CARY: And we're joined by our Prime Minister, Kevin Rudd. Mr Rudd Good morning.
PM: Good morning Greg thanks for having me on the program.
CARY: It's a great pleasure we're out and about today. We're at Rothwell at Harvey Norman's here. State of Origin, the team will be here a little later. Will you be at Game 2?
PM: I won't be because I've got to be in Japan and Indonesia but I've slotted Game 3 and that's on the robust assumption that we're going to do well in Game 2 and, even if we don't, I'm going to be at Game 3.
CARY: An optimistic and hopefully realistic assumption at that. You've been talking a lot about our relationship with Asia. What will this trip be all about?
PM: Two things, essentially Greg. One is, we have a very important relationship with Japan. They are a huge economic partner. We also want to work with them on climate change, after all its home to the Kyoto Protocol. And thirdly, we want to enhance also our security co-operation with Japan as well. Very good partners for us for the future.
Second, with Indonesia, because it's the largest Muslim country in the world, it's our closest large-country neighbour and we have an abiding interest in making sure that relationship is in first class working order.
And with President Yudhoyono, who I caught up with at the Bali Conference on Climate Change just after the new Government was sworn in, we've agreed also to work together on climate change, particularly on rainforests, where Indonesia is host to one of the few large remaining rainforests in the world which are so critical for dealing with the overall challenge of climate change.
CARY: Okay. Just on climate change and the Kyoto Protocol and the whole environmental platform. We've been bogged down for a couple of weeks on the issue of fuel prices and both sides of politics arguing how we can keep that price lower. Isn't it true thought at some time when we get the carbon emissions and a holistic view of what we need to do about our environment, that at some point, prices will need to go up?
PM: Well, Prime Minister Howard said that if you act on climate change, then inevitably, it's going to impact on energy prices, and therefore, fuel prices.
The key question is, how do you manage this in a long term way which also helps families as much as possible in the shorter term as well.
No one can promise a single solution on oil prices because they are globally driven and, they've gone up 400 per cent, I'm advised, since the Iraq War. That's the reality. The question is, what do we do about it. Our response is this. We need more by the way of energy efficiency in the developing world.
The reason there is, it's China and India's demand for global oil which is pushing the price through the roof, that's one of the factors. Second is, on the supply side, we need to do more to encourage prospectively in various parts of the world including Australia. But the third is this, fuel efficient cars, how do we encourage that longer term? And on top of that, what do we do in terms of alternative fuel strategy as well? And the last one, I think, is what do you do in addition to make sure we've got a decent, credible, public transport system for Australia, and that's where we have a real problem.
Those long term solutions. And then when you're dealing with more immediate challenges, then of course, there are the specific measures that we've put forward in the Budget to try and help families under financial pressure.
CARY: Okay. So obviously you've got a lot of things to deal with, so that means working very hard. The worry is, from those close to you and those in the public service and others, that you're working way too hard. Do you accept that argument? Do you need to be working as hard and having others work as hard to keep up with you?
PM: Well Greg, we're elected to govern. And governing Australia is a tough business. And I would think that the people who have supported me in my own community and electorate in Brisbane have known me for the last ten years, and always known that my attitude is, you go out there and you give your all. And similarly, given that I'm now Prime Minister, you give your all in terms of try to do your best for the country, it's a big task.
Responsible economic management at a time of global financial pressure. Trying to assist working Australians, working families, and those doing it tough with meeting their budget needs around the table. And also, investing in the future in some of the things we just talked about. Infrastructure, hospitals and schools. And then, more broadly, investing and planning for the future of Australia and its dynamic region that we find ourselves part of as well. That's a big day, that's a big day.
CARY: Well it is a big day, I am sorry to rush, we have only got a few minutes before the news and I want to cover a couple of other subjects.
PM:Yeah sure
CARY: But when does hard, when does hard become too hard? I understand that overnight we learned that three public servants from Treasury working 35 hours straight last week, to prepare a new policy. That can't be smart.
PM:I haven't seen that particular report but what I do know is that when you prepare for example Budgets under Governments going back from time in memoriam, I am sure the Secretary of Treasury would have the same view that often public servants do work in very intense stretches in order to get key things done. And that is not peculiar to this government that has happened in the past as well.
But more broadly, we were elected to govern. Governing is hard, you have got to work hard, work very hard and work, most importantly against a long term plan. If you don't have a long term plan, then you drift.
But I think my own work ethic is not about to change.
CARY:Prime Minister, only a couple of minutes, when our previous Prime Minister, Mr Howard was asked about Barack Obama possibly becoming president, he said Al Qaeda would celebrate that, they'd mark it in their diaries.
It now seems certain, it's a fact that he will lead the Democratic party against John McCain. He is favourite to become the next president. You have met the man, what do you make of the man and what is your perspective at this moment in history, really?
PM:Well I had, when I was in the United States, I had a long conversation with him on the telephone, because he was in a different part of America. I had met Senator Clinton face to face and Senator McCain face to face. Both Senator Obama and Senator Clinton are first class human beings. They understand our part of the world acutely and Senator Obama, because part of his upbringing was in this part of the world and he used to come in and out of Sydney at the time when his family was living in Indonesia, has many fond and positive memories of Australia.
Senator McCain has the same actually because of his long service with the United States Military. And I think his father was based in this part of the world during the war.
Whoever wins, Republican or Democrat, I think our interests are going to be well served. And as I said this is a good relationship, I'm a bit disappointed that my predecessor Mr Howard could have described the great Democratic Party as somehow representing the interests of Al Qaeda, that is just wrong.
CARY:What would you expect from Senator Obama. How much experience do you need (inaudible)
PM:Well Senator Obama has been in political life for quite some time, as has Senator Clinton. Senator McCain also.
Look, I think he has an enormous insight in terms of the domestic challenges of this nation. He understands our part of the world. The key thing is -
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