JOURNALIST:
Mr Costello, how much of a priority will Defence spending be in this Budget?
TREASURER:
Well, in the lead-up to the Budget round there are many legitimate needs for the Australian people and many legitimate requests for funding that come before us. But I want to make it clear that there is none more important, as far as the Government is concerned, than strong defences and strong border protection. In this Budget round our priority is strong defence and strong border protection. Strong defence because Australia is committed to the war against terrorism. With special forces in Afghanistan, with naval ships in the Gulf and elsewhere and with air defences. Strong border protection because we think it is important that the military continue to play the very successful role they have in patrolling our waters and helping Australia crack down on the people smuggling trade. So as we go into this Budget the Government's priorities are strong defence and strong border protection and they will be the immediate focus of the decision making that we are now going through.
JOURNALIST:
Are we looking at a record amount?
TREASURER:
Well, the Government is not only funding operations with special forces and with naval and air support, but we are also funding major capital investment under our White Paper and continuing engagement in East Timor. And outside of periods when Australia has been engaged in war this is, for Australia, our largest funding that we have ever engaged in.
JOURNALIST:
Are we likely to see a huge increment, a huge increase?
TREASURER:
What we are going to do is we are going to make sure that our troops lack for nothing, that they are properly supported. I think the taxpayers want to make sure that we are being careful with money but they want to make sure that our troops are adequately prepared for, and supported by Australian citizens whilst they are in theatres of war - and they will. They also want to make sure that our borders are protected and they want to make sure that the naval engagement in the northern borders which is protecting Australia's borders against people smuggling continues.
JOURNALIST:
Will it mean cuts elsewhere, in other areas?
TREASURER:
Well, what it means is when you come up to a Budget you have got to have priorities, you can not fund everything. There are many legitimate demands that people have in the Budget round but the Government's priority is strong defence and strong border protection, that is going to go before other legitimate claims in this Budget. And what that means is we will have to be very tight in other areas because the priority we are giving is to our soldiers, to the fight against terrorism and to the defence of our borders.
JOURNALIST:
The Opposition says that the role that Australia is now playing in the war on terror is really under threat because the Defence budget is so grossly over-stretched. What is your response?
TREASURER:
Australian troops have performed magnificently in the war against terror, special forces on the ground in Afghanistan, ships in the Gulf, air defences in the Indian Ocean. Australian troops have performed magnificently and I do not think anybody should underplay the role that they have performed. And the Government has given them every support and the Government will continue to do so.
JOURNALIST:
So how much more are we looking at?
TREASURER:
We are looking at strong defence and strong border protection and the resources required to do that will be committed. That will be the Government's priority in the Budget.
JOURNALIST:
How much?
TREASURER:
Well, I never announce a budget until I announce the Budget which I think is on the 14th of May.
JOURNALIST:
And how much prepared are we, for example, if we have to move into Iraq, how prepared will Australia be?
TREASURER:
There is currently no military action by allies in Iraq. If that were to occur and if Australia were to be asked to make a contribution we will consider that at the time. But it is far too premature to be speculating in relation to Iraq. There is still a job to be done in Afghanistan, it has got to be brought to completion, we are committed to seeing that through. Our troops will be funded to see it through.
JOURNALIST:
Treasurer, can you at least say that it will be a significant increase?
TREASURER:
Our troops will be thoroughly supported and in addition defence, I want to make this point, Australia has made a very big investment in border protection with naval patrols in our northern waters. We are now beginning to see some of the successes of that border protection. A lot of people were critical of the decision that the Government made to strongly patrol our borders but we are now beginning to see some successes from that action, and we will continue to fund that action to ensure that Australia has strong border protection.
JOURNALIST:
Are you prepared for some strident opposition to a serious hike in Defence spending?
TREASURER:
I don't think the Labor Party has ever really supported the Government in its strong border protection policy...
JOURNALIST:
Not just the political position...
TREASURER:
...and you can see that even at the moment. They are always trying to have it both ways. They say they believe in strong border protection but they have never really supported the Government in doing it. And I would say to them that they ought to support strong border protection and the decisions that are required to bring it about.
JOURNALIST:
I mean community groups (inaudible)?
TREASURER:
Well, people in Australia are entitled to take whatever views they like but these are the Government's priorities and I believe they are the priorities of the Australian public.
JOURNALIST:
Any other areas going to be looking at an increase in funding?
TREASURER:
Well, I have told you what our priorities are and I will tell what is in the Budget when I deliver it.
JOURNALIST:
...(inaudible) talk about this being your last Budget?
TREASURER:
Well, look, let's just roll up to the Budget, it is coming on the 14th of May. I can tell you that we will be putting the priorities of the Australian public first. We will be putting our emphasis on defence and border protection, and as for the remainder of the Budget wait and see.
Thanks.