SUBJECTS: Caucus meeting, Minerals Resource Rent Tax, Cabinet, regional funding
DAVID SPEERS:
First day back in the party room today. What do you think will be the message and what should be the message to the party room, to the caucus, as we start this new Parliament?
CHRIS BOWEN:
I think the Prime Minister will be focused on delivering a good and stable government. What the caucus needs to do is part of that process and some of the challenges that will arise out of that, particularly when you look at the sort of wrecking approach that Tony Abbott and Christopher Pyne and George Brandis have taken over the last couple of days, made it clear that they're going to continue the methods and the tactics of opposing everything, trying to wreck everything in this new political environment. I think there'll be a focus on those sorts of issues.
SPEERS:
They've been pointing out that cracks have already emerged in this alliance and yesterday there was some confusion over Tony Windsor thinking that the mining tax would go to the tax summit, Wayne Swan saying, 'No, it's not going to the tax summit for review', Tony Windsor then said, 'Okay, look, I did make a mistake on that.' But now Rob Oakeshott is saying the same thing, that the mining tax should be included in the tax summit taking place next year. He says there should be a public discussion about the Henry Review recommendations, including the first form of the mining tax.
BOWEN:
Well, look, our position is very clear: the Minerals Resource Rent Tax and its structure is our policy. That's what we'll take to the Parliament. We've worked through this very assiduously, as you know, from the Henry recommendations, the original proposal, very intensive discussions with the mining sector and what I think is a very good, stable and sensible proposal for the Minerals Resource Rent Tax, and that's what we're taking to the Parliament.
SPEERS:
So when you say the structure is what you'll take to the Parliament, the rate and how it applies will not change?
BOWEN:
That's what we're taking to the Parliament. Now, obviously in this environment the Independents, the crossbenchers in both houses, will be entitled to have their input through that process through the Parliament. But that's our policy and that's what we're putting to the Parliament.
SPEERS:
Okay. Was Rob Oakeshott led to believe during the negotiations this might go to a tax summit?
BOWEN:
No, and I think Tony Windsor made it clear. I think he put it in terms of this is not a crack, that he understands that this is our policy, it's what we're taking to the Parliament. Now, people can raise at the tax summit what they choose to raise, but our policy is the Minerals Resource Rent Tax as it's currently designed.
SPEERS:
If Rob Oakeshott decides to take up a ministry, he is looking at the example we saw in South Australia with a Nationals MP, Karlene Maywald, in a Labor Government being able to vote against government decisions where she didn't agree with them. Could that work, do you think? Would Rob Oakeshott, is he does take up a ministry, still be allowed not to vote with the Government on some issues?
BOWEN:
David, these are issues that primarily Rob and the Prime Minister would work through in the context of his decision as to whether to accept the offer and serve in the executive or serve on the committee, which one of those opportunities he wishes to take up and how it would work.
SPEERS:
Would you, as a Labor MP, be comfortable with that?
BOWEN:
Look, I think there are a range of opportunities there, a range of possibilities. I think there are a number of things which can work in that environment, but really it's a matter for Rob Oakeshott and the Prime Minister to work through in terms of how that would work if he were to take up that option.
SPEERS:
There's a lot of talented MPs in Labor. Do you think some of them might feel a bit miffed if one of these ministry spots goes to an Independent?
BOWEN:
No. You're right, there are a lot of talented MPs on our backbench and they are entitled to be putting their case for promotion to the Prime Minister. But I think there's a broad recognition that not only is Rob also a very talented individual, but we're in the environment where in a more cooperative arrangement with the crossbenchers it's appropriate that that invitation be extended to him with his particular knowledge and expertise of regional development issues in particular.
SPEERS:
The Government, to win over these Independents, announced a $10 billion regional package, a lot of it redirected money, but nonetheless $10 billion for the bush. David Murray, the chairman of the Future Fund, has criticised the process to win over these Independents. He says in The Australian, quote, 'It sets up an unwelcome precedent where individual representatives can auction their votes.'
BOWEN:
Look at the contrast here, David. We entered into a process in good faith with the Independents. Now, Tony Windsor and Rob Oakeshott, for example, didn't ask for particular things for their particular seats; they asked for a new focus on regional Australia, appropriately. Now, we've done that and we've fully costed and fully funded all of our initiatives so that we will continue to return the Budget to surplus in three years' time and three years ahead of time. Contrast that to Mr Abbott, who wrote a blank cheque – 'Here's a billion dollars, don't care if you need it or not, don't care if that's what it's going to spend' – so I think Mr Murray's criticisms of, I don't want to put words in his mouth, but criticisms of say, writing blank cheques to Independents, that would be appropriate. But I don't accept that's what the Government's done here. The Government has said, 'Well, let's have a look at your concerns. Let's make sure anything we do is funded.'
SPEERS:
There were specific funding measures here for these seats, though, too – New England, for Lyne – to get these Independents over the line.
BOWEN:
But what they've primarily done is said, 'Well, we want a new focus on rural and regional Australia.' So we've said, for example, the $1.8 billion in the health and hospital fund which is already in the process, we'll bring that forward and that will be open for rural and regional areas to apply for through the existing processes. It will have to meet the standards, have to meet the criteria for funding through the health and hospitals fund. So that's perfectly appropriate. What we haven't done is entered into an auction here. What we have done is entered into constructive negotiations and discussions with the crossbenchers and protected our plans to return the Budget to surplus, as opposed to Mr Abbott's plans which are entirely in keeping with his approach through the election campaign of having no regard to costing, no regard to impact on the Budget surplus and no regard to economic credibility.
SPEERS:
Of course, paying for all of the election commitments and these commitments means finding savings elsewhere in government spending. Do you think that'd be an interesting job to do?
BOWEN:
Well, these things are always going to be a challenge. But we have successfully found savings.
SPEERS:
What I'm getting at is, personally, would it be an interesting job to be Finance Minister, Chris Bowen?
BOWEN:
Well, the Prime Minister has a range of talents to choose from, a range of options. I've seen speculation in the media; that is entirely what it is: speculation. There is only one person whose views count on this and that's the Prime Minister.
SPEERS:
Are you happy, though, in your current role?
BOWEN:
I am, but I'm also happy to serve in whatever capacity the Prime Minister wants me to, but that's a matter for her.
SPEERS:
Alright. What about Kevin Rudd? Where do you think he should go?
BOWEN:
I think he should play a senior role in the Cabinet. What that senior role is is entirely a matter between the Prime Minister and Kevin Rudd.
SPEERS:
Would foreign affairs make sense?
BOWEN:
Look, that's a matter for the Prime Minister and for him to work through. I'm sure the Prime Minister would be having discussions with him about where he feels he would make the best contribution. She would be making a call about where she thinks he can make the best contribution. But at the end of the day, it's a matter for her. He has a big contribution to make to the nation, I think, in a senior capacity, but what that is is the Prime Minister and exclusively the Prime Minister's call.
SPEERS:
Alright, Chris Bowen, we'll let you get off to that caucus meeting. Thank you very much for joining us this morning.
BOWEN:
Nice talking to you, David.