TREASURER:
Well overnight the OECD, which is an organisation based in Paris, and which looks at the economies of the developed world, released its report. The OECD says that Australia is better placed than nearly all of the other countries of the world to withstand international downturns. And that the Government's commitment to reform and the building of constituencies for reform is very important to making sure that Australia remains amongst the front row of the developed economies of the world. And it is important that we continue the business of economic reform to strengthen Australia at a time of international difficulty. The reforms that we announced in last year's Budget, which the Senate still refuses to pass, our welfare reforms, our reforms to Pharmaceutical Benefits Schemes, these are the things that are important for Australia's future. And as the OECD has noticed it is the reforms that we have been putting in place over the years that have strengthened Australia and made it one of the leading economies of the world. Those reforms must continue.
JOURNALIST:
Are you prepared to go to a double dissolution election to get those reforms through?
TREASURER:
Look, we are arguing our case as the elected Government to implement the reforms which are important for Australia's future.
Now, those reforms have been put to the Senate, they have not yet been, some of them have not been voted on, and they have not yet been rejected twice. So we call on the Senate to pass those reforms. The Labor Party can look at the OECD Report. What it says is that the Government's willingness to try and use solutions and its commitment to economic reform has made Australia one of the leading economies of the world. If we want to stay there we have to continue the process.
JOURNALIST:
Isn't it curious though that the OECD Report doesn't reflect yesterday's results?
TREASURER:
Yesterday's results in relation to exports were as a result, principally, of drought which, and I think the Australian public has been well aware of, in fact the world has been well aware of for a while. The effects of drought will continue to be felt in relation to exports, probably for at least another two quarters. In relation to imports, what yesterday's figures show is that the Australian economy continues to run stronger than the other economies of the world. That is why we have capital imports, particularly in the aviation sector because the company that imports them, Qantas, is one of the most profitable airlines, and other businesses are importing capital equipment which will provide income for years to come.
JOURNALIST:
Won't the Current Account Deficit strip growth when the figures are released tomorrow?
TREASURER:
The net export position feeds into the growth figures, along with employment, incomes, consumption, it feeds in all of those things and you get a growth outcome. Now, the Australian economy has continued growing now for the last 7 years, but the other economies of the world haven't. We avoided recession, America had recession, Japan had recession, France and Germany have been sluggish and stopped growing, but Australia continues to grow. And it continues to grow and it continues to grow because when you take all of those things into account, consumption, when you take into account the 1.25 million new jobs, rising incomes, and you allow for exports, it continues to grow.
JOURNALIST:
So the Reserve Bank today should just be maintaining a neutral position?
TREASURER:
I never advise the Reserve Bank.
JOURNALIST:
Mr Costello, does the Government have any intention of excluding high income earners from access to bulk billing?
TREASURER:
The Government's view on bulk billing is that bulk billing is important for people who are on pensions or who are on low income. But bulk billing was never, and was never intended to be, universal to everybody including those on high incomes. So we think it is important to ensure that people on low incomes continue to have access but we have not argued, the Labor Party has never argued, the founders of Medicare have never argued that it needs to be universal, a 100 percent.
JOURNALIST:
Are you saying that average Australian families should not have access to bulk billing?
TREASURER:
No. I am saying that bulk billing should be made available for those that are on pensions, low income earners, and that's the focus of the Government's attention to ensure that they continue to have access.
JOURNALIST:
(inaudible)
TREASURER:
Pardon?
JOURNALIST:
Will you be making an announcement on bulk billing in the Budget?
TREASURER:
Not necessarily, no.
JOURNALIST:
Has the Reserve Bank Governor indicated to you whether he wants another term when his first term expires in September?
TREASURER:
I don't discuss my conversations with the Reserve Bank Governor.
JOURNALIST:
How would you assess his performance?
TREASURER:
I think the Reserve Bank Governor has performed very well. He has been part of the arrangements which we put in place in 1996. He and I entered into an agreement to target inflation. I think the Bank has focussed itself on that. We have had very good outcomes in relation to inflation and I think he has discharged his duties very, very admirably.
Thanks.