Doorstop Interview

Brisbane

4 December 2009

SUBJECTS: Liberal Party approach to economy; CBA and Reserve Bank interest rate rise; NSW Premier; Alcoa job losses

TREASURER:

It's good to be here today with the AEIOU who are raising funds for autistic kids, for children, for early intervention services to assist them with their early education. This is a very important cause. Many families suffer. They need intensive assistance and the funds raised today will go towards helping those families. Because if we can invest in these young children early, it makes life much better for their families, but it also saves a lot of money down the track.

Could I just say a couple of other things. I see today that Mr Abbott has had a rush of blood to the head, and he's suggested that we should be getting rid of important stimulus projects such as our school modernisation program. Now these projects are creating a vital pipeline of employment. They give confidence to employers to keep their staff on and to invest in additional capacity. This just shows that Mr Abbott and all of the Liberal Party have misjudged the global recession from day one. They are prepared to sacrifice jobs. They are prepared to withdraw school projects, whilst at the same time giving welfare benefits to millionaires. Because Mr Abbott has suggested the abolition of means testing for certain government payments, and the consequence of that would be a gigantic hole in the national Budget.

I think at the time of the global recession as we move through to recovery, what our country needs is calm and considered policy making. We're not seeing that from Mr Abbott. This rush of blood to the head from Mr Abbott would simply place a giant hole in the national Budget. It would see vital investment in schools withdrawn and it would have the consequence of having negative impacts on employment.

JOURNALIST:

Treasurer, how disgraceful is it that the Commonwealth Bank has raised interest rates above the recommended rate rise?

TREASURER:

I have said before there was no justification for Westpac, and I believe no justification for the Commonwealth Bank to move their rates above the official interest rate rise from the independent Reserve Bank. I believe their customers will be angry with these actions. I believe people will be disillusioned. It's good to see there is some competition out there - the NAB have not moved up above the official rate, so there is an alternative. But these banks will have to live with the consequences of their action and I believe they will be harshly judged by their customers and by the broader community.

JOURNALIST:

Does the Federal Government support the new New South Wales Premier, Mr Swan?

TREASURER:

Look I'll congratulate the new Premier. It's a tough job – very important that the New South Wales Government gets its act together.

JOURNALIST:

Will it change the discussions at COAG next week?

TREASURER:

I don't believe so.

JOURNALIST:

I guess one of the key problems though was that the Federal Government supported Mr Rees just a very short time before he was then - now knocked off. So can the Federal Government say they support the next Premier so quickly?

TREASURER:

What we're in the cart for is working for the good of Australia and the good of the people of New South Wales. We're always in the cart for doing good and constructive things with State Governments. And we will work with them as constructively as we possibly can.

JOURNALIST:

Alcoa is shedding 150 jobs in Sydney and Geelong. Has there been any talk about Federal Assistance there?

TREASURER:

Well, one of the reasons why I'm so emphatic about maintaining the pipeline of infrastructure projects through our fiscal stimulus is to support employment. The impacts of the global financial crisis and the global recession are still here, and evident in our economy. And I gather Alcoa have acknowledged the impact of the global financial crisis and the global recession on their company.

That's just yet another reason why we must maintain the stimulus, the support for employment which flows from that stimulus, instead of doing what Mr Abbott has done which is to say he's going to dent confidence in our economy and reduce the employment prospects for thousands of workers by slashing the stimulus.

JOURNALIST:

Between his response to stimulus and also the ETS – how would you sum up your opinion of Abbott as the leader of the Opposition?

TREASURER:

Well, I think what Australia needs is calm and considered policy making, not this shoot from the lip, fists-swinging type approach from Mr Abbott.

JOURNALIST:

The Queensland Treasurer, Andrew Fraser today has released the forecast. So what do you make of the Queensland situation Treasurer?

TREASURER:

Well, I haven't seen Mr Fraser's forecast as yet. But I am meeting with him this afternoon, and I'll have a good hard look at it.