PM: The Government in response to the global economic crisis has advanced its nation building plan for the future. Part of that nation building plan of course is our $3.9 billion plan for energy efficient homes in Australia.
And that of course involves a home insulation program, which entails free insulation capped at $1,600 in homes which an eligible owner occupiers. The low emissions assistance plan for renters which provides assistance of up to $1,000 for installing insulation in private rental properties and thirdly, the solar hot water rebate which provides rebates of up to $1,600 also for installation of solar hot water systems.
These are practical plans all designed to generate jobs in the Australian economy and on top of that to do something real for the environment at the same time.
Today what I announce is that the guidelines for the operation of this energy efficient plan for Australia will become available and open for people to use across the country. It's like this, from the guidelines which go out today on the website, households across the country will be able to make their practical plans for engaging tradies, for working out what is needed in their individual home situation and to make arrangements of course with suppliers like the one we're visiting here today in Canberra.
Then, once they've spent their money in getting this work done, they can then apply to the Government for a rebate. From 1 July on of course the Government will have a system in place as we indicated before as of when the Government will pay up front to the supplier or the provider. But in order to get this stimulus going now, and the work done now, these guidelines are up and running today.
So what we're doing is fast-tracking the guidelines, fast-tracking the insulation and therefore fast-tracking the jobs which will come from this nation building program.
This is important, it's one practical part of a strategy for dealing with how do we support the economy, jobs and families at a time when we have a global economic recession to deal with. Over to you Pete.
GARRETT: Thanks Prime Minister. Australian homes are ready to be insulated by this plan and Australian tradies are ready to get out and get this insulation in people's ceilings. This is the most exciting, ambitious energy efficiency program that we will ever see and it's open for business.
What we know is that we've been inundated with calls from tradies, from the business in question, wanting to know how quickly they can get going on putting insulation in people's homes.
If we look at the barriers to rolling out energy efficiency nation-wide what are they? Upfront costs, split incentives and lack of available and good information for people to be able to access. Today we address those upfront barriers straight away and by providing for people with the opportunity to access these guidelines, get the work done as the Prime Minister said and be reimbursed for that work, this means this is a jobs ready program, it means that there's hope for the small industries and small businesses that want to get into this space and do this work and it also means that for Australian home owners and householders, they'll be able to reduce their energy costs and see that they're taking practical action on energy efficiency in the homes.
One other thing to point out to you and that is that the guidelines provide for the rebate to apply where in fact there may be a very low degree of insulation in the home. Let's just say someone is in a pretty old dwelling that's got less than point five R-value insulation in it, that'll be deemed to be an available space to apply for this rebate and for this rebate to come into play.
Nearly three million Australian homes will be able to have ceiling insulation, 2.2 million home owners and about 700,000 through the low emissions plan for renters, an absolutely strong, upfront and ambitious commitment not only to energy efficiency but to producing jobs for Australia.
PM: Okay folks, over to you.
JOURNALIST: Prime Minister, Senator Kim Carr says, and I quote, this morning he said on radio, “I wouldn't say anyone's job is safe.” I know you say you've got to be honest with the Australian people but that's going a bit far, isn't it?
PM: Dealing with a global economic recession means being upfront about the problems we face and upfront with the Government strategy to see us through the crisis. That is what this Government's approach has been from the beginning.
For us it's very clear. We have as a Government, hope, optimism and confidence for the future of the Australian economy, but based on an economic strategy to see us through the crisis. The strategy, the Nation Building strategy that I have been outlining today.
The alternative is clear. We have an economic strategy to see us through the global economic crisis. The Liberal party and the National party have a political strategy.
A political strategy which seeks to take political advantage of the crisis.
There is no clearer contrast between our position and our opponents' position on dealing with that which is a grave crisis facing households, families and jobs across the country.
JOURNALIST: Prime Minister, do you share President Obama's optimism for the US when he says the US will emerge stronger than before. Do you believe that Australia will emerge stronger than before?
PM: I believe, based on the economic strategy the Government has developed and is implementing, that we will see Australia through the crisis and we will be a more resilient economy and country as a result.
This will be tough along the way. The alternative is to do nothing. The alternative is to carp from the sidelines.
These are grave questions for Australia and the Australian economy, workers and families right now. We have a clear cut nation building plan. Our opponents, the Liberal Party and National Party, have a script purely based on negative criticism.
JOURNALIST: Earlier in the week in parliament you painted what sounded to me like a doomsday scenario about the existence of toxic assets on the balance sheets of internationally important banks. What is your solution to that problem? How can we isolate those assets and is the fact that that really is the heart of the global financial crisis an indication that there is only so much Governments can do, it is beyond you?
PM: Consistent with what I said before to an earlier question, I believe in being upfront with the Australian people about the problems that we face and upfront about our strategy to see Australia through the crisis.
Let's take it in two parts. Now one is the problem obviously in terms of global credit markets, and I have been upfront in the parliament and elsewhere about the problems in globally, significant banks about bad assets on those bank's balance sheets. Australian banks are in fine working order. And Australian financial markets are operating as normally as is possible given global circumstances. We have acted domestically in our own credit markets through the interventions in car dealership finance, residential mortgage backed securities, as well as the commercial property market. On top of that, we've acted in our own financial markets with the double bank guarantee.
These are very important in terms of making sure that Australia's financial markets are stable and operating as normally as possible.
Global action within the United States, within the United Kingdom, and of course within various European capitals, nationally and at a coordinated level, dealing with their individual problems of bad assets on balance sheets is equally important. The challenge for the international community is to work in a coordinated fashion with and between those individual governments to make sure that those assets are dealt with effectively over time. That is a key question in terms of restoring credit flows. That's on financial markets.
What we've been talking about also is how do we deal beyond private credit flows with the fiscal stimulus necessary to support growth and jobs on the way through. That's why we've done what we have done. Practical steps each step along the way.
And here you see with this product, these workers and the people that are going to put this material in ceilings right across Australia in nearly three million homes, a practical job program. It's practical stuff.
JOURNALIST: How many jobs, do you know?
PM: On this one, it will depend entirely on the rollout over time. It will depend on what happens with the transportation, distribution, installation, impacts of the measures that we've put but we're confident this is going to be a positive, significant jobs boost across the country.
JOURNALIST: On Sol Trujillo, what will his legacy be from his time?
PM: That's a matter for others to reflect on.
JOURNALIST: What about Kim Carr's comments though? Do you think he's overcooked it. He says “I wouldn't say anyone's job is safe.” That doesn't seem to fit with your -
PM: What I'm saying - it's very clear cut that we have a real problem with the global economic crisis which means there is a real problem there for Australian jobs. Therefore, what we have is a clear alternative. Either you embark upon an absolutely clear cut economic strategy to see Australia through the crisis, or the Liberal and National party approach which is a political strategy - aim to take political advantage of the crisis.
Either you have a strategy which aims at creating practical jobs and supporting practical jobs across the Australian economy through programs such as this, or what you do when jobless figures come up, pop the champagne corks which is what the Liberal party is doing. There is a challenge of leadership here.
Let me say this about leadership. At least with Mr Howard, you knew where Mr Howard stood. I don't know where the Liberal party actually stands. What we have from the Liberal party is a flood of criticism but a drought of positive ideas for how we deal with the real challenge of jobs (inaudible).
One here, then back to you.
JOURNALIST: Do you think the time to rethink how the Defence Chief operates and Joel Fitzgibbon a victim of that culture?
PM: Look, this has been a practical problem which has really affected a number of people in the defence community. The Minister has handled it well.
Of course, I've noted comments from Brendan Nelson today about historical problems in the relationship between the ministerial arm and with the services arm. These will be worked through over time. The key thing though is to make sure that the practical problems that we've identified in terms of these payments are deal with in a practical way.
JOURNALIST: Speaking of John Howard, you invoked him. He said recently -
PM: Now you are too.
JOURNALIST: Yeah. He said recently that the, what you should be doing is giving the States money so that they can give payroll tax holidays to the companies, so that they will be able to hold onto employees. Isn't that a good idea?
PM: Mr Howard like all former prime ministers, is entitled to his view and to his participation to the debate.
JOURNALIST: With Sol Trujillo's departure, is this a chance now for Telstra to set a good example with this incoming CEO and perhaps limit the salary?
PM: I'd say to all Australian corporates but particularly those in the financial services sector - the nation faces real challenges in '09. And when restraint is necessary across the nation to maximise our support for jobs, that restraint has to be shared by the CEOs, in particular the financial services corporations.
We've got to as a nation act responsibly with people on these multi-million dollar salaries. I think that's a fair ask and a fair cop on the part of those who are doing it and will be doing it very tough through a global financial crisis which they did not create.
JOURNALIST: Has the Government received any advice from (inaudible) companies of further job losses in the near future?
PM: I would imagine that the Minister and ministers depending on the nature of the firm concerned are in constant dialogue, as would be the right call and situation with individual firms about the challenges they face. And therefore, what we as a Government can do to try and assist on the way through.
But what the fundamental help that's necessary? The fundamental help that's necessary is a whole of economy strategy aimed to lift total demand in the economy and to provide interim stimulus until we see global economic recovery. That is the responsible cause of action, that's the responsible strategy on jobs, as opposed to an irresponsible strategy which just sees this as a political opportunity.
JOURNALIST: Do you think you need to modify the Fair Work Bill, given evidence, given what people regard (inaudible). Now is not the time to introduce uncertainty?
PM: Well the Government at the previous election received a mandate in relation to Fair Work Australia and the contents of our policy Forward with Fairness. In the 12 months since then, and concluding at the end of last year, we through the Minister, the Deputy Prime Minister, negotiated an outcome in terms of the content of the Fair Work Bill and we intend to legislate that bill. That is our resolve and we don't intend to change course.
JOURNALIST: Is it unministerial for Peter Garrett to be singing with Midnight Oil?
PM: Depends on your taste in music but I think -
GARRETT: We think it's a pretty good idea.
PM: I think it's, actually I think it's a great idea that Pete and the Oils are getting back together for this concert. It seems that Senator Abetz has a different idea. I'm not quite sure what that's all about.
I think it's a good thing that Oils are out doing their bit. I think you did that for the tsunami, didn't you? And look, this has been a crisis on our shores and a whole lot of families affected. I think it will be a great concert at the end depending on when you're going to do it. I'll rock along myself.
JOURNALIST: Any reaction to Sol Trujillo's departure? Any reaction from you Prime Minister?
PM: Um, adios.
JOURNALIST: Will people be entitled to be angry if he walks away with a multi-gazillion dollar payout?
PM: That will be a matter for the many, many individual Australians, hard-working Australians who are currently Telstra shareholders. And holding their board and their executive to account on executive remuneration is important as a general principle in corporate governance.
And as I said in response to an earlier question, it's important that everyone shows - on these multi-million dollar salaries - restraint, given that restraint has been asked of workers in order to preserve jobs now.
[ends]