TREASURER:
Well, thank you Sarah and to Nick and Sam: thank you for having us (inaudible). What a terrific Australian manufacturing story based on our agricultural production. These guys produce over 50 per cent of Australia’s olive oil but importantly, they also export. They are exporting to Japan and China and it is a reminder of how important export growth is and how important it is for us to continue to pursue free-trade agreements with countries like China. Obviously, the signed agreements with Japan and Korea are a great opportunity for Australian exporters in agriculture, but manufactured exports, we're adding value here.
Nick and Sam were just telling me how beneficial it is that the Carbon Tax has gone because that means lower electricity prices in a range of different areas, such as in the production of the bottles that they use here in Australia, the cans that are made here in Australia and of course, logistics as well. And even right out to electricity usage in the production of the trees.
So, the Carbon Tax was a penalty every step of the way for a business that not only grows its produce here in Australia but adds value to the produce here in Australia and then even exports. So, every step of the way, the decisions we are making are helping to grow this business and grow jobs, from the abolition of the Carbon Tax to the opening of new markets overseas, through to ensuring that we have greater economic prosperity here in Australia. Consumer confidence is back to pre-Budget levels; it certainly didn't fall as much as previous Budgets in some cases, and the fact is, we are back on track and importantly, we are helping these sorts of businesses to grow.
REPORTER:
Mr Hockey, you mentioned China; on Q&A last night, Clive Palmer called the Chinese ‘bastards’ (inaudible). What do you make of those statements?
TREASURER:
I think it's hugely damaging for Mr Palmer to make those sort of comments because ultimately, he is the big beneficiary of a Chinese investment partner; someone that has paid to help him to develop his resources. Now, he is in a very obvious legal dispute with his Chinese partners, but I would say to Mr Palmer, please do not bring down the rest of Australia because of your biases because here I am standing at a business that has a market into China and they are a business partner for Australia. They are our biggest trading partner. They buy a lot of our produce and in doing so, they help to lift the quality of life of everyday Australians.
REPORTER:
Treasurer, (inaudible) that your words were twisted when you made those comments about (inaudible) cars. If that was the case, why then did you apologise?
TREASURER:
Look, the matter has been dealt with. Is there anything else?
REPORTER:
Clive Palmer also said there is no Budget emergency because it’s okay to have a Budget deficit. What do you make of that (inaudible) Budget negotiations?
TREASURER:
Well, the fact is that we have not only prominent business people such as Tony Shepherd and David Thodey, Ian Narev, Catherine Livingstone, Jac Nasser, a range of people point out – Mike Smith, point out that there is a Budget problem, a significant challenge that needs to be addressed and now, but we have already had the Secretary of the Treasury, the Governor of the Reserve Bank, even members of the Reserve Bank appointed by the previous Labor Treasurer. And of course, we had Bob Hawke and Paul Keating at the beginning of this year, saying that we need to go very hard in cuts in the Budget in order to get the Budget back to surplus.
The only people that are in denial are those that seemingly have to make a decision about whether they support very difficult measures. We know they're difficult measures. We know it's going to be tough. But we are doing it because it is right. Australia cannot continue to borrow a billion dollars a month – 70 per cent of it, heading overseas as repayment of the interest. I say again, we cannot continue to pay interest of a billion dollars a month, on our current debt. That is rising to $3 billion a month in ten years on $667 billion of debt, if we do not take action now. Again, I say 70 per cent of that money is heading overseas, that interest – every month – is heading overseas. That is just money that we could be spending here in Australia on schools, on hospitals, on things that really help to build the community.
REPORTER:
But do you concede a lot of your Budget measures will have to be significantly altered to get through the Senate?
TREASURER:
We have always said that we've prepared to negotiate with sensible people. I understand the Greens now are saying they're prepared to discuss matters but they seem to be wanting to discuss it with everyone except the Government, which is a bit odd because ultimately, it is going to be the Government's Budget that passes through the Senate. In fact, most of the Appropriations have already passed through. But these reforms that still need to be delivered as part of the Budget are the ones that are going to set us up for the future. They're going to lay down a credible plan to reduce the debt that Labor left and to address the deficit.
REPORTER:
Have you identified though where, you might be able to make adjustments though in the Budget, and if so, what areas?
TREASURER:
Well you know, we are in discussions. We are in discussions with those that are prepared to engage in meaningful discussions. I think there is goodwill behind the scenes – and on both sides, by the way. You know, we are working through the issues but frankly, I don't see any great benefit to business or consumer confidence in having these discussions laid out publicly and I won’t do so.
REPORTER:
(Inaudible) are some of these discussions going on with Clive Palmer (inaudible)?
TREASURER:
Of course, of course. I speak to all the Independents and believe it or not, there is the odd occasion that I have spoken with them, they haven't told the media.
REPORTER:
(Inaudible) Last night that a lot of those measures are not going to happen on his watch. So, how much are you going to have to (inaudible)?
TREASURER:
Let's just see, let’s just see. But, you know what I am focused on? You know what the Government is focussed on? Job creation. We are focussed on building a stronger economy and giving businesses hope that tomorrow will be better than today and giving employees and employers hope that things will get better and they can, with confidence, take the sorts of decisions that help to build stronger businesses and a stronger economy.
SARAH HENDERSON:
And Joe, if I can also just add on that: one of the most significant investments we’re making is in the East West Link. That will create in excess of 6,000 construction jobs and today, I again reiterate my call that Labor gets behind this project because at the moment, they are standing in the way of 6,000 jobs and enormous prosperity for our region. This is so incredibly important for Geelong to deliver the second river crossing. The Napthine Government is leading the way; our $3 billion is supporting this incredible investment. Labor and Richard Marles here in Geelong, need to get out of the way so that we can deliver these critical thousands of jobs, which we desperately need in Geelong. The bottom line is, we are facing some pressures but we have an incredible pipeline of jobs that we want to deliver to this region and people like Daniel Andrews and Richard Marles are standing in the way of these 6,000 jobs. They need to get out of the way and stop turning their back on Geelong jobs.
TREASURER:
And you know, that is all part of our Budget. The money committed to East West was in our Budget. We have the biggest infrastructure rollout program in Australia's modern history, in our Budget. And to pay for it – to help to pay for it; that is one of the reasons why we have to increase the fuel excise by a modest amount because that helps to pay, on a sustainable basis, for the infrastructure that is going to grow the economy. That is what it's going to do.
REPORTER:
So, what happens to that money if State Labor wins the election (inaudible)?
TREASURER:
We are committed to the project. We are absolutely committed to the project and the best thing the Victorians can do if they want to have the East West Link, is to support Denis Napthine and the Coalition.
REPORTER:
Will the Renewable Energy Target be scrapped?
TREASURER:
We're still waiting for the Report back from the Review which was obviously foreshadowed some time ago. We will wait until we see that report. Okay. Thanks very much, guys.