Subject: New South Wales state election; WorkChoices

PRIME MINISTER:

Well ladies and gentlemen I start by congratulating Mr Iemma on his re-election as Premier of New South Wales and as the Liberal Prime Minister of Australia. Can I say I look forward to working constructively with the re-elected Labor Premier of New South Wales. It is important that political differences do not get in the way of agreed outcomes that are good for the public. The public wants governments at both levels to work together irrespective of politics to achieve good outcomes. It is true that the Liberal Party enjoyed a swing of up to an average of about four per cent and in that sense it was a good result and it was the first time there'd been a swing to the Coalition since 1988. However, the bottom line is that we didn't win and that that in itself is disappointing. There are some new candidates of great quality that have won, and they will make a very strong addition to the Coalition forces in the parliament. Although it's a matter for the state parliamentary party to run its own race, I might give the gentle advice that from Monday the Party work very hard on developing clear and detailed policy positions on the major issues that affect the people in this state so that by the time the next election rolls around, there will be a very clear view as to the alternative because elections are both about an adjudication on the performance of the incumbent government and also an assessment of what the alternative government has to offer.

Could I, perhaps anticipating your questions, say something about WorkChoices. Could I say this; that I strongly support WorkChoices because I believe that it is important to the continued growth and prosperity of Australia. If WorkChoices were to be reversed it would be the first time in 25 years that a major economic reform in this country had been reversed. It would send a message to the world that we had downed tools on economic reform. It would be negative for investment in this country and it would say to the world that Australia has found the process of reform too hard to continue with. It would be akin to the reimposition of tariffs, the dismantling of the floating exchange rate system or the dismantling of taxation reform. In other words, it would be a massive backwards step. That is the reason that I am in favour of WorkChoices. I am not in favour of it because I am stubborn or because I am driven by ideology but because I believe WorkChoices is good for the future of this country. People say it's unfair. What on earth is unfair about the fact that we have the lowest unemployment rate in 32 years? What is unfair about the fact that we have fewer industrial disputes since 1913? And what is unfair about the fact that real wages continue to grow? The reason that people are critical of WorkChoices; and indeed opposition to WorkChoices is not driven out of concern for workers and their families, although that is the label used by those who attack the Government, it's not d riven out of that. It's driven out of a desire to re-establish union power over the industrial relations system of this nation. And we can be certain of one thing, that if at the end of this year, at the time of the federal election the Labor Government is elected, there will be Labor Governments everywhere. There will be no checks and balances as now exists between state and federal and even more importantly and even more dangerously that will be a union dominated Labor Government. We already have three former Presidents of the ACTU in Federal Parliament, Jennie George, Martin Ferguson and Simon Crean. They are going to be joined at the next federal election by Bill Shorten and probably Doug Cameron and we hear in this morning's news that Greg Combet, very likely, will get a seat in the Hunter Valley. So one by one, they're attaching themselves to the Federal Parliamentary Labor Party and they will be dominant influences in a future Labor Government. At a time when, what, l ess than 20 per cent of the private sector workforce is a member of a union, and at a time when there's a great bulk of people on the frontbench of the Labor Party already belonging to unions, it's a recipe for the return of what Greg Combet wants and that is the days when the union movement is running the country. So let's understand this: criticism of WorkChoices is not out of compassion for the workers, it's out of a desire to re-establish union power over the industrial relations system of this country.

JOURNALIST:

What about softening some of the edges of WorkChoices?

PRIME MINISTER:

Look I have said all along that the Government is willing to fine-tune, but we are not going to alter any of the fundamentals. There will be no change in that position.

JOURNALIST:

When is the fine tuning coming up?

PRIME MINISTER:

Well it has already occurred. But don't read into that what I think from your question you are trying to read into it. We're not going to be making any changes of substance to WorkChoices because we believe WorkChoices is a very good policy and we also believe on the first anniversary of WorkChoices, which will be next week, looking back it's very hard to accept that WorkChoices has been unfair when we have a 32 year low in unemployment, we have fewer industrial disputes at any time since 1913, a year before World War I commenced, and real wages continue to grow.

JOURNALIST:

Prime Minister, do you accept that the result last night was driven by a protest vote against the IR, WorkChoices?

PRIME MINISTER:

No I don't, I don't. I think the result was driven overwhelmingly by state issues.

JOURNALIST:

But do you then acknowledge that voters are still very concerned, very worried about IR laws in general?

PRIME MINISTER:

Do I acknowledge? No, I think what I find as I go around the community, people are saying to me, I keep hearing all these criticisms but I am not coming across people who are affected. That is what I am hearing.

JOURNALIST:

Do you think Peter Debnam's high disapproval ratings was a factor in the election result?

PRIME MINISTER:

Look I think Peter was subjected to an absolutely ferocious personal attack in the Labor Party's negative ad campaign. I think that when you lose an election obviously you have to examine all of the reasons for it. The comfort the Liberal Party can draw, and indeed the National Party that appeared to me to have quite a good election; I think what the Liberal Party and the National Party can draw from the election outcome is that they have reconsolidated their heartland. They have won back support they should never have lost in 1999 and 2003, but they're still a long way short and, look, we have to face the reality that it will now be 16 years at the time of the next election that Labor has been in power in this state. That's a very long period of time, and in my respectful opinion, the remedy lies not in looking at personalities but rather at looking at policy development. There...you can't say that the last two Labor Premiers of New South Wales; they've been decent men, I am not attacking them personally, but I don't think it's been their personalities that have won. I think there have been other factors.

JOURNALIST:

Should Peter Debnam stay on as Liberal Leader?

PRIME MINISTER:

Oh look, I like Peter but that is a matter for him and for the state parliamentary party. I am not going to get into that.

JOURNALIST:

Shouldn't Peter take responsibility for the lack of policy development?

PRIME MINISTER:

Look, the observation I make is an observation about the approach of all state parliamentary parties, all of which are in Opposition at the present time. I do think, without in any way making life difficult for them, I think I am entitled to observe that the path back to government is to build a case, to tell a story over a period of years as to why there should be a change of government.

JOURNALIST:

Do you think they had an effective campaign?

PRIME MINISTER:

Oh I thought given the limited resources that it was a gutsy campaign.

JOURNALIST:

How far up Mount Everest did he get?

PRIME MINISTER:

Well not far enough. Past a number of way stations but not quite far enough.

JOURNALIST:

Do you fear a personal attack in the upcoming federal election; that that was their strategy at the state level, that...?

PRIME MINISTER:

Well you'd have to ask them.

JOURNALIST:

But do you fear that? Is that...

PRIME MINISTER:

Look, I can tell you this, that we will be running at the next federal election on the strength of our record, which is a very powerful one, but also on the plans that we have for the future. We won't be running an excessively negative campaign, but we will certainly be pointing to the inexperience of the Opposition frontbench and talking to the experience and maturity and trustworthiness in government of the Government frontbench.

JOURNALIST:

Prime Minister, this is the 23rd election win for an incumbent government. What are your thoughts on incumbency? Does it rule?

PRIME MINISTER:

Oh I think incumbency provides certain advantages but it should not bring forth complacency. I don't assume that because we are the incumbent that that will give us a leg up in the next federal election. We will have to work very hard to win the next federal election and we are plainly the underdogs at the present time.

JOURNALIST:

Prime Minister, Labor on the state levels you were talking about the before; are you also acknowledging that there is a lack of talent at the state Liberal level?

PRIME MINISTER:

Oh I think that one of the good things that's come out of this election is the number of very talented new people.

JOURNALIST:

Prime Minister, you did mention, you brought up WorkChoices.

PRIME MINISTER:

Well I just knew you'd ask me.

JOURNALIST:

Well I...

PRIME MINISTER:

Was I right?

JOURNALIST:

You were absolutely correct but do you accept that it was, if not the major factor, was it at all an influence?

PRIME MINISTER:

Well there's no doubt that the Labor Party tried to make it an issue, there is no doubt about that. They ran a lot of ads based on it. I thought Joe Hockey made an interesting observation this morning when he said the polls started to go down after Labor introduced it in the campaign.

JOURNALIST:

So how significant was this not fattening the pig on market day factor? Did that cost Peter Debnam some seats?

PRIME MINISTER:

Well I don't want to add any more metaphors or further embellish metaphors. What's the next question?

JOURNALIST:

Labor insists, based on its polling that WorkChoices has been an issue, that's why it's campaigned on it. Is your polling telling you something different?

PRIME MINISTER:

They would say that wouldn't they?

JOURNALIST:

Well lots of independent polls have also said that Prime Minister.

PRIME MINISTER:

What are the independent sources?

JOURNALIST:

Well the AC Nielsen Poll.

PRIME MINISTER:

Oh yes but 18 per cent. Of course, there would be a section of the Labor vote that would feel very strongly about WorkChoices, but that doesn't make it decisive in a marginal sense.

JOURNALIST:

What about the booths in Bennelong? Did you...were you reading the tea leaves on that?

PRIME MINISTER:

What about the booths in Bennelong? They're wonderful booths all of them. They're all, they're all terrific. Look I think one of the silliest games in politics is to insert federal voting figures into...if I'd have put the Ryde figures of 2003 into Bennelong in 2004, I don't think I'd be talking to you now. I mean that's been the case for a long time.

JOURNALIST:

How do you explain swings to Labor is seats like Auburn and Penrith? These are seats which Labor says are seats where WorkChoices...

PRIME MINISTER:

Yes but I also noticed Mr Iemma, based on being in Menai, was saying that people were coming up to him complaining about WorkChoices and yet there was a 7.5 per cent swing to the Liberal Party in Menai.

JOURNALIST:

That's the desalination factor.

PRIME MINISTER:

I beg your pardon? That was desalination was it? Yes?

JOURNALIST:

Prime Minister, are you going to talk about David Hicks a bit this week?

PRIME MINISTER:

Am I going to talk about it? Well if you have a question I will try and answer it yes.

JOURNALIST:

He's obviously got a big week ahead of him. What are your hopes for him this week?

PRIME MINISTER:

Well I just want the trial to come on as soon as possible. I don't have any other comment. It's important that the trial come on as soon as possible. He's going to the preliminary hearing. We have pushed for that, pushed very hard, and we've pushed very hard for the trial to come on. People want him to have his day in court. That's the concern people have had and it is arriving and I am pleased about that, but I am not going to make any observations about...

JOURNALIST:

What about the Federal Court decision?

PRIME MINISTER:

Well I don't have any comment to make on court proceedings and nor indeed should you.

JOURNALIST:

Prime Minister, just coming back to Bennelong, apart from the state results there was also a Morgan Poll that suggested that you would lose the seat. How confident are you of holding your seat at the next election?

PRIME MINISTER:

I always have to work hard in Bennelong. I treat Bennelong as it is, and that is a marginal seat. I do not take it for granted. I try and, consistent with my Prime Ministerial duties which take me all around the country, I try and actively service in a personal way the people of Bennelong and I will go on doing that and hope I win, but I don't take anything for granted. When you've got a margin of four per cent you can't afford to.

JOURNALIST:

There is a story out today that Minister Hockey did not declare a family trust on his financial interests statement for a year. He says that's because it was dormant. Number one, does that bother you; and number two, is it a technical breach?

PRIME MINISTER:

Well on the information I have, given it's dormant, I don't think there's an issue.

Thank you.

[ends]