19-November-2008
Portfolio Media Releases, Infrastructure, The Economy
Topics: Infrastructure funding for local governments, Budget deficits, 12 month anniversary of 2007 election.
MARIUS BENSON: Andrew Robb in response to the $300 million the Federal Government gave to local councils yesterday you said that was a worthwhile stimulus but you sounded a bit worried about that dwindling surplus.
ANDREW ROBB: Well we should remember that Australia is much better placed than almost any other developed country around the world to deal with this economic storm cloud coming at us, and the reason we are much better placed is that we have spent a decade of building surpluses, having strong economic growth and having measured sensible economic management.
The rest of the world, the OECD countries, the other major developed countries have typically had low growth, they have had deficits and they have had massive debt. We have no debt. Now we are demonstrably in a different position than others. We are still going to have some effect obviously on what happens around the world but our first instinct should not be to hurry back into debt and to build up a huge debt burden on this country again. We have got to do the sensible thing. Yesterday was a classic example, the $300 million could have been tied to a whole host of commitments on the local governments to make changes to the way in which they do business, to the regulations, to the standards for construction for road works, there are 60 different profiles for kerbs and channel construction in one state alone.
MARIUS BENSON: Sure but without …
ANDREW ROBB: and costs and productivity.
MARIUS BENSON: Without getting lost in detail, can I ask you the big picture, is the surplus a must in your mind come what may or is a deficit acceptable under some circumstances
ANDREW ROBB: Well my point is that our first instinct as a country must not be to look to a deficit.
MARIUS BENSON: No, no, but now?
ANDREW ROBB: That’s what bothers me, you have to deal with situations as they arise and we have to see how much of this financial meltdown plays into the real economy over the next 12 months to two years. But the mindset of the government must not be that a deficit is inevitable and at the moment it looks like they are softening up, the Federal Government is softening up the community to accept deficits and to accept debt again, to once again have a major debt, now that in my view is a very bad mindset. We have got to look as to how we can, as a country deal with whatever is coming down the line without automatically lurching towards a deficit and looking to build up the debt again in this country.
MARIUS BENSON: What about another issue Kevin Rudd raised in Washington which is it’s time for the world to crack down on executive pay, is that a good idea, can it work?
ANDREW ROBB: Well, look I think sensible pay rates and pay deals, especially if it’s in the financial sector, we are talking really about a lot of the big investment banks and things. There needs to be some pressure on there I think. But you know I was at the Business Council dinner when Mr Rudd spoke just a couple of weeks ago and a great opportunity to talk to all the captains of industry in Australia did not raise the issue, so I am not sure how determined they are to pursue this issue and certainly it leaves people with a bad feeling to see the way in which some people, especially in the US, some of these big investment houses, how they have taken obscene amounts of money, that sort of issue should be addressed in some way or other.
MARIUS BENSON: OK just quickly Andrew Robb, it is a year now since the government was elected and the government is following the general poll pattern of being a bit more popular now than it was when it was elected, stay on the normal trajectory they win the next election. Do you think things are going ok from the Opposition’s point of view?
ANDREW ROBB: I think we have done a solid job, a very solid job in keeping the government accountable, we are disciplined and focused and energetic and determined to get ourselves into a position so we can be truly competitive at the next election.
MARIUS BENSON: A solid job? That sounds like a bare pass.
ANDREW ROBB: No, not at all, when you come into Opposition after eleven and half years in government, when you lose a lot of experienced people from your front bench it requires some hard work, to get down and get yourself back into a fighting machine and I think we have got there and I think it has been a very solid year and I am very pleased with the way in which the Coalition under Malcolm’s very strong leadership and direction is starting to mould itself into I think a very strong alternative government.
MARIUS BENSON: Andrew Robb, thanks very much.
Media Contact: Stuart Eaton, 0433 298 620