TIM COX: The Prime Minister of Australia, Malcolm Turnbull – Prime Minister, a very good morning to you.
PRIME MINISTER: And good morning to you. It’s great to be here.
TIM COX: Great to talk to you as well. Just arrived in Hobart, a key announcement today about extended funding for McGrath Breast Care Nurses – would you like to talk us through the announcement first of all?
PRIME MINISTER: Yes, that’s right. I will be with the Premier at BreastScreen Tasmania very shortly and we are announcing the commitment of $20.5 million over the next four years to fund, to continue to fund 57 of the McGrath Breast Care Nurses. And we’ll be meeting there with one of the Breast Care Nurses, McGrath Breast Care Nurses in Tasmania and also a patient and talking about the important work that these Breast Care Nurses do in providing the psychological, the physiological support for patients dealing with breast cancer.
TIM COX: Is the work they do largely confined to the cities or are they out into the regions and rural centres as well?
PRIME MINISTER: They are all around Australia and it is very important work. As you know breast cancer is the third most commonly diagnosed cancer and the most common cancer for Australian women. It currently affects 1 in 8 Australian women before the age of 85. We have made very big improvements. The five year survival rate is now 90 per cent – that is up from 72 per cent in the 1980s but sadly more than 3,000 Australians will die from breast cancer this year. In addition to what we are doing here of course, our biggest research priorities are in cancer research as Sussan Ley and I were saying yesterday - at the announcement of the delivery of the $20 million to the Zero Childhood Cancer Initiative. And, of course, Sussan has brought onto the PBS a number of very important drugs to deal with breast cancer including Herceptin, Kadcyla, Perjeta which, really, would be absolutely unaffordable for almost all Australians were they not on the PBS. And this of course is why we say that it is so important to manage our health budget prudently and wisely because by doing so we are able to provide these additional drugs that are changing lives and indeed saving lives.
TIM COX: Well Prime Minister, the Premier is a good to person to have alongside you. Breast cancer tragically took his mum at a fairly young age and I know that both he and his siblings have a great interest in the sort of work that the McGrath Foundation does. Can I ask you about a couple of other areas – we have been talking over the last couple of days about the backpacker tax and the impasse there. We’ve have a number of suggestions from one of your Liberal senators, from the Labor member from the lower house, from Jacqui Lambie this morning. For one very, very large orchardist here, a big exporter for the State, so a big income earner for the State – but he’s saying he’s had half the number of applicants that he would normally have. He says there are smaller profile growers that have had no applicants. What is your message to them as they come into the fruit picking season? Into harvest?
PRIME MINISTER: The message really is to the Senators – just yesterday the Australian Taxation Office confirmed that working holiday makers/ backpackers will be classified as non-residents for tax purposes. What that means – if the Government’s changes are not supported by the Senate, most working holiday-makers will bay paying 32.5 per cent tax from the first dollar earned in Australia. We urge Labor and the Greens and cross benchers to support these changes which will lower the tax rate applying to backpackers to 19 per cent on earnings up to $37,000 from 1 January next year. And that will mean we will remain competitive as a destination for backpackers, working holiday makers.
TIM COX: But are you, with respect, duck shoving on to the Senate work that should have been done by the Party before this even came to be an idea.
PRIME MINISTER: Well it’s – the Senate – we need to change legislation, so the Senate is part of the Parliament and the Senate – we passed the bill in the lower House in the House of Representatives so it’s now up to the Senate to do its part. So Tasmanians and orchardists who want to see the 19 per cent tax on backpackers rather than 32.5 per cent tax, should be talking to their Labor and Greens Senators and saying for heaven’s sake, get behind these amendments from the Government, we want to have the 19 per cent competitive tax regime for backpackers.
TIM COX: Any solace though for those growers here – and I presume other parts of the country as well – who have not had anywhere near the number of applicants and might struggle to get the harvest in?
PRIME MINISTER: Well the critical thing is to make the tax regime competitive and it is and that is what we are seeking to do so we’re asking for the support of the Senate to do that.
TIM COX: Prime Minister let me ask as well about the imminent closure of the Hazelwood power station in Victoria. Very big part of the grid there and I know that energy and renewables has been a bit of a flashpoint I suppose in the last few months. The analysis of it I was reading in the Australian today says that Victoria will almost certainly need to rely on NSW and Tasmania to top up emergency power supplies. I know you spoke during the campaign, I think it was to Brian here on this program about the possibility of a second Basslink cable, I don’t know how quickly something like that can be brought online. But does an instance like this and Victoria endeavouring to move away from its very heavily polluting coal fired stations, perhaps strengthen the case for a second Basslink?
PRIME MINISTER: Well it certainly is as Victoria – Josh Frydenberg was on the radio this morning noting that this closure is likely to make Victoria go from being a net exporter of electricity to a net importer. So that would add to the – that would improve the economic viability, the business case for the second connector. And as you know, Warwick Smith is leading some work looking at that for both governments. So we’re certainly examining that but I – it will certainly improve the economics because there would be more demand for Tasmanian electricity across Bass Strait, there’s no doubt about that.
The work is continuing but I do want to say, just on the issue of Hazelwood, right now, our focus is overwhelmingly on supporting the workers who will be losing jobs there, their families and the local community. It’s been a big part of the Latrobe Valley for half a century and so we - yes we have to work to ensure ongoing energy security and we’re doing that and you know the leadership we’re providing there. It is also very important to support the workers through this period, so we’re delivering a $43 million support package to help create new jobs, sustainable jobs in the region and invest in new local infrastructure so we’re working with the local community to deliver that and the Minister for Infrastructure, who of course is the local member Darren Chester and the Member for McMillan, his neighbour Russell Broadbent are going to lead the Government’s efforts to create those new jobs in the region.
TIM COX: It’s a massive blow - I know that part of that state very well - 750 jobs and what it means for service stations, takeaways, post offices and what have you - is something that is much more than 750.
PRIME MINISTER: Yes it is - I mean there will be hundreds of jobs continuing in the close-down of the power station and indeed in the rehabilitation. It will be more of a phase down, but it is critically important that there is more industry in that region in the Latrobe Valley and of course infrastructure is a key part of that so I’ve established a ministerial working group some time ago in anticipation of this closure, it had been foreshadowed obviously and was a decision by the French owners. We have been preparing for this eventuality for some time and we do have those commitments.
TIM COX: Now I know that you have got to get to an event so I won’t keep you very much longer but I do appreciate your time but the Liberal State Council that you are at tomorrow…
PRIME MINISTER: Yes.
TIM COX: One of the ideas they’re talking about is taking five cent pieces out. So the shut down production of five cent pieces, the only thing they ever seem to do nowadays your five cent pieces is put a Christmas pudding in the wrong hands. So would you back the local motion Prime Minister for an end to the five cent piece?
PRIME MINISTER: You know it is a good question. I’ll be very interested to follow the local debate on that but you don’t see them a lot anymore do you actually. It’s a fair point, but I’ll follow the local debate and no doubt we will get advice from The Mint in due course.
TIM COX: That was very sagely answered I must say but it sounds like there is a bit more of a business case perhaps and sadly of course someone’s misfortune can run the other way but with the Hazelwood closure coming it might just step up the business case for a second Basslink cable as far as you are concerned?
PRIME MINISTER: Well if, as has been forecast, Victoria becomes a net importer of electricity the places it – the opportunities are essentially New South Wales and Tasmania and South Australia, although South Australia’s had its own…
TIM COX: Indeed.
PRIME MINISTER: .. As you know, energy security problems occasioned by – well we’re running out of time to go in to the history there but I am sure your listeners are familiar with their state government’s mismanagement of their energy security. But I think the opportunities would look for exporting electricity will be increased and that should, all other things being equal, improve the business case for a second connector but that’s the work that Warrick is undertaking at the moment.
TIM COX: Alright you have been very generous with your time and I thank you, very nice to talk to you.
PRIME MINISTER: Thank you so much, it is great to be back in Tasmania.