that just because it was contained in the Commission of Audit that it is necessarily likely to happen or that it is in some way the Federal Government, the Commonwealth Government's favoured position. It’s the position of the members of the Commission of Audit. They were picked because they had something useful to say and they did say something very useful yesterday, but let's not assume that it's some kind of a necessary blueprint for our nation.
PREMIER NAPTHINE:
In the Commission of Audit report they did identify a better and fairer distribution of the GST. That's the highest priority for Victoria. We believe that Victorians are dudded under the current distribution system for GST and our priority’s to get a better and fairer system and the audit commission recommended more based on per capita. We recognise the need to support the smaller states and territories and we’re quite happy to do so. But in comparison to the bigger states, Victoria's being penalised and our argument is about a fairer system of GST distribution. That's our priority.
PREMIER BARNETT:
Look, walk in my shoes, Denis, if you're worried about GST. The GST distribution is the biggest issue for Western Australia. So I was obviously pleased with what the audit commission said. On income tax, that's a bold recommendation. I'm not sure it’d actually simplify Australia's overall taxation system to do that. Western Australia – the GST – as I say, it's our biggest issue. It's starting to affect our capacity to deliver services. It's affecting our budget position and the only alternative, Tony, is to close the border.
QUESTION:
The taxation white paper, you say there were draft themes discussed. Can you take us through some of the draft themes and some of the nature of the discussion today?
PRIME MINISTER:
Well, the discussion today was more in terms of how tax impacts on the federation along the lines that Denis and Colin have just outlined because obviously how we ensure that the states have adequate revenue for their responsibilities is a very big issue. I'm not saying it's easily resolved, but it is a very big issue and how these things are carved up is obviously an issue for the contributor states in particular. And then there's the question of what happens inside the black box of the Commonwealth Grants Commission. So these are all important subjects that we ought to deal with in a fair and sensible way, but without concluding now that any particular outcome is the right one.
QUESTION:
Will GST be in that white paper?
PRIME MINISTER:
Well, there’s no reason why all of the sources of revenue that are available to the states shouldn't be considered as part of the Federation white paper. But, I want to stress that the position that the Commonwealth Government took to the election – we have no plans for change in this area – is our position and it continues to be our position, but let's see what comes out of the process.
QUESTION:
Mr Abbott, did you take the opportunity over the last 24-hours when the Premiers were here to discuss the strong reservations that New South Wales and Victoria have just expressed about 18C changes?
PRIME MINISTER:
This wasn't part of the COAG agenda.
QUESTION:
Was it informally discussed?
PRIME MINISTER:
It wasn't on the COAG agenda and as to what may or may not be informally discussed; I’m just not going to go into that,Michelle.
Sid?
QUESTION:
One of the other things raised in the Audit Commission was the handover of responsibilities for schools and hospitals to the states. Do you have a view on that and do any of the Premiers have a view on that?
PRIME MINISTER:
Well this is an ongoing and quite a proper subject for discussion and yes, I would certainly expect who should be responsible for what within the broad existing constitutional dispensation , I certainly think that this is the sort of discussion that we ought to be capable of having and it certainly ought to be something which is canvassed by the federation white paper.
Again, I don't want to say that any particular outcome is favoured at this stage, although in principle – in principle – I would like to see each level of government more sovereign in its own sphere.
So, look, let's see where this discussion goes because we're at the beginning of a process – we're not halfway through the process, we're not at the end of the process – and if we want the process to be as productive as possible, it needs to be collegial, consultative and that's how things will be under this Government.
Sabra?
QUESTION:
[inaudible] were raised in the Commission of Audit yesterday about giving the states power to levy personal income tax. You’d like to see that examined too in your white paper on taxation?
PRIME MINISTER:
Well, I don't think anyone should assume that is a likely outcome and the last thing I want to see is any idea of double taxation.
I don't think anyone wants to see double taxation. Speaking for myself, I want to see lower, simpler, fairer taxes over time. I want to stress that – lower, simpler, fairer taxes. But look, people are perfectly entitled to put things on the table and within the overall white paper process, let’s have a discussion, but in the end – and again I stress this – if there is to be any substantial change, obviously it has to be something which is supported by the Commonwealth Government and obviously it would go to an election.
QUESTION:
Premier Mike Baird, whilst you have been away your Police Minister has stood aside. Have you spoken to him and where to from here?
PRIME MINISTER:
Louise, this is a COAG press conference, so if you don’t mind we might rule that question out of order.
PREMIER BAIRD:
I am aware of the allegations, they are serious. I will be making some comments later this afternoon but today, right now dealing with COAG.
QUESTION:
If I could just ask about the comments about paid parental leave in the communique and I was just wondering to what extent they may be affected by any possible changes that might come up in the scheme, for example a $100,000 cap instead of a $150,000 cap. Does that have any bearing on how that works with the state schemes?
PRIME MINISTER:
Laura, I think I can say that there is general acceptance around the COAG table that we should have a system which provides paid parental leave based on a wage. That is how the state public service schemes operate. That is how the coming Commonwealth scheme will operate, although as you rightly say, there's a cap, $100,000 is the cap.
Now obviously, we have to legislate our scheme. Let's see what emerges from the Parliament, but I am very, very confident, given the mandate that the Coalition has got at this election – a mandate that we sought at the previous election as well – I am very, very confident that we will get, finally, a fair dinkum paid parental leave scheme through the Parliament and it will accept and acknowledge that paid parental leave is a workplace entitlement, not a welfare entitlement so should be based on people's wage.
Now the precise relationship between the Commonwealth scheme and the state public service schemes is going to be subject to discussion, jurisdiction to jurisdiction. The fundamental rule though is that the states won't be out of pocket.
QUESTION:
Prime Minister, you talked about having lower, fairer taxes, simpler taxes. Obviously the deficit levy or increase in tax is still an issue out there. Is it still on the table? And, given that there is quite a backlash against the idea, would you be more open to applying it to those on more than $180,000 rather than those on more than $80,000?
PRIME MINISTER:
Well David, I should apply the same rule that I applied to Louise and rule that out of order as a question on a non-COAG subject.
We did have, I suppose, a discussion today about the fiscal parameters under which the Commonwealth is operating and I think that my colleague first ministers found that a useful discussion.
Let me just say this- it will be a tough Budget. I don't want to make any bones about that. It is going to be a tough Budget. The people of Australia elected us to deliver a tough Budget because they understand that the Commonwealth was facing debt and deficit stretching as far as the eye can see.
We will address the problem. We were elected to address the problem; we will address the problem. We will do so in ways which are fair and one of the things that I want to be able to say on Budget night is that everyone is part of the solution. There is going to be equitable burden sharing, that no-one is getting off scot-free here; everyone is going to do his or her bit.
I think Australians accept that when you've got a problem, we need to deal with it together as a nation and that’s certainly what all of the measures in the Budget are designed to do – to deal with the fiscal problem that we have inherited but to do it in a way which is fair.
QUESTION:
Did you manage to enlighten the Premiers how each and every one of them are going to have to share the load in the fiscal cutbacks and could you expand on what you told them?
PRIME MINISTER:
As you can see it was conducted in a very good spirit, this meeting. What we are trying to do as a Commonwealth Government, as I pointed out in the speech I gave to the Sydney Institute earlier in the week, we are trying to, over time, reduce recurrent spending so that we can increase, quite quickly, capital spending. We want to put more into building up our economic strength and less into day-to-day consumption. That’s what we are trying to do and while I’m not saying that the states are going to cheer every measure that will be announced on Budget night, I do think that the states will be reasonably satisfied that this is a good Budget for them because of the very substantial expansion in infrastructure spending that we’ll see.
QUESTION:
Prime Minister - schools funding was taken off the agenda, what’s the hold up there of the schools funding deals?
PRIME MINISTER:
Well, schools will be obviously on the agenda next time and I think we’ll be in a much better position to have a good and fully informed discussion about this at the next meeting of COAG.
Ellen?
QUESTION:
Can I ask through you, Dr Napthine, do you support the Commission of Audit recommendations that state hospitals should be encouraged to charge people who turn up in emergency departments for minor ailments?
PREMIER NAPTHINE:
Let me say with regard to the Commission of Audit, it's a large piece of work that I haven't read every page of at this stage. In broad principle, we welcome the recommendation for a fairer and better distribution of the GST.
A number of the other issues raised by the Commission of Audit that I've been made aware of certainly pose some interesting challenges and some would even say they are quite courageous recommendations. But I think they will need to be worked through before we make any considered comments.
QUESTION:
Chief Minister - you mentioned NDIS and the ACT is the only jurisdiction that is going to have a full rollout of the NDIS across all age groups across the community and the jurisdiction and that starts in two months’ time. Does today's decision mean you think the NDIS is now locked in and unable to be wound back?
CHIEF MINISTER GALLAGHER:
Look, a couple of things. On one level - yes but I would also say we had agreed that the early learning from the scheme from what we are doing all in our trial sites would feed into opportunities for revision, if needed. I don't say that to cause any concern. I just think it's sensible that when you are having a trial of a whole new way of doing something that if you do learn things that need to be adjusted or changed you are able to do that post the trial.
There will be some work, continued work in the implementation. But I think it was very important that first Ministers were able to say that, as it stands now, with the information we have available, the time table as agreed will continue. There has been some speculation so from my point of view trying to get providers in, trying to get packages out, that was the important message because we are all in different stages of recalibrating our systems.
QUESTION:
Prime Minister, I’m curious about this new rule that you can’t ask anything other than COAG because I would like to know what your response is to the NSW Police Minister standing aside today. You got very angry a couple of weeks ago when a journalist implied in a question that there was corruption in the NSW Government. Now, these are simply allegations but you said that was an unjustified smear. Given what we have heard in ICAC in the last couple of week, do you stand by those comments?
PRIME MINISTER:
Karen - of course I stand by the comments I made before. I have been in a COAG meeting, so I can't comment on ICAC because I am just not familiar with what may or may not have happened today.
QUESTION:
The Police Minister has now stood aside.
PRIME MINISTER:
Karen, I can't comment on matters that I've been absent from and I have been absent from ICAC matters.
QUESTION:
You said the budget was going to be tough and that you were going to implement measures and ways that were going to be fair. Are they going to be 100 per cent compliant with your pre-election commitments and also to Mr Hodgman, how do you feel about this idea of GST distribution on a per capita basis?
PRIME MINISTER:
Again, we are sort of wandering off COAG matters. We did have, as I said, a discussion of the fiscal parameters under which the Commonwealth Budget is being prepared.
We made a whole range of commitments prior to the election and I am determined to honour them. I am determined to honour them. One of the most fundamental commitments of all though was to get the Budget back under control – get the Budget back under control. I made a very considered speech about this on Monday this week. I said that we were going to do it in ways which were consistent with our pre-election commitments and I believe that everything that we are in the process of finalising is consistent with what we said prior to the election.
Will?
PREMIER HODGMAN:
They told me I wouldn't get a question. I win the bet. Tasmania's position is crystal clear and I repeated it for the benefit of my colleagues at the very first opportunity. We do not support any change to the methodology for the allocation and distribution of the GST. We do not support what is proposed and I will certainly stand up for Tasmania. This gathering demonstrating that we are part of a federation. We don't disadvantage states that have vulnerabilities. I make a corresponding commitment, though, to do everything I can to get Tasmania's economy firing again – get the State opened for business and make Tasmania a more self-reliant jurisdiction.
QUESTION:
Premier Weatherill. On the same topic, do you share similar views to Mr Hodgman on the GST distribution?
PREMIER WEATHERILL:
Of course and that was the point I was trying to make before. We're one nation. The truth is Melbourne and Sydney bankroll the creation of this nation. It was only Western Australia that was the net receiver of resources until 2006. And they have struck it rich and they have decided they want to essentially cut themselves a drift from the rest of the Federation which I think is intellectually bankrupt and also morally bankrupt. If they want to take this to its logical extreme, all the dough should stay in the Pilbara, it shouldn’t flow to Perth. I mean that’s how ridiculous this gets. I mean, where do you draw the line? Just because of your proximity to the wealth and resources shouldn't determine your access to services. Every Australian should get access to the similar amount of services having regard to their needs and the contribution should be made having regards to your capacity to make that contribution. And there are sound economic reasons for this as well. Imagine if Colin got his $5.6 billion. He wouldn't levy another tax on anything else. The misallocation of resources across the nation, everything would flow into Western Australia whether it was economically responsible or not - you would be attracted there by the fact that the tax regime in Western Australia would be correspondingly so much more attractive than anywhere else in the rest of the nation. So, it would lead to a massive misallocation of resources.
So, there are very sound reasons for why the principle of horizontal fiscal equalisation is actually central for creating a sound, prosperous and equitable nation.
PRIME MINISTER:
This is one of the reasons why no-one should assume that radical change is coming because we do have to proceed substantially by consensus if there is going to be any dramatic change to the way our Federation works.
A couple more questions.
PREMIER BARNETT:
I won't argue the case. I will simply make the point it is not beyond the wit of mankind to reform the GST so it is functional because the system is dysfunctional right now and to do it in a way where change occurs gradually over time and no state or territory is worse off. It won’t be my government but a future government at some stage we will decide to leave the minerals in the ground. That will happen until we get the system right.
PRIME MINISTER:
Two more questions. Karen?
QUESTION:
You’ve set some reasonably urgent deadline for getting research and coming back to COAG. What is the step after those deadlines are reached? I think there is one in October and by one of the end of the year – what happens after that?
PRIME MINISTER:
Essentially we have to re-establish the absolute understanding that every Australian child is expected to go to school and, if you are a school aged child, you have got to have a good excuse not to be there and, regardless of your circumstances, you should be in school for long enough to get a decent education. So, this is what we have to have absolutely crystal clear and there are no exceptions. There are no exceptions and there are no excuses.
There are no exceptions for people living in remote communities; there are no excuses for people of low socioeconomic status. Everyone has got to go to school.
The people who have suffered most from the lack of attendance at school in recent times are obviously indigenous people because it's in the remote schools that this problem is most acute. So we have set ourselves a target, a hard target of getting indigenous school attendance up to the Australian average within five years. In the end, that is going to be the responsibility of the jurisdictions because, essentially, states and territories run schools but the Commonwealth is very eager to work not separately from the states and territories but with the states and territories and with local leadership to ensure that this does actually happen because, as long as it's not happening . We are letting down Australians to whom we have a heavy duty and we are letting down our country.
Last question.
QUESTION:
A question for Mr Hodgman.
PRIME MINISTER:
See you got two questions, Will! Does that mean double or nothing?
QUESTION:
You said you would stands up for Tasmania. Did you get an assurance about Bass Strait subsidies?
PREMIER HODGMAN:
Well, again, it’s one of a number of recommendations that are worthy of some level of consideration. I haven't spent too much time on that one, I think it is a preposterous motion but these are recommendations for a wider consideration and broader consideration over time for the nation to participate in. But certainly with respect to that one, we do not support it one bit.
PRIME MINISTER:
And, Louise, pre-election we committed as a Commonwealth to continue the freight equalisation scheme. So, look, the Commission of Audit was welcomed to make the recommendations that it thought fit but this Government will act sensibly, but we will act sensibly in accordance with our pre-election commitments.
Thanks everyone.
[ends]