PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
13/03/1998
Release Type:
Interview
Transcript ID:
10644
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP TELEVISION INTERVIEW WITH KERRY O’BRIEN 7.30 REPORT, CANBERRA

O'BRIEN:

John Howard, how do you think people should judge your backbench

MP, Don Randall, for his attack of Cheryl Kernot?

PRIME MINISTER:

Well on this issue, poorly. It was quite unacceptable. I made that

very clear when I heard about it. He has unreservedly apologised.

He acted alone. He was not encouraged to do it by me nor to my knowledge

by anybody else and the contemptible claim by Cheryl Kernot that

I put him up to it is something that I reject completely.

I have never, in my 24 years in politics, favoured or supported

or condoned the attacks on private lives of members of parliament.

I have a strong view that private lives are the business of members

of parliament and frankly I don't want any of this type of behaviour

in parliament and whenever it occurs on my side I will see that

it is reprimanded as I did very swiftly today. But the man has apologised,

unreservedly and as far as I am concerned my publicly stated views

about Cheryl Kernot's attitudes and policies are all that matter.

I am not the least bit interested in her private life. I don't

comment on it and I don't want any of my colleagues commenting

on it and I don't want anybody else doing so. I am not interested

in it and I don't think the public is either.

O'BRIEN:

Don Randall, his comments did appear to be quite premeditated.

He actually read the worst of those comments from notes, how seriously

can we take such an apology under pressure when he has done it in

such a premeditated way.

PRIME MINISTER:

Well Kerry, I can not answer that, I'll answer for my own

actions. I knew nothing about the speech until this morning. I took

action and frankly that as far as I can take it. If you want to

pursue it further with Mr Randall, go ahead and do so.

O'BRIEN:

What sense of personal outrage did you feel when you absorbed the

full import of those sorts of words. Words like: "the morals

of an alley cat on heat"?

PRIME MINISTER:

Well Kerry, I totally disapprove of that sort of language but let's

get a sense of proportion. I have reprimanded the man, he has given

an unreserved apology, I've explained the circumstances of

it and I don't intend to spend the next 15 minutes talking

about. I can't take the matter any further.

O'BRIEN:

And there is also the issue of Senator Parer and his coal interests

because these two separate issues, quite distinctly separate issues,

nontheless each in their own way go to the issue of parliamentary

standards. And you made a very big issue in the last federal election

and beforehand about your desire and your promise to raise the standards

the ethics of parliament and public trust in the parliament. It's

your very own ministerial guideline that says Ministers should divest

themselves of all shares and similar interests in any business involved

in areas of their portfolio responsibilities. Why is Senator Parer

still in the Ministry?

PRIME MINISTER:

Well, if I can take that very long question in parts. I have dramatically

changed the standards of accountability of parliament. To start

with, I go to every Question Time, my predecessor went to half the

Question Times. Secondly, I have almost doubled the number of questions

that the Opposition can ask and if you are talking about accountability,

having Ministers and the Prime Minister under question every day

in parliament for a much longer period of time, has dramatically

increased accountability.

Now as far as the Ministerial guidelines are concerned, what happened

was that in accordance with the practice I established, Warwick

Parer made a full disclosure to me as he was required to do. He

sought to comply with the guidelines and to act in good faith.

The disclosure he made to me was given to me for careful perusal

and checking by the head of my department who advised me in writing,

that in his opinion, Senator Parer had complied with the guidelines.

There is no evidence that Senator Parer has been dishonest. Kim

Beazley has admitted today that there is no evidence that Senator

Parer took any action as Minister to directly advantage any company

in which he had a direct or an indirect interest. There has been

no evidence produced of a conflict of interest and in those circumstances

I do not believe there is a case for his resignation and I do not

intend to ask it and I do not expect him to tender it.

O'BRIEN:

In an interview on October 15 1996, you said precisely these words:

"The guidelines say that you can't have interests in companies

which operate in your area of portfolio responsibility". Senator

Parer is the Minister for coal. His family trust has holdings in

a coal company. That family trust, as we understand it, has stood

to benefit from that interest. Why is he still in the job?

PRIME MINISTER:

Well he hasn't received any dividends himself, so I am advised,

from those particular interests since he has been a Minister. And

it is no good saying he stands to benefit, the fact is he has not

benefited as a result of any decision that he has taken as a Minister

responsible in that area over the last two years. And that is why,

and added to the fact that he sought in good faith, at all times

to comply with the guidelines, so far as disclosure to me was concerned,

it is for those reasons that I do not intend to require his resignation.

He has not behaved improperly. Nobody is suggesting that he is

a dishonest man. Nobody has produced any evidence of an actual conflict

of interest and it would therefore, in my view, be inappropriate

to require his resignation and I do not intend to do so.

O'BRIEN:

The guidelines say, very clearly, you can't have interest

in companies which operate in your area of portfolio responsibility.

Is Senator Parer, the Minister for coal, responsible for coal, does

his family trust have a direct interest in coal?

PRIME MINISTER:

Well Kerry, you have asked me that question in different ways before

and I am indicating to you firstly, that Senator Parer has not done

anything dishonest. He has not benefited through any particular

decision he has taken as Minister, in relation to his own company.

He has sought at all times to make full disclosure. He was told

by the Secretary of my department and I was advised by the Secretary

of my department, that on examination of his return that he complied

with the guidelines.

Now in those circumstances I do not intend to require his resignation.

We can sit here all night and you can ask me the same question in

different forms but I do not intend to alter my view.

O'BRIEN:

But I would suggest, with respect, that you still haven't

explained how he somehow or other avoids your own definition of

what the guidelines are. Very simply does Senator Parer share in

an asset in the coal industry, which has increased in value or is

increasing in value, while he is the Minister responsible for policy

on coal?

PRIME MINISTER:

Well Kerry, those words that you have just used don't appear

in my guidelines. But look you can spend the whole night, we can

waste the remaining 10 minutes, or whatever you have allocated for

this interview, on this issue. I have made my position clear. You

have got to look at the totality of a man's conduct. He has

not been dishonest. He has not taken the decision to directly advantage

a company to which he is connected. There is no suggestion of personal

enrichment, as a result of his Ministerial holding. He has not received,

so I am told by his financial advisers, he has not received any

dividend from any coal interests during the time that he has been

a Minister.

O'BRIEN:

But what if the value of the asset rose?

PRIME MINISTER:

If it were the direct result of a decision that he had taken specifically

to benefit that company that would be another matter.

O'BRIEN:

Has the coal industry benefited from your decision on greenhouse?

PRIME MINISTER:

Well Kerry, you could equally say that Peter Costello ought to

resign as Treasurer because the interest rate on the mortgage he

has on his Melbourne home has gone down by 2.5 per cent as a consequence

of his economic policies. What you are really arguing is akin to

saying that a farmer can never be the Minister for Primary Industry.

O'BRIEN:

No sorry Mr Howard but the guidelines specifically exclude farmers.

PRIME MINISTER:

You weren't asking me about guidelines, you are putting a

proposition that because, even if it had nothing to do with what

Warwick Parer had done himself, specifically as a Minister, in relation

to a particular company if the value of a coal interest had risen

over a particular time, then he is responsible. You have got to

look a the totality of a man's behaviour and you have got to

go to motive. And at all times his behaviour, honestly, at all times

he has sought to make full disclosure to me. I was advised in good

faith, after an assessment in good faith by the Secretary of my

department that he had complied with the guidelines.

O'BRIEN:

But isn't it true that you are also talking, not just about

real conflict of interest, you are talking about potential conflict

of interest and you are talking about perception of conflict of

interest in the public eye.

PRIME MINISTER:

No, I am talking about what my attitude is to what Senator Parer

has done. I have given you my answer and you are frankly wasting

my time and that of the viewers by pursuing it.

O'BRIEN:

Well I am sorry Mr Howard, but you are the person who first put

great importance in the issue of propriety, of parliamentary ethics

and of public trust in politicians. As any lawyer who deals with

family trusts knows, if Senator Parer is an object of that trust,

then at some time he stands to benefit from the appreciating assets

and or dividends of that trust. Isn't that a potential conflict

of interest? if he doesn't get money in his hand now, if at

some point in the future he stands to benefit financially.

PRIME MINISTER:

Kerry you are talking about ethics. He has not behaved unethically.

I am interested in actual conflict of interest. There has not been

an actual conflict of interest and frankly I have got nothing further

to add to that.

O'BRIEN:

Today's newspaper editorials disagree quite clearly, The

Australian, the head of its editorial: Government tries to fool

the people, The Sydney Morning Herald: Parer caught in the

mess, The Age: Why Senator Parer must stand down, The

Adelaide Advertiser, The Courier Mail and so on. I mean

politically, where does that leave you?

PRIME MINISTER:

Most editorials in the country are critical on my stance on native

title. Editorials are frequently critical. Commentators frequently

say that politicians shouldn't do what the press tells them

to do, they should make up their own mind on what they intend to

do. Now I have reflected on this, I have discussed it with my senior

colleagues. I have taken a stance. I don't agree with you.

I don't agree with the editorials. I am standing by Senator

Parer. He has not behaved dishonourably or improperly. He has been

a very good Minister for Resources and I don't believe there

has been any actual conflict of interest.

I was told after an examination, in good faith by the head of my

department, that his return fully complied with my guidelines and

in those circumstances I just don't intend to take action against

him.

O'BRIEN:

To what extent, if any at all, have you been influenced by the

fact that you have already lost seven frontbenchers, either sacked

or resigned, over problems with shareholdings or travel allowance

claims that an eighth Minister in an election year would be disastrous?

PRIME MINISTER:

Kerry I have looked at the merits of this particular issue and

that is the basis of the decision.

O'BRIEN:

If we can move on to the issue of health. You have copped a caning

this week from state health ministers and some state premiers over

the fact that you are refusing to budge, that is your Government

is refusing to budge, go any further, in terms of the new Medicare

arrangement. Is that your line going into the Premiers Conference,

Peter Costello was very strong on that today, you are not going

to go any further than you have already established?

PRIME MINISTER:

Kerry, we have put out a very fair offer to the states. They always

complain, in relation to health, that the Commonwealth hasn't

given them enough money. We have made a real increase of three per

cent to the states. It is a very fair offer and we think they ought

to accept it.

O'BRIEN:

They are saying that your proposal will unacceptably lower the

quality of health care, they want $5.5 billion, $3 billion of which

they say would just compensate them for the cost of public health

of the alarming decline in private health insurance.

PRIME MINISTER:

Well Kerry, states always say that. They always ask for more money

and what is happening in this country is that health has become

a political football between State Governments and State Oppositions

and State and Federal Governments. Despite the criticisms of it,

this country does have a much better health system than most countries

in the world. There is some strain on private health insurance and

the main reason for that is that the former government ran it down

from a 61 per cent community coverage to a 34 per cent community

coverage when we came to office.

Now our private health incentives which Mr Lee and Mr Beazley would

presumably abolish because they are always attacking, and would

therefore make private health insurance $450 a year dearer for each

family, our private health insurance incentives have helped. But

as far as the states are concerned we have made an offer which is

a 3 per cent real increase on the existing Medicare arrangements.

The states themselves, in the early to mid 1990s cut their own

direct spending on their hospitals at the same time as the Commonwealth

was increasing its commitment to that very same area of public health.

O'BRIEN:

Are you saying that they are exaggerating the impact of the drain

from private health cover on public hospitals?

PRIME MINISTER:

No I am not only saying that, I am also saying that over the past

few years, going back to the early 1990s, the states themselves

have been collectively guilty of cutting direct public spending

on hospitals. And you have to look at the total picture. Every time

something goes wrong they blame the Federal Government, particularly

Andrew Refshauge in NSW. The reality is you look at the graph of

Commonwealth and State spending in this area you will see that in

the early 1990s there were significant cuts in public spending by

states on hospitals at the very same time that the Commonwealth

was increasing its contribution.

O'BRIEN:

But you did promise to solve that problem of declining private

health funds before the last election, do you accept, are you prepared

to acknowledge yet that your $600 million dollar subsidy for the

private health funds, via tax rebates, simply hasn't done what

you expected it to do.

PRIME MINISTER:

Kerry I would like there to be more people in private health insurance.

We have tried. I think it is too early to make a final judgement

on the impact of those tax incentives. Unfortunately, Graham Richardson's

advice a few years ago to the former government that they should

have taken action to stabilise private health insurance at about

38 or 39 per cent membership, that advice wasn't taken and

of course, lower it has got the harder it has become to reverse

the trend.

O'BRIEN:

But I presume you took that into account when you made the election

promise though.

PRIME MINISTER:

Yes. And the advice that we had at the time was accepted in good

faith. We have certainly slowed the haemorrhaging or we have certainly

had an impact on it and I hope over the months ahead we will have

a further impact. And it is an area, of course, that always remains

under constant review but the Labor Party alternative is presumably

to abolish the tax subsidy. I mean they are always attacking it

and saying it is a waste of money, so I can only assume that Mr

Beazley's policy is if he wins the next election, to wipe out

the tax subsidy, and through that he will make private health insurance

$450 a year dearer for each Australian family that has it.

O'BRIEN:

Very briefly another issue that is bubbling away there with the

states is gun laws. Various states seem to be planning to soften

the gun laws of 1996, what will you do about that?

PRIME MINISTER:

Well I have asked that it be put on the agenda of the Premiers

Conference. The buy back has been hugely successful. We have recovered

about 600,000 - 700,000 semi-automatic and other prohibited weapons.

And by and large the uniform agreement has been observed. I think

the danger in the discussion that has occurred publicly about possible

changes at the edges is that the impression is wrongly created that

in some way the agreement hasn't worked. It has overwhelmingly

worked very effectively.

We have put on the agenda and I want to make certain that the hopes

of all Australians that that agreement be honoured in full, 100

per cent are realised and that is why I have put it on the agenda.

The Australian public wants that agreement honoured in full and

I will do all in my power to achieve that.

O'BRIEN:

Ok I am conscious of the time ticking away. Very quickly, is this

a line in the sand for you? No weakening on the gun laws.

PRIME MINISTER:

Look Kerry, I want the agreement that was made two years ago honoured.

That's my position, it has always been my position. I understand

it to still be the position of the Premiers, that's what they

say, and it is certainly the position of the overwhelming majority

of the Australian community, might I say particularly Australian

women who saw that uniform gun prohibition as a huge blow for a

safer Australia.

O'BRIEN:

John Howard thanks for talking with us.

PRIME MINISTER:

Pleasure.

[Ends]

10644