TONY EASTLEY: It's cold in Canberra this morning and there's a chill in the Labor ranks as Federal Parliament resumes for its final two week session before heading off for an eight week break. Some pundits are tipping it may be the last sitting before an election is called but the political landscape is uninviting for Labor. It's still bogged down in a debate over its resource super profits tax and it's copping a beating in opinion polls and there are rumblings from the backbench. There is some cold comfort that Labor's advertising campaign is working but some MPs want the tax issue sorted ASAP and there are reports this morning the Government may be close to reaching an agreement with some mining companies. The Finance Minister Lindsay Tanner is often referred to as being one of the Rudd Kitchen Cabinet, along with Julia Gillard and Wayne Sawn. Lindsay Tanner spoke with AM Sabra Lane a short time ago.
LINDSAY TANNER: We are doing everything we can to ensure that the consultation with the mining industry leads to an outcome that everybody can live with. We're facing a real challenge here to ensure that Australia gets a reasonable return for its resources and that they can in turn be reinvested in wealth created across the whole economy. That's what this whole exercises is about. That's why we're pursuing these changed arrangements, this tax reform package and we intend to keep pursuing it.
SABRA LANE: The Parliamentary Secretary for Western and Northern Australia Gary Gray says this debate must be resolved by August to end the uncertainty for all concerned. Is he right?
LINDSAY TANNER: Oh look, you can't set a specific time slot on it because the crucial thing here is getting it right. We've put forward a big agenda for the long term sustainable growth of the Australian economy, investing billions mores in infrastructure, more in skills, reforming regulation across our economy and getting a super fast broadband network for all Australians and this tax reform package is just part of that process and the crucial thing here is getting it right. We'd like to get it resolved as quickly as possibly but we're not going to set an artificial deadline.
SABRA LANE: It's been reported this morning that the Deputy Prime Minister and you were kept out of the loop on the policy development of this tax, that the tax was largely devised by the Prime Minister and the Treasurer, is that accurate?
LINDSAY TANNER: We'll no it's not. I'm obviously a central player in the budget process and the tax reform package was a key part of the budget process even though it was announced before the budget. So speaking on my own behalf all I can say is that although I'm not going to comment about what occurred in Cabinet processes I certainly was in the loop in all of these decision making processes as I should have been.
SABRA LANE: So The Australian is wrong?
LINDSAY TANNER: Well I'm just telling you that as far as I'm concerned I was part of the decision making process and I'm not suggesting anything to the contrary.
SABRA LANE: Were there consultations outside that group before?
LINDSAY TANNER: Oh look I'm not in a position to comment on that. Obviously the Treasurer as the minister responsible for taxation, the minister receiving the Henry Report is the primary player in all of this but I was part of the decision making.
SABRA LANE: There's been some angst on your backbench about the Kitchen Cabinet and the group of four, of which you're a member, is there a move to restore the full Cabinet with decision making capabilities and take that away from that strategic cabinet?
LINDSAY TANNER: Well I'm not necessarily accepting some of the third hand gossip that gets printed in newspapers that keeps the political class occupied from time to time, so I'm certainly not going to suggest that the implication in your question is accurate. These things vary according to circumstance. We had particular circumstances during the course of last year, especially where it was necessary for that group to handle a lot of, in effect, emergency decisions associated with the global financial crisis. The budget process always involved essentially the expenditure review committee and of course four of the seven or eight members of the ERC are the Strategic Priorities and Budget Committee so the notion that we need to drastically turn things upside down I don't think has merit.
SABRA LANE: These rumblings though are coming from your own backbench.
LINDSAY TANNER: You're suggesting that and various newspapers carry anonymous comments.
SABRA LANE: We've been told.
LINDSAY TANNER: Well that's fine, you know, but at any given time you will always be able to find someone somewhere who will something about something in politics. So we are always going to be looking at ways we can do things better, we are always going to be looking at improving our performance whether it's in process or in policy content. But one thing I can tell you is we're not going to be spooked by idle gossip on page seven of The Australian.
SABRA LANE: Would it not be better though for decisions like the tax to have the consultation with the broader Cabinet? You've got people there like Simon Crean. You've got Craig Emerson who previously he did his PHT on a super profits tax. Wouldn't it have been better to have got these minds involved in this tax to get their views?
LINDSAY TANNER: We believe we got the decision making right in dealing with these issues. There were a lot of complicated matters that had to be dealt with in a considered way and as far as I'm concerned the core issue here is the content. Nobody every complained about consultation when they liked the outcome. So all of the complaints you hear about consultation of course ultimately take you back to the key question; what is the outcome going to be? And we are committed to investing for the long term sustainable growth of Australia's economy to ensue that the Australian people get a fair return for their mineral wealth that is now selling internationally at massively higher prices than it used to and that money can be reinvested in our economy through lower taxes on business, through more investment in superannuation and infrastructure and through easier tax returns for ordinary citizens.
SABRA LANE: You've got a Cabinet meeting this morning and you've got a caucus meeting as well, backbenchers say the mood against the Government, particularly Kevin Rudd has noticeably changed over the last couple of weeks, is that what you're hearing?
LINDSAY TANNER: No it's not.
SABRA LANE: Some say Kevin Rudd's character is the issue here, saying that Kevin Rudd isn't the man you told us he was.
LINDSAY TANNER: Well this character some is an interesting person and I'd like to meet him or her and actually have a discussion with them about these matters. Again, there's really nothing to respond to here.
SABRA LANE: Given the Government's sagging ratings and rumbling about the leadership, is Kevin Rudd safe?
LINDSAY TANNER: Yes.
SABRA LANE: The sitting fortnight could be the last session before an election's called, if the polls are right, you're facing an uphill battle. As a political strategist would you rather go earlier or would you rather go later?
LINDSAY TANNER: Oh look, it's not my call to make Sabre, obviously it's the Prime Minister's call as to when an election is called. My expectation is that it will be approximately around the three year mark. There are big challenges there, there are difficulties that we've got to face. There are things that haven't quite gone exactly to plan, ultimately that's what's going to determine whether or not we get re-elected.
SABRA LANE: On this policy development though in hindsight would it have been better for the Government to have brought the miners into the fold before it announced this tax publicly?
LINDSAY TANNER: Nobody likes paying more tax. So whatever the issue, there is always going to be anger, debate, controversy associated with any tax reform proposals. You don't hear the Business Council coming out too loudly and saying isn't it wonderful we're getting a drop in company tax? All you'll ever hear is those who feel that they're being hard done by. That gets massively magnified. It's hardly surprising we're seeing these bizarre absurdities of billionaires out there in workers' outfits demonstrating and saying axe the tax and so forth. I think most ordinary Australians can see through that nonsense, that what we're dealing with here is an effort to get a fair return for the Australian people from their mineral wealth that can be used to improve our economy for more investment, for lower business taxes right across the board and we're going to stick to that.
TONY EASTLEY: The Finance Minister Lindsay Tanner speaking there with Sabra Lane.
| Media Contact: | Website: |
|---|---|
| Nardia Dazkiw - 0418 144 690 | www.financeminister.gov.au |
