3 June 2014

Doorstop interview

Note

SUBJECTS: Budget, Paid Parental Leave

TREASURER:

New data out today on retails sales, and also some more positive signs in relation to consumer confidence that indicate that the economy is still performing relatively well and will continue to do so.  The National Accounts tomorrow will be another important indicator but I am absolutely confident that this Budget is, over time, going to make the Australian economy much stronger and much more resilient and it is going to lead to the creation of more jobs but you have to earn economic growth, it doesn’t come easily, you have to earn it and the Budget does the heavy lifting in that regard.

REPORTER:

But weren’t you saying before the election that, simply the election of a Coalition Government would be a huge shot for both business and consumer confidence and both have been probably not as good as you would like?

TREASURER:

No, in fact you would see from the data that there was an improvement in business and consumer confidence with the election of the Coalition but there was no putting off the hard decisions in the Budget, the hard decisions had to be made and the Australian people I think, understand that. They might not like individual decisions but they know we had to make the decisions that are right for the economy.

REPORTER:

Treasurer, is there any merit in Clive Palmer’s arguments that the Paid Parental Leave Scheme is for rich women and neglects rural women and disadvantaged women?

TREASURER:

No, because 98 per cent of women who may have children under the, are under the $100,000 in income. Look, the Paid Parental Leave Scheme is the biggest win for small business. My – as I have said on numerous occasions – my family couldn’t afford to pay female staff parental leave, like most other, if not all small businesses. And now, small businesses are going to be on a level playing field with the public service and with big business for the first time and they won’t have to pay out of their pocket. Their employees will be treated exactly the same as that of the public service and big business, now that is fantastic for small business. The second thing is, our Paid Parental Leave pays superannuation, which Labor’s doesn’t. So, why should women carry a financial burden for being the ones that give birth, I think that is grossly unfair. If we could match Canada’s female participation in the workforce, our economy would be much larger but we are falling behind in female workforce participation.

REPORTER:

Treasurer, how will not passing the GP co-payment create a two-tiered health system in Australia, when that is designed to go into the Medical Research Fund but not actually sustain Medicare costs themselves?

TREASURER:

Well, $2 of the $7 actually go to the doctor for a start, but the fact is, if you want to have a sustainable system, no matter what it is, you can’t rely entirely on government for funding, it is a simple as that. If you want to expand a system, unless you have expanding revenue bases, a government can’t expand the entitlements system.

REPORTER:

But is the argument muddied because the argument leading up to the Budget was that Medicare was going to become unsustainable financially, but then the money has been put somewhere else rather than back into…

TREASURER:

Well, the money is going back into helping to find cures for diseases that are, over the next 30, 40, 50 years, going to cost the health system much, much more. That is the fundamental point, if we don’t find the cures, then the cost of primary care will grow and grow and grow at a much greater level than they would if we actually find some of the cures and find some of the drugs that will actually make people’s quality of life better.

REPORTER:

Treasurer, is it your view that we will end up with a two-tiered health system if Labor does not pass (inaudible)?

TREASURER:

If we don’t, it is inevitable that sometime over the next 30, 40, 50 years, you will end up with a two-tiered system; those that can afford to pay get better medical services because governments aren’t able to pay, doctors who rely entirely on the government, the same level of remuneration as people in the private sector are able to pay.

REPORTER:

Treasurer, on the Medical Research Fund, what do you say to Labor’s claims that it was very hastily put together last minute, and is a kind of Hollowmen centrepiece for the (inaudible)?

TREASURER:

Well, that is another Labor con. I mean, given that you know, there is now an inquiry into the Pink Batts program, given that Labor designed the NBN on the back of a coaster, designed ‘Ruddbank’ on the back of a coaster, I don't think they're in any position to criticise us for having six weeks of work by public servants. Doesn’t mean there wasn’t other work done by us from a policy sense for some period of time and look, our Budget, I mean for crying out loud, our Budget has been part of, has been developed through a methodically, carefully considered process. Can I just make a point, an obvious point, and all of you guys are intelligent and sensible people; they haven’t laid a blow – a policy blow on the Budget. It is all politics from Labor, not a policy blow. They haven’t been able to criticise the economics, they haven’t been able to criticise the numbers. They haven’t a laid a policy blow, it is all politics. Politics and process is there greatest criticism of this Budget, well you know fine, it just shows how weak they are.

REPORTER:

Mr Hockey…

TREASURER:

Can we make this the last one because it really was meant to be passing (inaudible)?

REPORTER:

Do you understand how the changes for, to interest for higher education debt work and could you explain them to us?

TREASURER:

Yes they do and I am not going to go into all of it now. Okay any others?

REPORTER:

Joe Hockey’s tweet…

TREASURER:

Joe Hockey’s tweet?

REPORTER:

Clive Palmer’s tweet…

TREASURER:

You’re comparing me to Clive Palmer? That’s it, I’m done, that’s it, thanks.