SUBJECTS: Prime Minister Julia Gillard
ROSS GREENWOOD:
Chris Bowen joins us now on Money News. Hello, Chris.
CHRIS BOWEN:
Good evening Ross. Good to talk to you.
GREENWOOD:
Those issues I raised, those five issues clearly have been troubling many people in the Australian community. Even though quite clearly, Julia Gillard was a key to the creation to everyone of those policies. It would seem that change has to be made in order for this government to be more palatable with the electorate overall. Would you agree with that?
BOWEN:
Well Ross, I think what has happened is that people have said that this government has been a good government in many respects in getting Australia through the global financial crisis. Many people recognise this that Australia performed very well during the financial crisis compared to almost every other country and that the government's actions played a big role in that. At the same time we kept our finances strong, as you said we had to spent money to keep the economy strong but we've also kept our finances strong. We kept our triple-A rating and returning the budget to surplus in three years time, three years earlier than we said we would. So we've done well on that and I think people –
GREENWOOD:
Just picking up on that though is that one thing about this is quite clearly there is that compromise on the resource super profits tax. There is obviously negotiation and therefore there will be change. The issue is the resource super-profits tax was the key plank in raising significant revenue to allow the company tax rate to be cut and also as a result get the budget back into a surplus those three years earlier that you talk about -
BOWEN:
No, no, I disagree Ross. The resource super-profits tax isn't contributing to the budget being in surplus. The resource super profits tax revenue is all allocated to expenditure, so the budget back into surplus because the economy's strong because we kept unemployment low and because the returns to government are coming back strongly and our spending rules, we're keeping spending growth –
GREENWOOD:
You do have to compromise on that resource super profits tax. It's revenue you will not gain, so some things maybe unfunded so that money might have to come from somewhere else?
BOWEN:
The Prime Minister has said that we are prepared to sit down with the mining industry and talk through their issues. There are a number of changes been floated which will have little impact on revenue because you change the nature of the tax but there may be others that do have an impact, but these are issues we need to talk through.
GREENWOOD:
The former Prime Minister Kevin Rudd last night in his press conference indicated that he felt that some members of the party had become squeamish over his forms of tax reform. And in particular highlighted the resources super profits tax. Now that implied that those people who sought the change with Julia Gillard were also seeking change to some of those very hard lines on some of those policies.
BOWEN:
Well Ross. When you change the Prime Minister, you change the focus of the government. Each new Prime Minister puts their own stamp on the government and Julia will do that. And she'll do that across the board, she'll bring that fresh approach, a different perspective. Because to get back to your earlier point, as I was saying I think the Australian people will give the government a tick for economic management through the global financial crisis. But they also want a renewed focus on improving the economy going forward, improving services, dealing with everyday issues that are facing working families and cost of living for what's amongst them. There looking for that new focus from us and a new Prime Minister will give it that new focus.
GREENWOOD:
Speaking with Minister for Financial Services and Superannuation Chris Bowen.
Chris inside the caucus; inside the conversations; inside the Cabinet as well, was it perceived that Kevin Rudd's fall in popularity came with the back flip on climate change. Was that perceived to be the catalyst?
BOWEN:
Look, there are lots of commentators with lots of different views –
GREENWOOD:
No I'm asking about what was being said inside the party.
BOWEN:
I don't think you can put your finger on any particular item for different people it will different things. Some people it will be an ETS. For other people it would be our increases in cigarette tax in some areas to pay for health reform. In other places it would be other things. There's no doubt that the former Prime Minister had a very rough period that impacted on his popularity ratings. But everybody will have there own reasons, there own theories for that.
GREENWOOD:
Julia Gillard made a very strong point today as we've just picked up about after the next election. If she is elected, therefore there would be some revision of the climate change. It would be reintroduced and she would be seeking to put a charge on carbon to try to cut emissions.
BOWEN:
She also said that we need to build a national consensus for that. She said you need to bring the community with you. You need to communicate what you're doing. Talk to the community about it and bring them with you. And we've also said that we want to see improved action internationally. We're disappointed that there was some progress done at Copenhagen and great credit to the former Prime Minister for everything he did at Copenhagen to try and get that deal through. He worked tirelessly for that. But she's also, the new Prime Minister, Julia said that we think that climate change needs to be dealt with. We need to deal with renewable energy. To harness the wind and the sun, that we have so much of in Australia. But we do need a price on carbon but we need to bring the community with us on that which clearly hasn't happened yet.
GREENWOOD:
Given the fact that fundamentally nothing has changed inside the government other than the Prime Minister has been rolled today. The other people who were also responsible for the decisions of the government are very much still in place. Clearly Lindsay Tanner goes after the next election. But the point is, was it perceived as a result that it was not necessarily the government was increasing on the nose, but the image and the style of the former Prime Minister.
BOWEN:
Well as I say Ross. I think people have given us points for some things but have asked us to do more on other things. And the party has taken the view that a new Prime Minister is the best way to get that new focus.
GREENWOOD:
So in other words the new Prime Minister was the way in which you got the better chance to win the next election.
BOWEN:
Well partly. But also the reason for that is because the Australian people are asking us to focus on very much those basic issues. And we have taken, we are under no illusions it's going to be tough. We have said that. But we think there is a choice here: a choice between Julia Gillard and her values; her values of hard work; her values of giving something back; and the Opposition. All the risks that go with Tony Abbott; who we would say, and others would agree, on his side, doesn't understand economics and would have a very radical view, and would bring in massive cuts, as he did when he was Health Minister, and cuts to education funding as well.
We think there is a real choice and we want the spotlight focused on that choice, and we will be prosecuting that case in the lead up to the next election, which Julia has said will be in the next few months.
GREENWOOD:
Chris Bowen is the Minister for Financial Services and Superannuation and we appreciate your time tonight with us on Money News. Thanks Chris.
BOWEN:
Always nice to talk to you Ross.