TRANSCRIPT

THE HON PETER COSTELLO MP
Treasurer

Interview with Jon Faine

ABC, 3LO

Wednesday, 16 April 2003

8.50am

 

SUBJECTS: Scoresby Freeway

FAINE:

Mr Costello good morning.

TREASURER:

Good morning Jon.

FAINE:

Do you want the job of running the AFL?

TREASURER:

Well it would be a pay increase.

FAINE:

The politics would be just as intriguing?

TREASURER:

I’d be a bit biased Jon, you would probably find if I was the AFL Commissioner

there would be certain decision favouring the Essendon Football Club.

FAINE:

Just like at the Tribunal, but moving on to more serious things. The State

Government are trying to assure us that they have not lost $445 million in Commowealth

funding by wanting to renegotiate arrangements to do with the Scoresby Freeway

project. Have they or haven’t they?

TREASURER:

Well all they have to do is abide by their agreement. $445 million from the

Commonwealth, $445 million from the State, no tolls and Scoresby gets built,

and…

FAINE:

That’s not happening now, we already know that.

TREASURER:

Why shouldn’t it happen?

FAINE:

Because the State Government who are in charge of the State of Victoria have

decided to proceed down a different path.

TREASURER:

Well why Jon? I’m sitting here with an agreement that has Peter Batchelor’s

signature on it, on the 5^th of October 2001. It says, the Commonwealth

will pay 50 per cent, Victoria will pay 50 per cent, Victoria undertakes to

ensure there will not be a toll.

FAINE:

Yes, that was then, this is now. Are you or are you not going to hand over

$445 million of Commonwealth money?

TREASURER:

No, we are going to honour our agreement and it’s a very simple proposition

for Peter Batchelor, honour your signed agreement. A very simple proposition,

why can’t he?

FAINE:

Because he has decided and the State Government’s entitled to, to change its

policy as you change policy in the Federal Government from time to time, and

adjust settings accordingly.

TREASURER:

Not when they’ve entered into an agreement for the joint construction of a

road, when they have made an election policy, when every one of their members

has said, if you vote for me we will be implementing this. Now Jon, I keep coming

back to this question, why won’t Mr Batchelor honour his signed written agreement?

FAINE:

Are you going to play politics on this Mr Costello? That’s $445 million of

Victorian taxpayers petrol taxes that must be spent back in Victoria. Why not

just re-allocate it to another freeway?

TREASURER:

Well I’ll tell you why, because the people of Scoresby are entitled to a freeway.

FAINE:

They’ll get one.

TREASURER:

No they will not get a freeway, I’m sorry Jon. What they will get it a tollway.

FAINE:

Well the people of the western suburbs got a tollway out of the (inaudible)

and they accepted that under a Liberal State Government.

TREASURER:

Well hang on, let’s, was there a signed agreement between the Commonwealth

and the State in relation to City Link?

FAINE:

That didn’t make any difference to the people out in the western suburbs.

TREASURER:

You enter into a signed agreement, you say here is $445 million of Commonwealth

money, here is $445 million of State money, you will have a freeway. You promise

it before an election, you are elected to do it. Mr Batchelor’s signature is

on this written document on the 5^th of October 2001 and what, he

is entitled to rip it up and up and walk away?

FAINE:

No he is entitled to renegotiate it but the question for you Mr Costello…

TREASURER:

No it is not a question of renegotiating…

FAINE:

The question for you Mr Costello is whether or not, the question is whether

or not you use the changed circumstances in Victoria to withdraw $445 million

and not spend money that you are obliged to spend on Victorian roads.

TREASURER:

Jon what are the changed circumstances? I am sorry, what are they?

FAINE:

The Victorian Government have outlined them in detail. They are to do with

public transport, they are to do with the drought, they are to do with bushfires,

that’s all been explained, it’s on the table.

TREASURER:

I am sorry Jon, the Victorian Government has been subject to drought as has

the whole of Australia. Victoria has been subject to bushfires as has a lot

of Australia. What are the changed circumstances?

FAINE:

Do you never change policies Mr Costello?

TREASURER:

When we enter into written agreements with State Governments on road funding

we abide by them and we expect States to abide by them. Now what is the problem?

Why can’t they abide by them?

FAINE:

All you are doing is giving back to Victorian motorists the taxes that you

have levied on them in the first place.

TREASURER:

That’s not right.

FAINE:

It’s not yours to keep.

TREASURER:

No Jon, look I know you have got to try and put Batchelor’s case as best you

can because he can’t put it but that is not right. There are State arterial

roads, not national highway, which State Governments are responsible for. If

they have a certain business case behind them they can be declared roads of

national importance and in respect of that road, after it is assessed against

competing roads, right around Australia, the Commonwealth if it designates it

a road of national importance will offer 50 per cent funding. That is what happened.

This project, this project had to compete against other projects all around

Australia and it won. And as a result of it being won, 50 per cent of the funding

is picked up by the Commonwealth and a written agreement is entered into for

the building of that road, 50-50 with no tolls. Now you see, I keep asking you

this question, why can’t Victoria honour its written agreement? The answer is

this, that it is pulling its $445 million out. This is the point that nobody

has made. If this project goes ahead it is not just the Commonwealth that has

to pay $445 million it is the State Government. So ask Mr Batchelor why he is

pulling his $445 million out. He is short-changing the people of Scoresby and

the eastern suburbs. Not only breaking his own promise…

FAINE:

So you won’t…

TREASURER:

…but trying to get the Commonwealth to break its promise.

FAINE:

You won’t reallocate the money to other Victorian road projects?

TREASURER:

We will be insisting that the agreement be honoured and our pledge to the people

of Scoresby is this, that the Scoresby Freeway…

FAINE:

But you won’t reallocate the money?

TREASURER:

The Scoresby Freeway not the Scoresby Tollway. No.

FAINE:

So you won’t reallocate the money?

TREASURER:

This agreement should be honoured and if Mr Batchelor cannot honour this agreement

Jon he should resign. He should resign today and Mr Bracks should say who will

honour the agreement on behalf of Mr Batchelor.

FAINE:

Well where does that leave the taxpayers? We will take your calls straight

after the news. Peter Costello thank you indeed for your time this morning.

TREASURER:

Thank you very much Jon.

FAINE:

The Federal Treasurer and Member of Parliament for the seat of Higgins, Mr

Costello.