Transcript
3 June 2009
Interview: Sky News AM Agenda with Kieran Gilbert
Subjects: Net exports, safety of Indian students
KIERAN GILBERT: Good to see you Mr Crean, thanks for coming in.
SIMON CREAN: You too, Kieran, good to see you.
KIERAN GILBERT: How positive would it be if Australia could avoid a statistical recession. We've got the national accounts out at 11.30. If the number is positive - well, technically Australia isn't in a recession because we haven't had two quarters of negative growth - would that be positive, good for morale?
SIMON CREAN: Well look, it's just a quarter's figures, and let's wait and see what they are, Kieran. But the important thing is that we are in a global recession. That's the fact of life. Australia is being impacted by it. It affects people's lives, and that's why the Government has been doing everything it can to get ahead of the game. You look at this quarter itself. All of our trading partners, all of the leading economies have had massive declines for the quarter. Whatever the outcome of the figures today, Australia will be doing far better than the rest of the world. And why is that the case? Because we've tackled the problem head on on the four fronts that matter to economic growth.
Consumption, business investment, Government expenditure, and net exports. And those figures that you talk about in terms of the balance of payments, what they really do is to drive home why trade matters to this economy, and why net exports can contribute positively to GDP. But we're concentrating on all four dimensions, and that's why Australia is better positioned than the rest.
KIERAN GILBERT: It'd be good for morale, though, wouldn't it?
SIMON CREAN: We're not immune. Well…
KIERAN GILBERT: If the numbers were positive, it'd be good for morale, and…
SIMON CREAN: But there's all sorts of things that can boost the morale. I think that what has helped Australia, and why businesses are not laying off to the large extent, they are realising that the lesson of the boom was that they couldn't get skilled labour. Now that they've got skilled labour, and there's that view that when we get out of this, we want to take off again. We don't want to lose those people who really are the biggest asset to us.
So you see a lot of job sharing and all of those sorts of circumstances, but underlying it is a view that Australia is doing better than the rest. Why do they have that view? Because it's the decisive steps that this Government has taken right from the early stages of the depth of this recession being known globally, we acted.
We acted in December last year. Again in February. Again you saw the impact of the Budget.
But we've also been aggressive on the trade front, because we know that our future and our sustained economic growth going forward is to continue to open up markets.
KIERAN GILBERT: Well on that trade front, we constantly hear that the mining boom is over, and yet that export performance for the first three months of the year showed that China particularly in terms of commodity exports, the volumes were strong; is the talk that the boom is over premature?
The prices might be down, but the volumes were still very substantial.
SIMON CREAN: Volumes were very strong, and a lot of the contracts for last year were written in US dollars, so the exchange rate also worked in our favour on the price effect. But you mentioned China, and I've spoken with you about China and the importance of it, and why we've got to concentrate so much on that.
It is growing. It is the fastest growing economy in the world. This year, next year, the year after. It's investing a lot in infrastructure. That's important for our resource base.
But so, too, interestingly, are the economies in recession - Japan and Korea. Our exports to both of those countries in the resource sector are up. Why? Because those countries are doing what every other country in the world is urged to do, and that is invest in economic development.
If the private sector is not investing, the Government sector has to step in. They're investing in their infrastructure needs. India. Another economy that is growing positively has got an infrastructure deficit. We've known that.
We've been concentrating on India.
Within our region, we've concluded the ASEAN Free Trade Agreement - 600 million people. Our largest trading block. Why? Because these are the economies that are growing. And Indonesia and Vietnam, they're both in positive growth. Now what is all this saying to our exporters? This is the time to understand the inherent confidence and potential of this economy to understand that despite the global recession, there are market opportunities are out there.
And that's why we went in hard, in the Budget, to get that payment for the Export Market Development Grant scheme, so that we can help our exporters defray the costs; really address the fact that we want to get them into market share.
KIERAN GILBERT: I want to ask you about India. You spoke about that as one of our key markets. We've seen the violence against Indian students. The Prime Minister's spoken to his counterpart in Delhi. You've set up a task force, interagency task force to deal with it, but what can a governmental task force do to stop these racists from the violence on the streets?
SIMON CREAN: Well first of all, there's no allegation, substantial allegation that these are racially motivated. And certainly the Government….
KIERAN GILBERT: But the Indian students have been targeted time and time again. Do you not think that it is at all to do with their race?
SIMON CREAN: I don't believe so. And neither does the Indian Government. There are people that assert this - and you can sensationalise it if you like and worsen the problem if you like. But Australia is not a racist society. Australia is an inclusive society. Australia is a welcoming society. The Prime Minister has spoken to his counterpart, the Foreign Minister to his, and yesterday, I spoke to my counterpart who's just been sworn in.
At no stage have they alleged racism as a motivation. They all are aware of the very conscious efforts that the Australian governments are taking to address this problem, and are deeply appreciative of it.
They know we are sincere.
And why are we sincere, Kieran? Because there's no point encouraging students to come and study here if their parents and themselves don't think they're going to be safe. Australia, I believe, is an inclusive, welcoming, tolerant society.
It's easy going. It engages people. That's the image that people have in the vast majority of cases about Australia. That is a brand worth preserving - and if we can really get on top of this problem, and government's do matter - that's why the coordination has to take effect.
I also spoke with Premier Brumby this morning. This has got to be a whole of government approach across all the departments affected, and it's got to be whole of governments in the states that are impacted.
KIERAN GILBERT: Just finally, on the issue of the Defence Minister, he was given a gift last year, accommodation in Brisbane at a football game. He didn't disclose it at the time. Is this the straw that broke the camel's back.
I mean, it's - there have been a number of occasions where he hasn't disclosed pa… gifts and payments. The Opposition's calling for him to be sacked.
SIMON CREAN: Well he did disclose it, and if you listen to his explanation in the Parliament yesterday, he explained the reason as to why it happened, and why it overlooked. He actually paid, and then the body, or whatever it was, the company paid it back. He…
KIERAN GILBERT: So it was an innocent mistake.
SIMON CREAN: Innocent - well, I believe so. I've listened to the explanation that was made in the Parliament last night. He made it as soon as he got back into the country. He declared it. He's written and put it on the register. And it's certainly no hanging offence, Kieran.
KIERAN GILBERT: Okay. Simon Crean, appreciate your time. Thanks.
SIMON CREAN: Thanks very much.
ENDS
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