“It’s Really Bad, But Economy In Strong Shape,” Says Rudd

Oct 09, 2008

Kevin Rudd, has said the international financial situation is “really bad, let’s not mince words about it”.

But the Prime Minister emphasised the soundness of the Australian banking system, referring to a report from the World Economic Forum. He said: “Australia is ranked fourth out of 134 and to put that into context the UK ranks at number 44, the United States number 40 and Germany at number 39.”

Rudd said that the financial crisis would have a direct impact on superannuation funds.

The Prime Minister spoke this afternoon at a press conference with the Deputy Prime Minister, Julia Gillard.

  • Listen to Rudd and Gillard’s press conference:

    Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Filed Under: Audio, Audio2008, Economy, Reserve Bank, Rudd Government Tagged With: , , , , ,

Howard Talks Of Trade, Plays Down Chances In Werriwa

Jan 29, 2005

John Howard has played down the Liberal Party’s chances of winning the forthcoming Werriwa by-election.

Speaking in Davos at the World Economic Forum, the Prime Minister sought to lower expectations that footballer Paul Langmack can win the traditionally Labor seat. Werriwa, held by Gough Whitlam (1952-78), is vacant because of Mark Latham’s resignation last week.

Howard also spoke of a number of bilateral meetings he has conducted with a range of Asian and European leaders.

This is the transcript of the press conference held by the Prime Minister, John Howard, in Davos, Switzerland.

JOURNALIST:

Well what happened today?

PRIME MINISTER:

Well what happened today was I’ve had some bilateral meetings with the Prime Minister of Pakistan which was a very good meeting and also the Minister for Reunification from Korea and we talked about North Korea and also of course about possible further sales of LNG from Australia to Korea and there’s another decision, another big contract coming up and we have four or five competitors so we’re hopeful, but we can’t put it any more strongly than that at this stage. I thought the meeting with the Prime Minister of Pakistan was very valuable and we have agreed to endeavour to achieve a strengthening of that relationship, it has a lot of natural complimentarities but I think it could benefit from a bit of additional effort on both sides and we were both very much of that view.

I attended two of the sessions, one on the world economic outlook and also one on China’s economic outlook which is very important not only to the world but it’s particularly important to Australia. And at lunchtime I attended a session dealing with the issue of terrorism which was chaired by ElBaradei, the head of the IAEA and involved Senator McCain and the former Irish President Mary Robinson, the Secretary General of the Arab League, and the Foreign Minister of Afghanistan, the Polish President, the Norwegian Prime Minister, and quite a wide range of people and it was a very interesting meeting, I did take the opportunity of stressing the significance of the transition to democracy that taking place, or has taken place in Indonesia and how very important it was for the long term fight against terrorism that the manifestation of moderate mainstream Islam was seen to be successful and how very important it was for the world to support Indonesia.

JOURNALIST:

In what way could the world do that do you think?

PRIME MINISTER:

Well I think there are different ways, I mean we’re obviously doing it in the wake of the tsunami tragedy but what the world can do about further investment in Indonesia, obviously there have to be changes in that country to provide appropriate levels of assurance in relation to investment. But I made the broad point that Indonesia being the largest Islamic country in the world that what happens there is crucial to the I guess view the world has of, and of the interaction between moderate Islam and Islamic fanaticism because if moderate mainstream Islam succeeds and democracy remains strong, as it appears to be in Indonesia, well that is a huge rebuff to the terrorists because the terrorists do not want a stable, successful Indonesia. I made the point at this meeting that a modern successful country in Indonesia is anathema to the terrorists’ objectives.

JOURNALIST:

Was there much criticism about the United States in that debate? And also the discussion you attended for the BBC World seemed that there was a lot of so-called “Bush bashing” going on and you did step in to defend the United States, do you think that the US has come under attack here at this forum?

PRIME MINISTER:

Well I think some of the criticism by some of the Europeans is unfair and irrational and I have said so.

JOURNALIST:

Do you fear that that’s the way the world appears to be heading?

PRIME MINISTER:

No, no that is not because that is the view in some parts of Europe, it’s not the view in Eastern Europe for example, you talk to somebody like the President of Latvia who took part in that meeting, you talk to the representative of Afghanistan, that is not their view, one of the other people who attended the session at lunchtime was of course the national security adviser from Iraq. Now sure, he’s part of an interim government, we’re having an election there on Sunday and it’s starting the process. I think what happens on Sunday in Iraq is very important and I hope there’s a good turn out, I don’t know what it’s likely to be, I don’t think anybody does, but I hope it’s a good turn out.

JOURNALIST:

There was a session on terrorism earlier today and they were talking about the issue of Iraq and what’s happened there in relation to the wider war on terror and one of the guys from the Rand Corporation was arguing that in fact the US presence there has almost made the situation worse because it’s created a whole new group of insurgents who…

PRIME MINISTER:

That’s not a new argument, there’s nothing particularly novel about that argument. I don’t share that view, I made the point today and I’ve made it before on numerous occasions that whatever view you may have had about the action in Iraq, everybody knows my view, leaving that aside there’s no doubt that the terrorists have adopted Iraq as a battleground and if a democracy takes root in Iraq then that is a setback for terrorism, and they’re throwing everything they’ve got at the task of stopping the elections being effective.

JOURNALIST:

Prime Minister, Kim Beazley has been campaigning in the seat of Werriwa, where is the selection process at for a Liberal candidate for the by-election?

PRIME MINISTER:

Well that is a matter for the organisation. But the party, my understanding, the organisation is considering that issue and they’ll be making an announcement about it in the next week or so.

JOURNALIST:

Does Paul Langmack has what it takes to take the seat from Labor?

PRIME MINISTER:

He’s a wonderful footballer but I don’t know anything more about his intentions, I did read this morning that, some reference to him, I don’t know how accurate that is, I don’t want to assume anything that may not be the case but he’s certainly a very fine citizen and a very fine rugby league player.

JOURNALIST:

Do you think there is a chance the Liberals could take the seat?

PRIME MINISTER:

Take the seat? Oh come on, that’s a very big challenge. But we haven’t decided what we’re going to do yet, that’s a matter for the party organisation.

JOURNALIST:

Mr Howard, beyond the issue of America bashing there is an obvious high level of anxiety here across the board about the American economy and what the outlook is and what the impact will be of the Bush budget. Do you share that anxiety and what is your view about it?

PRIME MINISTER:

Well I certainly don’t like the fact that the US budget is so heavily in deficit, that’s a view I’ve expressed before. I don’t know that I have an anxiety, I wouldn’t express it that way about the American economy, but the American economy is still making a very big contribution to world growth, it always will, however I would like to see a lower budget deficit.

JOURNALIST:

And would you like to see the Chinese contribute to rebalancing the various aspects of the world economy, I went to that discussion today, there was a lot of views expressed by the Chinese about…

PRIME MINISTER:

I thought the Vice-Chairman of the Central Bank gave a reasoned defence of their exchange rate policy. I think China’s exchange rate policy is a matter for the Chinese.

JOURNALIST:

You having any luck on wheat, Prime Minister?

PRIME MINISTER:

Wheat? What aspect of wheat?

JOURNALIST:

Well you were very exercised on your…

PRIME MINISTER:

Oh yes, we’ll continue to be, most of the people I’ve interacted with today are not really to blame.

JOURNALIST:

The Chinese, Prime Minister encouraged the world to invest more in the country as it developed, is that an important issue for Australia, to invest more in China?

PRIME MINISTER:

Well Australia has invested quite a bit already. But these things in the end have got to be determined by individual commercial decisions, I mean we don’t direct businessmen to invest in a particular country, we encourage them to take advantage of commercial opportunities. I wrote to a large number of Australian countries encouraging them to participate in an infrastructure conference that President Yudhoyono convened in Jakarta earlier this month and I believed a lot of them responded to that invitation. The question of whether they invest depends upon their commercial assessments and we don’t seek to influence those in any kind of overt fashion.

JOURNALIST:

Prime Minister, just on Iraq, Mohamed ElBaradei has come out pleading with the global community to be patient with Iran, that they’re co-operating, how much time should the country be given?

PRIME MINISTER:

Well I would like the discussions that are occurring between the three European countries and Iran to continue. I hope those discussions can produce a satisfactory result. That’s the view I expressed yesterday when I saw the Iranian Foreign Minister and continues to be our view and I hope it can work out. I don’t think there’s anything to be gained by more or anybody else nominating times…

JOURNALIST:

Did he give you any encouragement?

PRIME MINISTER:

Well he told me that Iran’s motives were positive. I think we have to wait and see.

Filed Under: Howard Government, Trade Tagged With: , , ,

Howard In Davos For World Economic Forum; Comments on Habib, Beazley

Jan 28, 2005

The Prime Minister, John Howard, is in Davos, Switzerland, for the latest meeting of the World Economic Forum.

Speaking to journalists, Howard criticised European wheat subsidies, but was otherwise non-committal on Mamdouh Habib and the ALP leadership.

According to its website, the World Economic Forum is “an independent international organization incorporated as a Swiss not-for-profit foundation”. Its members “represent the world’s 1,000 leading companies, along with 200 smaller businesses, many from the developing world, that play a potent role in their industry or region”.

The forum aims for “a world-class corporate governance system where values are as important a basis as rules”. It argues for “entrepreneurship in the global public interest”, and believes that “economic progress without social development is not sustainable, while social development without economic progress is not feasible.”

This is the transcript of the doorstop interview given by the Prime Minister, John Howard, at the Belvedere Hotel in Davos, Switzerland.

JOURNALIST:

Prime Minister, this is your first trip to the World Economic Forum, why have you come this year?

PRIME MINISTER:

Well it’s not my first trip to the World Economic Forum, I went to the one in New York, it’s the first one I’ve come to in Davos. I think this is an appropriate time given beginning of a new term, there are a lot of major economic issues to be discussed, I’ll take the opportunity for example of expressing my concern about the decision of the European Union to resume subsidies for the export of wheat, that’s a matter of very great concern to Australia, it seems to run completely counter to all the rhetoric we’ve had about more open trade, if this is their idea about more open trade well Australia is deeply disappointed. There’s a lot of rhetoric at the moment about helping under-developed countries, nothing would help under-developed countries more than the removal of trade subsidies and trade barriers and if the nations of Europe and North America and others that have highly protected agricultural policies wanted to really help many of the developing countries then they could do more to help them in changing their trade policies than they could through official development assistance.

JOURNALIST:

So will you be seeking some bilateral discussions with European Union officials?

PRIME MINISTER:

Well I will talk to anybody I can get hold of on all manner of subjects, I’m having a lot of bilateral discussions and I’m sure the opportunity of discussing that matter will come up.

JOURNALIST:

Mamdouh Habib arrived back in Australia today, will the Government be keeping a close eye on him?

PRIME MINISTER:

Look Mr Ruddock is dealing with that, let him speak for the Government on that issue.

JOURNALIST:

Do you think in general though given that the possibility of charges being pressed has now receded, if it fair enough to say that the man’s innocent?

PRIME MINISTER:

I’m not going to express a view on that, Mr Ruddock is handling it back in Australia.

JOURNALIST:

What do you think of the election of Kim Beazley as Opposition Leader?

PRIME MINISTER:

Well it was inevitable wasn’t it? Let me congratulate Mr Beazley, like all other leaders of the opposition I won’t be taking anything for granted in dealing with the Labor Party under his leadership. His responsibility now, as mine has been in the almost 10 years that I’ve been leader of the Liberal Party, is to be accountable to the Australian people. The Australian people will want to know from him, as they do from me, what he stands for and what he intends to do. You are accountable in public life for what you believe in and what you do, not what you say.

JOURNALIST:

Ten years ago you took over the Liberal Coalition in a similar position, have you got any advice for Mr Beazley?

PRIME MINISTER:

No, I’m not giving Mr Beazley any advice. That’s a matter for him. Look, he’s been made leader, I don’t treat anybody lightly, I’ve told my party not to get complacent, we have to work very hard to retain the confidence of the Australian people, you can never take anything for granted in politics and I can assure the Australian people that I do not take them for granted, I work hard in their interests and that’s the message I send to all of my colleagues.

Thank you.

Filed Under: Howard Government, Opposition Tagged With: , , , , ,

Howard Has Trade Talks With World Leaders In Davos

Jan 28, 2005

This is the transcript of the doorstop interview given by the Prime Minister, John Howard, at the World Economic Forum Congress Centre in Davos, Switzerland.

PRIME MINISTER:

Well today I had bilateral meetings with Bob Zoellick, who is the new US Deputy Secretary of State, still Trade Representative, the Foreign Minister of Iran, and also the Senate Majority Leader, Bill Frist. In addition to that I participated in the BBC world debate, along with sundry other people, including John McCain and Joe Biden and the Secretary General of the Arab League and a cross section of commentators and other political figures. I specifically raised in that my concern about the need for America and Europe to work together to make the Doha round a success, there was a lot of criticism from the Europeans about the Americans over a number of issues and some people were calling for areas where there could be co-operation and I suggested that I hope that one area they might co-operate was to remove some of the agricultural protections and that would work very much to the advantage of developing countries and obviously Australia has a vested interest in that, but quite separately from our interest there’s a very big developing country interest in that. That’s all I want to say, any questions?

JOURNALIST:

How did that go down, that sort of suggestion?

PRIME MINISTER:

The Europeans didn’t say much about it.

JOURNALIST:

And the Americans?

PRIME MINISTER:

Well I think the discussion kept going on other issues, they were very focused on aspects of the interaction between Europe and the United States.

JOURNALIST:

Are you concerned that there hasn’t been much happening since the July breakthrough agreement on the Doha round?

PRIME MINISTER:

Yes I am, and I don’t think this wheat development is helpful, I think it’s very unhelpful. I said something about that to some of you earlier today and I think it’s…

JOURNALIST:

(inaudible)

PRIME MINISTER:

Well we don’t want to accelerate the (inaudible). Well Bob Zoellick and I talked about that, he said (inaudible), and he’s moving out of the trade area very shortly, but he’s still very committed to bringing it about but he recognises what an enormous administrative challenge it is. It’s complicated not only by the normal barriers to movement but it’s also complicated by the fact that it’s not just the Americans and the Europeans, although they’re the major players, there are other players in it as well. I think we can continue through our role in the Cairns group to have a positive influence.

JOURNALIST:

What came out of your talks with Iran’s Foreign Minister?

PRIME MINISTER:

Well we talked about the importance of keeping a dialogue going between our two countries and I think that is important, we’ve kept a good diplomatic relationship with Iran, we have quite a good trade relationship, I encouraged Iran to work closely with the three European countries in relation to nuclear matters.

JOURNALIST:

Because of Australia’s diplomatic relationship with Iran do you see your and Australia’s role as perhaps a lead role on behalf of the international community on issues like the…

PRIME MINISTER:

Well I think the lead role in that should be taken by the three European countries, I think what, I mean I made the point that there should be full co-operation and full compliance by Iran with the understandings that have been reached with the three European countries.

JOURNALIST:

What sort of a lifeline or lifespan does the European negotiation with Iran have do you think? I mean the country claims that it will have nuclear proficiency by next year, does that…

PRIME MINISTER:

Well I am hopeful that that initiative, those three countries can bring about a result that we all find acceptable.

JOURNALIST:

The key agenda for this forum is poverty, addressing these problems of poverty in the third world. What’s going to be your contribution to that debate?

PRIME MINISTER:

Well I think the biggest thing the developed world can do to alleviate poverty is to remove trade barriers. The benefits of that are infinitely greater than benefits from direct aid, direct aid works well in some cases, in many other cases because of poor governance it works very badly.

JOURNALIST:

There are (inaudible) importers though.

PRIME MINISTER:

I beg your pardon?

JOURNALIST:

There are countries that are net agricultural importers who would not necessarily benefit from…

PRIME MINISTER:

No, no that’s true, there are some, that’s quite true.

JOURNALIST:

Prime Minister, the global launch against poverty today highlighted not only the trade issue you’re talking about but also the key issue of third world debt relief. I know that you’ve had some concerns in the past, particularly over the tsunami, about whether or not that debt relief actually helps people on the ground I guess. Is that your concern about where that debate’s going?

PRIME MINISTER:

Well sovereign debt relief in the short term rewards the treasuries of the indebted countries and unless there’s a guarantee that that is then channeled to poverty alleviation it can be very unproductive, but that’s not to say we’re opposed to all debt relief, we have involved ourselves in programmes helping the highly indebted developing countries. But the principle applies whether you’re dealing with a tsunami situation or not.

JOURNALIST:

Prime Minister, there are two proposals that (tape break) tax on everything from plane tickets to secret financial transactions. Can I ask you what you think of that, and secondly that’s a proposal that’s been supported today by Gerhard Schroeder who has also supported Gordon Brown’s proposal of establishing a monetary fund to bring forward the goals of the millennium goals. Can I ask you what you think of each of those proposals?

PRIME MINISTER:

Well I’d like to study President Chirac’s proposal.

JOURNALIST:

That’s what Tony Blair said.

PRIME MINISTER:

Well I didn’t know that, but there you go.

JOURNALIST:

Do you think that they’re interesting proposals, ones that you might favour?

PRIME MINISTER:

I’m not normally attracted to proposals for new taxes.

JOURNALIST:

And Gordon Brown’s proposal Prime Minister, establishing an interim financial fund to which countries would contribute as they go towards 2015 rather than just sitting…

PRIME MINISTER:

Look I don’t mean this facetiously but I would like to study that a little more carefully before I give a response.

Filed Under: Howard Government, Trade Tagged With: , ,