Doorstop Interview
Brisbane
5 October 2009
SUBJECTS: Economic Stimulus; ANZ jobs figures; Peter Dutton preselection loss
TREASURER:
Well, we've got some more welcome figures today showing the impact of economic stimulus. There's a report from Senator Arbib about the impact of our economic stimulus plan. Something like 75 per cent of repairs and maintenance of social housing has been completed. Some 700 projects under Building the Education Revolution have also been completed. And something like 16,500 projects under the Building the Education Revolution have been commenced.
And also we've got the ANZ job data out today. It shows the second improvement in two months, that's welcome. But what we do know is that these figures are still substantially below their levels of 12 months ago. What this indicates is that we have still have substantial challenges on our hands and, of course we know the global economy is fragile. And that is why everybody needs to work together in this environment. But of course we've got the Liberal Party which has descended into complete and utter chaos and confusion. And of course you had a powerful demonstration of that with the slap in the face to Malcolm Turnbull delivered by the Queensland Liberals in their rejection of Peter Dutton over the weekend. I think it's very important in this environment that we all work together but of course in the Liberal Party they are all working against each other. Over to you.
JOURNALIST:
Which seat do you think Peter Dutton should run for?
TREASURER:
Look that's entirely a matter for the Liberal Party. But when you have a situation where a senior front bencher is rejected by a state branch of the Liberal Party against the wishes of the Federal Liberal Leader then that is a rejection of Malcolm Turnbull and his lack of leadership.
JOURNALIST:
Is that the end of Peter Dutton?
TREASURER:
It's entirely a matter for the Liberal Party. But the one thing I know that has served Australia well in the current environment is that when we all work together we can substantially improve our country. When you've got a party like the Liberal Party that is so bitterly divided, that just makes it more difficult all round. And you can see it – the Liberal Party are still climate change deniers. They are utterly divided on this important question which goes to the core of our economic and environmental sustainability.
JOURNALIST:
[Inaudbile] Senator Fifield's comments today about the ETS does that also show division?
TREASURER:
I haven't seen Senator Fifield's comments today. But what we do know is the Liberal Party is populated by climate change dinosaurs and most of the Liberal Party don't believe in addressing dramatic climate change which can have such an impact upon our country.
JOURNALIST:
Do you think if the Reserve Bank increases interest rates tomorrow it will actually impact on the property industry, which is just getting off its knees?
TREASURER:
Well, first of all these are decisions that are made an independent Reserve Bank and of course nobody wants to see rates go up. But I think the Governor of the Reserve Bank has made it very, very clear that the official cash rate is at emergency levels – 50 year lows in fact. And of course he's made the very obvious point that at some stage in the future it will go up.
JOURNALIST:
If Australia is the first country to raise rates after the GFC, is this a sign of a strong economy?
TREASURER:
Well, The Reserve Bank has not taken a decision about rates. They meet tomorrow, they that independently of the Government. But the Governor of the Reserve Bank has made the point that rates are at an emergency level - 50 year lows - and at some stage in the future, he has made the unremarkable, point that they will go up.
JOURNALIST:
If interest rates do go up it's a sign that the economy is recovering is winding back the stimulus the next thing to follow that?
TREASURER:
Well, the Governor of the Reserve Bank gave very extensive evidence before a Parliamentary Committee last week, and I refer you to that. And he simply made the point that stimulus has been very important in supporting employment and supporting small business and that growth in the future will still require economic stimulus. He made the point and the Government has made this point on many occasions that stimulus as we go through next year is wound down. It was designed that way. I think the data today demonstrates yet again how important economic stimulus has been to supporting employment in Australia.
JOURNALIST:
Do you think [inaudible] responsible for the increase?
TREASURER:
Well, that will be a matter for the Reserve Bank tomorrow. You'll have to wait for their decision tomorrow. But the Governor gave very extensive evidence about these matters a week ago, and I refer you to that.
JOURNALIST:
There's a lot of conspiracy theorists who think that this economic stimulus is going to run right up to the 2010 election, and it would actually hurt you guys politically if it was pulled back before the election. What do you think about that?
TREASURER:
The economic stimulus has been absolutely essential in supporting employment, in keeping customers going through the doors of small business and it will be required as we go through next year. But it has been designed to be gradually withdrawn as we go through next year. And those arrangements were put in place by the Government in this year's Budget. Thanks.
