

PRIME MINISTER



20 September 2005

TRANSCRIPT OF THE PRIME MINISTER  THE HON JOHN HOWARD MP  DOORSTOP INTERVIEW,  LANGHAM HOTEL, MELBOURNE



Subjects: North Korea; Australian troops in Iraq; Wheeler report; fuel prices; skills  shortage.

E&OE………………………………………………………………………………………. .



PRIME MINISTER:

Could I just start by saying how much I welcome the in-principle agreement that has  come out of the six-power discussions concerning North Korea.  It’s a very significant  development, it is an in-principle agreement and our welcome must be cautious.  But it’s  a huge step forward from where we were and if the in-principle agreement is translated  into a reassuring, detailed outcome then we can look back on it as having been a  significant step back from what was a very dangerous situation not only for our own  region but for the entire world.  Now North Korea has broken agreements in the past and  we must therefore be cautious, but after a lot of discussion this is a very positive  development. I congratulate all of those involved for the patient diplomacy and I look  forward to the in-principle agreement now being translated into a detailed arrangement  for the future.

Any questions?

JOURNALIST:

It’s difficult to accept fully perhaps that North Korea might abide by any such  undertakings?

PRIME MINISTER:

James, North Korea has made agreements in the past and broken them.  But we have to  take everything step by step.  The in-principle agreement is a breakthrough and there will  be mechanisms to provide for detailed inspection and that will be carried out by the  International Atomic Energy Agency so that if there is a breach in the future that breach  will identified.  But obviously this is a better outcome than a total breakdown and we

must hope that the breaches of the past are not repeated in the future.  But we are all right  to be cautious, but we shouldn’t be so negative as to pretend that this isn’t a welcome  development, it is a welcome development and I hope it does translate into a detailed  arrangement that provides lasting reassurance.

JOURNALIST:

So Sydney’s now safe from a missile attack?

PRIME MINISTER:

Certainly what this has done is to improve the whole climate.

JOURNALIST:

Senator Hill has indicated that Iraqi forces might be able to accept responsibility for  security in Al Muthanna province by early next year.  Would that mean our troops  coming home or a redeployment?

PRIME MINISTER:

Well I think we just take one thing at the time.  What Senator Hill has said is that the  capacity of the Iraqi security forces is improving.  It’s improving as a result of the  training being provided by Australians and others which underscores how good it is that  our troops are there and how wrong the Labor Party has been to oppose the deployment  of those troops.  You can’t on the one hand say you want an independent, self-sustaining  Iraq and then deny the Iraqi people the opportunity of achieving that goal.  And the only  way you can ever have strong, self-sustaining Iraqi defence and security forces is to train  them and that is part of what the Australians are doing.  They’re doing a great job,  progress is being made but at this stage I’m not putting any times down, I’m simply  remarking, as did Senator Hill, that the capacity of the Iraqis is improving.  But I’m  certainly not getting in any commitments about dates.

JOURNALIST:

Is Cabinet considering the Wheeler report today?

PRIME MINISTER:

Yes, we’ll be looking at the Wheeler report, amongst other things.  It’s quite a valuable  document, it highlights a lot of the progress that’s been made, it also indicates some areas  where improvements could be made and we’ll be responding pretty positively to all of it.

JOURNALIST:

Are there any significant concerns for you that have come out of the report?



PRIME MINISTER:

Look I think at this stage we better have a look at it, as the Cabinet, first and then if  there’s any announcement needed I’ll make it.

JOURNALIST:

Mr Howard, there are reports in the papers today about an additional excise on fuel from  January 1st this year as a subsidy to go to fuel companies to create cleaner fuel.  Why is  that necessary when we’re being slugged so much more on petrol over the past few  months?



PRIME MINISTER:

Well that was an announcement that was made a couple of years ago in an entirely  different environment and the announcement said that the desirability and need for it  would be reviewed before it came into operation.  Let me tell you it is being reviewed  and we may have something further to say about it.

JOURNALIST:

So it’s possible that the extra money that the Government has earned in the past few  months from high fuel prices could be directed to the fuel companies?

PRIME MINISTER:

Well the Federal Government has not got any extra money, the Federal Government has  not got any extra money.  The excise has thus far remained completely fixed, the Federal  Government therefore has got no extra money.  The extra GST that’s been collected has  all gone to the States and whether they are any better off depends on how much less  people have spent on other items subject to the GST in order to pay the higher price for  petrol.  But the Federal Government is no better off as a result of the higher oil prices.  I  want to make that clear - this seems to be constantly misrepresented in sections of the

media - the federal excise is a fixed amount, not on the cost of the petrol, but on the  content of the fuel and therefore when the price of petrol goes up the excise collection  does not increase.  And as for this item you mentioned at the beginning, it was always  intended that it be reviewed before it came into operation and I can assure you and I can  assure the Australian public that it is being reviewed and is being reviewed very soon.   And we may have something further to say about that, even later today.

JOURNALIST:

Mr Howard, a paper to be given later at the skills conference is going to say that while  you’ve increased skilled migration to fill the skills shortage you haven’t actually  increased training or education places over those years, university places.  In other words

saying that Australians are not being trained up but you’re bringing in more migrants.  Do  you have any response to that?

PRIME MINISTER:

Well the answer to the skills shortage is not just to be found, if I may say so with respect  as your question implies, in universities.  The answer to the skills shortage is to be found  in a modern revival of technical education.  We made a terrible mistake in this country a  generation ago when we abandoned the network of technical skills in the name of, in  effect, a university education for all, which was always wrong and it’s been demonstrated  to be wrong and what we need is a renaissance in the modern world of technical  education.  That’s the answer.

Thank you.

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