JOURNALIST:
Mr Hockey, this is disappointing news regarding Alcoa.
TREASURER:
It is very disappointing - of course it is. It is very disappointing for families, for employees and for contractors. It is disappointing but it was certainly predictable. In 2012, Alcoa did an analysis and said that the plant was not financially viable. The Labor Government gave them $40 million and two years later they closed. The fact that they are closing two years after receiving a $40 million grant just illustrates the fact that you have to be very careful with taxpayers’ money. Now we all have to work together to find new business opportunities for the workers, for the contractors and everyone else involved in Point Henry.
JOURNALIST:
Do you think if the carbon tax had been scrapped Alcoa would still be open?
TREASURER:
The carbon tax adds to the cost of production. It does, no matter what people say. You cannot say the carbon tax helps with producing things in Australia. The carbon tax, unquestionably, is part of the cost of business in Australia and that is why we want to get rid of it. If Bill Shorten really does care about workers, he will now support the repeal of the carbon tax. There is no room to move here Bill Shorten. At the end of the day, the carbon tax is a greater cost on business. It is a massive cost on aluminium smelters, obviously. A 50 year old smelter with a carbon tax is never going to be cost effective.
JOURNALIST:
Speaking of Bill Shorten, he says the Government has forgotten Toyota workers. What are you actively doing to change his mind?
TREASURER:
The taskforce underway with the Victorian Government and the South Australian Government is focused on a medium to long term plan to deliver the sort of economic outcomes that are going to help businesses grow in those states. There is no silver bullet here to rebirth the businesses like Alcoa, Toyota or Holden. The Government can put in place the right settings: less tax, less regulation and greater expansion opportunities overseas. Those things are the things that are going to drive the jobs of today and tomorrow, not trying to resuscitate businesses that have decided to leave.
JOURNALIST:
That $40 million was badly spent in your view?
TREASURER:
It is another example where Labor just handed out taxpayers’ money. Two years later, the smelter closed - $40 million of taxpayers’ money down the tube. Gee whiz, there are a lot of small businesses out there that could have done with that sort of help.
JOURNALIST:
The Government and other big business could… [inaudible]
TREASURER:
This is one of a number of businesses that will close but many other businesses will open. At any one time there are 143,000 job vacancies in Australia and there is expected to be, in net terms, an extra 630,000 new net jobs over the next four years. If you get entirely despondent about one business closing, you will ignore the fact that at any one time other businesses are opening and they represent the jobs of tomorrow.
JOURNALIST:
What do you say to the workers today at Alcoa who are being told the grim news?
TREASURER:
I feel for you. This is a sad day for you and for others, but there is a new dawn and it will come. It will get better. It must get better and the Government is doing everything it can to make sure that it does get better.
JOURNALIST:
Joe, are you threatening to slash infrastructure spending for States if they do not spend that money?
TREASURER:
We want the States to spend the money that they have been given and the money that they will get. At the end of the day, it is going to be the States that roll out of most of the infrastructure. Australia is facing a significant drop in the amount of new investment in the mining and resources industry so we need to build new productive infrastructure and get on with the job of building it. All states need to help us with that heavy lifting. It is not going to be easy, it is going to be hard but we are going to put the money in place, we want to put the projects in place, and we want to get on with building a new productive Australia. We say to whoever it is, whether it’s the States, private contractors or anyone else; if you are not going to use the money we will find another way to build that infrastructure.
JOURNALIST:
Is this a pointed message to Barry O’Farrell? His Government is facing criticism for not doing enough in terms of building infrastructure.
TREASURER:
I want to say in defence of the NSW Government, there is a 40% increase in infrastructure expenditure in NSW over the last two to three years under Barry O’Farrell. It was Bob Carr that closed down New South Wales. He said “Sydney is full”. He stopped building the infrastructure that is going to deliver a more productive economy. Barry O’Farrell is getting on with it - we’re getting on with it - we will fix the problem in partnership with the NSW Government but we all have to get moving.
JOURNALIST:
Manus Island - do you have any comment? The reports from last night….
TREASURER:
It is in PNG. I haven’t been there but it is a matter for Scott Morrison.
JOURNALIST:
Will he be commenting? So far he has refused.
TREASURER:
I’m not familiar with everything to do with that.
JOURNALIST:
Mexico and South Africa are not sending Finance Ministers [to the G20].
TREASURER:
There are always going to be domestic issues that prevent some people from coming. I am incredibly pleased that Finance Ministers from Indonesia and India - and the Finance Minister from Singapore – they are all in the business of dealing with budget issues at the moment. They are coming. This is a very strong attendance at the G20 - it is a remarkably strong attendance. I am very pleased about it. It is a huge meeting but for many people they will look at it and say “How does the G20 affect me?” The level of the Australian dollar affects everyone in Australia, the tax that business pays affects everyone in Australia, the infrastructure rollout affects everyone, and partnerships with the private sector also affects everyone in Australia. The big things we will be looking at are global taxation arrangements - particularly in the digital age. We will also be looking at nailing down all the financial regulations so it is easier for the private sector to get money out into new investments. We will be focusing on infrastructure - how do we channel money from around the world into Australia and all the other countries that desperately need new and upgraded infrastructure? We are going to focus on growth and jobs. It is a very significant event for Sydney and Australia to have the world’s leading Finance Ministers and Central Bankers here determining the future of the global economy. It is a big event; we should be proud that we are hosting it but we’ve got a job to do to drive a strong agenda on growth.
JOURNALIST:
Do you accept what the chief of Virgin Australia has said that assistance being given to Qantas should be extended to all domestic airlines?
TREASURER:
I saw Richard Branson’s comments. Richard Branson is motivated by his own interests and I am motivated by the national interest.
JOURNALIST:
So you don’t accept his argument?
TREASURER:
No.