Doorstop Interview

Brisbane

7 October 2009

SUBJECTS: Indigenous Employment and Careers Expo; Reserve Bank interest rate decision; Liberal Party threat to block CPRS vote; Godwin Grech

TREASURER:

I've just been with the Former Origin Greats this morning because they are hosting a breakfast and, of course they've got this Indigenous Employment Expo. I just want to pay tribute to the work that the Former Origin Greats are doing with young Australians and young indigenous Australians. It's great to see so many Former Origin Greats getting stuck in, and helping Australians, particularly young Australians get employment – particularly young indigenous Australians. So, the work they do is very important and, of course, Australia does face a significant employment challenge as we emerge from the impact of this global recession. So the work that they are doing is important.

I would also like to say a couple of things first of all about the Reserve Bank's decision on the cash rate yesterday, and also just a couple of things about the CPRS and climate change.

I think it is the case that as a result of the decision of the Reserve Bank yesterday on the cash rate that some families will find it a bit tougher as a result of that decision. But I think Australians understand that the official cash rate couldn't stay at fifty year lows forever. And I think it is the case that the Liberal and National Party are treating Australians as mugs when they claim that the official cash rate could stay at a fifty year low forever. I think that just demonstrates the fact that their economic credentials are a smoking ruin. No one with any credibility or standing could possibly claim that an official interest rate could stay at fifty year lows forever. And I think it just demonstrates how dishonest the Liberal and National parties are with the Australian people on this critical issue.

And, of course that then leads me to the discussion about climate change because, this morning Julie Bishop, the Deputy Leader of the Liberal Party, indicated that the Liberal and National Parties would delay or block a vote on the CPRS in the Senate. I call on Malcolm Turnbull and the Shadow Cabinet today to indicate that they will proceed to a vote in the Senate on the CPRS legislation. This is vital for the future. The legislation has been around for along time. There has been a Green Paper. There has been a White Paper. There has been legislation before the Parliament for some time. Yet the Liberal and National Party and the Climate change dinosaurs that populate those parties are now intending to frustrate a vote in the Senate. It's imperative that Malcolm Turnbull confirms today that he will instruct his Senators to proceed to a vote on this very important legislation for the future of Australia.

JOURNALIST:

What's your message to banks in relation to the interest rate rise?

TREASURER:

Well, my message to banks is to behave in the way in which the Australian people expect them to behave, and the way in which they behaved prior to the global financial crisis. They have always in the past acted in response to a Reserve Bank cash rate decision and that's what I expect in these circumstances. But these are decisions that they take.

JOURNALIST:

They haven't been doing that. Does that make the Reserve Bank in terms of mortgages an irrelevancy?

TREASURER:

No, it does not. It is the case that we've been through a global financial crisis from which we are beginning to emerge and that is a good thing for Australia. Australia's performance in the middle of this global recession has been the best of all advanced countries and one of the reasons for that has been the stability in our financial system. And the truth is ..

JOURNALIST:

But if the banks are going to do whatever they want to do anyway today, does that make the Reserve Bank an irrelevancy? What do you think the banks are going to do today?

TREASURER:

The banks will make their announcement. But I've made it very clear, very clear that the Government expects the banks to behave in the way in which they should behave and the way in which they have traditionally behaved - that is that they will pass on the official cash rate increase and no more. And I'm certainly not expecting that from the banks and nor would it be justified.

JOURNALIST:

It's my understanding that Godwin Grech has left Treasury – your thoughts on that?

TREASURER:

That's entirely a matter for the Treasury. They handle these matters, not the Minister. The Treasury handles the employment of staff, and they are decisions that they take independent of the Minister.

JOURNALIST:

Are you relieved though, are you relieved that he's gone?

TREASURER:

That's entirely a matter for the Treasury and Mr Grech. Thanks.