Sky News - AM Agenda

  • Transcript, E&OE
Belt and Road Initiative, TPP-11, trade agenda, company tax cuts, Catholic schools funding, Longman by-election

KIERAN GILBERT: Isthis a direct challenge to China's One Belt, One Road initiative?

STEVEN CIOBO: Well,look, it absolutely is not a challenge. Of course not. This is part of aninitiative that the Australian Government's undertaking with the othergovernments and, of course, throughout the region we have a number ofinitiatives in place, including the AIIB, the work of the Asian DevelopmentBank as well as, of course, China's Belt and Road Initiative.

KIERAN GILBERT: JulieBishop's statement says that this trilateral partnership is in recognition thatmore support is needed to enhance peace and prosperity in the Indo-Pacific.What does that mean, you know, in the context of Mike Pompeo also saying thatone country shouldn't have domination. It seems that the subtext to all of thisis China?

STEVEN CIOBO: Well,this initiative is about making sure that we play an active role, and when Isay we, Australia plays an active role in the provision of infrastructureacross the region. We want to ensure that Australia is very active in engagingwith developing economies across the region, and others, to make sure we canmeet some of the huge demand there is for infrastructure. And frankly,Australia has real experience and excellence in this area, we're great atproject design, we're really good at project financing, building, construction,development. And, of course our aid program, especially in the Pacific, is onewhere we invest a lot of time and effort in making sure that we have asustainable approach to the provision of infrastructure throughout the region.

KIERAN GILBERT: The question is though, whywouldn't Australia just sign up and be a part of the Chinese-led One Belt, OneRoad? Is it because we want to have a different focus in terms of the provisionof that infrastructure, I know there've been some concerns expressed by yourcolleagues about the way that the Chinese provision of debt is undertaken bysmaller neighbours.

STEVEN CIOBO: Well, Ithink it's wrong to view these things as either or. The fact is that we canparticipate in and be part of all of the initiatives in the region. That'sprecisely why, historically of course, we've done a lot of work through theAsian Development Bank, it's why we're also working through the AsianInfrastructure Investment Bank, it's why we are working with China, where wecan identify opportunities for us to work together in third countries topromote sustainable infrastructure, and it's also the reason why we're nowapproaching this trilateral approach, in relation to the provision ofinfrastructure as well. So Kieran, all of this broad sweep of issues in theregion, is all about addressing the huge unmet demand for the provision ofinfrastructure throughout the Indo-Pacific region.

KIERAN GILBERT: Soyou're not worried about some backlash from the Chinese over this?

STEVEN CIOBO: Not atall. I mean why would there be any? The fact is that we demonstrateconsistently that Australia is very focused on making sure that we can help theleast developed economies in our region to get onto more economicallysustainable footing, that's what lay at the core of our aid for trade policy.It's what lays at the core of our overseas development assistance policy. Butin addition to that, this is also about opening a wealth of opportunities toAustralian businesses, it's about making sure Aussie businesses can be thereproviding project financing, project design, construction in relation to thisinfrastructure that, you know, is coming, the demand for this infrastructurethat's coming from the South Pacific, it's coming from ASEAN nations, it's comingmore broadly across the region.

KIERAN GILBERT: So,while Australia's working with the US on this front, we have a differentapproach when it comes to trade liberalisation, of course. And your speechtoday, gonna be talking about the need for Australia to be engaging in moretrade agreements. I guess by that you mean bilateral trade agreements,potentially with giants in the region, like India. Can you explain to ourviewers your thinking on this and how it might inoculate Australia from anyongoing trade war?

STEVEN CIOBO: Well, I'mpursuing Australia's most ambitious trade agreement agenda. We're looking atpursuing agreements bilaterally, as you said, but also pursuing agreements on aregional basis. Now as you know Kieran, we recently put in place Trans-PacificPartnership 11, the TPP-11. That's giving Australian businesses access totrillions and trillions of dollars of economic activity throughout the region,we're also looking at regional agreements like what's called the RegionalComprehensive Economic Partnership. You know, a lot of jargon, but basicallythat is the ASEAN nations plus six more, including Australia, New Zealand,Korea, Japan and India and China, and all of us working on trying to make surethat we can develop an approach that promotes trade, that promotes tradeliberalisation that can help to drive investment because ultimately, all ofthis is about driving economic growth and creating jobs for Australians.

KIERAN GILBERT: Oneof the things thatI know that you've been very strong on is yoursupport for the company tax agenda. Some of your colleagues seem to be waveringon this. What's your message to them because, as I know, we've discussed itmany times, you advocate very strongly that the Government needs to maintainthe full, ten year plan for those tax cuts?

STEVEN CIOBO: Well,frankly, the Coalition will always stand for lower taxes and Labor will standfor higher taxes. Reducing the burden on our companies, reducing their taxrate, is about making sure that we can see more money flowing back to mum anddad Australians, and the reason that happens, Kieran, and we should neverforget this, every single ordinary Australian, every average Australian that'sworking, that's got a superannuation account, they are owners of all of thesebusinesses, and they own them through their superannuation funds. Now, if wecan increase the profitability of these businesses, they can do two things.One; provide a higher return to the everyday mum and dads out there who ownthese businesses in their superannuation, and that provides for theirretirement; but the second thing that it does is it means that these businesseshave more money to pay their workers, more money to invest in making theirbusinesses bigger. So this is all a critical driver of economic growth andeconomic growth drives jobs, and that's why the Coalition has been successfulin creating a record number of news jobs in Australia. And that's why Labor'sapproach will see less investment, less growth and less money for everyday mumand dads to be able to provide for their retirements in the future.

KIERAN GILBERT: Soyou want to see it, go to the election, regardless, and remain on the books asCoalition policy, even if it doesn't get through the Senate in August?

STEVEN CIOBO: Well, theCoalition should always approach an election having a lower tax profile thanLabor. Labor is about more taxes, the Coalition is about fewer taxes and lesstax overall. That is the fundamental difference between the Coalition andLabor. Labor wants to tax its way to prosperity, the Coalition knows that it'sonly by making sure we remain competitive that we are going to ensure that wehave stronger growth in Australia and more jobs for Australians. Now,ultimately though, whether the Senate agrees or disagrees, time will tell.We'll have to deal with those issues as they resolve themselves over the monthsand weeks ahead.

KIERAN GILBERT: Coupleof other issues before we wrap up, there looks like there might be a deal withthe Catholic Schools sector, that was another issue, there were many issues atplay in the by-election in Longman but those letters to parents wouldn't havehelped, so a deal with the Catholic sector would be a welcome one.

STEVEN CIOBO: We, ofcourse, are putting record funding into Australia's education system. We'vebeen able to do that because we've got debt under control, we've got deficitunder control, and that's why we can put more money into schools, and put moremoney into hospitals. Labor, of course, wouldn't do that. They would actuallyincrease Australia's debt profile. Ultimately, we want to ensure that we haveall sectors of Australia's education community pleased with the outcome, andthat work continues.

KIERAN GILBERT: Andfinally, there's a view among some of your colleagues that Malcolm Turnbull hasa challenge to connect to Queensland voters. We saw a primary vote of lessthan, just less than 30 percent, but a big swing to One Nation. How does he goabout doing that ahead of the election next year?

STEVEN CIOBO: TheCoalition has got a concrete plan to make sure that our economy continues toget stronger, Kieran. We're investing in infrastructure, of course, we've seenbillions of dollars committed to infrastructure throughout South EastQueensland. Also the Coalition is going to ensure that we have a lower taxburden on Australians. We don't want Australians to be paying record amounts oftax. We're providing record funding for health, record funding for schools. Thisis all part of the Coalition delivering on its commitment to Queenslanders, andmore broadly across Australia, to making sure that Australia is set up for aprosperous future. Now, all of that is at risk if Bill Shorten and Labor getelected because they are going to up-end the situation. They're going to up-endit by making sure that, in fact, Australians have to pay more tax than they'vepaid ever before and by paying more tax, they're going to be ensuring thatAustralia has a less prosperous future and fewer opportunities for job growth.

KIERAN GILBERT: ButMalcolm Turnbull connecting to Queenslanders, how do you deal with thatchallenge?

STEVEN CIOBO: Well,absolutely, I do. The fact is that Malcolm is someone who gets Queensland, heunderstands the growth pressures in South East Queensland, and that's why theCoalition's providing record funding for infrastructure. But most importantly,Malcolm Turnbull also understands business, and in particular, small and mediumsized businesses. And let's never forget, Kieran, small and medium sizedbusinesses, these are what drive the Australian economy and small and mediumsized businesses are what create millions and millions of jobs across theAustralian community. Now Labor just doesn't get business. They don't get smallbusiness. You've heard Anthony Albanese himself, make comments about Labor'swar on business. Labor wants a big taxing agenda, a war on Australian businessand make no mistake about it, the consequence of Labor's approach will be fewerjobs for Australians in the future and lower economic growth.

KIERAN GILBERT: TradeMinister Steve Ciobo, as always appreciate your time. Thanks for that.

STEVEN CIOBO: Good tospeak with you.

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