Australia’s and WA’s economy; Border protection; WACA.
Prime Minister
GARETH PARKER: On the line is the Prime Minister Scott Morrison. Good morning.
PRIME MINISTER: G’day Gareth, it's great to be here the west.
PARKER: Appreciate your time. You’re here in Perth, we will come to that. You worried about the economy though?
PRIME MINISTER: I've been saying for some time that these headwinds we're seeing around the world, whether it's the China-US trade issues, strategic sort of tensions. What's happening with Brexit. Europe. I mean, there is some real headwinds in the economy at the moment. And we're faring better than pretty much all of the G7 economies except for the United States at the moment and that's why it’s important we keep doubling down on supporting small businesses, reducing taxes and the investments where I've just come from out in Henderson here in Western Australia. I mean, $900 million dollars in sustainment maintenance activities, $1.5 billion going into the infrastructure to support the patrol boats. So these are the things that will keep that economy moving.
PARKER: OK. But I guess in a way that's sort of the point. What the national accounts revealed yesterday is that the only thing that's really propping up the economy is government spending, the private part of the economy is really, really weak.
PRIME MINISTER: Well that's… the non-mining investment was actually up, mining investment was down. When you put the two together the combined impact of mining investment with the others showed that reducing, but non-mining investment actually improved and that's to be, I think, that's to be importantly noted. But that's why it's important that the mining sector and the resource sector are to be supported and appreciated. I mean, the Labor Party actually are welcoming the fact that the mining industry is facing some difficult times with global markets. I mean they described it as wonderful. I mean that's just nuts.
PARKER: OK. But households at the moment are nervous. I mean, you know how it works. In this state we've been struggling with house prices and the consumer economy has been really weak for years. But we're starting to see this hit Sydney and Melbourne as well, which given their importance to the national economy, is a pretty big problem I think.
PRIME MINISTER: Well that's why you wouldn't go and put $200 billion of extra taxes on the economy. That's why you wouldn't abolish negative gearing and put up capital gains tax, it's why you wouldn't go and slug retirees $5 billion a year, 85,000 Western Australians to strip their franked different dividends away from them with their with their credits. That would be a recipe for real damage to our Australian economy and that's what Bill Shorten is proposing. I'm not going to do any of those things, I'm actually cutting taxes.
PARKER: OK. What's on the agenda here in Perth? You’ve been in Henderson this morning what else we up to?
PRIME MINISTER: This afternoon I will be up in the electorate of Cowan, we’ve got a meeting there with a lot of the multicultural communities that are there and I'm looking forward to sitting down with them. I'll be with Christian Porter later today. We're also making some... doing some further work on some of the domestic violence issues and following up some of the funding we announced earlier this week. So it's you know it's an important visit but where I was this morning was very important. I mean that is a huge investment we're making in the defence industry here and the supply chain impacts of that investment right across hundreds and hundreds of companies. You know, it's a huge industry and we're talking about generational jobs. I mean, I met people there this morning who'd been there for 32 years there. Their son works there and I suspect grandsons will work there eventually. There's just intergenerational jobs we're creating out there at Henderson
PARKER: You can't afford to lose any seats in WA, can you? But the Labor Party is coming for them.
PRIME MINISTER: Well I can't afford to lose any seats anywhere in the country. And this is why our plan for a stronger economy, keeping our national security strength in place, and that is particularly the case in terms of border protection. I mean, Bill Shorten has been caught out. As I said yesterday, when people smugglers see me they see a brick wall. When they see Bill Shorten, they see an open door and you can see that in terms of his reaction to the issues on Christmas Island where I was yesterday.
PARKER: We’ll come back on Christmas Island, but I just I just want to focus on Perth for the moment. I mean it's... you're right. You can't afford to lose any seats, but here in the West, what's happened in previous election campaigns is the WA Liberal Party's been really strong particularly with money. My mail, and it's widely accepted, is that the WA Liberal Party at the moment is on the bones of its bum financially. You doing any fundraisers while you're here as well?
PRIME MINISTER: Well I always am and they're always very well attended. I don’t know where you're getting your intel from but I know in terms of the federal election it's far stronger than it was going into the last federal election.
PARKER: You’re not going to have Malcolm Turnbull's $1.5 billion to fall back on, are you?
PRIME MINISTER: Well no, we have actually got a lot more than that, that has come from support from businesses and individuals all across the country who understand what $200 billion of higher taxes will mean for the economy. How it will be a sheet anchor that will hold back jobs, it will hold back wages, it will hold back the growth in the business community that we need to support all of those economic outcomes. But it goes further that. If you don't have a strong economy, then you can't meet your commitments when it comes to health and education and affordable medicines, all things we've done under our Government. Bulk billing is at record levels. Record levels.
PARKER: The Christmas Island visit, was that a legitimate need for the Prime Minister to go there? No Prime Minister has been there before. Or was it just a political stunt so you could whack Bill Shorten over the head with the issue?
PRIME MINISTER: Well Tanya Plibersek said this week that the Prime Minister has to explain to the Australian people how the facilities on Christmas Island are going to meet the need for what is now before us. That's exactly what I did yesterday. I mean, the Labor Party can't have it both ways. They can't say I need to explain to the Australian people, and when I go and do it and demonstrate it and show them how it's going to work, then they complain the other way. I'll tell you why the Labor Party doesn't want to talk about Christmas Island ever, because it is the scene of Australia's greatest ever policy failure that happened on their watch. They want to pretend like Christmas Island never existed in the Labor Party. The riots, the fires, the tragedies. Four and five boats turning up every single day. That's what happened at Christmas Island. And Labor wants to pretend like it never happened. So when I make this very clear point that I am now having to reopen the Christmas Island detention facility that I closed last year because of Labor weakening our border protection laws in the Parliament under the Shorten's law. Well, the Labor Party doesn't like it but the Australian public deserve to know.
PARKER: The warning was that when the Medivac Bill passed there'd be hundreds of applications immediately. How many applications have there been?
PRIME MINISTER: Well it's the law has only just come into place in the last couple of days.
PARKER: But the suggestion was our ready to go. So how many applications have been made?
PRIME MINISTER: What we're seeing is the asylum advocates and others are putting their plans together putting their talking points together.
PARKER: Has there been any applications made?
PRIME MINISTER: I'm not going to give you a running commentary.
PARKER: But have there been any applications made?
PRIME MINISTER: Gareth let me make this point. The reason we have reopened Christmas Island and this is working, is to ensure that those who thought they could game the system and find their way to Perth or Sydney or Melbourne or Brisbane - no, you'll be going to Christmas Island. You'll be in a hardened detention facility. And that was the advice that was given to us by Home Affairs that we needed that facility particularly. I mean, we've got people...
PARKER: I can understand that there's probably some pretty significant deterrent effect there by saying you're not coming to the mainland, you’re going to Christmas Island but I'm just wondering, because the advice was that saying that the applications were ready to go. I'm just wondering have there been any yet? It sounds like they haven't.
PRIME MINISTER: There will be applications, I have no doubt about it, and the asylum groups are doing what they always do and that is seeking to undermine the Government's policies. But the reason we had that advice from Home Affairs is we had to remove any incentive effect for those who were looking to game the system like always happens and it strikes me that our reaction, by reopening Christmas Island, is having the desired effect and in the same way it's having the effect of deterring boats from coming to Australia. It’s my job, I don't want to see too many people transferred by gaming the system at all. So you know, if there turns out to be fewer applications, it'll be because the Government got the response right. Bill Shorten weakened the laws, I strengthen the system.
PARKER: Could Julie Bishop have beaten Bill Shorten if she was PM?
PRIME MINISTER: It's a moot point.
PARKER: It is a moot point I agree. But I'm just interested. What do you think?
PRIME MINISTER: Well I don't offer opinions on this, it's my job to beat it and that's what I'm doing and that's what the party elected me to do.
PARKER: Does it help you beat him for her to say that only she could beaten him?
PRIME MINISTER: No it's for you guys to talk about. I don't really engage in that stuff, other than to thank Julie for the tremendous service to Western Australia, a tremendous service to the Parliament. I've worked alongside Julie for many years in the Cabinet and I thank her for her patriotic service to our country and our Party.
PARKER: You interested in helping the WACA fund their redevelopment ambitions?
PRIME MINISTER: Well it's with Mark McGowan. They're the ones doing the assessment. I brought a cheque with $1.3 billion effectively with me because of what I'm honouring the GST deal, which is you know we had to legislate. I designed it, we legislated and that means they'll get, Western Australia will get, $1.3 billion extra than they would have otherwise got. So I think West Australians know that they can trust me when it comes to my commitments and I've made them. I would just... it's up to the state government how they spend that money. But $1.3 billion I think gives them a lot more room to move than they've had otherwise to do whatever they consider to be the priorities and if they consider that a priority, well that's a matter for them.
PARKER: So sounds like you're not that keen.
PRIME MINISTER: Well it's a Western Australian state government issue, it's not it's not necessarily a Federal Government issue. They're assessing the project at the moment, not the Commonwealth Government, and they have $1.3 billion dollars that they wouldn't otherwise have had if it were not for my Government.
PARKER: OK. Christian Porter just told us earlier that he's been lobbying hard on this one.
PRIME MINISTER: Lots of members lobby about lots of things.
PARKER: OK, we'll have to wait and see then. Scott Morrison, I appreciate your time. Thank you.
PRIME MINISTER: Thanks a lot. Good to be here and thanks for having me on.