QUESTION: Australia has had 13 quarters now of more than 4 per cent annual growth, yet the Aussie dollar has dropped by 19 per cent this year against the American dollar. I am trying to work out why this happened. Joining me is Joe Hockey, Minister for Financial Services and Regulation from Australia. Minister, the Aussie dollar has just this week rebounded slightly. But generally, you had strong economic growth yet a very weak currency. What's gone wrong?
MINISTER: Well, perhaps at last some reality is replacing some of the perceptions. Like so many other currencies around the world, the Australian dollar has been affected by global fascination with all things American and there's not much we can do about that.
QUESTION: Like you said, reality is replacing some of the perceptions. But what reality is this?
MINISTER: Well, the reality is that the Australian economy is one of the strongest economies in the developed world. We have a very large New Economy sector: in fact, as of today, financial services are a larger part of our GDP than agriculture and mining combined and 80 per cent of the Australian economy is, in fact, services. So, as we prepare to enter the Internet Age, when services can be transmitted over the internet, Australia is in a unique position to capitalise on its greatest strengths.
QUESTION: You can say that 'til you're blue in the face. The problem is, that the Australian dollar is not perceived as being what's known as a "techie-currency". Its not related to the tech industries and therefore its out of favour. What can you do about it?
MINISTER: Well, we can replace some of the outdated preconceptions with a dose of reality. The reality being that Australia is judged by the OECD as one of only six new economies in the world. So we are in a very strong state to move with strong growth and comparatively low inflation. We're in good shape, Australia .
QUESTION: But you're not the kind of internet high-tech powerhouse, that you see, say, in California, or even some of the European economies. I mean you've got News Corporation, you've got Telstra, but what else is there behind that?
MINISTER: Well, behind that is a mainstream of the New Economy and notice the serious question of the definition about a New Economy. A New Economy is one where you can mainstream new technology, transform old businesses into new businesses. Australia has done that very well. Productivity growth is amongst the strongest in the world, and is [inaudible] the fact that we have better productivity growth than even the United States over the last few years and that is the true definition of what the New Economy is.
QUESTION: Now you're obviously on a sales tour, really, for Australia, around-the world post-Olympics. How does that change, do you think, perception
MINISTER: Well, Australia is still an emerging economy on a global scale. The Olympics was a snapshot of a nation. And, more importantly, it was a snapshot of the people. The Australian people are our nation's greatest asset, and as we can see from evidence around the world, our people are getting more involved in the global economy. That is what the Olympics is about and the Olympics is really about clearing the smoke on the perceptions of a nation and saying, 'Gee whizz, that nation can do great things'.
QUESTION: Thank you.