PM: It's good to be here in New York and to have an opportunity to argue Australia's, the strength of Australia's economic take to many of the large corporates who are home based in this city. To argue also the strengths of the Australian economy.
This is tough time for the global economy, it's a tough time for all economies. But out there across the OECD, our growth in Australia has (inaudible) in the top five of seven of the OECD. Our budget circumstances, relative to the rest of the OECD remains strong. And similarly, our overall position in terms of net borrowing remains strong as well.
These are important underlining strengths for Australia, the economic name of Australia, as well as the particular interest we have to advocate with corporates here in New York.
As we head towards the G20 Summit in London next week, it's going to be important for the G20 heads of government to register progress on the question of fiscal stimulus worldwide. With the progress on the question of sufficiently (inaudible) for International Monetary Fund to deal with problems in emerging economies. Progress also on how we deal with the continued problem of impaired assets and the back balance sheets of big banks around the world. And also, progress on the overall question of financial market regulation, and to get the balance right. The balance right between encouragement of initiative on one hand, with the balance also in providing proper protection and stabilisation mechanisms for the overall economy.
These will be difficult challenges in the week ahead. Agreement has not yet been reached across all governments. Officials are still working hard. And there's still a lot of work to be done between now and next Wednesday in London.
But the economic stakes with the global economy are high, and because of that, the economic stake for the Australian economy and jobs in Australia are also high. As I said the other day, in the global economy at the 21st Century, there is a very, very rapid connection indeed between what happens here on Wall Street, and what happens in the main streets of Australia. What happens here on Wall Street directly affects jobs, and construction sites along Parramatta Road in Sydney, and in Brisbane's Queen Street Mall.
The interconnectedness of the global economy is such that we have to deal with all of these problems globally, because all their implications are self evident. Some have argued that what is this whole debate about, as far as impaired assets or damaged assets held by the world's biggest banks. Well, because of the global economy, when you've got a problem with the world's biggest banks here on Wall Street, it flows through to jobs on construction sites and jobs for plumbers on Parramatta Road in western Sydney.
Over to you folks.
JOURNALIST: (inaudible)
PM: I believe President Obama's outlined new strategy for Afghanistan is absolutely right. I also believe it is right because it represents a new integrated approach to our military, our men and women in uniform, and then complementing with work of trainers for the Afghan National Army and Afghan National Police, as well as the support necessary to be delivered through the civilian made efforts in Afghanistan as well.
Australia and the United States and our other allies and partners and friends, need a credible long-term strategy capable of securing the strategic mission. And the strategic mission is all about denying Afghanistan as a state for free operation for terrorists, to have safe haven and training grounds to launch attacks in the future.
Let us always remind ourselves, particularly here in New York City, that this is where this campaign began. When the Twin Towers came down, it was an attack by terrorists, supported out of Afghanistan that caused a huge loss of life in this city, including Australians as well.
When terrorists attack our own in Bali in 2002, the bulk of those terrorists were trained in Afghanistan. Our strategic mission is to deny those terrorists a free base for training and operational deployment in the future.
And the strategy announced by the President has Australia's support.
JOURNALIST: (inaudible)
PM: As I said to you the other day, we have been waiting for the President to release his strategy. We have been waiting for the President to be able to outline his strategy to the NATO partners as they meet next week in Europe. And we ourselves will be looking at how we shape our own military and civilian contribution to Afghanistan in the future.
A key component as I outlined in my remarks here today, the other day, is what do we do better by way of training the Afghan National Army in the future. If we in Australia want to get to a stage where we can handover the security responsibilities in the province which we're responsible for with others present, namely Oruzgan, then we have to have a credible long-term strategy to (inaudible) an Afghan National Army Battalion to take over that role.
And that is obviously something that we'll be looking at in the period ahead. These are subject to deliberations.
JOURNALIST: (inaudible)
PM: We haven't provided any undertaking to the President on this question at all. We'll work it through in the period ahead and that's because we need to play our part, but we also need to make sure that our friends and partners in Europe are playing their part as well.
JOURNALIST: Prime Minister, back home, you have blamed the global recession on extreme capitalism, neo-liberals, free marketeers, let it rip merchants. I'm just wondering if you had a chance today to share your thoughts on these matters with your hosts, and what is your level of confidence that President Obama, as the real anti- (inaudible), given American politics be able to put these guys back into their boxes?
PM: What I was talking to our hosts today about was the need to get regulation for financial markets for the future right and globally coordinated. We need to get the balance right, and we need to get that balance right at the beginning with the way in which the London meeting held next week, addresses global financial market regulation. Hedge funds as well as other areas as well. That's important.
On the question of regulations as well, and you asked about President Obama and the Government of the United States, I draw your attention particularly to the remarks and the address given yesterday morning to the United States Congress by Treasury Secretary Geithner on this very question.
That is, how can the US better regulate its financial markets for their future? This is a huge financial market in America. It has huge global implications in terms of how it's regulated. So I think you see in that statement by the Treasury Secretary yesterday, where the US wants to take this debate.
JOURNALIST: Mr Rudd, (inaudible) Malcolm Turnbull had accused you of being too close to China, and wandering around America herding China's bidding on the IMF. Are you worried (inaudible)?
PM: I think a lot of governments around the world are talking about how China can play a greater role in the IMF. That's just normal, because we want to see the IMF active in the global financial debate, in dealing with some of the problems of emerging and developing economies.
JOURNALIST: (inaudible). Do you have full confidence in Joel Fitzgibbon?
PM: Yes, I do.
JOURNALIST: Just on some of these Treasury Geithner's remarks on Wednesday (inaudible)?
PM: Well look, on the details of what is in the Geithner plan, the particular application for developments of the US financial system - the US domestic debate will have its own course, and the statements (inaudible) made yesterday and my understanding from discussions with US officials, is there will be more to be said on this over time. But I would prefer not to buy piecemeal in to the unfolding US debate, when not all elements are yet out there for public discussion.
The point I made in response to Matthew's question before, was the US have said that there is a problem with a lack of comprehensiveness and coordination in its overall national regulatory arrangements for its financial markets, and Secretary Geithner was saying yesterday morning that they intend to change direction
JOURNALIST: (inaudible). Do you think that being here with the chief executives of some of the most wealthiest companies in the world, the fate of billions of dollars washed through, people make millions every year, that this is an opportunity to rebuild capitalism, to be more humane and help those children in harm and the one in five children in America living in poverty (inaudible)?
PM: Well, in terms of the future of open markets and free enterprise, I've said throughout my parliamentary and political career, I support open markets and I support free markets. The whole debate lies in how you regulate those markets.
Companies like Channel Seven are publicly listed on the stock exchange and depend on the attitudes of shareholders to their market capitalisation. And that's as it should be.
But Channel Seven and other companies are also engaged in individual acts of corporate responsibility. Let me give you an example. For the telethon held each year in Perth, it's largely a Channel Seven enterprise that raises millions of dollars for the Western Australian public and to support charitable enterprise, and that's a good thing. Other media outlets do similar things in Australia, and other publicly listed companies.
The key to furthering and supporting the future of open markets worldwide is to get the balance right. To get regulation right. To make sure that working people also receive their part, receive their benefit, from this free market system.
Free market system as I said I think in my first speech in parliament, is an enormous generator of wealth and creativity across the global economy. That is right and as it should be.
But it also needs to be properly regulated, and you also need to have the provision of public goods. And public goods also depend on the taxes that you raise from corporations and others to provide universal health care, universal education, and also critically, the bringing of services to the most poor and underprivileged.
I think what we've seen in the events of the last 18 months, is where the balance was just got all wrong. And it's time to restore the balance.
Thank you.
[ends]