Doorstop

Adelaide

Friday, 4 March 2005

2.00 pm

SUBJECTS: Interest Rates, Bali, Building Figures, Ageing Population

JOURNALIST:

Mr Costello, is there a sensible argument against raising interest rates?

TREASURER:

Look, the Reserve Bank has made its decision after reviewing all of the evidence,

and forming its own conclusion in relation to that matter, but interest rates

in Australia have a target, the target is two to three per cent, and we are

within that target, and as long as we keep it in that target, interest rates

will remain low in Australia.

JOURNALIST:

Are you concerned about the sentence handed out to Indonesia’s Bashir?

TREASURER:

I am terribly concerned. We have a situation where 200 people were killed

in Bali, 88 Australians were killed in Bali, somebody is being convicted of

being engaged in a conspiracy over that, and the sentence appeared (inaudible)

light, and I think for the sake of the 88 Australians, and the 200 dead, I hope

there is an appeal, and I hope that a sentence commensurate with the level of

death and suffering that was caused by that terrorist act is imposed.

JOURNALIST:

Mr Costello, with stronger than expected building figures came out today,

do they perhaps justify the Reserve Bank decision?

TREASURER:

No, we think that the housing market in Australia is falling. When you look

at approvals, finances, prices from a very high base, we think prices are moderating

and when you put the whole of the picture together I think that has been probably

going on for a quarter, maybe even more.

JOURNALIST:

What about that discussion that the Prime Minister on retirement age, Mr Costello,

what was the answer?

TREASURER:

Well I have been saying for a long time now that we have to keep older workers

engaged in the workforce, particularly, people post fifty-five. We have a very

high rate of retirement post fifty-five, when people get their superannuation.

We are trying to encourage people who have got their superannuation at fifty-five,

or entitled to get it, to remain in the workforce and work through to retirement

age at sixty-five and then if they have the capacity to work after that, we

would like to encourage them, even if only be part-time, have the opportunity

to work part-time and draw down on their superannuation.

JOURNALIST:

(inaudible) Prime Minister (inaudible)?

TREASURER:

Well, as I said we are trying to keep mature workers engaged in the workforce,

and we are actually introducing a tax cut for mature aged workers to help them

stay in the workforce.

Thanks very much.