PM: It's great to be back in Washington. It's great to be back in America to begin a new and important chapter in the Australia - United States relationship. This relationship, this alliance between our two countries, has prospered under 13 American Presidents and 13 Australian Prime Ministers, and now the responsibility which we face is to chart a further course for the future. The alliance, of course, is grounded in questions of security and of course those matters of security including in relation to Afghanistan will be the subject of discussions which I'll be having with President Obama tomorrow.
Beyond questions of security, Australia and the United States are also already working closely on the G20 and our cooperation to deal with the global economic recession and the global financial crisis. The G20 has major work ahead of it. Major work on the question of coordinated global economic stimulus to support growth and jobs and the economy now. Secondly, in agreeing upon rules for the global financial system for the future, and thirdly on restoring our major banks, our major global banks, to health.
On the question of our major global banks, I welcome today the statement by Treasury Secretary Geithner on the financial stability plan and the particular operation of the public/private partnership which he has outlined within that plan. In Australia, you will know that the government has spoken for some time and at some length on the question of fixing up the balance sheets of the big global banks. This is the core of the global economic problem. It is the core of the global financial problem.
The first step in America to dealing with this problem was taken when Secretary Geithner released his financial stability plan some six weeks ago. This is an important second step today in his outlining the details of how the public/private investment partnership will operate within that plan.
This, of course, is important in the broader framework of acting on global bank balance sheets that is necessary right across Europe as well. That is why Australia has been so active with other governments at the most recently concluded G20 finance ministers' meeting to agree on an international framework for dealing with toxic or impaired assets on the balance sheets of the big global banks.
Therefore this statement by Treasury Secretary Geithner is very important as part of the global move towards coordinated action within that overall framework. Again I say, this is the core economic problem, the core financial problem, in dealing with the recession which we are now confronted with across the world through the global economic recession.
Finally, I'm looking forward to my discussions with President Obama, not just on the security questions which I have referred to, the great economic questions that I've referred to, as well as the current global economic crisis, but also on the enduring challenge of climate change.
It is good to have America in the global game on climate change. America must be part of the global solution on climate change and, with this new Obama Administration, we look forward to working with them closely as we work our way towards the Copenhagen Conference at the end of this year.
To conclude, however, the core focus of this visit is to reaffirm this alliance, the core focus of this visit is to begin this new and important chapter in the Australia - US relationship, and the core focus of this visit is to deal with the challenge facing all of us around the world right now, concrete action on the economy, concrete action on jobs. If progress is achieved there and in London, then that's important for jobs in Australia as well.
JOURNALIST: Prime Minister, you mentioned security. Will that involve a discussion on an exit strategy from Afghanistan, as flagged by the President on television last night?
PM: Our view about Afghanistan, and I've said this repeatedly since becoming Prime Minister, is that Australia's commitment is not a blank cheque. Therefore, I know that the United States in recent days has been engaged in a fundamental, a root-and-branch review of its Afghanistan strategy. One of the things I look forward to discussing with President Obama tomorrow is his conclusions as they are emerging on the future of US strategy, and how Australia dovetails with this.
And I say again, for us, there is no blank cheque when it comes to Afghanistan.
But we have to deal with the cause of what brought us to Afghanistan in the first place, and that is that for Australia, of the hundred or so Australians who've been killed in terrorist attacks around the world, those responsible for those terrorist attacks have primarily been trained in Afghanistan.
And neither America nor Australia have an interest in Afghanistan in the future becoming once again a safe haven for the training of terrorists from around the world.
JOURNALIST: An opinion poll shows that public support for the war in Afghanistan is slipping in Australia. Do you need that public support to move up again, do you need to sell the message better if Australia is going to eventually commit more troops?
PM: Every time we lose one of our brave men and women in uniform in Afghanistan, I understand fully the concerns of the Australian people about this war and about where it goes in the future. President Obama has that concern as well. That's why we'll be working together on it.
There aren't any easy answers here but, as a new Administration, what he has done is absolutely the right thing, which is his root-and-branch review of their strategy for the future. We look forward to being partners with America in that. As I say again, as the Prime Minister of Australia, there are no blank cheques in this business.
JOURNALIST: But are the Australian people wrong in not wanting to reinforce our Australian commitment, our exit there?
PM: As I said just before, Michelle, I fully understand the concern of the Australian people given that we have suffered loss of life -
JOURNALIST: But are they wrong?
PM: - I fully understand the concerns of the Australian people given that we have suffered a loss. That is the natural, human response to what has happened there with the loss, again most recently, of our brave men in uniform.
The challenge we face is to craft an effective political and military strategy for Afghanistan for the future. That's what I look forward to discussing with President Obama, recognising that the core reason for being there is to ensure that this country does not become a safe haven for the training and deployment of terrorists, al-Qaeda, in the future because that is where terrorists came from and then inflicted damage and death on Australians around the world.
JOURNALIST: You were saying these very same things a year ago when we were overseas on Afghanistan and nothing has really improved over there. What makes you think it's going to be any different in a year's time?
PM: What's fundamentally changed with the election of the Obama Administration is that they are undertaking their own fundamental root-and-branch review of the future of their political and military strategy in Afghanistan. That is the big difference, that's one of the reasons I'm here, to work that through with the President in terms of our participation and to work out what is the best possible mix for Australia for the future.
JOURNALIST: Prime Minister, you've said previously that on the issue of toxic assets, it's important that there be coordinated global action.
PM: Yes.
JOURNALIST: To what extent is the statement out of the US today just half the job and how will you be pursuing the rest of the job being done through the issue, through the banks of Europe when you go to the G20?
PM: To state again in response to your question, this is the core economic and financial challenge facing the international community right now in America and in Europe, which is home to the world's biggest banks and until they are fixed, the restoration of normal credit flows around the world, including into the Australian financial system will be undermined.
Therefore this statement by Secretary Geithner today is very good news. Markets, as I understand, in America have responded positively today. When Secretary Geithner released the financial stability plan six weeks ago it was stated intentionally as being the first step on the part of the United States in responding to this challenge.
Today, what we have is the second step, and the outline of the details of the operation of this private-public investment partnership in dealing with a whole challenge of impaired assets within the American banks. Action also needs to occur in Europe.
What advance have we achieved, apart from this good action in America, is the action achieved - the agreement achieved in London a weekend or so ago when the finance ministers met and for the first time agreed on an international framework of principles for dealing with impaired assets, toxic assets on bank balance sheets worldwide. Getting the framework right and then action within the framework by each national jurisdiction - once that is done, you begin to be able to chart a pathway to global economic recovery.
That is why you've heard me on and on and on about this problem for some time. If you sit down and analyse it, this is the core of it. Our debates about stimulus, our debates about other actions in the economy are all about supporting growth and jobs on the way through until you see the restoration of global private credit flows.
JOURNALIST: Mr Rudd, just on the domestic economy, I believe that you said that it was virtually impossible for Australia to avoid another quarter of negative growth. Why won't you utter the ‘R' word and say Australia is headed for a recession?
PM: What I was responding to there, Daniel, was the most recent data from the World Bank which was formally projecting global growth in negative territory of between 0.5 and 1.5 negative for 09.
It follows as night follows day that that will have a flow-on consequence for all economies including ours and I was being upfront about the fact that because of that, it's virtually impossible for Australia to sustain positive economic growth for the period ahead.
That's just a matter of logic and that's why I've been upfront about it and that has consequences for employment, it has consequences for the budget. Do I have fresh figures to throw at you? No, but I'm simply saying one flows from the other.
JOURNALIST: Why not be upfront about the use of the word recession if that's what you're talking about?
PM: What I'm talking about is you've got a global economic recession, we've had one quarter of economic growth and then you've got this new data from the World Bank. It projects negative growth for the first time in a long, long time for the global economy in 09 and therefore the consequences for Australia are huge. Negative economic growth and the need therefore to deal with it. As soon as we have further data on these questions, of course we'll be releasing it.
JOURNALIST: PM, another domestic issue. The running brawl through the airport, apparently between bikies there. Is this an indication of a more serious element of crime in Australia that the Federal Government should be paying more attention to?
PM: Bikie violence, bikie thugs, and organised criminal activity, from my point of view, should have zero tolerance.
Therefore I'm advised from Australia today that the next meeting of the Standing Committee of Attorneys-General will be looking specifically at what further actions across the nation are necessary.
This sort of behaviour by bikies and others engaged in organised criminal activity is unacceptable in Australia. Absolutely unacceptable.
JOURNALIST: What are you going to do? Make it illegal to ride a motor bike?
PM: I said organised criminal activity on the part of bikie gangs so I'm not verballed by you, my good friend. Have you ridden a bike yourself?
JOURNALIST: (inaudible)
PM: There you go.
JOURNALIST: No, well, seriously what can you do?
PM: Let me go onto that. So on the question of the uniformity of legal treatment of organised activity like this, this is now on the agenda as I'm advised of the Standing Committee of Attorneys-General.
Furthermore, I understand that there is, as there should be, a thorough police investigation into this particular incident and if further precautions, if further resources are necessary for the future, police resources necessary for the future, then those actions will be taken.
JOURNALIST: Mr Rudd, does this show that security is inadequate at Sydney Airport?
PM: It shows that we have a problem on our hands when it comes to organised bikie gang violence across the country. I find it unacceptable. It is unacceptable. It's repugnant.
Therefore, both on this specific incident, with an investigation underway, and dealing with it and any further actions and resources necessary for the future, that's now underway. Secondly, on the broader question of organised criminal activity, and involving organised criminal activity involving bikie gangs, if I've linked all those together, then that's something which the Standing Committee of Attorneys-General will work on.
JOURNALIST: Just back to Afghanistan. It's been years now that that war has been going. You say there's no blank cheque. Shouldn't there be some sort of time limit? Can you send any kind of marker along the road to the Australian people? How much longer should they be patient and what are the markers, the concrete markers, that you want to lay down that mean if nothing's achieved, Australians leave?
PM: I think there's an important principle in the question that you raised which is how do you equip the Afghan national army and the Afghan national police to take over the security role?
That is why one of the big emphases of our current deployment in Afghanistan, and will be into the future, is training Afghan National Army people because unless you have Afghan battalions able to stand up and take over the security role, then, obviously there's going to be a lack of clarity about exit points.
So my answer to your question is, we need to embark and to continue on and to expand a strategy of training Afghan national army and police forces, battalion strength plus, in order to provide the basis for Australia in the future to exit the country. That is a core part of our mission for the future, a core part of the mission I'll be discussing also with the President when we meet tomorrow.
JOURNALIST: Prime Minister, the Chief of the Defence Forces said several times over the past year that this is a 10-year war, that we have to make a 10-year commitment. Is that what this is? Is it a 10-year war?
PM: I haven't seen those particular comments from the CDF, but this has been going on for a long time. I accept that, let's just be blunt about it, and progress has been mixed, and you've seen what the President has said about the strategy so far. I agree with him, let's be frank about that, let's not try and gild the lily. That's part of the reason for being here, to examine what the forward strategy is.
JOURNALIST: (inaudible)
PM: Can I just, just to finish because I think we're all freezing and we'll go inside, is to, those security questions are core to this visit to Washington. Also core is America's global economic leadership in restoring global growth and global jobs through our combined actions for the G20. Getting that right on the global economy, with America demonstrating global leadership, is critical to the restoration of growth and jobs in Australia as well. And let's all have a warm cuppa.
[ends]