REPORTER:
Treasurer, welcome to Cairns. We might start with a bit of Canberra business first. The Reserve Bank Board has suggested it is concerned about the potential for a property bubble; has the RBA got it wrong?
TREASURER:
No, they are right to watch for a property bubble but the suggestion that there is a massive bubble right across Australia at the moment in property is obviously wrong.
REPORTER:
Do you agree with your colleague Kelly O’Dwyer that the Foreign Investment Review Board is failing to do its job in overseeing foreign buyers into the property market?
TREASURER:
Well, one of the reasons why we were very encouraging of a Parliamentary Review into this issue was so that we could identify if there were any systemic failures, and if the Foreign Investment Review Board is not properly doing its work, I am happy to hear whatever criticism or constructive advice that is available.
REPORTER:
Do you need to give the FIRB more resources to enforce its regulations?
TREASURER:
Well, we will see where the report comes to, we are happy to consider those sorts of issues.
REPORTER:
On the Renewable Energy Target, should aluminium producers be completely exempt from it?
TREASURER:
I am not here to speculate about outcomes in relation to renewable energy.
REPORTER:
And the Australian Workers Union has joined calls from your own backbench for the industry to be exempt.
TREASURER:
I am not going to get into speculation about issues that are – at this stage – totally unrelated to the G20.
REPORTER:
Okay, one more: when should Australia have a referendum on indigenous constitutional recognition?
TREASURER:
When it is appropriate, and that is a matter that the Prime Minister is actively considering at the moment.
REPORTER:
Okay, onto the G20: how is Australia progressing towards achieving the two per cent target for economic growth?
TREASURER:
Well, we have done some of our heavy lifting in getting rid of the Carbon Tax and the Mining Tax, reducing some forms of special industry assistance and focussing on building a stronger economy, getting the Budget back towards a credible surplus, importantly, reducing red tape and regulation, and there is a number of other initiatives particularly in relation to infrastructure that are helping to drive our own contribution to the increase in global growth.
REPORTER:
Can you just take us through some of the other discussions you will be having during the G20?
TREASURER:
Well, this G20 here in Cairns is an opportunity for the world to see, not just what Australia can do, but what Finance Ministers and Central Bank Governors representing 85 per cent of the world economy can do to create the millions of jobs that are going to deliver prosperity. This is a hugely important meeting. The whole world will be focussed on Cairns, Australia as we nut out a program to deliver millions of jobs, literally trillions of dollars of new productive infrastructure around the world and massive growth in the economy. So, this is where the rubber hits the road for Finance Ministers and Central Bank Governors, and it is exciting for Cairns and it is exciting for Australia.
REPORTER:
One of the things you will be talking about is corporate tax evasion?
TREASURER:
Absolutely right. Any multinational that seeks to travel from jurisdiction to jurisdiction in order to avoid paying tax, is going to be caught in a new net that all of us are working towards agreement on. If a company does not pay tax in one jurisdiction, it affects everyone and ultimately companies should pay tax where they earn the money.
REPORTER:
There are a couple of (inaudible) events happening as well as the Summit this week. You are attending the I20 Indigenous Business Summit while you are here. Noel Pearson is seeking your support for an investment fund using royalties to help start new enterprises and boost economic development in indigenous communities. Does this have merit?
TREASURER:
Look, it is something worth considering. When Noel Pearson suggests something like this, I am all ears. I have known Noel for nearly 30 years and he is a passionate advocate for the future of all indigenous communities and not just those in far north Queensland and so I am all ears, I am prepared to consider (inaudible).
REPORTER:
And is the Government – I believe there is an update on the Empowered Communities Program, does the Government feel like it is getting value for money there?
TREASURER:
Well, it is something that we are considering, obviously. Look, there are lots of initiatives around in relation to the plight of indigenous communities. Ultimately, it comes down to the commitment of individuals to make change happen and there are a number of indigenous leaders right across Australia that have the same determination as Noel Pearson to see a better quality of life. The fact that the Prime Minister is in Arnhem Land this week illustrates that at the highest levels of the Government, there is a commitment to improve the quality of life for indigenous Australians.
REPORTER:
You are also attending the Tropical Economies Conference. Obviously there is a push by the Federal Government to get more people into northern Australia. We are already seeing our infrastructure stretched in places like Cairns. What plans are there to provide the necessary infrastructure to cater for a growing population in say, the next decade?
TREASURER:
Well, the first thing to do is to identify how we create jobs and part of the discussion about the development of tropical economies recognises that it is not just the economy of far north Queensland, it is the economy of one of the fastest growing regions of the world. The tropical economy has its own unique attributes in relation to healthcare, it could cover sport, it could cover education services and a range of other things. So, really it is about nutting out the very special challenges faced by tropical economies and then working out a response after that, not just for Australia but for the major economies of the world.
REPORTER:
But, can we wait for another report and another discussion?
TREASURER:
Well, you have got to get it right. You don’t commit billions and billions of dollars to programs that are half baked and much of the work of the G20 is about making sure that we don’t make mistakes rather than rushing to make decisions that end up in waste and mismanagement. Half the task of the G20 is to stop bad decisions being made and the rest of the task of the G20 is to deliver the plans that grow economies and create more jobs.
REPORTER:
We have a massive wind farm proposal for the far north and one of the selling points is that it will meet the electricity needs of around 70,000 homes. You have expressed strong views about wind farms but might a project like this be necessary?
TREASURER:
Well, that is up to the individual proponents and negotiations with local authorities.
REPORTER:
And the proponents also say a change in the Renewable Energy Target would discourage foreign investment; isn’t that something that the Government is trying to encourage?
TREASURER:
We are encouraging foreign investment; we are getting foreign investment but any speculation about issues (inaudible) in relation to renewable energy targets is not particularly productive at the moment.
REPORTER:
Okay, is there anything else you would like to (inaudible)?
TREASURER:
Yeah, I want to thank the people of Cairns and far north Queensland for their incredible warmth and hospitality. I never doubted the ability of the region to do great things. It is a region that I know very well and I love a great deal. The people of Cairns haven’t let me down and I really appreciate all the effort that has gone in from the local member Warren Entsch to the Mayor Bob Manning and the whole community, this is a great response. You know, 12 months ago there was a suggestion that most of the Finance Ministers and Central Bank Governors wouldn’t travel so far for this meeting but it has been the sales job (inaudible) far north and the warmth and encouragement of the people of Cairns that has helped to make this meeting real and for a few days, just a few days the whole world will be focused on Cairns and Australia and I thank everyone for their engagement.
REPORTER:
And what lasting effect do you think that might have on the far north economy?
TREASURER:
Well, you are going to have advocates, the most powerful people in the world economy are going to be great advocates – fly away from here as great advocates for Cairns and far north Queensland. The word spreads; the most powerful marketing in the world is by word of mouth and this community is going to hopefully, have 2000 visitors that are hugely influential that are going to go away and say what a great part of the world Cairns is.
REPORTER:
And just finally, (inaudible) security for the next few days; given the raised terror alert, do you have any concerns?
TREASURER:
Not at all. We have got the best protecting our G20 colleagues. I have no doubt that everything is in place. The policing comes down, not just to the people in uniforms but it comes down to the overall community and the engagement of the Cairns community is hugely encouraging.
REPORTER:
Thanks very much.
TREASURER:
Thank you.