Interview with Lyndal Curtis
ABC Radio AM Program
4 February 2009
SUBJECTS: Nation Building and Jobs Plan
INTRO:
The Federal Government is ratcheting up the pressure on the Opposition to pass its stimulus package this week. The Government unveiled the package yesterday. The Government has called the states and territories to a meeting tomorrow to talk about how the money will be spent. It wants the legislation covering the bonuses passed this week. The big spending will mean deficits over the next four years - but that's something the government is willing to cop to keep growth positive. But the Treasurer, Wayne Swan, has told Chief Political Correspondent, Lyndal Curtis, there are no guarantees it will work.
TREASURER:
There are no guarantees, except what we know is that things would be a lot worse if this very substantial package was not put in place.
CURTIS:
Would growth be negative?
TREASURER:
It would certainly be worse if this substantial package was not put in place, and put in place very quickly. The Government will use every policy lever available to strengthen growth and to support jobs in the face of this global contraction.
CURTIS:
How much are you prepared to spend to keep growth positive?
TREASURER:
Well, we've said all options do remain on the table. There are underlying strengths in the Australian economy. We have a strong balance sheet and we have more room to move than perhaps any other country in the developed world when it comes to fiscal policy and monetary policy. And of course, fiscal policy and monetary policy are now working strongly in tandem.
CURTIS:
Do you have an upper limit of how much you're prepared to spend? You've already put more than $50 billion into economic stimulus. You'll be running budget deficits well over $20 billion for the next four years. Is there a place you reach where you say we can afford no more?
TREASURER:
Well, we will approach this responsibly. But I don't intend to rule options in or to rule options out. This is not a time for half measures. It's time to be bold and it's a time to get things done and to do it in the national interest, and it can be done responsibly because Australia has underlying strengths and the Australian Government has more room to move than just about any other government in the developed world. We intend to use those strengths so we can buttress and cushion the Australian economy against the worst that the world is going to throw at us.
CURTIS:
You want to push this through Parliament. You've got legislation going in this morning. But you've got 11 scheduled sitting days, including today, before the first payments are to start. You're spending a great slab of public money. What's wrong with taking a little time for debate?
TREASURER:
It's very important that we get the appropriation bills through so the payments can be made in a timely manner. The Centrelink CEO and the Commissioner of Taxation have both indicated to the Government that it is their very strong preference, if we are to deliver these payments in a timely way, for that legislation to be passed this week. So, this is not something that the Government has a choice in. What we need to do is to get these payments out the door as quickly as possible.
CURTIS:
But can't those agencies do all the work to set up the systems to make the payments without the legislation going through and just hit the go button when it passes?
TREASURER:
The Chief Executive of Centrelink and the Commissioner of Taxation have both indicated to the Government that legislative support for the appropriations is very important and it is required this week.
CURTIS:
Isn't it, though, purely political? It puts maximum pressure on Malcolm Turnbull and the Opposition to take a position quickly.
TREASURER:
It has little to do with Malcolm Turnbull and the Opposition and everything to do with the global financial crisis and the global recession that it is producing and the contraction that that is causing in the Australian economy, and the Australian Government's desire to act in the national interest to put in place this stimulus package to support jobs. That's the sole motivation.
CURTIS:
You don't control the Senate. Are you prepared to change the sitting schedule to allow Senators some more time for debate?
TREASURER:
These matters will be discussed between the managers of business for both parties in both houses as we go through today. But our motivation is to deliver these payments as quickly as possible in the national interest given the global conditions.
CURTIS:
You're again picking up in this package on areas of state spending – school maintenance, railway level crossings – you're giving states instructions on how they should budget, telling them not to cut their budgets as the Federal Government increases it. You're already drafting a national curriculum and threatening to take over hospital systems. Are you abolishing the states by stealth?
TREASURER:
At this time we need maximum cooperation between the Federal Government and state governments to make sure that the nation building programs proceed as quickly as possible in the national interest. You see, the commitment to rebuilding schools for the length and breadth of the nation, the commitment in terms of investing in housing and other projects at the local government level, will require an unprecedented degree of cooperation, not just between the Commonwealth Government and state government, but also with local government, and also with the business community. And we hope to see that as we go through the implementation phase of this package. We are absolutely committed to delivering this package in a timely and targeted way.
