LEON BYNER:
Let’s talk about the Budget. It has been revealed that the $7 co-payment applies to individuals. That means that a family of four would pay the fee forty times before reaching the safety net. Now, you obviously knew about this when you came up with the policy, but it didn’t come out that way in the translation.
TREASURER:
Well Leon, we’ve asked – are asking Australians, to contribute $7 when they visit a doctor and as a result of that seven dollars, $2 dollars goes to the doctor, $5 dollars goes to the Medical Research Fund, which is going to fund the medical research that could save Australians lives in the future, and if we don’t invest now in long term healthcare, then the cost will be much greater down the track.
LEON BYNER:
So, you are totally unapologetic that if you are dealing with a family of four, for individuals, it will be 10 times before you get to the safety net?
TREASURER:
Well, we have no choice here because the MBS, the Medicare system is under creaking pressure and some doctors already charge, and certainly already people pay for their scripts, so in the case of a pensioner, they would already pay $6 per script for the first 60 scripts, which means they pay $360 for their pharmaceuticals but they pay, at the moment, nothing to go to the doctor. Well in this case, they are being asked to pay a total of $70 dollars a year if they have 10 visits to the doctor – so a fraction of what they already pay for scripts and on top of all of that, they continue to get discounted services.
LEON BYNER:
Okay with regards to this co-payment, it is likely that the Senate will block it. What are you going to do if they do?
TREASURER:
Look Leon, I am not going to speculate but ultimately, if these sorts of initiatives don’t go through, then the cost of medical coverage into the future will get higher and higher and ultimately it will become a two-tiered system where there will be some people who will be able to pay to get medical treatment and others who may end up getting a lesser quality of medical treatment because they don’t pay. And we don’t want to see a system like that, we want to see a system that provides a universal coverage but is also fair.
LEON BYNER:
Alright, I just want to look through some of the Budget issues. There seems to be contradictory statements about university reform; do the new rules apply to existing students? Will it really lead to lower fees?
TREASURER:
Well, existing students are not affected by the higher fees but they will be affected by changes in the loan scheme and from June 2016, if they are still studying, then whatever they accrue as part of their HELP debt will be at a slightly higher rate, but certainly still a concessional loan. I mean, these loans are concessional in so many ways, including the fact that they don’t pay a dollar back until they actually start earning more than $50,000 a year, now that is a generous scheme. It is the case that, currently 60 per cent of Australians who don’t go to university, are paying about 60 per cent of the fees for people who do go to university, who end up earning about a million dollars more during their careers than people who don’t go to university. So, this is very much an equity measure. It is also the case that, it doesn’t matter how much money you have in your pocket, you have the same access to university under our scheme as someone who is rich and that is a fundamental – in fact you have better access because one in five dollars of the money that is in fact raised by the changes to higher education – one in five, will go to provide scholarships for the poorest students in the country.
LEON BYNER:
Joe, the CSIRO has been massively slashed. What was the thinking behind this, when you would reasonably argue that they underpin a lot of agricultural exports, having developed so much that is innovative and competitive?
TREASURER:
Well, they still have got a massive budget and the fact is, they are being asked to make the same sort of efficiency contribution as every other area of government. I mean, the fact is that the CSIRO did have a partial efficiency dividend when Labor were in Government, we decided to extend that because our view is, if everyone makes a small contribution, then it is fairer than some people making a massive contribution. And ultimately, the biggest investment that we are going to have in research is associated with our co-payment on Medicare, where every dollar goes into the Medical Research Fund.
LEON BYNER:
Yes but Joe, you have Wi-Fi; you have so many incredible inventions and initiatives created by that area of government. I would have thought it would have been very good to be encouraging them rather than to be taking money off them?
TREASURER:
Well, if that is the case, then obviously we have to have cuts in other areas, which would mean perhaps, you really would end up cutting pensions or you really would end up cutting family tax benefits. I mean, there is no unlimited pool of money Leon, and if everyone makes a contribution, there are many good causes, many, many good causes. But ultimately, we have to fix the Budget. If we don’t fix the Budget, then the cost to Australians into the future is massive.
LEON BYNER:
Now look, what do you make of the spats between Malcolm Turnbull and Andrew Bolt? It has been suggested that Malcolm is somehow, de-stabilising Tony Abbott. What is your take on this?
TREASURER:
It is an irrelevancy, it is an irrelevancy. I think people want us to get on with governing the country and frankly, these are part of the distractions that might be of passing interest in politics but I am focused on creating more jobs and creating a stronger economy.
LEON BYNER:
The Western Australian Premier and others, are strongly suggesting that Clive Palmer’s business dealings are hurting Australia’s business relationship with China. How true is this, do you think?
TREASURER:
Look Leon, it is a nice try but I am not going to bite on these sorts of things. I mean, Mr Palmer’s interests are up to him and he is accountable to his people; I am accountable to all the people of Australia and I am focused on how we can grow the economy and grow the job opportunities for everyday Australians.
LEON BYNER:
The protests about this Budget are more than I have been able to recall in modern history in politics. To what do you attribute this?
TREASURER:
Leon, I think that for 15 years, people have looked at Budget time and either got you know, handouts funded by the mining boom, or handouts funded by debt and you know, the Howard-Costello Government did a lot of heavy lifting in 1996, but at that time people were used to Budgets that were more careful and prudent. Even under the last years of Keating, there were some pretty hard Budgets, but the fact is, that if we don’t make these decisions now, then the cost to Australia is going to be far greater into the future. I mean, we have been saying for years, that there is a Budget emergency; we have been saying for years that there is a major problem at hand. And, it would have looked odd and it would have looked deceptive if we had come up with a Budget that just spent money and said to people, ‘she’ll be right’, because at the end of the day, if we don’t take action, every Australian is going to be paying $740 of interest per year, within 10 years on the government debt. Already, we are spending $1 billion a month on interest and 70 per cent of that is going to people living overseas – 70 per cent. So, we are sending $700 billion a month overseas, just to pay the interest on the debt that we owe as a government.
LEON BYNER:
South Australia has been described as the basket case of mainland economies, and there is massive pressure from the states to change the way that federal funding is carved up. How do you see this State emerging from its decline?
TREASURER:
Well, I would like to see BHP proceed with Olympic Damn and I would like to see South Australia – the South Australian Government – provide some energy around the South Australian economy. I think you know, it is a Government that tends to whinge and whine rather than actually deliver things.
LEON BYNER:
Well, they are saying that because of you, they may have to shut hospital beds.
TREASURER:
Well, that is just complete rubbish because over the next three years, hospital funding increases by 9 per cent per annum, 9 per cent per year. So, this is just a try on from a pathetic Government. I mean, they are a tired, old Government; they have run out of talent, so much so that they are going to the Liberal Party to try and find talent.
LEON BYNER:
Okay, but what can you guys do to help the State though?
TREASURER:
Well, we have got to lift the tide, so that all the boats rise. So, it is not just about lifting South Australia, it is about lifting the whole of Australia and that is why, the first step is to get a Government that lives within its means in Canberra. And if you start living within your means in Canberra and reducing your expenditure, rather than massively increasing taxes, that’s a start. Second thing I would say is, the Labor Party has to support us getting rid of the Carbon Tax – it’s $550 on every household. We want to get rid of it; it is a massive burden on business because ultimately business absorbs a lot of the costs; we want to get rid of it and we want to get rid of it fast.
LEON BYNER:
Okay, so how are you negotiations going, getting – horse-trading if you like – much of what you want to do, through the Senate?
TREASURER:
Well the Prime Minister has already started, already started Leon. So, you know we are prepared to negotiate but I’d say to you that we have laid down the policies that we believe are in the best interests of the nation, and we are sticking with them.
LEON BYNER:
Joe, thank you for your time.
TREASURER:
Any time Leon and good to have you back on air.