IMF/World Bank Meetings Focus on World Economic Outlook and Reducing Poverty
April 30, 2001The OECD Expects Growth Rebound in Australia
May 3, 2001
Transcript No. 2001/049
Transcript
of
The Hon Peter Costello MP
Treasurer
Interview by Michael Carey, ABC Radio, AM
Washington DC, USA
Tuesday, 1 May 2001
8.00am (Australian time)
SUBJECTS: International Economy, Exports, Foreign Investment
PRESENTER:
The Treasurer, Peter Costello, has been in Washington over the weekend, joining with
other Finance Ministers from around the world to ponder the worrying state of the global
economy. The Treasurers been attending IMF and World Bank meetings, putting the case
that Australias fundamentals remain good, and that the country is poised to resume
strong economic growth. But correspondent Michael Carey asked Mr Costello if that
resumption was being held up by deteriorating conditions for Australias major
trading partners.
TREASURER:
What it does for Australia is, it means that if the world is growing slower, then there
will be less demand for your exports and that commodity prices you would expect to be
weaker and that will affect the incomes that we earn. The good news for Australia is that
now that weve taken taxes off exports under our tax reforms, our exports are much
more competitive on world markets. With the recent exchange rate, they are
super-competitive on world markets and we can actually have significant exports
continuing, notwithstanding the downturn. But the downturn will nonetheless affect us as
it will affect all of the world. Itll make things just that little bit more
difficult.
CAREY:
Regardless, Australia does clearly need direct foreign investment. Have you had to
explain the Woodside deal? Has there been any curiosity as to what, whether that signifies
a policy shift on behalf of Australia?
TREASURER:
The situation over here is that people dont find it that unusual. The United
States protects its national interest. Other countries protect their national interest.
This is an example of where I made a decision in Australias national interest. It
does not represent a significant change in our foreign investment policy because investors
know, we operate one of the most liberal policies in the world.
But when you are talking about a project which is our largest energy project, which
already has substantial foreign investment, and the question relates to who should operate
and manage that, youre entitled to look carefully at the national interest. Other
countries do it, and Australia did it.
PRESENTER:
Treasurer, Peter Costello.