Interview with Ian and Jamie
Radio 4BC, Brisbane
1 September 2009
SUBJECTS: Economic stimulus, unemployment outlook, prostate cancer awareness month
JAMIE:
On the phone I've got Wayne Swan, Federal Treasurer. Hey Wayne how are you?
TREASURER:
I'm good Jamie, good to talk to you again.
JAMIE:
Are you sure?
TREASURER:
Yeah, why wouldn't it be?
IAN:
Well I don't know, just asking you.
TREASURER:
You guys have a lot of fun.
JAMIE:
We do.
IAN:
We do. And not that I have one, but there is a rumour around that there is a tax going to be put on houses over two million. Let's just say hypothetically that you knew someone that had made a lot of money out of show bags and had built a house that might be worth over two million. Is there is a tax going to be on those?
TREASURER:
I said that was rubbish at the time, and it is.
JAMIE:
Oh good. You can ask a question … (inaudible) .
TREASURER:
I didn't know you were that well off.
JAMIE:
I'm not really. It's just a hypothetical.
TREASURER:
Where is that house up the Sunshine Coast?
JAMIE:
On the top of Mt Coolum.
TREASURER:
Oh well, that's a good spot anyway.
JAMIE:
So we've got the Federal Opposition saying that, you know, the stimulus package was good but now you should wind it back because we probably spent too much. I suppose you're damned if you did and damned if you didn't. If you didn't spend anything it would be the opposite call then, wouldn't it I suppose.
TREASURER:
If we were to withdraw economic stimulus now that would be a recipe for a massive increase in unemployment, and a whole lot of business bankruptcies. Because the fact is that the stimulus is supporting demand, which is supporting the employment of tens of thousands of workers, of tradies, and it's keeping the doors of small business open, because customers are coming through the door. All those people who opposed stimulus in the first place are now saying that we should pull the rug out from under the economic recovery. Effectively, they're saying we should kneecap the recovery
JAMIE:
Well Joe Hockey is asking you to prove that the stimulus actually is the reason for the recovery.
TREASURER:
Well I think that Joe Hockey must be deaf, dumb and blind, frankly. I mean you've just got to go out into the community Jamie. You go out and talk to people who are working on projects, go and talk to people in the shops. I mean, the fact is that the economic stimulus package has had a dramatic of impact on confidence. It's supporting investment because private demand went through the floor as a result of the global recession. There are tradies all over the country who are working on stimulus projects. It's adding to confidence in a way that we don't see anywhere else in the world. I think Mr Hockey ought to at least acknowledge that the stimulus package has done good things for this country, and it's meant that we're one of only two advanced economies that grew in the March quarter. He just ought to be man enough to acknowledge it.
JAMIE:
When you look at America's unemployment rate - it's already 9 per cent, they're expected to go to 10 - I mean we're doing pretty well against that.
TREASURER:
That's right. To pull it out now would be a recipe for a massive increase in unemployment, and Mr Hockey ought to be man enough to acknowledge it.
JAMIE:
Alright well the Courier Mail ran – you know their question that they run in the paper every day - they are saying should it be wound back? Three of the five answers say yes, it should. Do you think the public is with you or agin you on this one?
TREASURER:
Well wherever the public is Jamie, what I know when I go to bed at night is that the Rudd Government did everything in our power, in the middle of a national economic emergency, to support employment, and the end result of that is that we are one of the better off countries in the advanced world. I think the runs are on the board but we oughtn't to be complacent because the international economy is still looking very, very choppy over this year and next year. We saw some data out in the economy yesterday on profits and wages, which indicated that there are still plenty of businesses doing it tough, and still plenty of people in the workforce doing it tough, so we're not all the way through this global recession by any means.
JAMIE:
Alright well we have got the news baring down on us, but I did notice you were up the coast for a ball a couple of weeks ago supporting prostate research
TREASURER:
Yeah prostate cancer awareness and research. In fact this is prostate cancer awareness month, and in fact I have just been doing an interview on another radio station about it.
JAMIE:
Wayne you promised you would never do that. Next time stay loyal.
TREASURER:
But it's okay. It was in Canberra.
IAN:
Oh that's okay.
JAMIE:
We don't care what happens there. So it was good to see you up there doing it.
TREASURER:
Well it's an important thing to do. I do a lot of it around Australia and it was good to go back and do it in my home territory.
JAMIE:
Well Wayne Swan thankyou very much for your time this morning.
