Darwin City Deal; Commonwealth investment in the Northern Territory; Australian foreign policy; visit by the Japanese Prime Minister;
Prime Minister
ADAM STEER: So, will the Federal Government’s latest stimulus package help revive our flagging economy? Prime Minister Scott Morrison good morning.
PRIME MINISTER: Good morning Adam good to be here.
ADAM STEER: This is one of your favourite songs.
[Wa Wa Nee - Stimulation plays]
So you love Wa Wa Nee, today is Oz Music Band T-Shirt Day, do you have a Wa Wa Nee t-shirt?
PRIME MINISTER: No, I don’t have a Wa Wa Nee t-shirt. But you know that was back in my time when I was at school and university and I had plenty of Midnight Oil and INXS t-shirts. That’s on my Australian Rock playlist, if people want to check that out on my Spotify. But no mate, they’re a lot of fun, it was a good time.
STEER: Speaking of stimulating things, it’s been 18 months since the Northern Territory and Federal Government signed a memorandum of understanding for a Darwin City Deal. You’ve now announced the Federal Government will match the Northern Territory Government’s $100 million spend on improving our capital city. Are you just announcing the deal, or are you signing the deal in Darwin today?
PRIME MINISTER: No, we’re putting this deal together today, we’re signing it today. This is, as you say, a matched commitment with the Northern Territory Government and it is all about the future of Darwin. Prior to this, we’ve already put $100 million into roads and congestion-busting infrastructure in and around Darwin. Now this comes on top of that, a further $100 million and the lion’s share of that is going into the Charles Darwin University education and civic precinct around Cavenagh Street.
This is a really important thing for the future of the city, it’s going to bring additional students into the city. It’s going to create an urban campus, a city campus here in Darwin. On top of that though, there’s another two very important projects. One is opening up Stokes Hill for those harbour foreshore opportunities, which will be worked through by the Territory Government into the future. But the other one is this urban living lab. Now I’ve just gotten back from Singapore and there’s been a very big part of the ASEAN agenda which was a new cities agenda, which we’ve been very much a part of. Many Australian firms are finding a lot of success working in cities around South East Asia, based on our experience in doing things like urban management, waste management and particularly in tropical cities like Darwin. So working with the CSIRO, Darwin will basically become a lab for how you run liveable cities in tropical areas all around the world.
So I think this will be a great launching pad for businesses to come here and invest, try new things and then take it to the rest of the region.
STEER: You’re signing the deal today, when will the money start to flow?
PRIME MINISTER: Well as the projects roll out. I mean, when it comes to –
STEER: Is it a loan or is it - ?
PRIME MINISTER: No, no it’s a grant. It’s all direct funding. On top of that, the Northern Australia Infrastructure Fund are looking at also supporting the project, particularly around the education and civic precinct. So there’ll be further opportunities there. I mean there is more pre-construction, more pre-planning work that needs to be done with all of these projects and we’ll be doing that in partnership with the Territory Government. They’re investing in a number of other projects, the Arts Centre and things like that. This is all about making Darwin a more competitive city.
When I was Treasurer, I initiated the Productivity Review and it highlighted the efficiency of our cities as one of the most important things we can do, to lift productivity. What does that mean? Productivity means that people can earn more.
STEER: Speaking about when you were Treasurer, it’s the last time we spoke. You were talking then about the GST top-up that you gave to the Northern Territory. Was that contingent on the Northern Territory lifting their franking ban?
PRIME MININSTER: No.
STEER: Okay. Well, let’s -
PRIME MINISTER: I’m pleased that they did. But those decisions, as Nicole Manison said at the time and I said at the time, those decisions were taken independently of one another. But obviously the Commonwealth was very pleased to see that decision and I wish other state governments closer to the south east of the country would. I mean they have moratoriums on conventional gas in Victoria. I mean that is just putting people’s electricity prices up.
STEER: Last week as you are no doubt aware, Don Dale Youth Detention was set on fire, the TRG called in and tear gas fired to quell a riot after detainees stole the centre’s keys for the second time in three weeks. Why aren’t you putting any money to shut down and replace the detention centre ?
PRIME MINISTER: Well, as you know we initiated the Royal Commission and we’ve been acting on the recommendations of the Royal Commission with the Territory Government. The reason – you just mentioned it yourself – the reason we put in an extra $256 million in the GST arrangements for the Northern Territory was so they could actually be in a position to support essential services here in the Territory. Now, that includes their responsibilities when it comes to these facilities. I mean it is a Territory-run facility.
STEER: Yeah -
PRIME MINISTER: And we will work closely with them and are pursuing the recommendations of the Royal Commission. We are very concerned about the events and we will continue to work closely with them and address any issues that need to be addressed. But it is the responsibility of the Territory Government and we have ensured that they have not been worse off and in fact, are much better off -
STEER: But Prime Minister –
PRIME MINISTER: On the GST arrangements, so they can meet their responsibilities.
STEER: You funded the Royal Commission, which called for the immediate closure of the centre. What’s the point of spending that money on the Royal Commission if you aren’t going to follow it up?
PRIME MINISTER: It is a responsibility of the Territory Government -
STEER: But clearly the Territory Government, clearly -
PRIME MINISTER: Just like the police are the responsibility of the Territory Government, just like housing, just like education. We fund many of these things and we’ll work closely Adam, we’ll work very closely with the Territory Government. But in terms of stumping up, in just two years, over $300 million in direct Budget support for the Territory Government, I don’t think the Commonwealth could be accused of not turning up when the Territory needs us. And today we’re backing that in with a further $100 million to ensure the economic development –
STEER: But clearly the Northern Territory Government is not capable of fixing the situation. Just look at the last three weeks. Why won’t you help fund the replacement?
PRIME MINISTER: Well that is quite an incitement on the Territory Government you’ve just handed down there Adam. Look, I’m not making that commentary, what I am saying is that we’ve been supportive of the Territory Government with their Budget like no Government previously. We have ensured, not just on that issue, remote Indigenous housing, half a billion dollars the Commonwealth committed to support the Territory Government to address those very serious issues here in remote Indigenous housing. So we are stumping up time and time and time again.
Now you’ve made the commentary on the Territory Government. I’ll leave you to do that and we’ll work closely with them on these very serious and concerning issues.
STEER: Well today, you’re signing a deal worth $100 million to improve Darwin’s CBD?
PRIME MINISTER: Yes.
STEER: $200 million if you count the Northern Territory’s input as well, should the focus of the Commonwealth be on sorting our juvenile justice, rather than prettying up a city?
PRIME MINISTER: Well I think that’s an unkind way to describe what we’re doing with the city. We’re making the city liveable and we’re making the city viable for future generations to ensure that it can back in the population growth plans that the Territory Government has announced, with real infrastructure that lifts living standards. Now, I believe that’s what Territorians would see as very important, so I wouldn’t diminish the project like that Adam. I think it’s a very good project for the Territory, plus the $100 million we’ve put into roads infrastructure.
We’re meeting out commitments in the Territory. We’re providing Budget support to the Territory like no previous Government, whether it’s on remote Indigenous housing or in general areas of service delivery, that’s what the $250 plus million extra was; to ensure the Territory could meet it’s responsibilities.
STEER: The Defence White Paper slated a $20 billion spend for the top end over the next 18 years, that includes $70 million upgrading Robertson Barracks, $1.2 Larrakia and the Kunanarra bases. Is that money still going to be spent in the top end of the Northern Territory?
PRIME MINISTER: Yeah we’ve got $8 billion in Defence infrastructure upgrades coming into Darwin over the next decade and there’s over 5,000 Defence personnel – as you know – here in the Territory and particularly in and around Darwin. So they’re pretty big projects we’re investing in, around air capability, naval capability, rolling out some of our big programmes. Now, this is the biggest capital redevelopment and capability redevelopment of our Defence forces we’ve seen since the Second World War. We’re going to hit 2 per cent of GDP in Defence spending three years ahead of what we promised. And it’s not just the strategic significance of this, it’s the economic significance of this. Our Defence industry investments have been a key part of our economic growth plan. Now that has got unemployment in Australia down to five per cent. We had another good month of jobs figures come out this week and pleasingly, we also just had 40,000 plus full time jobs, more. Then on top of that, we had an improved, I’d say, wage data come out. The September quarter saw wages growing faster than inflation, not just in the quarter but through the year as well.
STEER: I just want to confirm Prime Minister, none of that Defence spend earmarked for the Northern Territory, is now being moved to Queensland?
PRIME MINISTER: No, we’ve got $8 billion worth of investment projects here in Darwin, they’re everything from P-8A aircraft support, the new aircraft combat systems, the explosive ordinance logistics programs, the air traffic control, the health command, it just goes on and on. It’s a big programme of works and I think that’s going to be a very important further stimulus to the Northern Territory economy.
STEER: You have been overseas and plagued by the debate over whether to move the embassy from Tel Aviv to Jerusalem. It’s been reported that you’ve told Indonesian ministers there is less than a fiver per cent chance that Australia will move from Tel Aviv to Jerusalem, is that correct?
PRIME MINISTER: No, it’s a complete furphy that report, an absolute furphy.
STEER: So is it on the cards, to move the embassy?
PRIME MINISTER: Well we have a process that we’re going through, that’s what I advised the Indonesian Government and we’ll follow our process. Australia will make its’ own decision when it comes to our foreign policy. I said at the time when I raised this issue; it’s a question we’re going to ask ourselves and it’s a question that I am going to consult on and that’s exactly what I have been doing. I was doing that as part of the East Asia Summit and I had a number of discussions on the topic. They were helpful and I was able to inform people of what our process is. There is a timetable on that, it will be done before Christmas, but Australia will make this decision, no one else. We will make it based on what we consider -
STEER: [Inaudible]
PRIME MINISTER: Our beliefs and our values and our interests.
STEER: Are you prepared to risk the Indonesian Free Trade Agreement over the move?
PRIME MINISTER: I don’t conflate the issues. I don’t conflate the issues. What we need to understand is that Australia has to set its’ own Australia foreign policy. All I have simply said Adam, is that some time ago, several weeks ago, that we were going to consider this question if we believed that it would advance the issues of the two state solution.
Now, what I am frustrated about, as are other leaders, is the lack of any progress towards a two state solution in the Middle East. This concerns us because we’re committed to it. Now, if it’s possible to advance this agenda by going down that path, then why couldn't we consider it? What I’m concerned about is, why would Bill Shorten not even want to ask the question? Then, when asking the question, would he want to take his cues from powers outside of Australia?
But look, the rest of the summit - I know there was a lot of focus on this in the Australian media - but very positive engagement with the Chinese leadership when I was there. I was pleased to see that we were able to get on with business with China. I think we’re moving into a new phase there, which I think is very good for Australia. Our positions have not changed, our consistency will be maintained but the relationship, I think, is very positive. I am looking further to further meetings when I head up to PNG tomorrow.
STEER: Well, let’s move to why you’re here today, significant events this afternoon. Laying a wreath with Japanese Prime Minister Shinzo Abe?
PRIME MINISTER: Yes, this is a very significant visit from the Prime Minister. He has been very diligent I think, in visiting many of these site around the world. It has been an important part of how he is leading his country and repositioning his country, which he has been successfully doing. But over 230 killed, as we know, in the bombing of Darwin. This was a scarring event for all time here in Australia and the fact that he is coming here today, I think in a very humble spirit, says a lot about him. I think it says a lot about where he is taking his country and it says a lot about the relationship with Australia.
So I hope today is an important day of healing for many. I know for some, whether they’re here in Darwin or anywhere else around the country - because people who were affected by that live all around the country, in my own electorate down in southern Sydney I know of people who were here at the time - I think it will be a difficult day for some, but I think an important one. So the ability to deal with those events but also hopefully to achieve reconciliation.
STEER: Prime Minister, thanks for your time this morning.
PRIME MINISTER: Thanks very much, good to be here Adam.