DAVID BRADBURY:
As we usher in the New Year, there will be a raft of new family payments available to ensure that we're able to help out families with the cost of living pressures they are all facing. As of 1 January next year, families will be entitled to the School Kids Bonus, which will be a payment for those eligible families of $410 or $820 a year paid in two installments in order to help families out with the costs of making sure their kids turn up to school with all of the equipment they need. We understand that the cost of making sure you've got your kids all ready to go to school on the first day of school are increasing. It's important that parents have the support and assistance they need to make sure that their children turn up to school on day one with all the equipment they need to get the best start in life as far as their education is concerned.
The first of January also marks the commencement of Dad and Partner Pay. This is an important new reform that will allow access to families and to dads the option of being able to take two weeks paid leave at the minimum award rate to make sure they get the opportunity to spend some time with their young child as soon as they're born. We all understand how important it is for mums and dads to bond with their children when they're first born and Dad and Partner Pay will give dads the opportunity to be there with their newborn and with mum in those important first few weeks of their child's life. These are important changes, they will have a big impact on the lives of so many people in our community and it's important that governments continue – and our Government is committed, the Gillard Government is committed to ensuring that we provide support to families so that people are able to give their kids and their families the best start in life.
JOURNALIST:
Can I ask some questions on some other matters? The fiscal cliff, as it's termed, is still looming in the United States. If the US does go over that cliff, what impact is that going to have on our economy in Australia?
BRADBURY:
First things's first, I don't intend to give a running commentary on domestic matters in US politics but what I will say is that for all of us that take an interest in the global economy, obviously we would very much welcome a comprehensive agreement being reached. There is still time and we are hopeful that there are enough people of good will that will come together and ensure that an agreement can be reached. Obviously if an agreement can't be reached, then that's something that will have an impact on the global economy. We've seen the Australian economy continue to have some very strong fundamentals. Our economy has low unemployment, strong growth and we continue to have a very strong pipeline of investment into our country. Our public finances are second to none. The Australian economy has been very resilient, but we all know that we're not immune to the shocks that can occur elsewhere in the globe and if this deal can't be reached then of course there will be implications for the Australian economy. We remain optimistic that as we approach the looming deadline that those in the United States, that there are enough people of good will who will come together to make sure that comprehensive agreement can be reached.
JOURNALIST:
How much would it hurt Australia if it happened, because we're getting pretty close.
BRADBURY:
We need to let this play itself out but of course it will have an impact on the Australian economy if the US is unable to resolve this issue. It is important that they resolve it, the global economy depends on it. Of course the Australian economy has been very resilient compared to the challenges that the US and European economies have faced but if the US fails to reach a comprehensive agreement at this point in time of course that will have an impact on the Australian economy.
JOURNALIST:
Are you going by the maxim 'hope for the best, prepare for the worst' though? I mean are things such as extra stimulus spending in the pipeline in case you need to react to this fiscal situation in the States?
BRADBURY:
Look I'm not going to prejudge any potential responses that may or may not come. Let's wait and see what occurs here. I hope, and I think most people taking an interest in the global economy hope that there are enough people of good will with a determination for doing what families, not just in the US but right around the world, are relying upon them to do and that is to reach a comprehensive agreement to avoid the US going off the fiscal cliff.
JOURNALIST:
Now we already know the surplus appears to be unachievable, the cuts that were made though in recent months to try and achieve that surplus, are they hurting our economy now?
BRADBURY:
It is absolutely important that as a country we continue to run a very tight fiscal operation and that means running good, sound budget policy. We need to make sure that we are constraining expenditure, that there's no wasteful expenditure and that we are trimming our expenditure where we can. Equally, we've seen a very big hit to our revenue base. Substantial loss of revenue as a result of flow-on effects of the Global Financial Crisis. This is not a case of the Government loosening the purse strings. We are determined to manage our budget in a responsible way and that means there will, on occasion, be need for cuts, but of course they will always be sensible, targeted and designed to ensure that Government is running as lean as possible. We need to make sure that there is no waste, but equally we have to face the economic reality that we have taken a very big hit to our revenues and that has had a very big impact on our ability to return the budget to surplus at the time that we had previously indicated.
JOURNALIST:
How do you know you've got the mix right though between tight purse strings and purse strings that are strangling the economy?
BRADBURY:
Well we think it's important to continue to run a tight and disciplined budget. That is something that is even more important as we see that we are entering a period of continued global uncertainty. The global economy sees Australia very much as a safe haven. An important part of that is that we are running a responsible and a disciplined budget. We'll continue to do that, but of course we'll continue to do that in a responsible way where we put jobs first, the jobs of Australians, as we've always done.