JOURNALIST:
The Auditor-General has revealed another bungle in the Government's own financial management schemes. Is that in any way an embarrassment?
TREASURER:
This is, I understand Senator Minchin has already responded to this, that this is a payment between one area of Government and another.
JOURNALIST:
So you are saying it is not a loss in real terms at all?
TREASURER:
No. It is a payment from area of Government to another, so it is just a transfer.
JOURNALIST:
The Opposition, though, is calling it a scandal and saying there is in fact, and will be $150 million (inaudible) loss?
TREASURER:
Well, if you were the Opposition and you had no policies you would probably try and mount that argument too. But I think Senator Minchin has already commented on this.
JOURNALIST:
As Treasurer, there is no inefficiency in this system?
TREASURER:
The Commonwealth Government probably in its arrangements has been devolving responsibility down to agencies to make sure that they operate more efficiently. That was the policy of agency banking and as I think has been made clear, this is a transfer from one area of the Government to another.
JOURNALIST:
Is the Auditor-General wrong, is that what you are saying?
TREASURER:
No, as I said it is a transfer from one area of Government to another. Instead of paying the Government money, the Government is paying money to itself. It is actually a payment for agency banking in relation to interest.
JOURNALIST:
Treasurer, if it is not a failure, as the Opposition are saying, is it a success?
TREASURER:
Agency banking was a way of giving agencies more responsibility in relation to managing their own affairs. I think in many respects that has helped them to be more responsible, probably ensured that they have been more efficient with the devolution of their money.
JOURNALIST:
So there is no need for a review or...
TREASURER:
Look, we always keep all areas of Government administration under review. I think agency banking was introduced to try and make sure that agencies were kept efficient. And you always make sure that you are doing things in the best way possible.
JOURNALIST:
Treasurer, yesterday the, a boss of Woolworths, Roger Corbett, came out and said that he didn't see any price or wage pressures, at least within the retail sector and basically inferring that the Reserve Bank doesn't need to raise rates next month. Is his argument valid as far as the retail sector is concerned?
TREASURER:
Well, we will be getting the Consumer Price Index shortly and that will give us the best fix on consumer prices. But at the moment we think that wages, notwithstanding good employment outcomes, are still relatively moderate - the evidence that we have to date. But we will watch the Consumer Price Index with interest. We know that there is going to be some factors in there, such as oil and petrol, which are external factors but we will be stripping those out and trying to look at the underlying price pressures.
JOURNALIST:
The Inter-generational Report that was presented to Cabinet yesterday, can you give us any details of that at this stage about what sort of trends it outlined?
TREASURER:
What we are going to do in this year's Budget is, we are going to release for the first time ever in Australia's history, an Inter-generational Report which is designed to look at how this generation is treating future generations. That is, what would Australia look like in 2042, in 40 years time, on current policies, what would the shape of our Budget be? What can we learn about the shape of our Budget in 2042 which can inform us for policy now and can give us some kind of long-term picture of how we want to build Australia? I think it is going to be one of the most exciting documents that we have ever seen. And we know that there are big demographic changes going on in Australia. The population is aging and we have got to think about how we are going to cope with that. And I think this is going to be a visionary, long-term, structural change to the way we think about our Government. Fancy looking out in 40 years time, nobody has ever tried to do that before, and to just try and get a snap-shot of what Australia will look like.
JOURNALIST:
How concerned are you about the future burden to future taxpayers on the rising cost of drugs and medical treatment?
TREASURER:
Well, this is something that an inter-generational report will have to look at. It will have to look at how are we going to fund services in 40 years time. This is not for tomorrow, it is not for next week, it is not for a months time, but it probably is one of the most significant developments in Australian budgetary management. The fact that it has never been done before and that we are now going to do it and look out 40 years time. And I would say to everybody, look, this is a chance for long-term planning and long-term vision in our country and I think it is incumbent on all people who want to see good policy to get behind this and to support it, and to ensure that it is a long-range, visionary development.
JOURNALIST:
How big a challenge is the age and health care funding, in terms of that?
TREASURER:
Well, that is what our report will be showing. It will be showing what the challenges are and what the situation will be like in 40 years time.
JOURNALIST:
Can you say as the expected Prime Minister then, how would you say governments of that day are going to meet the challenge?
TREASURER:
Well I don't think I will be around in 2042, but medical science may do wonders, you never know, but I think the important thing is to look out and to see what is going to happen, and see where it goes and we will get the first fix on this, ever. This has never been done before. Nothing as visionary has ever been done before by a Federal Government and it will come out with the Budget and I think it will provide a basis for long-term policy.
JOURNALIST:
How soon will it affect budgetary policy?
TREASURER:
Well I think as we run through this decade we have got to start taking decisions now for 2042. We have probably got a window during the course of this decade but we have to start planning a long-term basis.
JOURNALIST:
As prospective Prime Minister (inaudible)...
TREASURER:
This is the last question.
JOURNALIST:
...are you concerned at all about revelations last night on the Four Corners report that asylum seekers may have actually died after being turned back?
TREASURER:
I didn't see the Four Corners report but I can tell you, I can tell you this, that the Australian Government operates the second highest per capita intake of refugees in the world, in the world. And we have an intake which is administered in accordance with rules that assesses genuine refugees and gives a priority to those that are in need. And I would say to anybody that the proper way to have a refugee claim assessed in Australia is to make an application. It is not to pay money to people smugglers. Paying money to people smugglers is not the way to get in to Australia. We operate a programme and genuine refugees can be assured that their claims will be heard in accordance with that and that is the way to make a refugee claim in Australia.
Thanks.