Doorstop Interview
Parliament House
16 June 2010
SUBJECTS: Laurie Lawrence water safety DVD; Resource Super Profits Tax
TREASURER:
I'm delighted to see so many of you out this morning for this very important DVD. It's been a great pleasure to work with Laurie on this very important campaign, saving lives. And I know MPs from both sides of the House, all Parties are distributing the DVD in their electorates and that's what it was funded for - for it to get out across all households by whatever means, to save lives.
Also there's a bit of discussion around this morning about the issues of the day. I'd just like to make the point the Government is absolutely determined to proceed with fundamental reform of resource taxation so that we can boost national savings, boost investment - particularly in mining areas - and cut taxation for businesses right across the economy. What we have to do is what Ric Battelino at the Reserve Bank was talking about yesterday - we have to deal with the challenges of mining boom mark-II. There's plenty of investment in the pipeline, but what we have to do is to make sure that all sectors of the economy are part of growth and that's what these reforms are all about – making sure that we grow sustainably and making sure that we grow together.
JOURNALIST:
Mr Swan the Prime Minister said yesterday that discussions with industry over an RSPT had moved from consultation to negotiation. Does this mean that the Government now is willing to be flexible on the application of that 40 per cent rate to different industries in the resources sector for…
TREASURER:
We've said from day one that the bottom line was a 40 per cent rate, and we've also said that we would consult genuinely with industry, and we have been consulting with industry for some time and there's some more consultation to go. We're doing that continuously. Minister Ferguson, myself and the Prime Minister are out there consulting with industry, we'll continue to do that until we get it right.
JOURNALIST:
But are you going to be flexible on that?
TREASURER:
I think we made it very clear from day one, and nothing has changed about the 40 per cent rate. Nothing at all.
JOURNALIST:
So are you looking at different industries though?
TREASURER:
Well, we're out there having discussions and consultations with the industry, they're raising their concerns with us, we're taking that on board. Nothing has changed. That's what we said we'd do from day one and that's what we're doing.
JOURNALIST:
But is the Government considering treating different parts of the resources sector differently under this tax as a way of compromise?
TREASURER:
Well, I'm not going to go into all of the detail of the consultations. What we'll do is what we said we'd do from day one. We'd take on board what industry had to say. We said that our bottom line was a 40 per cent rate- that is the bottom line. We said there would be generous transitional provisions, and we said we'd discuss the detail with the industry, and that's precisely what we're doing.
JOURNALIST:
Treasurer, research apparently shows that the miners' so called scare campaign is more effective on women than it is on men. Are you worried that you might lose the election to women's decisions, and how can you…
TREASURER:
Well, the mining industry is spending over $100 million in a scare campaign, let's be very clear about this. And there's not a day goes by without a further bogus claim from somebody in the industry as part of that scare campaign. That's something that we simply have to deal with. These reforms in Australian history – reforms of this type, reforms of this size – are always hard fought. When the PRRT was brought in in the mid-80s the industry was out there making the same sorts of claims as they're making now and their supporters are making now. Most of those claims then were bogus, they're bogus now. That's just part and parcel of the campaign that the industry is running. The Government for its part is absolutely genuine to get this right and that's what we're going to do, and we're going to do it in the national interest.
JOURNALIST:
Treasurer, will you just explain to the population – what is the difference between a consultation and a negotiation, and why is so important that you choose the words that you do?
TREASURER:
Well, you can call it consultation, you can call it negotiation, you can call it whatever you like. I'm not going to get hung up on those sorts of words. What we've said from day one when I announced our response to the independent review was that we would sit down in a genuine and open way with industry and talk with them about their views about our proposal. That's what we said we'd do, that is what we are doing. So I'm not going to get hung up on the words. The Government has been doing that from day one, and many companies have been sitting down in a constructive way with the Government.
Some companies have not; indeed some companies are saying they've not sat down with us when they already have. Well, I accept that is just part of the brinkmanship that some of the large companies want to play, but the fact is our job is to get this right in the national interest and that's what we're going to do.
JOURNALIST:
This water safety event was meant to be attended by the Prime Minister. Is he hiding?
TREASURER:
Oh, come on, he was out doing parental leave yesterday.
JOURNALIST:
Well, one question on leadership and obviously it was a pretty big issue, but he's obviously and successfully avoided the media yesterday on that, and where is he this morning?
TREASURER:
Oh, come on. Let's not over-read all these sorts of things. There is so much over-blown commentary around at the moment, seriously.
JOURNALIST:
So he isn't hiding?
TREASURER:
This DVD was funded in the first Budget that the Government brought down two years ago. I've got a passionate commitment to this. I've got Laurie coming to my annual 'Welcoming the Babies' ceremony in one month's time. I've got a pretty close relationship with Laurie, and that's why I'm here. Thanks.
