TRANSCRIPT

THE HON PETER COSTELLO MP
Treasurer

Press Conference

Sharman Hall

University High School, Melbourne

Wednesday, 14 January 2004

9.00 am

SUBJECTS: National Australia Bank, Telstra, Missile Defence, Queensland

Election

JOURNALIST:

NAB Treasurer, how concerned are you about (inaudible)?

TREASURER:

Well this is a matter for the National Australia Bank, these employees of the

bank who are subject to the supervision of the bank, and it is a matter for

the bank to get to the bottom of it, and if any offences have been committed

for charges to be brought. Now, the prudential regulator, APRA, has been notified

and the prudential regulator within the realm of its responsibility will be

asking questions. But it is important that the National Australia Bank does

a thorough investigation and it provides to the relevant authorities any material

which can base charges, if charges are to be brought.

JOURNALIST:

Would you welcome that external review with regulators being involved?

TREASURER:

It is important that external sources are involved. The prudential regulator

is already involved, and is speaking to the National Australia Bank to ascertain

whether or not the systems are adequate, and once the investigation is finished,

if there are any breaches of the law, then the National Australia Bank must

refer that to the relevant authorities to bring prosecution.

JOURNALIST:

What about the 450 Telstra jobs going to India?

TREASURER:

Look, I think it is important that Telstra is a profitable corporation because

obviously if Telstra is not performing profitably it won’t be able to

generate jobs for Australians. I think that where ever possible those jobs ought

to be located in Australia, I think that Australia has a very highly skilled

workforce, I think we have great language skills in this country and I think

that where ever possible, Australian employers should give Australians a go

in their operations. That is why I’d say that Telstra ought to look at

that situation very carefully. They have to have a very good reason to show

that they can’t find adequate Australian employment opportunities and

Australians to fill them.

JOURNALIST:

Will this fuel opponents of privatisation?

TREASURER:

Well, Telstra is a government owned corporation. Let’s be clear about

this, this is a government owned corporation – majority owned corporation, this

has got nothing to do with privatisation. In fact, this demonstrates that government

owned corporations can move jobs offshore just as much as anybody else. But

having said that, I think Australia has wonderful people skills, I think Australia

has people who are still looking for work and Telstra would have to have a pretty

good reason why it couldn’t fulfil its employment needs from this country.

JOURNALIST:

Just on the missile defence programme, how much money is the Australian Government

prepared to contribute?

TREASURER:

Well, we haven’t committed resources to this program yet, we have said

that we are interested in discussing the programme and an Australian contribution.

Now, if we judge that the programme is workable and that Australia can make

a contribution, then we would sit down and we would look at it in financial

terms. But that is a long way down the track, this has not been developed, so,

it is a long way down the track and a decision to commit resources has not yet

been made.

JOURNALIST:

Would Australia be prepared to contribute to research in the developmental

phase?

TREASURER:

Well, look, getting involved in scientific research by and large is always

a good thing, because you get the intellectual knowledge, you get work for your

researchers that actually produces a benefit for a country. If some of our physicists

and some of our scientists could get work in relation to this project, whether

or not we ultimately participate, that would be a good thing. Research is a

good thing and it builds knowledge and skills and everything else.

JOURNALIST:

In the Queensland election, has the Coalition Party got any chance, or is it

a question of how far Peter Beattie…?

TREASURER:

Mr Beattie has called the election because he thinks he is a long way in front

and can’t be beaten, you would have to say that. But here is an opportunity

I think that the people of Queensland to call that Government to account. The

only way you are going to call that Government to account is to deliver a protest.

If Mr Beattie, who is a long way in front, an absolute frontrunner, thinks that

he can get back into office unchecked, then Government in Queensland won’t

be as good as it should be, and it is not as good as it should be. So, here

is an opportunity for people to remind Mr Beattie who is sitting on an unparalleled

majority here in Australia, that he has to be accountable. Thanks