Interview with Tim Webster
Radio 2UE, Sydney
14 June 2010
SUBJECTS: Queen's Birthday holiday; Government performance; economic reform; RSPT; joint statement from ACTU/ACOSS/CFA/ACF; Australia's economic performance
WEBSTER:
Federal Treasurer Wayne Swan hard at work on the holiday in our Canberra studio. G'day.
TREASURER:
G'day Tim, how are you going?
WEBSTER:
Good, how are you?
TREASURER:
Pretty good.
WEBSTER:
Look before we get into all of that. This holiday, we had Unions NSW on earlier in the show. Is it time we called this something else, other than the Queen's Birthday?
TREASURER:
Well, I think there's plenty of people in the community who would argue that, but we've got our existing constitutional arrangements, so until they're changed I guess these other things won't change.
WEBSTER:
Oh really, is it that hard? Has it got to be constitutional to change this holiday?
TREASURER:
No it doesn't, but there will be a variety of opinions about all of that.
WEBSTER:
Now, simple question requiring yes or no. Will Kevin Rudd lead the Labor Party to the next election?
TREASURER:
Too right he will. Absolutely.
WEBSTER:
Next question – when is the election date going to be?
TREASURER:
Well, that's entirely up to Kevin Rudd.
WEBSTER:
One I knew you weren't going to answer. Okay, as I understand it, let's get down to the tin tacks of this. The unrest within the Party comes from some dissatisfaction with Government by the so called gang of four, for want of a better expression – yourself, the Prime Minister, Lindsay Tanner and Julia Gillard. Does that mean you're not consulting with the rest of the Parliamentary Party?
TREASURER:
No it means we go through the normal processes that we do. The normal Cabinet processes that the Government has gone through since the very beginning. But from time to time reform gets a bit tough, I don't think there's any doubt about that. We've got some very big reforms out there – modernising the resource taxation for example, using the proceeds of that to invest in boosting superannuation, providing incentive for small business and investing in infrastructure. All of these things are big, hard reforms and, of course, they cause some controversy.
WEBSTER:
So the other Ministers and Members of the Party get a reasonable say in what happens in Government?
TREASURER:
I think they do. I think we've got the normal Cabinet processes that Governments have used since time immemorial. They apply in this Government as they apply in any other Governments. But look, from time to time the going gets tough, and when the going gets tough you get some of this baseless speculation.
WEBSTER:
The Prime Minister though Treasurer, would have to be concerned as I'm sure you are, about the polls. I know you guys always say – well the only poll that matters is the one on election day. But when the Australian people are saying – well, you know maybe this wasn't such a great idea Kevin Rudd, you would have to be concerned wouldn't you?
TREASURER:
I think what we have to do is to get out there and talk about the importance of our reforms to economic prosperity. We also have to go out there and vigorously talk about our record, which is a pretty good one. The Prime Minister heads a Government of an advanced economy that was kept out of recession – virtually the only advanced economy that didn't experience a recession, and to talk about the very big reforms: health and hospital reform; the big reform to the age pension; the investments in infrastructure. All of these things are a pretty good record for a Government in its first term dealing with very challenging circumstances globally.
WEBSTER:
Yeah, look my listeners know, and I know, there's a lot of vested interest in this argument on the Super Profits Mining Tax, but the assertion was made by some pretty heavy duty business men – Gerry Harvey included – that you're just not selling it, and I think they mean to them. So you're not selling the tax to business or to the Australian people properly.
TREASURER:
Well, I think we've got some vested interest out there that are absolutely determined to do anything to stop the reform of resource taxation which is absolutely vital and, of course, their voices will be heard.
Today we've had the voices of the ordinary people. Today we've got the voice of ACOSS, today we've got the voice of the Australian Conservation Foundation, the Consumer Federation and the ACTU all arguing the perfectly legitimate case for reform of minerals taxation. Even the mining industry acknowledges that there needs to be fundamental reform and that they should pay a bit more, but some of the very big and vested interest in the mining industry don't want to do that.
So we've got a pretty vigorous debate and, of course, in this country these big reforms are always hard fought. In the past when we have had big reforms in this area they were opposed in much the same way that they are being opposed right now. But what we have to do is continue to argue that case.
WEBSTER:
Look, the Prime Minister uses that word consultation a lot. But you have got people like Andrew Forrest saying, 'well, he's not really consulting, or he's not consulting us in the right way. Ok we'll wear it, but talk to us more and let's have some compromise.' You've got to fix this, because this is going to be a major issue if you don't.
TREASURER:
Well, we have been out there consulting extensively with many sections of the mining industry. The voices of some opposing that consultation are being heard, but we are out there consulting the industry in a genuine way.
WEBSTER:
You've got to compromise though, but you're not budging on this 40 per cent are you?
TREASURER:
Well, we've always said our bottom line is the 40 per cent. We said from day one when we announced our response to the Independent Tax Review that we would consult about generous transitional provisions and all of the detail. Now, many companies have done that in a genuine way; other companies have not necessarily engaged in that way.
WEBSTER:
Alright. On this leadership speculation, I mean, it's not on the front page of the paper for no reason. There must be mumblings (inaudible) within the Party, and somebody is whispering in Julia Gillard's ear – hey, you know if Kevin can't do it you're our girl. So that must be happening.
TREASURER:
Look. I regard this as baseless speculation...
WEBSTER:
Really?
TREASURER:
Even one of those stories today makes the point that they have been ringing around and can't find people who are backing up that proposition that you just put, then they put a headline on top of that.
WEBSTER:
Yeah, so not happening?
TREASURER:
Not happening.
WEBSTER:
And Kevin Rudd will lead you to the next election?
TREASURER:
Too right he will.
WEBSTER:
Okay I'll keep it on tape. Would she make a good Prime Minister?
TREASURER:
Julia Gillard is a terrific Deputy Prime Minister and a great and valued colleague. That's where she wants to stay.
WEBSTER:
Yeah, alright. Now, you've got your hands on the money and you've just given me all the politics of how well we went during the recession, that can't be argued. But there is a perception – and you know politics is about perception as much as it is about reality – that we are throwing money around like confetti and someone is going to have to pay for it, and that might be our kids and grandkids. Tell me that's not the case.
TREASURER:
Well, it is not the case. In fact in our last Budget we put in place a very big fiscal consolidation - bringing the Budget back to surplus in three years, three years early, and of course only last week we had the job figure - 280,000 jobs in the past year. There is no other advanced economy that can come anywhere near that. In Europe and the United States you are dealing with unemployment rates of 9,10 and 12 per cent.
Australia's performance has been exceptional, and one of the reasons it has been exceptional was the Government took timely and powerful action through stimulus. Now that the economy is growing again, in our last Budget we put in place fiscal discipline - a 2 per cent expenditure cap which will bring the Budget back to surplus earlier than was previously expected. That's the responsible thing to do in these circumstances.
WEBSTER:
Okay, good to see you working on a public holiday. No change at the top?
TREASURER:
None.
WEBSTER:
Thanks Treasurer, have a good day.
TREASURER:
Thanks Tim.
