Well thank you for coming, I?m very pleased to be out here today to announce a very good inflation result for the quarter. The inflation result is very good news for the Australian consumer, and it?s very good news for the Australian economy. I think it shows that the Government has got it right and it reflects the focus of the Government on fundamentals in its first two and a half years.
This is a new series as you know which is a more comprehensive series which better reflects the consumer spending patterns, and as I said it is an excellent result for the Australian economy, excellent result for consumers.
JOURNALIST:
Does it leave room for the Reserve Bank to cut rates?
SENATOR KEMP:
Well I will follow the practice of the Treasurer on these matters and not comment on interest rates.
JOURNALIST:
Given that the annual rate is below the Reserve Bank?s target band of 2 to 3 per cent, does that say that the Government?s actually, or the Reserve Bank, is overachieving on inflation and under achieving on employment growth?
SENATOR KEMP:
Well I think the answer is that this is a very good result for the Australian economy.
JOURNALIST:
But are you overachieving?
SENATOR KEMP:
Well we are very pleased with the figure. Can I say that the Government is very pleased with this figure because it is very good for the Australian consumer and frankly it reflects the fiscal policies this Government has pursued with such vigour over the last two and a half years.
JOURNALIST:
How much has that figure been distorted by the new definition of Consumer Price Index?
SENATOR KEMP:
Well as I said this is the thirteenth series of the Consumer Price Index. The Consumer Price Index is changed from time to time, and this one we believe ? it?s done by the ABS, independently of the Government, it better reflects the spending patterns of Australian consumers. So, it?s a very fair figure.
JOURNALIST:
Is this level sustainable?
SENATOR KEMP:
Well we think, as I said, it is a particularly good figure and time will tell but I would have to say that we are very pleased with the result today.
JOURNALIST:
Minister, should the Reserve Bank factor in the higher levels of unemployment when it is setting monetary policy?
SENATOR KEMP:
Well can I say that the Reserve Bank will make its own determination and of course you would be well aware of the priority that this Government gives to unemployment.
JOURNALIST:
On tax, Senator Kemp, are you concerned at the criticisms from Mr Vos about the short time period given for the review which he has to conduct for the Government?
SENATOR KEMP:
Well Mr Vos will be looking at the technical details of four areas. He will be looking at the boundary of those four GST free areas. We will be making sure that Mr Vos has all the resources that he needs to be able to complete his review by November 13th.
JOURNALIST:
But he says that he doesn?t have enough time.
SENATOR KEMP:
Mr Vos says that he can do the job. He says that he would prefer more time but we will make sure that he has the resources so that he can do the job by November 13th.
JOURNALIST:
If he hasn?t done the job will you give him an extension of time?
Is Mr Vos claiming that the job is harder than it actually is?
SENATOR KEMP:
Well Mr Vos can I say is a very distinguished Australian. He thinks the job can be completed in that period. He would prefer more time but we will make sure that he has the resources so that the job can be completed.
JOURNALIST:
If the job isn?t completed in time is there a possibility of an extension of time?
SENATOR KEMP:
We would be making sure that he has the resources so that it can be completed in that time.
JOURNALIST:
Isn?t it unfair that the business group gets extra three extra months to look at what they?re looking at whereas this other group only gets three (inaudible)?
SENATOR KEMP:
Well they?re quite different issues, quite different issues and this particular inquiry committee that Mr Vos is heading up will look at those four GST areas and look at the boundary issue. I?d point out that there has been very extensive consultation on this tax package extending over a year and starting with the Gibson committee. There has been huge consultation in relation to this. We have been to an election in which the central issue ? the central issue - was tax reform and the Government has won that election. And what the Australian people want is for the Government to get on with the job and implement the policies that it went to the election on and the Government is determined to do that.
JOURNALIST:
But you talk about an election where you didn?t even have the fine print. Now you are saying we will work out the fine print.
SENATOR KEMP:
No, we have always said that on certain technical areas we are prepared to, we will, consult and there will be a high level committee to assist us with that consultation, and that is precisely what is happening. And as I said this will enable the Government to consult on those details, enable the Government to introduce the legislation into the Parliament and so the Government can keep its timetable and above all deliver on the promise that we went to the Australian people on.
And the Labor Party don?t seem to have appreciated that they lost the election. They opposed tax reform and they lost the election. We supported tax reform and we won the election and we are determined to keep our promises to the Australian people. And in relation to Mr Vos we will provide him, as I said, with all the resources he needs, all the assistance he needs, so that his particular task can be completed by November 13.
JOURNALIST:
Will you promise the Senate committee of the inquirers into the tax package the same assistance, all the resources it needs to satisfy itself about the Government?s tax package?
SENATOR KEMP:
Well let?s see what happens in the Senate. That?s a different issue. We believe that the community has already been directly involved in tax reform and above all, and particularly through the election.
JOURNALIST:
(inaudible)?is the Vos inquiry just window dressing?
SENATOR KEMP:
The Vos inquiry is not window dressing. The Vos inquiry is to look at some technical boundary issues in relation to four GST-free areas and so the Vos committee is doing a very important role and is doing precisely what we promised during the election period. That is exactly what we promised and we are delivering on that promise.
JOURNALIST:
Three weeks is extensive consultation is it?
SENATOR KEMP:
Well we have been consulting, let me say, we have been consulting with groups starting with the Gibson committee for well over a year. This is an inquiry looking at four particular areas and looking at the technical boundary issues that are involved with those areas. The consultation on tax reform has been extremely extensive and above all we have done the right thing, we have gone out with a very detailed package to the Australian people and we won Government on that package. And Labor are refusing to accept that we won Government on our tax reform package.
So I think if that?s it, I?ll close it up thank you.