Interview with Tracey Grimshaw

Wednesday, 13 July 2005

7.14 am

SUBJECTS: Afghanistan Troops, Industrial Relations Reform

GRIMSHAW:

Good morning Treasurer.

TREASURER:

Good morning, good to be with you.

GRIMSHAW:

Good to have you. You have said that the money is there for our renewed troop

commitment to Afghanistan, how much do you think it is going to cost?

TREASURER:

Well I expect that an announcement will be made today and full details of what

the Government has decided will be put forward so I won’t be commenting

on any specifics. But I can tell you that over recent Budgets there has been

a very substantial build-up in spending for defence, that has gone hand in hand

with East Timor, the Solomon Islands, Afghanistan, Iraq and measures to combat

terrorism. So, Australia has a strong capability, some of those commitments

are winding down particularly in East Timor and that means that our forces have

adequate capability to meet the needs where they can help the fight against

terrorism whether it be in Afghanistan or anywhere else.

GRIMSHAW:

In costing an operation like this, obviously you know how many troops we will

be committing and I don’t know if you will tell us or give us an idea

this morning – we are hearing up to 1,000 – I presume you also have an

idea of a timeframe do you, how they long will be there for?

TREASURER:

Well sure, when you are looking at a commitment, a military commitment, you

have got to first identify the need, the response that is required, the way

the response fits in with other commitments and the timing. And these are all

things that are discussed and when the announcement is made I expect that full

details will be given in relation to all of those.

GRIMSHAW:

So in other words there is an exit strategy, this is not an open-ended commitment,

you would expect that this will be for a period of time, is that what you are

suggesting?

TREASURER:

Well normally you have a look at the need and how a particular contribution

is going to be made. Let’s look at Australia’s last troop commitment

in Afghanistan, we made a commitment to help with the overthrow of the Taliban,

to establish the democracy which is now taking route, our troops were very,

very professional, they did a great job, when their job was finished they came

back to Australia. So it is a question of doing the job, finishing the job,

making the contribution.

GRIMSHAW:

Just on that previous timeframe, Labor says we pulled out too soon in 2002,

is this new commitment an admission of that, if we had stayed longer might Afghanistan

not be in this position now?

TREASURER:

Well hang on, in Afghanistan the Taliban regime was overthrown, the Al Qaeda

camps were dismantled and a democracy was established. Now that democracy like

any fledgling democracy will take time before it can adequately get its own

fighting forces and secures its country, there are international NATO forces

that have continued, there is a lot of reconstruction work to be done. Our troops

are absolutely first class, in relation to the overthrow of the Taliban they

did their job and now if there is a capacity in which they can return and help,

particularly given the fact some of our other commitments are beginning to scale

down, that is something the Government has to carefully consider.

GRIMSHAW:

Treasurer, in the time we have left I would like to turn to industrial relations

reforms, the Bureau of Statistics says today that the majority of workers on

individual contracts are worse off than those on collective agreements and in

another survey today, a Dun and Bradstreet survey suggests that 80 per cent

of businesses do not expect that the new unfair dismissal changes will prompt

them to hire more staff. How do those two results fit with Government promises

on better pay and more jobs?

TREASURER:

Well if you have a look at that Dun and Bradstreet survey, I thought that was

a very interesting survey because 17 per cent of employers said they were more

likely to hire as a result of these industrial relations changes. Now let’s

think about this, if 17 per cent of Australian employers hired more workers,

remember this, the 80 per cent didn’t say they were likely to dismiss,

they just said that they wouldn’t put on more, but 17 per cent said they

were likely to put on more. If 17 per cent of Australian employers were to put

on more workers, that is many more jobs. Actually if you look at that survey,

that is a survey that says here is a practical, concrete way that employers

believe would make them more likely to create new jobs, you don’t want

to dismiss that. I actually thought when you look carefully at that survey it

showed that this was practical, demonstrable help for those in our community

that are still unemployed, they are the people that we are looking to help by

getting them into work.

GRIMSHAW:

Even if 80 per cent of employers say it is not going to change anything that

they are not going to hire anybody new.

TREASURER:

Well 80 per cent say no change, right, I am not going to put anybody off, but

17 per cent say more likely to put somebody on. Who else has got an idea going

around at the moment that would lead 17 per cent of employers to hire more employees.

17 per cent of Australian employers hiring more employees would amount to many,

many thousands, tens of thousands, possibly 100 thousand new jobs. And why would

we sit down and say we are against creating those new jobs? I think the unemployed

out there would look at this and say, now that you know there is a proposal

that can give us a job, why don’t you give us a job and give us a go,

and that is the way I looked at that Dun and Bradstreet survey.

GRIMSHAW:

Alright, good of you to join us this morning, it looks a bit nippy down there,

have a nice time in the drought district.

TREASURER:

I am in Shepparton and it has been in drought for several years but the weather

looks pretty good at the moment I have got to say to you.

GRIMSHAW:

Well good news, let’s hope it rains on you today, no disrespect.

TREASURER:

Thank you.