Doorstop
Melbourne
Wednesday, 30 January 2002
10.30 am

SUBJECTS: Cost of unauthorised arrivals; Ansett

JOURNALIST:

Treasurer, there’s been a report today that the Immigration Department is looking

for an extra $1.8 billion to deal with security and immigration issues at the

moment. Is that the true indication of the cost that it is taking for refugees?

TREASURER:

No. I saw reports in the newspapers today about the so-called additional costs.

And they’re wildly inaccurate these figures. It could even be that somebody’s

given false information to the journalist concerned or they could be wish lists

that are coming out of Canberra departments. But I can assure you that the cost

is nothing like that. And the additional estimates, when we present them will

show that the costs are being restrained. The Government is insisting that the

taxpayer get value for money and we certainly won’t be writing blank cheques

in relation to these Departments or any others.

JOURNALIST:

With, what was the, do you have an estimated cost for last year, or how much

you expect it to cost you this year? I mean, you must have some sort of a ballpark

figure, but obviously it will go up and down depending on how many boats continue

to arrive.

TREASURER:

Yes.

JOURNALIST:

But I mean what are we looking at?

TREASURER:

Well we said at the time of the Mid Year Review that in addition to the normal

Budget allocation for unauthorised boat arrivals, the fact that the smuggling

activity is being increased, and the fact that we’ve had more arrivals than

expected at the time of the Mid Year Review, meant that the additional cost

was more than $100 million. That’s over and above the normal Budget cost. The

outcome for the year will depend on whether or not the smugglers are successful

getting more people in. But the good news is, that there seems to have been

success in the policy over the last couple of months, the number of boats in

the last couple of months, the number of boats in the last couple of months

has dropped. And if we can maintain our strong presence against the smugglers

then we can restrain any additional costs.

JOURNALIST:

Traditionally this time of year is quiet for boat people because it’s the monsoon

season. Do you think that, I mean you’re saying that your policy has been successful,

how can you be sure of that if it is generally a downtime this time of year?

TREASURER:

It looks over the last couple of months as if the level of smuggling activity

has reduced. And there haven’t been new boat arrivals in the last couple of

months, and in fact some boats have been turned away. It’s not always quiet

this time of the year. In some previous years there have been boats arriving

at this particular time. Now, the good news is, that the smuggling activity

seems to have reduced in the last couple of months. That doesn’t mean that we

can let up, or that we can relax. We have to remain vigilant. And the extent

to which we can intercept the smuggling activity, is the extent to which we

can keep the costs down. But I can assure the taxpayers of this, that if Canberra

Departments are positioning for more money, they will be properly funded to

do their duty, but we will be running a very tough line over their expenditures,

and make sure that they account for all of the money that they wish to expend.

But they won’t be getting anything like the figures that were floated by journalists

this morning in the paper.

JOURNALIST:

How inflated is that $1.8 billion? I mean it’s a lot of money. So, I mean,

how far out are they from what you are intending to spend?

TREASURER:

Wildly inflated. It’s a wildly inaccurate figure.

JOURNALIST:

…Ansett? Just that at the creditors meeting yesterday, I mean, were you happy

with the outcome and the way that it was going, I mean, there are 4,000 jobs

depending on this?

TREASURER:

Well I hope that the new Ansett does get up and running. I think that would

be a good thing for competition. I think it would be a good thing for the employees

that are concerned. I think it would be a good thing also for creditors who

are still expecting to receive some repayment for the monies that they’re owed.

And so I wish the new syndicate every success, and I hope that the travelling

public gets some full-blooded competition which can go to providing additional

services and lower costs.

JOURNALIST:

Did you expect it to take this long for Ansett to (inaudible) or are you surprised

that it’s been (inaudible)?

TREASURER:

Well, look it’s a very big administration. It’s very complicated and very big

and you don’t do these things quickly or easily. Let’s hope that it’s brought

to an early conclusion.

Thanks.