01 August 2010
Prime Minister
Julia Gillard MP
Minister for Environment Protection, Heritage and the Arts
Federal Member for Kingsford Smith
Peter Garrett AM
Minister for Financial Services, Superannuation and Corporate Law
Chris Bowen MP
E & O E – PROOF ONLY
Subjects: Malabar headland announcement; World Heritage listings; Downer comments; My Super; Abbott quotes; National security; Economy; WorkChoices; Abetz’ citizenship
PM: Well, can I start by saying what a great pleasure it is to be in this unbelievably beautiful part of Australia. And I’m joined today by our Minister for the Environment, Peter Garrett, who is with me. Obviously by our Minister, who’s going to talk– Chris Bowen– about some very important superannuation developments, and by our Senate candidate and local, Matt Thistlethwaite. Today we have also have join us Mike Daley who is the local member here and Frank Sartor who is Peter’s equivalent as Minister for the Environment in New South Wales. And I am joined by a Minister to talk about an important environmental matter and by a Minister to talk about Superannuation because we’ve got two big things to talk about today.
Firstly, on a sustainable Australia- I’ve consistently during this campaign that I want to see a sustainable Australia, not a big Australia. I want to make sure that we protect the Australian way of life. And in order to do that we have got to be protecting those precious open spaces, those places where Australians go to relax, unwind, to enjoy a bit of family time. And we’ve met some Australians doing just that today. But for the future what I am announcing is that the Malabar headland that we can see behind us will be kept as public open space.
The Federal Government will ensure that the Malabar headland remains for the future protected as a national park, protected as public open space. We will do that by transferring sections of it progressively to the New South Wales Government and working through all of the public access issues. I’ve met today with a man called Alan and I have presented him with a tree, we’re also on National Tree day today. He is a representative of local community members who for more than twenty years have fought to see that this beautiful open space is protected for the long term. They’ve worked to get the weeds out, they’ve worked to revegetate and now they know that that work is going to make a difference for the future, because we are ensuring that the Malabar headland will be there for the community- open space that they can use now and every year into the future.
There are some questions to work through, some remediation and some safety issues for some section of the headland. But this is going to be received as great news, great news by the local community, great news by the people of Sydney and it shows what we are prepared to do to protect the Australian way of life including access to beautiful open spaces. I’ll turn now to Peter Garrett for comments. Peter, you want to go there?
GARRETT: Thanks Prime Minister. This is a red letter day for the people of New South Wales and especially for this community at Maroubra, as the Commonwealth Government honours its promise to hand back Malabar headland to the people of New South Wales. Behind us we have one of the most beautiful parts of the coastline of New South Wales, very close to suburbs and urban areas and now gifted by the Gillard Government to the people of NSW in perpetuity- for National Park and for public open space. And Malabar headland in terms of its bushland is very important. We have diverse, native bushland here not yet protected, now it is, endangered eastern suburbs banksia scrub, World War II gun emplacement sites, aboriginal heritage on Malabar headland as well.
So for this community, excuse me, so for this community that’s worked long and hard for the protection of Malabar headland today is the day that this Government delivers. And as the local member for Kingsford-Smith, as someone who promised the people of this electorate when I came into office that I would protect their environment, today is a very, very special day. I do want to pay tribute to the friends of Malabar headland who have worked tirelessly as the Prime Minister said, for over twenty years to look after this precious part of our coastline, this precious environment, and I want to pay tribute to my State colleague Michael Daley and thank the New South Wales Government and Minister Sartor for the cooperative approach they have brought to this handover.
Over 70 hectares of diverse bushland which will now be accessible to the people of Maroubra, to the people of the suburbs of Sydney, a commitment by this Government to protect this environment and an important commitment in terms of delivering on the promises that we’ve made- promises that the former Government made and never delivered on. In 1998, the Howard Government said that there would be a hand back of Malabar headland to the people of NSW. The Howard Government couldn’t deliver in the past. Today the Gillard Government delivers, on making the environment a reality for the people of New South Wales.
I just additionally want to make a special note of an overnight announcement that we’ve had which is also great news for Australia. And that is, overnight the UNESCO organisation and World Heritage Committees decided that Australia’s nomination for Australian convict sites to go on to the World Heritage list would be successful. This too is great news for Australia, these convict sites, including sites in Sydney, in Parramatta, Cockatoo Island, Hyde Park Barrack- in Western Australia, Fremantle Prison- in Tasmania a number of prison sites- and Norfolk Island as well- are an essential part of our Australian story. And being an essential part of our Australian story it is fantastic that Australia’s convict sites have received the Nobel Prize for recognition by the World Heritage Committee, and I’m absolutely delighted of that announcement today.
I make one further and final point, and that’s this- Australia has a number of World Heritage Properties, and this Government is fully committed to making sure that they’re well protected. They make a significant contribution to our economy in terms of tourism, in terms of our understanding of the culture and the heritage that we have. So it’s a red letter day for our environment and our culture today. Malabar headland handed back to the people of New South Wales, its precious environment protected forever and our Australian convict sites now on the World Heritage lists and also recognised internationally for their significance.
PM: Thank you. Now turning from a sustainable Australia I now want to talk with Minister Chris Bowen about a strong economy and about what superannuation means for the future of working Australians. And today I’m here to announce with Minister Chris Bowen that if re-elected a Gillard Government will create a My Super superannuation system.
Now, Australians around the country have superannuation as a result of the actions of earlier Labor Governments. Many Australians know everything there is to know about their superannuation and they make very active choices about who they want to be the holder of their superannuation account and what decisions they want to make to see their superannuation grow.
But there are far more Australians who are content to have their superannuation go into a default fund, they don't make active choices, they just want to see their superannuation grow. And a problem for those Australians have been that the default funds that they are in, the funds that their super has ended up in are charging them fees. And it’s not like you get a monthly bill. It's not like the charge is in front of your eyes.
But charges are being made and those charges eat away at your superannuation savings, and make a real difference as to how much money you’re going to have to retire on in the future. There are charges like $85 a month. And if people saw that every month, I suspect they’d be pretty horrified but at the moment they don't see it eating away at superannuation balance.
So if re-elected, we will create a new system, My Super. A low-cost account that Australians will have their superannuation in. It will be the default account and because it is low-cost, Australians will experience the full benefit of their superannuation savings rather than have them eaten away unnecessarily by fees and charges. This measure itself will make a difference of about $40,000 in retirement income for someone who is 30 years old today. But of course this measure, with My Super, builds on our major announcements about superannuation.
A re-elected Gillard Government will see the superannuation of hard working Australians grow, from 9% now to 12%. And in doing so if we take that same 30 year-old, between the new superannuation savings we want them to have and the benefits of their My Super account, a 30 year-old will see an extra $150,000 in retirement income. Now that’s a lot of money. Retiring with an extra $150,000 available to you. And in addition to these reforms we will also make sure through having the through having the tax file number system associated with superannuation, that it’s easier for people to trace their superannuation.
At the moment many Australians who change jobs, perhaps change jobs, perhaps change jobs a number of times, find themselves losing track of their earlier superannuation savings and their earlier accounts. With a tax file number associated with superannuation it will be easier for Australians to make sure they get the full benefit of the superannuation money that is theirs. They don't lose sight of something that is in an earlier account.
This is good news for Australians and it's part of the sharp contrast between a re-elected Gillard Government and what Tony Abbott would do if he was elected Prime Minister. Tony Abbott is saying no. No to increased superannuation for hard working for hard working Australians. I'm saying yes with a benefit of $150,000 extra for a today's 30-year-old when he or she retires.
I’ll turn now to our Minister Chris Bowen.
BOWEN: Well thanks very much PM. Well superannuation is one of the key policy contrasts in this election. We think superannuation has served Australians very well, but we want to make it better. We want average working Australians to know that they can rest easy, that their savings for retirement won't be eaten away by fees over their working life. A small reduction in fees over someone’s working life can make a very big difference to their retirement income. But the changes we’re announcing today are not small. They are substantial.
The work done by the Treasury shows that when you take into account the creation of a My Super account and the suite of reforms known as Super Stream, that would make a difference to somebody’s retirement income over their working life of over $40,000. As the Prime Minister said, when you join that with our reforms previously announced – to increase the superannuation guarantee from 9 per cent to 12 per cent, to give low income earners their superannuation tax back, to make their superannuation tax effectively zero, and to allow people over 50 to make more concessional payments to their super – this makes a very substantial increase for Australians looking forward to their retirement.
Now this is a key contrast. This Government has announced a suite of reforms to superannuation, a suite of reforms to give Australians a chance for a more dignified and comfortable retirement. The biggest reforms to superannuation since it was introduced by a Labor Government in 1992. In contrast, Tony Abbott and the Liberal Party oppose our move to increase the superannuation guarantee. They oppose our move to make the contributions tax for low income earners zero. They opposed the moves to give people over 50 a chance to top up their superannuation with a lower tax rate.
They have opposed all these things. And I call on Tony Abbott and Joe Hockey to outline their plans for the future of superannuation. Superannuation is important for Australians and it’s important for Australia. It’s so important for a strong economy that we deal with the big gap in retirement income savings in Australia, something this Government has shown we are perfectly willing and keen to deal with. It’s a key imperative with the demographic changes going on in Australia that we deal with our retirement income system. And the suite of reforms that have been announced by the Gillard Government show we are up for the job, up for the task of improving a system which so many Australians rely on for a comfortable and dignified retirement. Thank you.
JOURNALIST: Prime Minister, there are reports today that the Government’s going to start attacking the man not the ball for the final three weeks of the campaign, that things are going to get nasty, you’re behind in the polls, and you’re going to go at Mr Abbott personally. Is that true?
PM: There are reports today that the Labor Party has provided journalists with Mr Abbott’s quotes. Well, Mr Abbott might be trying to run away with the things he’s said – as I can understand why he’s embarrassed by them, I can understand why he doesn’t want people to have the things that have come out of his mouth written down and given to them. But that’s what the Labor Party’s done. And I think Australians should know that Mr Abbott has said in the past, paid parental leave- over his dead body.
That he’s said when he became leader of the Opposition, the phrase WorkChoices is dead – heavy emphasis on all of the substance coming back. I think Australians are entitled to know that. They’re quotes of Mr Abbott, they’re things that he has said. And of course he’s famously dismissed climate change science as absolute crap, being a weathervane in Australian politics. Sometimes he believes in climate change, sometimes he doesn’t, depending on where he thinks his political interest lies that day. Australians are entitled to know Mr Abbott’s words and judge him by his words. Of course, we make his words available to people. If he’s embarrassed by them, well that’s too bad- he said them. Yes?
JOURNALIST: You won’t speculate on the source of all these leaks over recent weeks, and that’s fine, but are you worried that Kevin Rudd is a serial leaker in general, something that’s in his nature?
PM: Well, you’re referring of course to a newspaper report today and can I say in relation to that newspaper report, let’s get real here. Kevin Rudd is lying on a hospital bed. I’m concerned about Kevin, I want to make sure he gets fit and well and strong. And while Kevin’s in hospital recovering from an operation, here’s the Liberal Party out there with a disgraceful political attack. That’s what’s happened today. Sid.
JOURNALIST: Prime Minister, if you’re elected, will you guarantee that you’ll go to all national security meetings? What role does Andrew Stark play in your office? And is it normal practice to send someone to take notes if you can’t attend a national security committee meeting?
PM: Well, of course, as Prime Minister, I will be attending, chairing, leading the discussions at the National Security Committee. Of course. During the period that I’ve been Deputy Prime Minister, I have been an attender at national security meetings. When there have been periods where I have been unable to go, then Mr Stark from my office has attended– not to represent me– so that he can advise me as to what has occurred at the national security meetings, that is, he has kept notes on my behalf.
I selected Mr Stark to do that because he served with the Australian Federal Police for 21 years, and consequently, I formed the view that with that background, as a Police Officer, he was an appropriate person to sit at National Security Committee on those occasions I could not and to keep notes. And frankly, I think that some of the public commentary about this has been grossly offensive to members of the Police force and a man who’s served more than 20 years in the Police is up for the job, sitting in national security committee and taking notes on my behalf.
JOURNALIST: Prime Minister?
PM: Yes?
JOURNALIST: If the Greens win the balance of power in the Senate, are you going to seek a written pact on any policies for their support or are you just content to take it on a- take your chances on a case by case basis with policies in the Senate?
PM: Obviously, in terms of who’s in the Senate in the future, the Government would be seeking to have the things for which we’ve got a mandate enacted. And I know that there’s a big of fear mongering coming from the Liberal Party about what the Greens’ balance of power would mean. For example, I know that some in the Liberal Party have been trying to suggest that I would do something other than legislate the Minerals Resource Rent Tax as promised.
Well, let me make it absolutely clear– I will be going to the Parliament to legislate the things that I’ve got a mandate for, including the Minerals Resource Rent Tax in the form that I’ve agreed it with our biggest mining companies, in order to deliver the superannuation benefits that we’re talking about today. Superannuation benefits that will make a huge difference for retirement incomes in the future. And I would also say in terms of politics of this, that of course the Greens vote only becomes relevant if Mr Abbott, if he’s Opposition leader, doesn’t respect the mandate and the will of the Australian people at this election. Yes?
JOURNALIST: (inaudible) local announcement here, perhaps to you or Minister Garrett. How much will it cost to hand back the land? And who will pay for the remediation works and how long will they take to enable the land to be available for public use?
PM: Well, as we stand in this beautiful place, I will turn to Peter for that answer.
GARRETT: Look, we’ve exchanged letters with the New South Wales Government agreeing that we will hand back two portions of Malabar headland, which constitute the majority of the bushland and the important environmental assets of the headland. That’s lot two and lot four. Lot four on the western headland will be handed back immediately.
Lot two, which is the eastern part of the headland, which incorporates the areas including the World War II embankments, gun emplacements and other matters that I’ve referred to, will be handed back subsequent to us finalising the remediation plan and any other issues in association with safety on that part of the headland. And we will agree with the New South Wales Government the appropriate share for that remediation, and we are agreed that both of those lots will be transferred. In terms of the environment, lot four immediately. And in terms of rehabilitation, lot two as soon as that’s been settled with officials.
JOURNALIST: Prime Minister (inaudible) superannuation –
PM: Yes?
JOURNALIST: Probably a question for Minister Bowen. Some of the retail funds have expressed some concern about government mandating low cost funds in this area. How would you respond to assuage some of their concerns?
BOWEN: Well, obviously over the last few weeks since the launch of the Cooper Review I’ve been in close consultation with the Financial Services Council, formerly known as IFSA, and Mr Brogden as well, of course as the Industry Super Funds Network, the Australian Association of Superannuation Funds and the Institute of Superannuation Trustees, as well as the self-managed super sector on some other issues. I’m sure Mr Brogden will be making his views known later in the day but those consultations and discussions with the superannuation sector across the board have been very productive.
We’ve spent a lot of time with them working through the implementation issues, and I think have reached some common ground about the good way, the best way forward. We think that a low cost, default superannuation mechanism is the right answer for Australians. If they disagree with that, I would ask them to make their arguments on public policy grounds. But we have had some very fruitful and constructive discussions with the retail fund sector to work through the issues that they identified when the Cooper Review was launched.
JOURNALIST: (inaudible) Super Stream as well? And what cost, if any, to Government will there be as a result of all these reforms?
BOWEN: What we’re answering today is the tax file number as the key identifier of superannuation accounts which is very much the key element of the Super Stream reforms. We will be pursuing the other super stream reforms after the election.
But what we are putting a timetable today on is the tax file number element of those, because again, in those discussions with the superannuation industry, all the feedback to me has been they will be very substantial in reducing administration fees, and in bringing people in touch with their lost superannuation which amounts to more than $13 billion across the country as the Prime Minister indicated earlier. But we will be pursuing those other Super Stream options. But there are detailed implementation issues to work through both within the Government and with the superannuation sector.
JOURNALIST: And the cost of the measures that you’ve announced? Are there any costs to Government?
BOWEN: Mo cost to the Budget bottom line today from the measures we’ve announced. There will be of course elements for APRA to administer and they will be recovered from the superannuation industry under the normal arrangements.
JOURNALIST: Prime Minister-
PM: Yes, we’ll go over here.
JOURNALIST: Do you think that political figures should be banned from election betting? And what do you make of claims that figures party are betting against it?
PM: Well I understand there are claims in the media today that people in all political parties have been doing this. I don’t know whether or not those claims are true. What I would say is, I think it's pretty crook to bet against your own team. I’d d say that about an election, I’d say that about the football, I’d say that about putting a bet on. And I can understand why there would be concerns about people with special access to information, people who are involved in political campaigns being able to have a punt the same way that an average Australian has a punt without the same access to information.
Now we’ve dealt with this in other areas of Australian life, in our great sporting codes of course. They’ve had to deal with the circumstance where someone who is a coach, or a trainer, or associated with the team and might have some special knowledge about who is injured, who’s going to play or whatever, that that person can't put a bet on the outcome of a match because they know more than the average punter would. I think there’s some merit in looking at parallel arrangements for political parties. I understand that Senator Xenophon has a Senate reference that he wants enlarge to look at these matters and I would be happy to support that.
We’ll go to Karen.
JOURNALIST: Prime Minister there’s been a lot written a lot said in the last few days about the lack of a vision thing in this election campaign. Can you tell us again now in a few sentences, what you want Australia to be at this point in the campaign, what you want Australia to be and why you think people don't seem to have a grip on that yet? Can you explain that for us a bit more?
PM: I certainly can. What I want to see future is I want a strong economy. It is the foundation stone of everything else. And I think the Government is entitled to say when we faced a huge economic challenge through the global financial crisis, we made the better choices. We had the better economic plan to keep people working. I’ve spoken extensively about my firm belief in the benefits and dignity of work. I do not believe in running an economy that sees Australians on the scrap heap. So a strong economy the centre of everything that we do, Budget in surplus, training for the future, having a fair share of the jobs of the future, including by developing infrastructure like the National Broadband.
I also believe when you’ve got a strong economy you can provide the decent services that families rely on. My life has been transformed by access to a good quality education. I want that good quality education for every Australian child. I want Australians to have decent healthcare and our investments are about achieving that. And I want to take into the future our Australian way of life. That’s what a sustainable Australia is all about. The things that we grew up with and I aspired for my future, having a job, owning a home, living in a decent place where you had access to open spaces and fresh air, where you could get to work. Those things are things I aspired for myself, they’re part of the Australian way of life. I want to take them with us into the future.
JOURNALIST: Prime Minister, do you think that people aren't responding to that yet? Has the campaign become too much about you as an individual versus Tony Abbott as an individual?
PM: Well I think the campaign is about who you want to be Prime Minister. There’s only two choices - you wake up on 22 August and I'll be re-elected as Prime Minister, or Mr Abbott will. And if I’m re-elected Prime Minister then I’ll be implementing my better economic plan. I’ll be implementing my plans to keep improving education because I passionately want every child to get a flying start, a great education. I’ll be implementing my plans for better healthcare and I will be implementing my plans for sustainability, for open spaces like we're talking about today. And I’ll be making sure we've still got the Fair Work system and decency and respect in our work places.
Mr Abbott? Well he'll be there. Didn't make good economic choices in the past, he's a risk for the future. WorkChoices will be back, health will be cut, education will be cut. These are the things that Mr Abbott stands for. Australians will make the choice. It’s about who the leaders are, it is about what the what the leaders will do. Sid.
JOURNALIST: Prime Minister have you had a chance to speak to Kevin Rudd? And do you think there is any prospect that you and he might be able to smooth things over enough to campaign like Obama and Hillary Clinton did?
PM: Well I sent Kevin Rudd a get well message. Obviously I would want Kevin to make a very, very speedy recovery. And it’s one of the reasons that I think it is so wrong, it’s so wrong that today, of all days, the Liberal Party has seen fit to mount an attack on Kevin Rudd. Sid.
JOURNALIST: Should Eric Abetz release the documentation renouncing his German citizenship, and do you think he's qualified to stand for the Senate?
PM: I think Abbott should release Eric Abetz. That would the first thing that needs to happen. I don't know where they've got him. But sometime they need to let him out. And when they do let him out what they will see is a passionate advocate of WorkChoices. And it’s no mystery that he's been locked in a dark room somewhere.
When Tony Abbott was out desperately trying to tell Australians that he didn't believe in WorkChoices, grabbing scraps of paper and pens and it was shambolicly falling apart around him because he believes in every word of it, Eric Abetz was there as the truth teller, saying ‘yeah, of course we're going to change the laws’, when Tony Abbott was trying to con Australians and pretend he wasn't.
Since then, Eric Abetz in hiding. My message to Tony Abbott would be please release Eric Abetz so the truth can be told. And when Eric Abetz, he's out and free he should release all documents associated with his nomination.
JOURNALIST: Prime Minister this site here has been handed across to the New South Wales Government. How much faith do you have in ability of the NSW Government to administer it?
PM: Well, obviously I’ll turn to Peter, but we'll obviously be working with the New South Wales Government. We want the site handed over in a circumstances where all of the things that are so precious about it are preserved for the future, and it is going to be great public open space. And the hard working Australians I've met today who have devoted many, many years to making sure that this special place is there for the future get the reward that they should have for all of that work. But I'll turn to Peter.
GARRETT: Yeah look, thanks Prime Minister. I mean check it out it’s a magic day in a most beautiful part of Australia and this is something which we fully understand needs to be delivered to the people so that they can enjoy it. And we already have good relationships underway with the New South Wales Government, with their Parks Department and with their Environment Department. And what will happen here is that the costal walkway which runs the stretch of this Eastern suburbs coast can now be extended through Malabar Headland.
It also means that the work that the friends of Malabar and other communities have done in the past, the fruition that it bears is that we’ve got here- in a place that is a popular visiting place for people from the Western suburbs on the weekends of summer- now that we’ve got greater access through the the roads system, we’ve got a lot of people coming down to this part of the coast. Those people will have access to the Malabar headland as well. And I’m very confident that the New South Wales Government, by agreeing that it will become national park and public open space, will be able to well administer the headland.
This is a gift to the people of Sydney and New South Wales in an area, an urban area– we’ve got 6.5-7 million people between here, Wollongong and Newcastle. And when you fly into Sydney Airport, you can see Malabar headland sitting there. Now the Liberal Party promised that they would give it back. At the same time, they wanted to flog off the western portion of it for real estate development. At one stage, they wanted to put a toxic waste dump on it. Today this Government is delivering. This is the environment that’s precious to the people of this community, and it’s now protected forever.
JOURNALIST: Prime Minister?
PM: Okay, we’ll make this the last question and then we’ll go.
JOURNALIST: With the superannuation, you’ve talked about savings being $150,000. What tally were you referring to there?
PM: For the 30 year old. So a 30 year old today who’s going to retire in the future. There’s the additional benefit of the My Super account, so less fees and charges, so that means more superannuation. And there’s our plans to increase superannuation form 9 per cent to 12 per cent, the plans that Mr Abbott is opposed to.
JOURNALIST: Prime Minister, it says $40,000 though. You said $40,000 from My Super in the press release. So is 150-
PM: Yeah, 150 in total. $40,000 from My Super and 110 from the move from 9 to 12 per cent.
JOURNALIST: Does the 150 include the full extent of Super Stream? Or is that just on today’s –
BOWEN: That’s the entire package which we are, well we are implementing, we will implement. But we put the timetable on the tax file number and the My Super, but we will be implementing the entire Super Stream package.
PM: Okay. Last question here.
JOURNALIST: On the World Heritage Listing- what’s your response to it?
PM: To the news that Peter’s announced?
JOURNALIST: Yes.
PM: Yes, well look, this is obviously terrific news. I’ve talked today about protecting the Australian way of life and doing that means we want to take forward with us those special places and parts of our history so that for generations to come, people can go there, people can learn about our history. So this recognition on the international stage about how important those places are is, I think, a delightful thing for all of us.
And can I conclude by using Peter Garrett’s words, perhaps we can best summarise today by saying check it out. A great phrase. Check out what it means for your superannuation with these reforms from Minister Bowen. And I’d say check out what our policies mean for a strong economy, a sustainable Australian and better services, and what Mr Abbott’s risk to our strong economy would mean, and his cuts to services. Thanks very much.
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