Doorstop Interview

Ministerial Entrance

Parliament House, Canberra

Monday, 9 May 2005

9.20 am

SUBJECTS: Budget

TREASURER:

Tomorrow night’s Budget focuses on giving tens of thousands more Australians

opportunity to participate in the economic mainstream of Australian life. It

aims to widen participation and share the benefits of a growing economy – with

the lowest unemployment in 28 years – with many, many more Australians. We will

be putting in place tomorrow responsible measures which will build opportunities

for the future. Responsible measures today, opportunities for tomorrow, that

is what this Budget is being focused on.

JOURNALIST:

Do those opportunities include tax cuts?

TREASURER:

Well as I said, the focus of the Budget is actually to widen participation

for people to participate in the workforce. That is the focus of this Budget…

JOURNALIST:

Is that a yes or a no?

TREASURER:

…there are, well as I said, it is to widen, let me say, this is to widen

participation. The tax cuts that were announced last year, will take effect.

That is, there will be a tax cut on 1 July 2005 as announced last year. The

focus…

JOURNALIST:

Will there be (inaudible)?

TREASURER:

…the focus of tomorrow night will be on getting people out of welfare

and into work…

JOURNALIST:

Are you in a position to afford additional tax cuts?

TREASURER:

…because if we can get more Australians to participate in the economic

mainstream of Australian life, we will be a stronger economy and the measures

of today will build the opportunities of tomorrow.

JOURNALIST:

Treasurer will you be looking for savings tomorrow, year one in the three

year cycle? Treasurers normally do.

TREASURER:

Responsible measures today for the opportunities of tomorrow. We have got

to make sure that we can get our services on a sustainable footing – more

people in work, wider participation, a more productive economy. This is what

will build the opportunities of tomorrow, that is what we are focused on in

the Budget.

JOURNALIST:

Treasurer do the opinion polls bother you showing that you are far less popular

that John Howard?

TREASURER:

Well tomorrow’s Budget will be absolutely focused on doing what is right

for Australia. That is what we are focused on at the moment, that is the focus

of this week. We are building opportunities for future Australians…

JOURNALIST:

Will it be your last Budget Treasurer?

TREASURER:

…and in relation to that we will be doing the right thing. I want to

make this point, the people of Australia expect us to deliver opportunity and

we will be delivering opportunity in tomorrow night’s Budget which is

what we are absolutely focused on.

JOURNALIST:

Treasurer do you agree with the general proposition that lower taxes encourage

participation in the labour force?

TREASURER:

Well, participation can be encouraged in many, many ways. I think the most

important thing is to have a system where those of working age are encouraged

to look for work. At the moment we have hundreds of thousands of Australians

of working age who have got no obligation to look for work even though they

are capable of it and that is going to be the focus tomorrow. Thanks.