TRANSCRIPT
THE HON PETER COSTELLO MP
Treasurer

Doorstop
Melbourne
Sunday, 7 April 2002
2.30 pm

 

SUBJECTS: Budget Priority; Defence; Border Protection

JOURNALIST:

Mr Costello, how much of a priority will Defence spending be in this Budget?

TREASURER:

Well, in the lead-up to the Budget round there are many legitimate needs for

the Australian people and many legitimate requests for funding that come before

us. But I want to make it clear that there is none more important, as far as

the Government is concerned, than strong defences and strong border protection.

In this Budget round our priority is strong defence and strong border protection.

Strong defence because Australia is committed to the war against terrorism.

With special forces in Afghanistan, with naval ships in the Gulf and elsewhere

and with air defences. Strong border protection because we think it is important

that the military continue to play the very successful role they have in patrolling

our waters and helping Australia crack down on the people smuggling trade. So

as we go into this Budget the Government’s priorities are strong defence and

strong border protection and they will be the immediate focus of the decision

making that we are now going through.

JOURNALIST:

Are we looking at a record amount?

TREASURER:

Well, the Government is not only funding operations with special forces and

with naval and air support, but we are also funding major capital investment

under our White Paper and continuing engagement in East Timor. And outside of

periods when Australia has been engaged in war this is, for Australia, our largest

funding that we have ever engaged in.

JOURNALIST:

Are we likely to see a huge increment, a huge increase?

TREASURER:

What we are going to do is we are going to make sure that our troops lack for

nothing, that they are properly supported. I think the taxpayers want to make

sure that we are being careful with money but they want to make sure that our

troops are adequately prepared for, and supported by Australian citizens whilst

they are in theatres of war – and they will. They also want to make sure that

our borders are protected and they want to make sure that the naval engagement

in the northern borders which is protecting Australia’s borders against people

smuggling continues.

JOURNALIST:

Will it mean cuts elsewhere, in other areas?

TREASURER:

Well, what it means is when you come up to a Budget you have got to have priorities,

you can not fund everything. There are many legitimate demands that people have

in the Budget round but the Government’s priority is strong defence and strong

border protection, that is going to go before other legitimate claims in this

Budget. And what that means is we will have to be very tight in other areas

because the priority we are giving is to our soldiers, to the fight against

terrorism and to the defence of our borders.

JOURNALIST:

The Opposition says that the role that Australia is now playing in the war

on terror is really under threat because the Defence budget is so grossly over-stretched.

What is your response?

TREASURER:

Australian troops have performed magnificently in the war against terror, special

forces on the ground in Afghanistan, ships in the Gulf, air defences in the

Indian Ocean. Australian troops have performed magnificently and I do not think

anybody should underplay the role that they have performed. And the Government

has given them every support and the Government will continue to do so.

JOURNALIST:

So how much more are we looking at?

TREASURER:

We are looking at strong defence and strong border protection and the resources

required to do that will be committed. That will be the Government’s priority

in the Budget.

JOURNALIST:

How much?

TREASURER:

Well, I never announce a budget until I announce the Budget which I think is

on the 14^th of May.

JOURNALIST:

And how much prepared are we, for example, if we have to move into Iraq, how

prepared will Australia be?

TREASURER:

There is currently no military action by allies in Iraq. If that were to occur

and if Australia were to be asked to make a contribution we will consider that

at the time. But it is far too premature to be speculating in relation to Iraq.

There is still a job to be done in Afghanistan, it has got to be brought to

completion, we are committed to seeing that through. Our troops will be funded

to see it through.

JOURNALIST:

Treasurer, can you at least say that it will be a significant increase?

TREASURER:

Our troops will be thoroughly supported and in addition defence, I want to

make this point, Australia has made a very big investment in border protection

with naval patrols in our northern waters. We are now beginning to see some

of the successes of that border protection. A lot of people were critical of

the decision that the Government made to strongly patrol our borders but we

are now beginning to see some successes from that action, and we will continue

to fund that action to ensure that Australia has strong border protection.

JOURNALIST:

Are you prepared for some strident opposition to a serious hike in Defence

spending?

TREASURER:

I don’t think the Labor Party has ever really supported the Government in its

strong border protection policy…

JOURNALIST:

Not just the political position…

TREASURER:

…and you can see that even at the moment. They are always trying to have

it both ways. They say they believe in strong border protection but they have

never really supported the Government in doing it. And I would say to them that

they ought to support strong border protection and the decisions that are required

to bring it about.

JOURNALIST:

I mean community groups (inaudible)?

TREASURER:

Well, people in Australia are entitled to take whatever views they like but

these are the Government’s priorities and I believe they are the priorities

of the Australian public.

JOURNALIST:

Any other areas going to be looking at an increase in funding?

TREASURER:

Well, I have told you what our priorities are and I will tell what is in the

Budget when I deliver it.

JOURNALIST:

…(inaudible) talk about this being your last Budget?

TREASURER:

Well, look, let’s just roll up to the Budget, it is coming on the 14^th

of May. I can tell you that we will be putting the priorities of the Australian

public first. We will be putting our emphasis on defence and border protection,

and as for the remainder of the Budget wait and see.

Thanks.