SUBJECTS: Emissions trading, the Budget.
TONY EASTLEY:
The Federal Treasurer, Chris Bowen, is speaking here to AM's Samantha Hawley.
CHRIS BOWEN:
We're responding to two things, and we're responding to the change in the Australian economy, the rapid transition away from the mining boom, and the need to stimulate non-mining investment; we're responding to that and we're responding to people's concerns about costs of living.
SAMANTHA HAWLEY:
But how can it not be seen as an acknowledgement that families - working families across the country - have been targeted unfairly because of this carbon tax?
BOWEN:
No, it's an acknowledgement that families can do with cost of living relief; it's an acknowledgment that governments can always be responding to cost of living concerns.
HAWLEY:
Because an outsider could see it though, couldn't they, as the Government backtracking - winding back this, because in fact it was hurting families too much, and that is exactly what the Opposition was arguing.
BOWEN:
Well the Opposition has a ridiculous plan, which would subsidise polluters and put a tax on business to be passed on to families, so we're not going to take any lectures from them.
I understand people are going to have their own perspectives on this. I can tell you the Government's perspective, and the Government's perspective is about our economic plan for the future - a positive plan.
HAWLEY:
So it's not just politics then? It's not just Kevin Rudd neutralising this debate, trying to dent the Opposition attack against this?
BOWEN:
No I understand in an election year people are going to look at it through that focus - I acutely understand that. But I can assure you around the Cabinet table, around the expenditure review committee table, which has been intensively but methodically working through these issues, that the policy rationale has been foremost in our mind.
HAWLEY:
So how big a budget hole is this creating? It'll be massive won't it?
BOWEN:
I'll be with the Prime Minister and the Climate Change Minister announcing further details - it's significant but of course it's being carefully managed through, and is being done in a way which is very responsible for the Budget.
HAWLEY:
What is 'significant'? The Opposition says it will be $6 billion in one financial year - that's incredibly significant.
BOWEN:
The Opposition doesn't know what they're talking about. We'll be putting out the Treasury figures. Treasury figures will make it very clear what the cost is and how it's being paid for.
HAWLEY:
Okay, so it will be less than that less than $6 billion. How much less?
BOWEN:
Well I'm not going to get into exactly how much it'll be. It's obviously a significant cost, but it's not what the Opposition are suggesting.
HAWLEY:
So it'll be two or three billion dollars, is that right?
BOWEN:
Sam, try as you might, ask me the question in as many ways as you like - we'll be announcing those figures as a package.
HAWLEY:
Well this will take a huge burden off business. So in your cuts, will you target business in another way?
BOWEN:
Well, I'm not going to announce the spending and saving decisions today, Sam. They'll be coming in coming days.
EASTLEY:
The Federal Treasurer Chris Bowen speaking to Samantha Hawley.