Australia – PRIME MINISTER – TRANSCRIPT OF JOINT PRESS CONFERENCE – CAIRNS – 4 AUGUST 2010

CampaignTranscript

PRIME MINISTER

TRANSCRIPT OF JOINT PRESS CONFERENCE

WITH meMBER FOR LEICHHARDT, JIM TURNOUR

cairns

4 AUGUST 2010

E & O E – PROOF ONLY

­­­­­­­­Subjects: Cairns Economy; Changes to Family Benefit System; Taxation; Campaign

PM: Well, I’m joined today by our Member for LeichHardt, Jim Turnour, and I thank him very much for having me here in this beautiful part of the world. And I will have something to say about local matters here. But I did firstly want to start by saying that the Prime Minister of New Zealand, Prime Minister Key, has released a statement about the death of a New Zealand soldier in Afghanistan. This is the first death of a New Zealander in Afghanistan. On behalf of the Australian nation, as Prime Minister, I want to offer the nation’s condolences to Prime Minister Key and to the New Zealand people. We as a nation know what it feels like to lose soldier in Afghanistan and obviously our friends, New Zealand, are now going to bear that burden. There will be a family in New Zealand grieving today and our condolences go to them.

I am here today in the federal electorate of Leichhardt, represented by Jim Turnour in the federal parliament, who’s doing a fantastic job. And as we’ve moved around the community today, what we’ve been talking about is the importance of the economy to the people of Leichhardt and the people of Cairns. This is a part of Australia that was particularly hit by the global financial crisis, the global recession, with its tourism industry bearing a heavy loss. And what that meant was unemployment here basically doubled. Unemployment has come down to 9.8 per cent but that is of course more than the on average. And what that shows is that this part of the country particularly needed the benefits of economic stimulus. This part of the country needed to see us step up and support jobs. We’ve done that with $400 million worth of economic stimulus. And I’ve been making the point over the past few days and I’ll make it again. When the global financial crisis threatened, we had the better economic plan to support jobs. We’ve done that here. If Mr Abbott had had his way, there’d be hundreds of thousands more Australians that would have been unemployed, including here locally in Cairns.

And for the future, we’ve got the better economic plan. This is a part of the world where small business is such an engine room of growth. Such an engine room. We’ve got a better economic plan which includes cutting company tax for small business and enabling small business to get the benefit of an instant write-off when they buy new equipment for their business. And today, of course, we’ve made some announcements about new sub-acute beds for the Cairns Hospital. We’ve made some announcements about supporting a great local sporting facility here. These are the benefits you can provide when the economy is strong and we’ll have more to say during the course of today about questions here for Cairns and benefits here for the people locally.

But today, whilst I’m here and having just met with some local mothers and their babies, I wanted to make an announcement about some changes we will make if re-elected on the 21st of August to the way in which we support families with family payments. Now families know what it is like to come up against an unexpected problem. The washing machine breaks down, the car breaks down, your son or your daughter gets selected for the tennis team and they need a new racket. Families know what it is like to have these costs come into the family budget unexpectedly. And of course we understand that families are under financial pressure. That’s why today I announce that if re-elected we will change the Family Benefit System so people can get the benefit of accessing some of their payments early if they face an unexpected cost. Those who qualify for the baby bonus, we will enable them to pull forward $500 of the baby bonus to help meet the costs of setting up for a new baby, setting up what you need in the nursery, buying the pram. And for families that receive Family Benefits, we will enable them to bring forward up to 7.5 per cent of their Family Benefit to help meet unexpected costs. Now, for a family with a child, say two children, an average family, we’re talking about being able to pull forward benefits in the vicinity of $625. Now this will help families just to meet the bills of those unexpected costs that may come along and can throw the family budget out. Now this is a measure which is affordable, it’s modest, but I think it will make a real difference for Australians. And in putting forward these measures, we’ve sorted through and we’ve made sure they are affordable, are costed and that of course, we will acquit our obligations to bring the budget back to surplus in 2013 and nothing we do in this campaign will add a cent to the budget bottom line.

Can I say, this is a very sharp contrast to the chaos and confusion that Mr Abbott is causing with his paid parental leave scheme, and the real anxiety it is causing for Australian businesses and Australian families. Mr Abbott’s scheme is about putting company tax up. If company tax goes up, that puts pressure on prices go up. This is a grocery tax on Australian families. And today Australian business has come out and made it very clear what it thinks of Mr Abbott’s tax arrangements. If I can quote the chief executive of Myer, he says: “It’s a 1.5 per cent that can’t be spent creating employment.” And if I can quote the BCA: “This is policy on the run and it shows.” If I can quote the Victorian Employers’ Chamber of Commerce and Industry: “If it looks like a tax and walks like a tax, then it is a tax.” Well, those words are right. It is a tax. It’s a tax on everything that families would buy (inaudible), everything that family’s rely on (inaudible). It’s becoming even clearer that with the economy at the centre of this campaign, with these things being said about Mr Abbott’s plan for company tax, its effect on employment, its effect on prices, Mr Abbott should step up to a debate on the economy. And Mr Abbott has said he can’t make Sunday night. Well, I say to Mr Abbott, what about Monday night for a debate on the economy? Our plans for jobs, our better economic plan for the future. How about justifying his tax on groceries. I am happy to take any questions.

JOURNALIST: Prime Minister, yesterday you said (inaudible). Both of those changes were promised by Labor at the last election. Can you (inaudible).

PM: Well, we’ve got some big economic reform agendas the Government’s been working on and we’ll deliver. We will deliver a reduction in company tax. And the contrast there, the contrast particularly today, is between our reduction in company tax coming in early for small business, versus Mr Abbott’s plans to put a tax on groceries around the country that have got the kind of hard hitting reaction from business that we have seen today. Our plan to increase superannuation, build national savings. Our plans to invest in infrastructure, including the infrastructure of the future. Our plans, of course, to invest in skills and training for young Australians, versus Mr Abbott’s cuts. And our plans to support small businesses – very important to an economy of a region like this. And I want to give them lower company tax. I want to give them tax write-offs for the equipment that they buy. Mr Abbott would increase company tax and he doesn’t want to see small business getting those benefits.

JOURNALIST: (inaudible)

PM: Well, we have been assured by Medibank Private this dividend can be paid and Medibank Private can continue with all of its current settings. They do not need to change its current settings because of paying this dividend.

JOURNALIST: (inaudible)

PM: Oh look I’m obviously happy to be in Sydney with Premier Keneally and see that some point in the campaign I had hoped that Premier Keneally may have been able to, when I made the very important announcement in Maroubra about the Malabar headland, she had a long standing personal commitment. It was in fact her wedding anniversary, so she went with her family to celebrate that.

JOURNALIST: Prime Minister (inaudible)

PM: Well, can I say, across this campaign I have been talking about what I believe in and the things I will do as Prime Minister. There’s nothing more important than people having a job. The benefits of work and my determination that we keep the economy strong. Nothing more important than building on our education reforms and giving kids a future. This week we announced some major changes, big changes, to how we run schools. Empowering local principals. These things are about delivering high quality education for the future. They are the things that I have brought my personal passion to, they are the things that will define the Government I lead, a strong economy, a focus on education making sure that kids get decent opportunities for jobs.

JOURNALIST: I noticed that the Opposition has announced his economic line-up (inaudible)

PM: Well, I would say one of the problems for Mr Abbott is the (inaudible) turn up for the future

JOURNALIST (Inaudible)

PM: Well Wayne Swan of course will be the Treasurer as Deputy Prime Minister, for Mr Abbott, what I would say with his economic line-up, I’m not sure where Joe Hockey’s been during this campaign, I’m not sure where Andrew Robb has been either, given that on radio in other interviews, he has been confused about basic economic matters, and as for what Andrew Rob has been doing, given less than 10 per cent of the promises made by the Opposition have been put in for proper costing and I must admit I don’t know what Mr Abbott is going to do with Mr Turnbull if he is elected as Prime Minister either.

JOURNALIST: Well what about your Prime Ministership?

PM: Well what you are seeing from me is me as Prime Minister obviously with the Deputy Prime Minister, Wayne Swan clearly outlining our economic plan for the future, people know if they re-elect my Government, what we will do for the economy. What they know with Mr Abbott is he is a big risk, just look at the words of business today and that big risk is in no way changed by the people around him, in fact I think it makes no difference.

JOURNALIST: (inaudible)

PM: It was the right thing to change the baby bonus to periodic payments. We were concerned, as many social welfare agencies and charities around the country became concerned. About the impacts of the one-off payment, particularly on young people so it was the right thing to do. To support people, as they’re experiencing the cost of having a new born baby. But yes there are some costs that you need to meet up front, that’s why we think it is appropriate to be able to bring forth $500.

JOURNALIST: Prime Minister, you are half way through your campaign today, I wonder if you want to (inaudible)

PM: Well the central challenge here for me and for the nation is to make a decision about who is best in position to guide this nation for the future and keep our economy strong. It’s the centre of this campaign, it’s the centre of the choice on the 21st of August. I am talking about the economy, I have a plan for the economy, I’m prepared to debate the economy with Tony Abbott on Monday night, if that’s what suits him. He has said Sunday is no good, well what about Monday. In this campaign, Mr Abbott’s uncosted policies, can’t save when the Budget is coming back to surplus. Getting an adverse reaction from business to his new tax which will flow through to the prices which people pay. No plans for infrastructure, no plan for skills and planning. Everything on that side of the ledger associated with cut-backs, let’s have that debate, I’m happy to do it.

JOURNALIST: (inaudible)

PM: Well look, I’ll leave the political commentary to the political commentators in the room. I’m going to be out there as I am today with our great local Members and Jim Turnour has been a fantastic advocate of the needs of this community, and that is why we are making announcements today like more support for the Cairns based hospital. And more support for local sporting facilities because of his advocacy. I am going to be out with our local candidates and members, traipsing about describing our better economy plans for our nation’s future and talking about what it would have been like, here in Cairns if we had taken Mr Abbott’s advise, gone into recession, hundreds of thousands of people out of work in a hard hit region like this one. Imagine what it would have looked like, with economic stimulus (inaudible). Yes we would have still seen people unemployed, there is an unemployment related 9.8 per cent here, obviously we would keep working to get that down imagine what the unemployment rate would have been here, if Mr Abbott had been Prime Minister.

JOURNALIST: Prime Minister, now two weeks ago Wayne Swan (inaudible) yesterday he promised $2m in the marginal seat of Dobell for a sporting contract which hadn’t been built yet and today (inaudible) $2.5m for a junior rugby club, how desperate is this Government in this election (inaudible)

PM: I believe that local communities want to see the benefits of the strong economy in their local community and with a strong economy we can provide benefits and bring the Budget to surplus in 2013. The problem for Mr Abbott is he can’t name when the Budget is going back to surplus. I can define when the Budget is going back to surplus and provide benefits like these. And on the benefits we provided today, it is important to have some acute beds to take pressure off acute beds in public hospitals and to provide rehabilitation. It’s important to provide good quality local sporting facilities. The kids we have met today, many of them young Indigenous kids are part of them keeping them motivated and enthused about education with them being able to play sport, be engaged in sport, that is part of keeping them in the system, getting the skills they need for life and work. That’s why we provided the extra assistance to Jones Park today, some great work is happening there

JOURNALIST: Would you consider debating Bob Brown if you wanted to entice Tony Abbott into (inaudible)

PM: Look the economy is at the centre of this campaign, I’m sure Bob Brown is full of aspirations, but there is only two people who can end up Prime Minister and leading the national economy. That’s me and Mr Abbott, that’s why I am saying to Mr Abbott the economy is the centre of this campaign, we need to test his economic plans. We see today that his plans for a company tax is coming under fire from business, let’s test his economic plan versus my economic plan through a debate, I’m happy to have it Monday night.

JOURNALIST: Prime Minister, are you sure that your cash for (inaudible) policy won’t end up the same insulation program did?

PM: Yes I am sure. We have designed the policy you referred to enable us to get some our older cars that spew out a lot of pollution off the road carefully. What you need to do, is you need to go and buy a new car, you need to have a registered motor vehicle, you need to have seen the person it was registered to and then you need to go and get yourself a greener car.

JOURNALIST: Prime Minister, In principle (inaudible)

PM: Well, I have deliberately changed the style of the campaign. I have said I was going to do that, I said I wanted to be more out talking to Australian’s. I’ve said that I wanted to be more out carrying Labor’s message, putting forward the policies and plans to make a real difference to the nation’s future, making myself available to do that, I’ve been doing that and once again in this opportunity and in other opportunities you talk to people here, you talk to some of the people I have met this morning who know what it’s like. Who know what it’s like to have worked who have (inaudible) months of unemployment who have got a new start. There is nothing more important, nothing more important than people having jobs. Yes.

JOURNALIST: On the (inaudible) the government (inaudible)

PM: Well this is a $500 cash advance so obviously there is a limit on it. It is there to help people with the set up cost that people have. Getting the pram, getting the clothes, getting ready for a new baby, I believe that the periodic payment is the right way to deal with it, but to help people prepare the $500 will be available if they want it and then for family benefits, and of course this is about more than the baby bonus, there are people who strike unexpected costs. Something happens to the car, something happens to the washing machines, something happens at home which means there is a bigger cost than what is already in the fortnightly budget, it will enable people to bring some of their family benefits forward for that cost.

JOURNALIST: (inaudible)

PM: Well, firstly, I of course want to see people in jobs and that’s why when the global financial crisis threatened, we stepped up and we supported jobs, and that was particularly important for older workers because we know from past economic downturns if older workers lost their jobs, some of them never worked again. It shattered their ability to ever get paid employment again. Now when we were there, stepping up providing support for jobs, including here in the Federal electorate of Leichhardt (inaudible) this hard hit local economy. What was Mr Abbott saying? He was saying, no economic stimulus, let’s be like New Zealand, let’s have a recession, let’s have hundreds of thousands of people out of work, there would have been older people in those figures that would never have worked again. And on the policy he has announced today, where are the costings, why can’t Mr Abbott tell the Australian people when the Budget will be back to surplus, why can’t Mr Abbott put his policies through and appropriate costing process, what has he got to hide?

JOURNALIST:(inaudible) critical of the idea to pay employers more than $3,000 to employ (inaudible)

PM : We have provided economic stimulus we’ve provided a better way of getting job services to people who are unemployed to meet their needs, they have been working for, workers across our economy, I understand that older workers, if they lose their job can face particular difficulties , that’s why we took the step we took to keep people in work. It’s one of the reasons that’s precious, it’s one of the reasons its needed and Mr Abbott, just wanted to sit there twiddling his thumbs, watching people, including older workers, join the dole queue.

JOURNALIST:(inaudible)

PM: Well I’ve dealt with the question about the Greens before. They are no policy arrangements between the Labor Party and the Greens full stop. On the question of plain packaging for cigarette packets, I’m glad you’ve raised that with me because when I heard all of this it did ring a bell with me and, of course, people would be familiar that I’ve spent a fair bit of time debating Mr Abbott on the Today Show. On the 30th of April we had a debate about plain paper packaging where I was advocating it. To which I said, during the debate, me speaking, the plain paper packaging, yes or no? Are you going to keep taking tobacco donations? Mr Abbott: Fine, fine, fine, if it shuts you up for a second, yes Julia. Mr Abbott well and truly, in the debate with me, then supported plain paper packaging. Now, of course, equivocal on the concept. So why is that? I think we’re entitled to an explanation.

JOURNALIST: Prime Minister, I just want to ask, as (inaudible) with two and a half weeks to go are you going to be concentrating your efforts on Queensland and New South Wales or are you going to be concentrating your efforts on maybe Melbourne and Victoria, South Australia where you seem to be doing better? Why are older voters seemingly going to Labor? (inaudible)

PM: You’ve seen me campaigning around the country, you’ve seen me campaigning every day and I am going to be out there fighting with everything I’ve got everyday because it’s too important to this nation’s future to risk with Mr Abbott with Australians waking up on the 22nd of August with Mr Abbott as Prime Minister – no economic plan, no understanding of the economy. Don’t ask me, ask his Liberal colleagues, they say that themselves. I don’t want to see Australians risking our strong economy, risking bringing the Budget back to surplus, risking Australians being in work, risking getting our fair share for jobs of the future, risking national savings, not building the National Broadband Network. That’s what would happen if Mr Abbott was Prime Minister of this country on the 22nd of August – it’s a pretty frightening vision of the future. I’m going to be out there each and every day arguing for my better economic plan and we have people in jobs under Labor you’ll get a fair work system, under Mr Abbott it will back to the, back to WorkChoices.

JOURNALIST: (Inaudible)

TURNOUR: I’m focussed today, every day between now and the election, about what we can do to support jobs in this local community. The Prime Minister has been here today, made commitments, (inaudible) important local commitments and proved that (inaudible) is certainly going to provide construction. If you’re talking about what’s the critical issue in this election here, it’s about which government has the best economic plan to support jobs here in Cairns across this region and that’s what we’re here today talking about. That’s what I’m arguing for. Every day between now and the election I’ll be out there, meeting people and talking to them on the phone, going to businesses in the local community and I’ll be talking about what we’ve done to support jobs through some very, very difficult economic times. This region has been smashed by the global economic crisis and we have (inaudible) supported jobs in the construction industry, supported jobs in tourism industry. We’ve got some great plans to diversify this local economy and that’s what people are interested in and that’s what we’re here today talking to.

JOURNALIST: (Inaudible)

TURNOUR: I think I’ve answered your question today. What people are interested in is which leader is best placed to manage this local economy. Which leader is best placed to manage the nation’s economy. We’ve got the Prime Minister here supporting jobs. We had Mr Abbott here a couple of days ago – did nothing to support jobs. We know throughout his time in the Opposition, they have opposed economic stimulus. Economic stimulus has been critical for supporting jobs in this local community. We’ve also put in place funds to support the tourism industry, getting new flights back to Cairns, bringing charters in. Those have been very, very important commitments here. Very, very important to support local jobs and that’s what I’m focussing on every day, every minute between now and the next election. Thanks very much.

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PRIME MINISTER – TRANSCRIPT OF INTERVIEW WITH FRAN KELLY – ABC RADIO NATIONAL – 4 AUGUST 2010

CampaignTranscript

PRIME MINISTER

TRANSCRIPT OF INTERVIEW WITH FRAN KELLY

ABC RADIO NATIONAL

4 AUGUST 2010

E & O E – PROOF ONLY

Subjects: Election campaign; Polls; Tobacco companies campaign; economy; Orgill Report; Climate change policy; Mental health policy.

KELLY: Prime Minister, welcome to Breakfast.

PM: Good morning, Fran.

KELLY: Why aren’t voters taking to your leadership? The latest poll show voters in Queensland and New South Wales are turning away. Why is that?

PM: Well, Fran, I’m going to leave the political commentary to others, but I am going to be out there campaigning every day, including here in Queensland in lovely Cairns on the issues that matter most to Australian families. There is nothing more important than having a job, nothing more important than a strong economy. We made the right economic choices when the Global Financial Crisis threatened. We’ve got the right economic choices for the future and they include continuing to support jobs and skills and small businesses. And in an economy like this one, where I am today in Cairns, small businesses are vital to keeping people employed and of course we are going to provide an instant write0-off of new capital purchases for small businesses. You know, new ovens for a restaurant, new tools for a trades person. For purchased worth up to $5000 and there’s 2.4 million small businesses around the country that will benefit from that and of course, we’re cutting company tax, Mr Abbott’s putting it up.

KELLY: And, Prime Minister many of those small businesses as you say in Queensland, you’ve been in and out of Queensland a lot during this campaign, offering things, yet Labor Party’s primary vote is exactly the same as it was two months ago under Kevin Rudd when he was Prime Minister. Can you remind our listeners, particularly Queensland listeners the point of removing Kevin Rudd if wasn’t to put Labor in a winning position?

PM: Well of course the Labor Party made a difficult decision, a difficult decision, because the Labor Party formed the view that there were a series of issues where the Government needed to get back on track. And I as Prime Minister have acted on those. The big one of course was the Mineral Resources Rent Tax. I was concerned that the lack of respect in the national conversation about taxation in the resources industry was causing uncertainty and concern particularly in our great resources states like Queensland. We’ve moved to give that certainty, we’ve moved to enter into an arrangement with the biggest mining companies and that means I am in a position to say, we stand for cutting company tax, Mr Abbott wants to put it up. And we stand for supporting mining communities with new infrastructure, $6 billion around the nation, $2 billion here in Queensland. Mr Abbott stands for ripping that money out of the budget.

KELLY: Yes, again though, just to quote what the polls seem to be telling us and anecdotally we’ve got Liberal strategists, Liberal insiders now suggesting privately the Coalitions on track to win 10 seats in Queensland alone. Now the government got an initial bounce under your leadership, over the past three weeks, Labor’s support has slipped 5 points. Why do think that has happened? What has gone wrong on your watch?

PM: Well, Fran, I always said this was going to be a tough, close election. I always said.

KELLY: But you didn’t say go backwards.

PM: I always said Fran, it would be a photo finish. I said that when press were putting to me questions suggesting to me that they thought my analysis was completely wrong. Well I think Fran, day by day in this election campaign, it is proving to be a tough, close campaign. It will be a photo finish and the single biggest question on people’s minds as they walk into polling places on the 21st of August, I believe, will be the question of who can keep the economy strong. Who can make sure we’ve got the benefits of jobs, support for businesses, infrastructure, the skills we need for the future. I’ve got the better economic plan. On Mr Abbott’s side, no clarity about when the budget’s returning to surplus; no investment in skills and infrastructure; he won’t build the National Broadband Network. I will. He’ll put company tax up, I’m going to cut it. These are the big issues in front of Australians. And Fran you mentioned Liberal Party strategists, well, I think Liberal Party strategists and Mr Abbott have got some explaining to do today. The Labor Party doesn’t take donations from Tobacco companies. I think that’s wrong. I think Mr Abbott needs to come clean about what participation the Liberal Party has in the tobacco campaign about contemporary donations by tobacco companies. I think Australians are pretty worried that Mr Abbott’s health policy is hostage to the influence of the tobacco giants.

KELLY: I think Mr Abbott is on the record as saying that if he wins government, he will continue Labor’s policy of plain packaging of cigarettes.

PM: Well, he has said that, Fran, I forced that out of him on the Today show in a Today show debate, as it happens. But the question is today, what understandings are there between Mr Abbott and tobacco companies, given they take tobacco donation and there is this tobacco industry campaign against plain paper packaging.

KELLY: There are lots of campaigns, small business campaigns, against Labor. There’s a cigarette campaign now, which may or may not be funded by Big Tobacco. There’s a mining tax campaign against you. There’s a small retailers campaign against you in Queensland. There’s a lot of gatherings, small business gatherings against Labor. How damaging is this?

PM: Well, when we look at what industry groups are saying today Fran, they’re all over our newspapers, the Business Council of Australia, the Australian Chamber of Commerce and Industry, that represent small business, the Retailers Association, and what they’re saying loud and clear, is that they don’t want Mr Abbott’s plan to put company tax up. Because of course, it will feed through to prices and the retailers association couldn’t be clearer about that. They’re in the newspapers today saying company tax up, grocery prices up. This is a tax on groceries. It’s a tax on the things that Australians buy, right around the nation every day.

KELLY: You keep saying that, Tony Abbott seems to be making a lot of traction with ones of his lines, which is this Government has been incompetent, just want to play you a bit of Tony Abbott from Sydney commercial radio this morning:

ABBOTT: This election is about a seriously incompetent government which is very good at politics but absolutely hopeless at running a country and what we’ve seen over the last few days is the ultimate exercise in political spin – the claim that the spin’s been dropped – the ultimate work of the faceless men. Well, the trouble with Julia Gillard is you never know when she is being fair dinkum.

That was Tony speaking with Alan Jones this morning. Now just focussing on that line about the incompetent government. You removed Kevin Rudd because you said a good government had lost its way. That message seems to now be accepted by the voters, that the Government lost its way.

PM: Well, Fran, I’m happy to deal in the facts. Of course, there are some things that went off track and we needed to make changes – absolutely I acknowledge that. But then, let’s go to the fundamentals. When we needed to make big economic choices in this country, when Global Financial Crisis threatened, this Government, the Labor Government went for jobs. If we’d listened to Mr Abbott we’d be in recession now ,with more than 200,000 Australians unemployed, losing their homes, losing their life prospects, with everything that means for them and their family’s future. Now that was the better economic choice. When we look to the future, we are standing with the better economic plan. I’m bringing the budget to surplus in 2013, Mr Abbott can’t name the date. I’m cutting company tax, he’s increasing it. I’m investing in infrastructure, building the National Broadband, he won’t build the National Broadband and he is cutting infrastructure funding. I’m investing the skills and capacities of young Australians through Trades Training Centres, he would stop Trades Training Centres and see 1.2 million kids miss out. Now these are the essential questions about keeping the economy strong for Australians and that’s what the decision of the 21st of August is all about.

KELLY: Prime Minister, it’s true that the Government has a good economic story to tell, you’re heading for very low unemployment, there’s lower interest rates than there were under the Howard Government, lower debt by a country mile than most other in the developed world. But still, the electorate seems not to be persuaded. Do you believe that it’s that issue of competency in voters’ minds, competency around the government’s mishandling of the home insulation program, the competency of the waste around the Building the Education Revolution school stimulus program, that that is what voters have made a decision on.

PM: Well, there is a way to go in this election campaign, and every day I’m going to be out fighting. And every day I’m going to be out there talking about our economic record and our plan for the future. And Fran, were sitting on a day where I’ve said that I’m happy to debate Mr Abbott on the economy, I’m happy to make it any time that he likes, and he doesn’t want to debate the economy.

KELLY: I want to ask you about your plan for the future, but just before that, talking about your economic record, some confusion about the release of the Orgill Report into the school stimulus spending. This important report, Simon Crean, the Minister had promised it would be released before the election. Will you make that promise?

PM: Yes, it will be released before the election.

KELLY: Can you tell us when?

PM: Well, it will be released before the election. Obviously Simon Crean will receive the report from Brad Orgill. Brad Orgill’s working on it, he’s got to finish the report, that’s obvious, but it will be released before the election, Fran, I’ve always said that.

KELLY: Have you seen the report?

PM: No, I haven’t Fran. It will be released before the election.

KELLY: You’re listening to ABC Radio National Breakfast. It’s 16 past seven and our guest this morning is Prime Minister Julia Gillard, busy on the campaign trail, talking to us from Cairns this morning. Prime Minister, the Gillard second term agenda: it’s difficult to see how its different to the Rudd agenda.

PM: Well Fran the things that I stand for that I’ve stood for all of my life are about working hard, about making sure people have got the benefit of jobs so you should expect to see from me as Prime Minister – if I’m re-elected, and of course it’s a tough close contest – but if I’m re-elected we would expect me focusing on the things that keep our economy strong and keep people in work. I believe in developing a high productivity, high participation economy. I don’t want to see Australians excluded from the benefits of work, and what I’ve stood for all of my life is investing in the prospects of skills and capacity of young Australians. Nothing matters more to our economic future or our fairness as a nation than what is happening in school today, in education today. I’ve brought education reforms in as Minister for Education. I’ve done the things that were in everybody’s too hard basket and I am promising in this campaign to build on those reforms to be empowering school principals to run their schools to respond to the best evidence that’s available including through MySchool about how they can do better and of course I’ll be working with families as well. They’re under pressure. That’s why I’ve announced things like changes in our family benefits arrangements. Supporting teenagers, a benefit of more than $4000 a year for people on the maximum rate – tied to keeping kids in education. Better for them, better for the country, better for the future of our economy.

KELLY: I think voters were hoping for an looking for a big statement from Julia Gillard, a big sort of iconic policy we haven’t seen yet. One of the big issues that Labor was voted in last time was climate change and you say you believe in climate change you believe strongly that we need to have a price on carbon, a carbon signal, you believe in an ETS, but you also say that you will act on this when the Australian economy is ready and when the Australian people are ready. Now I think Australians – 61 per cent, the latest count – who want action, who support an ETS would like you to lead rather than to wait for everybody to be ready. Why aren’t you taking a lead role and signalling when, and how that Labor will definitely put a price on carbon.

PM: Well Fran, I’m happy to answer your question, but I am going to dispute this – I’m not going to accept your analysis that policies about keeping our economy strong and policies about making sure that every child in this country gets a great education are somehow hum-drum and not iconic policies. There’s nothing more important to the future of this country – nothing – than what is happening in schools today, making a difference for kids. There’s nothing more important to the future of this country than making sure people have got the prospects of getting job, a good job with decent working conditions. No return to WorkChoices. Keeping the economy strong. So if it’s fashionable for some people to shrug their shoulders at that, well I am not joining the fashion. These are things that I am passionate about. On climate change –

KELLY: – Ok what about the future of the planet?

PM: Well on climate change, Fran I have said, I will lead. I will lead as a person who believes in climate change. I believe it’s real. I accept the science. Mr Abbott describes the science as absolute crap, I accept the science. I will lead a national debate, so that we get a deep and lasting community consensus about putting a cap on carbon pollution and delivering so we create no more pollution than that cap, through a market based mechanism, and in the meantime, we will be taking huge steps forward building on our record investments in solar and renewable technology including a billion dollars into transmission lines to bring the clean energy of the future into the national grid so people can use it in their homes and businesses and making sure we have no more dirty coal fired power stations built in this country as well as the other measures we’ve announced, to have people work in greener building to renew our car fleet. These are all important measures to tackle climate change.

KELLY: But as you said, there’s no more important measure than a price on carbon, you say you will lead the debate, but on the other hand you say you’ll act when people are ready. You had a mandate to act, Labor got a massive mandate to act on this at the last election.

PM: Yes, and let’s go to the facts Fran, you know, let’s get to the facts. Yes we had a mandate to act and we brought the Carbon Pollution Reduction Scheme to the Parliament and we shook hands with the Liberal Party leadership and they said they’d pass it –

KELLY: – and you could have had the courage of your convictions and gone to a double dissolution.

PM: And then Mr Abbott became Liberal Party leader and then trashed that political consensus, that’s what happened. Now what I’ve learned from that is, a fragile political consensus in Parliament House is not good enough for a reform as transformative as the Carbon Pollution Reducation Scheme. We cannot have this hostage to the three year political cycle. Put in a Carbon Pollution Reduction Scheme one year, have an election the other year, the other side of politics wins and abolishes it the next year, our economy -

KELLY: – There’s a (inaudible) to say why didn’t you test it with the voters, take it out of the Parliament and go to the polls on it. Call a double dissolution election? Labor fell at that hurdle. And now you’re putting in a Citizen’s Assembly which people have seen that your support dived at that point, people saw that triggered that all talk no action feeling in the community.

PM: Well Fran, let’s just go through it and if we had taken that course and there was no deep and lasting community consensus, we could have been in the economically risky situation where you’ve got a carbon pollution reduction scheme one day and the election changes and it is abolished the next. In order to guard against that uncertainty to have the real transformation our economy needs, we need a community consensus. Deep and lasting. That is then reflected into national politics, not a fragile consensus in Parliament House. Now I will lead this debate, I’ve announced as one part. One part of working on community opinions here that we will have the Citizen’s Assembly. But while we have that one part working, we will be doing so much more, because I believe in Climate Change including the transmission lines I’ve talked about. No more dirty coal fired power stations. On the other side of politics, Mr Abbott of course says, he doesn’t want to price carbon, he doesn’t believe in a Carbon Pollution Reduction Scheme. He will cap pollution in this country. The only thing he will ever do is take money out of the purses and wallets of Australians and give it endlessly to big polluters as the amount of pollution goes up.

KELLY: Prime Minister I know you’re busy, just two quick questions before I let you go. The mental health, the many of the mental health sector were disappointed with Labor’s announcement so far in this campaign. I know you’ve said that mental health will be part of the Gillard second term agenda with no more specifics on that, but will there be any more money in mental health announcements in this election campaign?

PM: We’ve announced what I believe is an important policy, dealing with the tragic question of suicide. More Australians dying at their own hands each year than die on the roads. I understand that. That there’s more to do in mental health and I would be working with the sector if re-elected to get it done -

KELLY: – So no more money?

PM: We’ve announced what I think is a significant policy. What I’m not prepared to do Fran, is what Mr Abbott has done and that is rob other parts of the health budget, including parts of the health budget which make a difference for people battling with mental health illnesses. Mr Abbott wants to stop people getting access to a GP Super Clinic, that can get you integrated care. People with mental illnesses need that kind of support. He wants to stop you being able to ring a hotline and getting medical assistance in the dead of night. People with mental illnesses need that kind of support. He wants to stop electronic health records. People with complex conditions, mental health complaints are the kind of people that would benefit from having their records available to each health practitioner they see rather than endlessly retelling their story with all of the risks that that entails for wrong medication arrangements and all the rest of it that the health professionals point to, so I’m not going to make those cuts, which Mr Abbott is making in order to support his mental health policy.

KELLY: And finally Prime Minister, today is the mid-way point of the election campaign, if the polls are right, your stint as PM could be one of the shortest in the history of Australian politics. Are you ready for that?

PM: Well its’ a – this is not about me Fran – this is about the future of the nation. Yes the remaining time in the election campaign is short and I will be using that remaining time in my own style, out running the election campaign in my own way, making the point about the decision on the 21 August, that it’s a big one and people when they make it will be voting either for me as Prime Minister with my economic plan for the future or Mr Abbott as Prime Minister with all of the risks that he entails to our economy. Don’t take my word for that, talk to Liberal Party people who know him well, Peter Costello, John Hewson who say he’s not up to managing our economy.

KELLY: Prime Minister thank you very much for your time. Hopefully we can catch up with you again before this campaign is out thank you.

PM: Thanks Fran.

KELLY: Prime Minister Julia Gillard, joining us in the campaign trail in Cairns and we do continue to ask Opposition Leader Tony Abbott to appear to so hopefully he’ll come and speak to us soon

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