CHRIS UHLMANN:
Joe Hockey, if there's a widespread perception that the Government's Budget isn't fair, then maybe it isn't.
TREASURER:
Well, it is a very fair Budget, and I think it is an easy political mantra for critics to say it's unfair.
But so much of what we are doing is about building fairness into the system and giving people the opportunity to have a fair go in life, whether it be in our changes in health, where we're going to build the biggest medical research fund in the world, be it in higher education where we are going to extend opportunity to 80,000 young Australians to go to university or undertake courses for the first time, or be it in infrastructure that everyone benefits from.
CHRIS UHLMANN:
Well, let's look at university. Do you accept that demand will drive the cost of popular university courses higher? Isn't that an ironclad rule of the market?
TREASURER:
Well, it is a rule of the market and when demand exceeds supply in a market, usually supply responds. And…
CHRIS UHLMANN:
So the cost of university fees will go up?
TREASURER:
Well, not necessarily at all because you would expect that a lot of universities which now, currently compete with the larger institutions, will start to offer other courses that are, over the long term, more affordable. But having said that, if you are prepared to go to a university you don't have to pay any money up-front. No matter whether you are rich or poor, entry will be based on your academic ability and you'll have the very same opportunity no matter what your background or birth.
CHRIS UHLMANN:
And you could leave university with a huge debt which will have to be paid off before you can start saving for something like a home or making a family.
TREASURER:
Well, that happens at the moment – that is exactly what happens at the moment. But the challenge is that our universities are going to be weakened by an enormous growth in offshore competition and so, if we want to have institutions give you a degree that has global reputation for excellence, then you've got to invest in those institutions and government doesn't have the money, so the students have to get the benefit.
CHRIS UHLMANN:
Do you accept that if you have a $7 co-payment for doctors' visits then you'll discourage some poor people from seeing the doctor?
TREASURER:
Not at all, because doctors still have the capacity to bulk bill and that is hugely important. It's one of the reasons why, out of every $7 that people contribute, $2 will go to the doctor, is that it gives the doctor the capacity to determine if someone is unable to pay, then they can appropriately bulk bill.
CHRIS UHLMANN:
Well, a COAG report out yesterday showed that 5.8 per cent of people delayed or did not see a GP due to cost and that's now, and 8.5 per cent of people given a prescription by their GP delayed or did not fill it because of the costs. So, if you add more costs then that will add to those problems, won't it?
TREASURER:
Well, what that proves is exactly what I've been saying - that healthcare is not free. It's not free at the moment and taxpayers pay in one form or another. If people are saying they are unable to go to the doctor because they have to pay, well, that illustrates that the health system is not free. What we've got to do is make sure that we do not end up with a two-tier health system where the very best professionals drift to the privately renumerated system and the public system, the one that is accessible for people at the moment without paying any upfront costs is not weakened. And the only way to do that is to have a co-payment, to have a price indicator, but also importantly to reinvest in the general health system through our Medical Research Fund.
CHRIS UHLMANN:
And on unemployment benefits, if you are putting $230 million into an emergency welfare fund, then, isn't that a sign that you expect that your changes will hurt a large number of young people?
TREASURER:
Not at all. We said that we are going to have a safety net for the under-30s where if they don't earn and they don't learn and they do end up on Newstart or Work for the Dole, we are going to have a safety net and that is what we are building. But our priority is to get everyone into work who has the capacity to work. I mean, jobs are the driver of what we are trying to do and economic growth is going to facilitate that. And the only way to do that is to have structural change in our economy, which is exactly what our economic action strategy does.
CHRIS UHLMANN:
And looking at the economic measures of your performance, you said before the election that the country needed an injection of confidence. Consumer confidence is low and was made worse by the Budget.
TREASURER:
Well, consumer confidence did come back after the election and that was very encouraging.
CHRIS UHLMANN:
And went down after the Budget.
TREASURER:
Well, it will and that is entirely predictable. But let me tell you, the fundamentals of the economy are a strong base for us to build economic growth and you will see over time that we will deliver on a stronger economy, barring any exceptional circumstances; things are going to get better.
And I'm looking forward to hopefully some good news today on the unemployment front because we were told that we were going to inherit unemployment rising to 6.25 per cent. So far, it is remaining below 6 per cent and that is very encouraging.
CHRIS UHLMANN:
Finally, should climate change be on the G20 agenda?
TREASURER:
No, the G20 is an economic forum.
CHRIS UHLMANN:
That's a massive economic issue, isn't it?
TREASURER:
Well, there are many massive economic issues. Climate change is something that G20 Finance Ministers that I chaired in both Sydney and in Washington so far this year, and there are five of these meetings of Finance Ministers this year, in the first two meetings climate change didn't come up. So, that illustrates that certainly when it comes to the Finance Ministers and Central Bank Governors, we're focused on the things that are going to drive economic growth and create jobs, not impede them.
CHRIS UHLMANN:
Joe Hockey, thank you.
TREASURER:
Thanks very much Chris.
CHRIS UHLMANN:
The Treasurer, Joe Hockey.