TRANSCRIPT OF THE PRIME MINISTER
THE HON JOHN HOWARD MP
INTERVIEW WITH JIM WALEY, NIGHTLINE

7 February 2001

WALEY: Prime Minister, welcome back to Nightline.

PRIME MINISTER: Good to be back Jim.

WALEY: Sir, the interest rate cut, will this be enough to stop the economy heading into a severe downturn?

PRIME MINISTER: Well I don’t think the economy was heading for a severe downturn anyway but this is a great announcement. It cuts something like $42 a month off the average mortgage around Australia, a lot more in a city like Sydney, it’s good news for homebuyers. And it shows the advantage of a flexible approach to monetary policy whereby the Reserve Bank responds very rapidly and I think it is good news all round, very good for small business, very good for the housing industry, but particularly good for people paying off a loan.

WALEY: But the fact that it had to happen in the first place – the Opposition claimed today that the 0.5% rate cut proved the Government actually misread the economy over the past twelve months, ignoring signs of any slow-down.

PRIME MINISTER: Well you know, that really is just so sort of, that’s rote negativity. When we took over from Labor the average loan repayment per month was $250 higher than what it is now, so the last people who can fire broadsides at me and my government over interest rates are the Labor Party.

WALEY: But you do acknowledge the need to lower interest rates to spur some more business activity?

PRIME MINISTER: No, I acknowledge that you run a monetary policy that is flexible enough to adjust to different circumstances.

WALEY: But just one more point on this, it’s quite probable is it not that the Reserve Bank will have to tweak the interest rates down over the next few months. The warning signs are there surely aren’t they?

PRIME MINISTER: Well I’m not going to speculate about what will happen in the future, I can only draw attention to current realities and the Reserve Bank has done the right thing and people are better off and it’s unqualifiedly good news for the Australian economy.

WALEY: A sharp change in just twenty-four hours from the Treasurer about Business Activity Statements. Yesterday he inferred the changes could be six months away, today he’s talking about announcing changes to the form next week. What are the changes? And how quickly will we see some action?

PRIME MINISTER: Well we are going to make an early announcement Jim. We are looking at it on a daily, hourly basis and until we’ve decided what the changes are going to be I’m not going to try and dribble them out, there’s nothing to be achieved by that. I can assure you and assure the viewers that any changes that can be given effect to in the next Business Activity Statement in April will be attended to in that way. A lot of people have got in touch with us and said ‘hang on, we didn’t find this form so complicated’, others have said it is complicated and our view is that if there is any body of people who find it complicated then if we can simplify it, make it easier, consistent with maintaining the integrity of the system, we’ll do that.

WALEY: On fuel, you’ve stuck to your guns over the petrol excise. Isn’t it somewhat dangerous political gamble to go ahead with spending that $1.6 billion on roads at the expense of cheaper petrol for the motorist?

PRIME MINISTER: We sat down before Christmas and we decided it was a better longterm investment to spend about $400 million a year on additional road funding than effectively cut the excise by no more than 1.5 cents/litre. That’s a judgement we made and like all the judgements we make as a government, we’re accountable to the people and some will agree and some will disagree. But it was an honest assessment of what we thought was better for the country.

WALEY: At what point do you think that petrol will be too expensive for the average motorist?

PRIME MINISTER: Well it is, all I can say Jim is that it’s a lot dearer now than I’d like.

WALEY: It certainly is.

PRIME MINISTER: And it’s a lot dearer than I’d like now overwhelmingly, not because of excise but because the world price has gone up.

WALEY: Well what will be a politically acceptable level before you subsidise it?

PRIME MINISTER: Well Jim I don’t run that sort of ruler of political acceptability. I try to . . .

WALEY: Even in an election year?

PRIME MINISTER: No, no I make decisions that are based on my best and honest assessment of what is in the public interest and I honestly believe that it’s better longterm for the public of Australia to spend $1.6 billion over four years on road funding, and roads last for years.

WALEY: And finally Laurie Oakes’ story tonight about a questionnaire to federal Liberal MPs about their personal and financial matters aimed at eliminating possible political problems – were the questions too intrusive?

PRIME MINISTER: Well a number of my colleagues found some of the questions a little intrusive and what has now been arranged is that the normal vetting process that goes on in relation to pre-selections, many of these issues will be aired. And let me make it very clear that any questions asked of my colleagues about you know, the behaviour of their staff in relation to enrolments and things of that kind are quite legitimate questions and I’m very happy to answer those questions in relation to my staff and I know that all of my other colleagues are. But equally Members of Parliament do have rights in relation to the privacy of their affairs like any other citizen and sometimes questions can be too intrusive and people have a right to say so.

WALEY: Prime Minister we have to leave it there. Thanks very much for your time.

PRIME MINISTER: Thank you.

END