Subject(s): New Ministry and Cabinet; Simon Crean; Carbon pricing; Women in the Ministry; Federal Election
PM: Thank you for joining us in Newcastle, one of Australia's truly great regional cities.
We are in Newcastle today to launch the first day of operations of DisabilityCare Australia, Australia's first comprehensive national disability insurance scheme.
And here in Newcastle it is also my great pleasure to announce the members of my Cabinet. There will be a full list circulated of the members of the Outer Ministry and of course of the Parliamentary Secretaries as well.
The core task of this Australian Government is to keep the economy strong, given the threats we face from the global economy, the end of the China resources boom, also the beginnings of a credit squeeze in China itself.
And given the size of the China economic relationship and its impact on the Australian economy at large, our jobs, our standards of living, our growth as well as the overall wellbeing of our economy, we have got to make sure we get our responses, our economic policy responses, right to this new set of challenges.
I believe as Prime Minister of Australia the right response is twofold.
Number one, we must continue to diversify our economy, not to have all our eggs in one basket.
That means ensuring that we are doing whatever we can to boost our manufacturing, to boost our services industries, to boost our agribusinesses, to generate new jobs in these sectors rather than simply relying upon just one.
And second, to do this by making full use of the falling exchange rate which in fact boosts our global productivity.
Secondly, to enhance our productivity through our investments in skills, in education, in training, in infrastructure – but on top of that again, to bring about a much more productive relationship between business and Labor and to end the days of so-called class warfare.
We are interested as a Government in pulling Australian businesses and the Labor movement together to work in the Australian national interest.
That's why proven economic leadership, given the enormous challenges that we face, is so important.
Proven leadership that frankly I had to learn on the job as Prime Minister during the global financial crisis.
That's why I have assembled today a strong economic team, one with vastly more experience and vastly more competence than those we face opposite.
This team will be led by Chris Bowen as Treasurer of the Commonwealth.
Chris has served as Assistant Treasurer. He has served as Minister for Financial Services. He is respected by the Australian business community. He is a good bloke.
He is not only safe hands; he's also a bloke capable of taking the very hard decisions. Highly intelligent, a man of courage, not a populist.
Penny Wong continues as the Minister for Finance.
Every Cabinet economic team needs a Dr No. Someone prepared to say to their ministerial colleagues ‘great idea colleague, but we can't afford it’.
Penny will continue to perform that function. She is a highly intelligent person. I have known her for a long, long time and she has a prodigious work ethic.
I said just before that productivity was central to our economic task. Better skills, better infrastructure, but also the end of unnecessary divisiveness between business and unions.
Deputy Prime Minister Anthony Albanese has responsibility for infrastructure, now broadband as well, transport and communications.
This is a large set of responsibilities for a man with a prodigious work ethic and a heart for all Australia. He will do the job well. He will help keep the nation's arteries going.
Without properly functioning national infrastructure, the roads, rails and ports which have served us well in the past and which we must continue to invest in the future. The new infrastructure; our National Broadband Network, NBN.
On top of that, we of course have the skills agenda.
Bill Shorten will become the new Minister for School Education with responsibility for the national school improvement program or what we call our Better Schools Plan for our kids' future.
He will retain the portfolio of industrial relations.
Within Government, Bill will also have a new responsibility for driving the productivity agenda with business and unions.
Kim Carr will be the Minister for Innovation, Industry, Science, as well as Higher Education.
Higher education is critical for our future. Kim has a passion for this sector and I am sure he will develop a strong, productive, reform-oriented agenda with the sector.
Kim will be joined by Brendan O'Connor, the new Minister for Employment, Skills and Training.
Gary Gray will continue as Minister for Resources and Energy, Minister for Tourism and Minister for Small Business. He’ll also bring to the Cabinet table the strong economic voice of Western Australia.
On top of this, Richard Marles will join the Cabinet as the Minister for Trade. Richard will have his job cut out; we have major free trade agreements to conclude, not least of which is with China.
If you look at our economic team, they are drawn from across the breadth of our nation.
We have senior economic ministers from Queensland – myself – New South Wales, of course you’ve got the likes of Albo and of course Chris Bowen.
In Victoria you’re going to have Bill Shorten; in South Australia, Penny Wong.
Also in the West, you’ll have Gary Gray as well as the other ministers I have just mentioned.
The voice of all Australian mainland states is going to be at the Cabinet table on the economy.
And of course when it comes to Tasmania, we are going to have our first Cabinet minister for a long, long time as well.
Labor governments have a head, but let me tell you we also have a heart, and make no apology for it. That's what makes us different.
I am delighted that Jenny Macklin will continue today as Minister for Family Services and Minister also responsible for Disability Reform and also Minister for Indigenous Affairs. She is a person of great experience and a great work ethic.
Tanya Plibersek will continue in Health and her portfolio will also now include medical research. She will be the Minister for Health and Medical Research.
Jacinta Collins joins the Cabinet as the new Minister for Mental Health and Ageing.
Julie Collins joins the Cabinet as well and this is to ensure that we have a proper voice at the Cabinet table for housing and homelessness, two enduring passions of mine since the day I first became Leader of the Opposition some time ago. She will also be Minister for the Status of Women.
Catherine King also joins the Cabinet. Catherine is from Ballarat, one of Australia's great regional cities. She will be Minister for Regional Australia, Local Government and Territories to ensure that Australia's regions get a fair go.
That's what's important. It is not just the capital cities, and it’s not just Sydney and Melbourne let me tell you.
This is a high priority for us all, to make sure that all Australians get a decent share of the national cake.
In terms of the regions, but also the economy more broadly, we have of course the important portfolio of Agriculture, Fisheries and Forestry.
Joel Fitzgibbon who represents a rural and regional seat of Hunter will join us as the Minister for Agriculture, Fisheries and Forestry. He will be responsible for finding new future business opportunities in agribusiness and food production.
He will bring a strong voice for the regions, a strong voice for agriculture, a strong voice of course for our forestry workers, and a strong voice also for our fisheries.
I have spoken about our economic team, I have spoken about the team which is committed to social justice, a team which is committed to the regions and a team committed to agriculture.
Our national security team is strong. We have Bob Carr who will continue as Foreign Minister, Stephen Smith who will continue as Defence Minister. Mark Dreyfus will continue as Attorney-General and Minister for Emergency Management.
Tony Burke will be the new Minister for Immigration, Multiculturalism and also for Citizenship. He has had great experience as a Shadow Minister for Immigration in the past.
He has a fine policy mind, he is very tough minded. He also has a heart and I'm sure he will do well in this portfolio.
Jason Clare will continue as Minister for Home Affairs and Minister for Justice in the outer ministry.
On the environment, this is important for all of us; climate change, our natural ecosystems, our river systems and of course our marine parks.
Mark Butler from South Australia will be Minister for Climate Change and Minister for the Environment, Water and Heritage. And I welcome Mark to this new portfolio area of responsibilities.
As for the Outer Ministry, the team continues, there is one addition to it and that is Melissa Parke from Western Australia.
She will become Australia's first Minister for International Development. Again the hallmark of this Australian Government is that we take seriously our mission to those in Australia who don't have much and those around the world who have nothing at all.
Our job in the international community is to help those who frankly run a risk of dying tomorrow in the absence of proper vaccinations or emergency food assistance. And Melissa has a passion for this area.
As for the Parliamentary Secretaries, they will continue broadly as in the past. There will be three new additions.
One is of course Ed Husic who will be Parliamentary Secretary to the Prime Minister. He will also be Parliamentary Secretary for Broadband.
Alan Griffin, Parliamentary Secretary to the Prime Minister also, and Cabinet Secretary for this Government.
And Doug Cameron will be the Parliamentary Secretary for Housing and Homelessness.
Colleagues, this is a strong team. I am proud to lead this team.
This team has been selected on the basis of merit.
I am delighted that in this Cabinet of ours, we will have the largest number of women of any Cabinet in Australia's history. This is a very strong team.
Penny Wong at the head of it and so many others with her as well.
I have mentioned before of course Jenny. I have mentioned also before of course Tanya; joined by three new women ministers as well.
This will be a great contribution to the cause of women, as well as the cause of good government in Australia.
I'd also like to make mention of Simon Crean. Simon will be making a statement on his own future later today as I'm advised by him.
I would also like to acknowledge here publicly as Prime Minister of Australia how much I value his work over the years. He has been an extraordinary leader in our movement for a long period of time.
He has worked in previous Australian Labor governments. He has worked prior to that as head of the Australian trade union movement.
He played an extraordinary role in fashioning the Accord and bringing our industrial relations system kicking and screaming into the 21st century. I acknowledge his contributions.
In the period I was Prime Minister also a fantastic Minister for Trade, and certainly under Prime Minister Gillard he has performed well in Regional Australia where in the regions they love him, they really do, because he has got a heart for regional Australia.
But I will leave his own statement on his own future for him and I understand he will be standing up later today based on a conversation I had with him yesterday.
The Cabinet will be sworn in at Government House in Canberra by Her Excellency the Governor-General at two o'clock this afternoon.
Following that, the full ministry will meet at 4PM. We'll get down to business in Parliament House in the Cabinet room and the business of government will continue.
To conclude, before I take your questions, ours is a great country, but you know something, we can even make it better.
We have enormous potential. Our job in the future is to harvest that potential and make an even better Australia.
A stronger Australia, a fairer Australia. The hallmarks of what we as Australian Labor governments seek to do.
And on the way through our job is, while keeping the economy strong, never, ever, ever to allow the fair go to be thrown out the back door.
I'm happy to take your questions.
JOURNALIST: Prime Minister, Simon Crean on the radio this morning said he was offered a portfolio to woo him to stay. Can you tell us what that was?
PM: I will leave those private conversations for Mr Crean and his subsequent statement today.
JOURNALIST: This is quite a promotion for Mr Shorten. Is this a reward for his supporting you in your leadership ballot?
PM: When it comes to the education portfolio and our plan for better schools, better schools for our kids' future, it is important that we have got everyone of talent and ability out there advocating the cause.
Bill has a strong mind. He also has a strong ability to communicate.
Therefore, when we have got a first class plan to improve long term funding and reform of our school system, I want our best players on the field, and Bill fits that category.
Also I emphasise this: while retaining the position of industrial relations, he also has responsibility for driving the productivity agenda.
Bill is not there as some spokesman for the Australian trade union movement. I wouldn't cop that and he wouldn't either.
He is there to drive a productivity agenda which brings us together.
That is, business who generate the jobs and unions who represent employees in order to get the best and most productive and fair outcome from the businesses who create the bulk of Australia's wealth.
JOURNALIST: Prime Minister, you said after the leadership spill there would be no recriminations for any ministers yet Tony Burke and Brendan O'Connor have been moved on.
PM: I think you will find that both these ministers are in the Cabinet.
JOURNALIST: They’ve been moved from their positions.
PM: Well I think no reasonable person would say, and I certainly haven't said from day one, that any minister who was going to continue in the Cabinet or the ministry or as a parliamentary secretary would by definition keep their portfolio.
And all the ministers have understood that from day one.
JOURNALIST: Immigration though is pretty poisoned chalice though, isn't it?
PM: Tony Burke is a highly competent minister. It is a tough challenge. And to rise to a tough challenge you appoint a tough minister.
Tony is one of those. He has got experience in the field. He is tough-minded but he has a heart.
And I think he has got the right balance to actually execute the difficult challenges which lie ahead.
JOURNALIST: Prime Minister, what do you say to people who are worried their costs will go up today because the carbon price is going up?
PM: I think the first thing to say is that the Treasury's projections are that the impact on cost of living will be modest and these are being compensated for by adjustments to the family payment system.
The second thing is this; often these questions about the price on carbon are taken in isolation.
The alternative Prime Minister, Mr Abbott, through his so-called direct action plan means putting a huge swag of new costs on to Australian business and guess what, you have two choices then.
Australian businesses are going to say we are a bunch of philanthropists, we will not pass any of those costs on to consumers or we're going to pass them straight on to consumers.
Businesses will pass on Mr Abbott's cost directly to consumers.
I think it is important to consider this in balance. After all, the Australian people will face an election.
They are going to make a choice between us being upfront and transparent about the cost of the price of carbon and, secondly, how it is best compensated – and we have done that – as opposed to Mr Abbott's magic pudding whereby somehow you whack a whole lot of new charges onto business to fund his direct action plan and then mysteriously assume none of that is going to flow its way through to extra costs for consumers.
Give us a break. That's just not true.
JOURNALIST: Are you discussing possible changes with your new Cabinet – how quickly could you envisage your change to carbon pricing and how quickly would it take to implement those changes?
PM: Cabinet processes will be conducted in an entirely orderly and predictable fashion.
We will go through the Government's current policies, work out where any challenges exist.
I have some fresh policy ideas of my own but I don't intend to canvass those here before taking it through the proper deliberations of the Australian Cabinet.
So we will wait and see how Cabinet resolves itself on these questions.
JOURNALIST: There is a number of women in the Ministry; a peace offering to the female voters of the country?
PM: I am basically a guy who believes in meritocracy. And when you find people of merit, whether they are women or men, they should be promoted.
And none of you could stand here and say that strong, capable, competent women like Julie Collins from Tasmania, like Catherine King from Ballarat, like Jacinta Collins from Melbourne, would not be there on their merits.
They are there on their merits. These people are folk that command the respect of not just their parliamentary colleagues, but also the sectors of the community which they have been dealing with so far.
So I am pretty relaxed about the fact – remember you are looking at the guy who went to an election with Australia's first woman as Deputy Prime Minister, Julia.
Secondly who promoted, or recommended I should say, the first woman as Governor-General of Australia.
I appointed Australia's first Ambassador for Women and Girls.
And I come from a family of pretty strong women. I actually don't see things through the prism of gender. I never have and I never will.
JOURNALIST: Do you think these women have gone unrewarded in the Labor Party so far?
PM: You know something? The Labor Party can be a bit of a tough beast on these questions, and if you roll the clock back 10 or 20 years, on both sides of politics frankly, it has been hard going.
I actually pay a lot of tribute to those trailblazers in the past who opened the door, made it more possible and then made it entirely normal so that hopefully by the time we get to whoever the next Cabinet of Australia is, following the subsequent election, whether Mr Abbott wins or whether I win, that we need an Australia where these questions of gender are no longer asked.
And in some of the most mature democracies in the world they aren't because women have assumed a full and complete role in the government of their countries.
I look forward to that day.
JOURNALIST: Brendan O'Connor would be one of the shortest serving immigration ministers in Australian history. Is this an admission that he has botched the campaign on 457s?
PM: Brendan O'Connor, who I have known for a long, long time, and when I was Prime Minister first put him into the ministry, is a person with a passion for employment, a passion for skills, a passion for training.
When I spoke to Brendan about this, he was delighted, and I think it is the best mix.
As I referred to Burkey before, and his skills in the immigration field, he is going to do a great job there.
None of these jobs are easy. None of them.
If any of you in this room have worked for a minister, let alone senior ministers or prime ministers, let me tell you it is free and fast-flowing.
Most of you as journalists wait for the product to pop out the end in a useable press release for a newspaper the next day or for the radio news bulletin that afternoon.
That represents about one-hundredth of the process which precedes it, which goes to what problem are we trying to fix, how we going to fix it, what will work, what won’t work, what's it cost and what's the orderly way of making those decisions?
JOURNALIST: Prime Minister, have you thought any more about an election date?
PM: Look, I’ve said before that my approach will be identical with Prime Minister Howard, identical with Prime Minister Keating, identical with Prime Minister Hawke and all their predecessors, which is to act entirely according to the Australian Constitution.
So those announcements will be made at the right time.
JOURNALIST: Joel Fitzgibbon resigned after several controversies in 2009. Is this giving him a second chance, and why?
PM: Joel is a very competent local member in this part of the world as you know. I have known him for a long time.
And I think four years in Coventry, which effectively is what Joel has done, has given him plenty of time to reflect and I believe everybody gets a reasonable opportunity for a second chance.
And Joel has a passion for the regions and therefore a passion for agriculture.
If you go through the electorate of Hunter, which you good folk in Newcastle probably have from time to time, what I see is a dynamic region which is obviously full of mining, but it is full of agriculture as well and regional towns.
And I think he is a very good fit for the portfolio.
So I just say to people give Joel a go. He has been four years on the sidelines. I think everyone deserves to get a second chance.
[ENDS]