MINISTER BILLSON:
The Government continues to work to implement its program and its election commitments that are designed to make a stronger economy, offering more job opportunities and a brighter future for Australians.
We’d like to see Labor actually get behind that effort and that enterprise. You’ve seen the community support, the abolition of the carbon tax – a crucial measure to build consumer confidence and to take cost pressures out of the economy, particularly for small businesses. We’re keen to have the Australian Building and Construction Commission established so that we can get a lawful building sector that will also boost job opportunities and productivity.
The red tape reduction program – we asked Labor to get behind that effort so that we can create more opportunities in our economy and create the jobs that Australians are looking for now and into the future.
It’s also an important day today, the Prime Minister will deliver the closing the gap address that shows some progress has been made on some indicators. But a renewed focus needs to be placed on getting kids into school, adults into work and improving indigenous communities so they can expect the same life opportunities that all Australians are entitled to.
JOURNALIST:
Isn’t it very wasteful of the Government to spend so much money on spin doctors to sell its Medibank Plan?
MINISTER BILLSON:
Well the Coalition went to the election indicating that it was interested in the prospects of selling Medibank. There are scoping studies underway, that’s expected to be received in February. As part of the ordinary course of events, understanding the market before a government business is put to the market, is entirely appropriate and understanding the sentiment of those that may be interested in purchasing it. That work is underway and a decision will be made down the track.
JOURNALIST:
And you’re comfortable with the cost?
MINISTER BILLSON:
In terms of the cost, that is part of doing a proper evaluation of what is estimated to be a $4 billion enterprise. We went to the election saying when the market conditions were appropriate, the government would progress the sale. So doing the proper preparatory work, making sure market conditions are right and understanding the market and sentiment to the sale is an important precondition to making a decision.
JOURNALIST:
But isn’t the Coalition jumping the gun? What happens if the scoping study says it should not be sold?
MINISTER BILLSON:
Well part of the work is not only the scoping study, but we’ve also made it clear that the market conditions need to be supportive of any potential sale. Understanding those market conditions, the sentiment within the economy – that’s important input to that decision formation process so it’s entirely appropriate that this work be carried out. It’s the ordinary course of evaluating such an important policy decision.
JOURNALIST:
Does the Government still oppose the changes Labor made to Fringe Benefits Tax with fleet cars? Cause that was to protect the industry which is leaving anyway.
MINISTER BILLSON:
Well it’s an example of the action the Coalition Government took to do all that the government could to secure the future of the motor assembly industry in Australia. That was an election commitment and we are committed to implementing our election commitments. Also there needs to be an orderly development of a longer term strategy to secure manufacturing jobs, to make sure that there are opportunities, better jobs for workers displaced by closures now at a time when manufacturing is facing many pressures. It’s a time of change, many challenges but also opportunities and we need to make sure those opportunities are available to our economy and to the workforce.
JOURNALIST:
Is there much point in having a tariff on imported cars when in 2017 Australia won’t be making its cars anymore?
MINISTER BILLSON:
Well there are a number of years before the assembling of motor vehicles will not be occurring in Australia. In the meantime we need an audit process – part of that is the examination of the tariff regime that does give the domestic assemblers some protection and some opportunity to sell into the local market. But there will still be vehicle assembling for a number of years and we don’t want to make immediate changes that would compromise that ongoing work as transition plans are put into place. Secondly, you don’t give away tariff reductions without getting something in return. Some of those economies that would benefit from even lower tariffs are also economies we would like our components to be able to enter into, so they are part of those vehicles. So you don’t just give away tariff reductions without securing improved opportunities yourself, that’s part of the excellent work that Andrew Robb’s involved in. There’s also ample opportunity to look at an orderly tapering of tariffs, as the industry tapers, and to understand the implications on our economy.
JOURNALIST:
Will the federal government be considering Victoria’s request to fund the Melbourne Metro Rail project as part of major infrastructure projects to fill the gap left by Toyota and the other car makers?
MINISTER BILLSON:
Well a range of discussions were held yesterday with the Victorian Premier. One that we are most positive about is the commitment the Coalition Government’s made to contribute significant funding to the East West Tunnel. It’s important for Labor to decide where it stands on this project. Three thousand two hundred jobs will be created by the first stage of the construction of the East West Tunnel. That’s an important project for Victoria – other opportunities for accelerating infrastructure have been discussed and we need to examine what’s possible, given the difficult budget context we’ve inherited. But also a number of other ideas that have come forward including defence industry opportunities and even where we might be able to facilitate smaller component businesses being able to join together to jointly bid for contracts with bigger vehicle assemblers. These are some of the ideas that have come out and we’ll orderly work through those.
JOURNALIST:
Is Urban Rail still on the table?
MINISTER BILLSON:
We will orderly work through what the Victorian Government has put on the table – we’ve got clear infrastructure priorities around the roads for the 21st century. They not only move commuters, they move commerce and are crucial to the economy, particularly in Victoria.
Victorians know when the M1 is blocked, the economy gums up. That’s why the East West Tunnel is very important to make sure commerce can keep moving, that’s why it’s a priority, that’s why we are keen to get on with it and that’s why Labor needs to make it clear where it stands on that important infrastructure project for Victoria.
JOURNALIST:
Given the reports about your colleague Fiona Nash and the five star food rating website – are you absolutely confident that she and her staff have done nothing wrong?
MINISTER BILLSON:
Yes – I am absolutely confident. Senator Nash gave a full account of the circumstances in the Senate question time yesterday. I think that puts to rest any suggestion there’s been anything inappropriate. She’s a very talented member of the executive and acting with complete propriety.
JOURNALIST:
And the National Farmers Federation is now advocating for a new start style allowance for farmers to keep them on farms so they don’t leave regional communities. Would you support that?
MINISTER BILLSON:
Well there has been a range of proposals put to Minister Joyce and the Cabinet has discussed the need to address the crippling drought that is affecting much of Queensland and Western NSW. But also to put in place drought response measures and harm abatement measures, that can support the communities through this difficult time of drought. A number of measures have been put on the table, Minister Joyce is working through those in conjunction with his colleagues and that’s one of the suggestions, that’s being evaluated. The Government will have more to say about that in the coming months.