ROBINSON:
Mr Costello is my guest this morning. Good morning.
TREASURER:
Good morning Graham.
ROBINSON:
Did you accept the argument that this Budget does little to ease the growing concerns of the ageing population?
TREASURER:
No. One of things we have done in this Budget is boosted aged care services and also medical services for a number of areas, particularly in regional areas actually, helping with better radiological treatments. But in addition to that what we have done is we have laid down a plan which shows where Australia could be in the next 40 years. We call it the Intergenerational Report. And we look at 40 years and we say that with the ageing of the population and increases in medical sciences we have got to take, start to take some steps now which will make these services sustainable out into the future.
ROBINSON:
A recent survey, a Newspoll survey though, showed that the rate of those people aged over 50 has increased by about 20 per cent, and feel that it might be more difficult under this current Budget for them to survive or to make ends meet?
TREASURER:
Well, I am not sure of the poll which you are referring to but what I can say is that the Government has a very extensive group of aged services, in fact were increased in this particular Budget. We also, in last year's Budget, introduced very substantial tax cuts for older Australians which people are just starting to take the benefit of. But one of the things that has attracted a lot of attention is the Government's proposal to lift the co-payment for pharmaceuticals from $3.60 to $4.60 which is an increase of a dollar. Now, the point about this is that, whereas, people will be able to buy prescriptions for $4.60, the cost of these prescriptions is much greater than that. It may be $200, $500. We listed a prescription on the Scheme the other day which cost $6745.
ROBINSON:
But would you accept that somebody, say living in a regional area, if that $52 made the difference between purchasing something that they enjoyed or just having to scrape by. Ultimately the cost of the actual medicine does not impact on them, it is what they have to spend out of their actual income.
TREASURER:
Sure, but nobody would be able to pay a prescription, say, of $6745, would they? And that is why you have concessional rates. But if, if the taxpayer scheme is to continue and the taxpayers have to pay for the difference between $4.60 and whatever the pharmaceutical benefit costs, then we have got to make this sustainable otherwise the Scheme won't be financially sustainable and nobody will be able to get the kind of concessional access in the future that we all want. So, this is a part of making it sustainable, it is a one dollar increase, and as you said, after 52 prescriptions they are free. So, the maximum effect that it could be would be $52 or a dollar a week over the course of a year. And of course, pensions during that period will be indexed to average, total average weekly earnings. And they will be going up in line with wage increases over the course of the year.
ROBINSON:
You again have, in an article following on from Tim Fischer commenting that he feels Telstra should be privatised, also flagged that you felt the same way. That it had to be privatised, the Government should get out of that area. Under a term as a Prime Minister would you consider doing that? Would it be privatised?
TREASURER:
Oh, it is the current Government's policy to first fix services, particularly in rural and regional areas, and then to offer further shares in Telstra. That is the current Government's policy which…
ROBINSON:
How quickly do you see that happening though?
TREASURER:
Well, the faster we can fix services for rural and regional consumers the better. That is our current policy which I thoroughly support. Now, there has been a very interesting development overnight. The Labor Party now says that it is going to sell off certain of Telstra's businesses. It is talking about selling off mobile phone businesses and the like and buy back other parts. Now if I was a shareholder inTelstra I would be very worried about this concern because 49 per cent of Telstra is now owned by millions of Australians who bought it on the understanding that they were buying into a fully fledged telecommunications company and now the Labor Party is saying, if they ever got into Government, they are going to start stripping various assets out of Telstra and buying various unprofitable businesses back in. So, if I were a shareholder I would be very worried about this plan, and if I was a shareholder I would want to see the value of my investment protected. The best way of doing that is moving Telstra, as is the Government's policy, to private ownership so that it can provide good services once the problems in rural and regional Australia have been fixed.
ROBINSON:
Very quickly, I know you have to go. Medibank Private, will your Government sell that?
TREASURER:
What we have done in this Budget is, we have announced a study, what we call a scoping study, to have a look at whether it should remain in Government ownership or be in the private sector like the other health funds, MBF and so on. And we will, once we get the report back, we will make that decision. So at this stage we have not decided that.
ROBINSON:
And just finally, the visit to regional areas, as I mentioned, is a first with the post-Budget discussion. But is it also an attempt to woo regional Australia, to let them see you as you challenge, or head towards challenging for the leadership?
TREASURER:
I get out to regional Australia as much as I can and the great thing about being here today is I am here to support Mark Vaile who has been a terrific colleague of mine, and we are also going to be announcing Federal funding towards the expansion of Australian Solar Timbers in Kempsey. And that is another reason why I have come out here about $715,000 to Australian Solar Timbers in Kempsey as part of a regional adjustment programme to, we think, create about 40 new jobs in the region.
ROBINSON:
But it is an opportunity to get out and meet the people and let them see you as the next potential leader of the Liberal Party?
TREASURER:
Oh, I love getting out and meeting people. It is much better than being struck in Canberra, I can assure you of that.
ROBINSON:
Mr Costello, thank you for joining us.
TREASURER:
Thanks very much.