SUBJECTS: Unemployment figures, stimulus, interest rates, Reserve Bank, Peter Walsh, Telstra, COAG, economic reform, Oceanic Viking
MARIUS BENSON:
Chris Bowen, analysts looking at those jobless figures out yesterday said they were quite startled, a lot of them. Were you surprised by the figures yourself?
CHRIS BOWEN:
Well, we see this as pretty much a steady as it goes result. We've seen an increase in unemployment of 0.1 per cent. We've seen the participation rate up, but importantly, there are still 670,000 unemployed Australians looking for work and we remain focused on the job of keeping that unemployment rate as low as it possibly can be. And that means keeping our stimulus in place and working to gradually withdraw it over time.
BENSON:
Some people are already talking about labour shortages. Is that something the Government has in mind?
BOWEN:
Well look, we are particularly aware that as economies and Australia has come out of recession in the past, and there have been skill shortages arise, and that's why we've had such a focus on skills over the last two years, a lot of investment in trades and trade training skills in particular and our Productivity Places Program, so we've been particularly aware of that. In the past, previous administrations have been so focused on getting out of recession they haven't focused on what might arise after the downturn finishes. We've been very focused on the skills issue and making sure that as we come out of the recession, out of the downturn, out of the global recession, that we see our skills base respond accordingly.
BENSON:
And everybody welcomes recovery, but the bad news is in the immediate term that recovery means interest rates go up. A lot of predictions of another interest rate rise in December.
BOWEN:
Well, as you know Marius, as a Government Minister I don't have the luxury of being a commentator on what the Reserve Bank may or may not do. But their, as the Bank has indicated, their interest rates have been at what they regard as emergency levels, and that they'll be appropriately responding over time. But as regards timing, that's entirely a matter for them.
BENSON:
Peter Walsh was a Finance Minister in the Hawke and Keating Governments in the 1980s. He was widely admired as an economic reformer. He's had some fairly blunt things to say about Kevin Rudd on the economic front. He says he's an economic illiterate, an egomaniac who won't take any hard decisions. Is that a Kevin Rudd you recognise?
BOWEN:
No, completely and totally wrong. This is a Government which is led by a man who does understand economics and is widely respected for his understanding of economics, and has embraced economic reform. A lot of reforms were too difficult for the previous Government, like dealing with telecommunications – they call it the case for structural separation, something which previous Governments have said was too hard. We haven't taken that approach. We're working very hard on economic reform through the COAG process, harmonising regulations. Again, things which have been on the agenda and talked about by Governments for the last 30 years, but no Government has made as much progress on that as this Government has. So we are very much focused on economic reform and Mr Walsh is sadly ill-informed.
BENSON:
Just specifically on his claim that the Prime Minister won't take hard decisions. The Opposition has been making that point over the past month in relation to the standoff over the Oceanic Viking. There are reports there may be a bit of a breakthrough on that today.
BOWEN:
Well look, I'm not familiar with the latest developments, not being one of Ministers involved. What I do know is the Ministers involved have been working methodically and calmly through the issues, despite the political opportunism of the Opposition. We've just been working quietly and methodically through the issues to get this matter resolved. This is a rescue at sea in international waters and it's had the flow on effect of working out whether to disembark these people and discussions with Indonesia about that, and we'll just continue to work through it.
BENSON:
You'd obviously be happy to see it resolved now and not drag on into a fifth week, and particularly into a Parliamentary sitting week next week.
BOWEN:
Well, I think everybody would like to see this resolved for the interests of all concerned, including those on the Oceanic Viking.
BENSON:
I'll leave it there, Chris Bowen, thank you very much.
BOWEN:
Good on you, Marius.