Interview with Richard Quest
CNN International
8 October 2010
US Time
SUBJECTS: Australian Dollar; IMF and World Bank meetings; G20; Domestic and international economy
QUEST:
Currency and worries about currency wars. Are you worried about them?
TREASURER:
Well, of course we have a number of very important issues on the agenda here at the International Monetary Fund and of course through the G20. And part of the reform agenda is the framework for sustainable and balanced growth which the G20 is looking at and, of course exchange rate reform is part and parcel of a broader reform agenda which we must put in place if we are to deal, over time, with imbalances in the global economy.
But as you're aware Richard, it was this weekend two years ago when the G20 Finance Ministers Meeting came together with then President George Bush, which put in place a coordinated global response to the global financial crisis and what become the global recession. So in dealing with these matters there's a good track record at the international level, and I'm optimistic that we can deal with some of these challenges as we go forward.
QUEST:
The Australian dollar has seen a dramatic appreciation, some 20 per cent against the US currency since the middle of this year. I know you've made a virtue of not commenting on currency speculation, but please, are you satisfied with what's happened?
TREASURER:
I don't, as you know, speculate about the value of the Australian dollar but the Australian economy is very strong. If you're sitting around the table here at the IMF, Australia's economy is one of the strongest among advanced economies. We didn't go into recession; we've had very strong employment growth. Unemployment in Australia is about half that in the United States. We have a very strong pipeline of investment happening in Australia and, of course we are back on track to bring our Budget back to surplus by 2013. I think the value of the currency tends to reflect the underlying strength of the Australian economy and the view that international investors have of the Australian economy despite all of the international uncertainty that we experienced.
QUEST:
And the uncertainty that came from the election, from that very narrow majority, smallest majority of the Prime Minister - do you think as you look out to the length of this Parliament a) the Government can sustain a full Parliament? And - b) investors can be confident of that?
TREASURER:
Yes I do. We are in minority Government but nothing will change with our strong economic management, our strong fiscal consolidation and our understanding of the need to invest in the capacity of the Australian economy so we can grow sustainably. So whilst we have a minority Government and we need the support of independents, nothing will change when it comes to our approach to economic management as we go forward.
QUEST:
And with your hat on as Deputy Prime Minister now - Liu Xiaobo winning the Nobel Peace Prize. China has said already that it is dissatisfied with Norway, it's calling in the Ambassador. Are you satisfied with the issuing of the Peace Prize like this?
TREASURER:
Oh look, I'm not going to buy into that. I'm not aware of all of the details. I've no intention of buying into that one.
QUEST:
Alright, thankyou very much.
