Transcript: Sky News AM Agenda, 3/9/15

KIERAN GILBERT, PRESENTER: With me this morning to discuss the issues today Labor frontbencher Nick Champion and Liberal frontbencher Paul Fletcher, gentlemen good morning to you.

Nick Champion a show of strength from China today and a little reminder while its economic growth has declined it is an ever rising power. In that context I guess we look to the free trade agreement this is a big issue in terms of our political debate right now. I really can't see Labor blocking this under any circumstances despite your concerns about the Labour market testing – it’s be an enormous problem for your economic credibility if you did?

NICK CHAMPION, SHADOW PARL SEC FOR HEALTH: …

KIERAN GILBERT: Okay Paul Fletcher, your response to that, because Labor says that it wants a guarantee that Labor market testing will be mandatory if you did that, it'd all be done - soon we'd all be there.

PAUL FLETCHER, PARL SEC FOR COMMUNICATIONS: What Nick Champion is saying is complete nonsense; this is Bill Shorten dancing to the tune of the CFMEU. Let's be clear - the China Australia Free Trade Agreement is great news for Australia, it's great news for economic growth, it's great news for jobs. There's huge opportunities in agriculture, in services, very significant opportunities with this country that makes up 22% of the world population - that is why former Labor Prime Minister Bob Hawke, former Labor Premier Bob Carr, the current Labor Premiers of Victoria and South Australia, amongst others are all strongly supporting this agreement being signed as soon as possible.
Who’s against it? The CFMEU – and so Bill Shorten is dancing to their tune by concocting concerns. What Labor needs to do, if it supports Australian jobs and growth, is clearly come out and say they are supporting the China-Australia Free Trade Agreement.

NICK CHAMPION: .....

PAUL FLETCHER: Nick, we're taking an economy wide view, we want to encourage growth, and jobs, and opportunity in every sector across the economy, unlike the leadership of the CFMEU which has a narrow perspective, and sadly Bill Shorten is dancing to the tune of the CFMEU and rather than doing what a national political leader should do, which is be concerned about economic growth and opportunities for the totality of Australia.

NICK CHAMPION: ....

KIERAN GILBERT: Well Paul Fletcher, finally on this, this is an issue which is, from what I understand, very much resonating in the seat of Canning. There are 10,000 fly in, fly out, workers living in Canning, a seat with a bit over 100,000 constituents, 10,000 of them fly in fly out workers, so it's obviously an issue in that part of the world, Paul.

PAUL FLETCHER: Well growth and opportunity is very important, creating new jobs is very important, that's what a free trade agreement will do, that's why our outstanding candidate in Canning, Andrew Hastie, is campaigning strongly on the free trade agreement, and on the Abbott Government's plans for growth and opportunity for Australians. And can I say, having myself contested a by-election a few years ago, what you have to do is exactly what Andrew is doing, which is focus on the concerns of the people of the electorate which he seeks to represent, namely Canning, and he's doing an outstanding job of it.

KIERAN GILBERT: Okay, the Prime Minister is on 2GB Radio with Alan Jones this morning, discussing the prospect of an increase in the GST, the rate of the GST, he says that there is an efficiency argument along those lines, to lift the rate of GST, if however that there is a broader reduction in the rate of taxation overall.

<clip of Prime Minister's 2GB interview plays>

So it is a real possibility here Paul Fletcher, an increase according to the Prime Minister this morning, in line with the tax white paper, if there is a reduction in less efficient taxes, I guess the most notable one, and one that would have to be addressed, if you did go to move the GST, would be the income tax rate, Paul.

PAUL FLETCHER: Well let's be clear on the point that the Prime Minister was making - there is a tax white paper process underway, so that we can have a thorough look at the tax policy issue, including the tax mix. The Prime Minister was there articulating the standard tax economists' argument for a GST, which goes to the relative efficiency and the effect on incentives to work of a consumption tax, rather than just an income tax. That's one of the many considerations that will be worked through in the context of the Tax White Paper, so we're having a thorough, careful, national discussion about this, as we should, let's do that, let's have the discussion, before we then come to outcomes, we need to understand and work through systematically the issues.

NC: ...

KIERAN GILBERT: Paul Fletcher it’s going to have to come a time when the Government steps up here to the plate, if you want to change, there’s got to be leadership to lead the people to understand exactly what it means, like John Key did in New Zealand. It seems a bit waffle-y at the moment, you’re talking about white papers and so on instead of actually getting on with it and articulating your point if that’s where you want to head?

PAUL FLETCHER: Two points, first of all we have an economic plan designed to drive growth, we have the $20,000 instant asset write off in the Budget, of course the China-Australia Free Trade Agreement, another important element of our plan to drive economic growth and prosperity. In addition to that we are going through this thorough review process in relation to the tax white paper so we can properly weigh up the approach to take and of course, in due course, then come forward with specific measures  based upon that careful work.

[Break]

KIERAN GILBERT: This is AM Agenda thanks for your company with me this morning Paul Fletcher and Nick Champion. Gentlemen I want to play you a bit of the Prime Minister this morning he’s confirmed that the Government will make an announcement next week as to whether Australia will expand our involvement in air strikes from Iraq into Syria in the fight against Daesh – here’s a little bit of what he had to say to Alan Jones in relation to what he calls the death cult.

<clip of Prime Minister's 2GB interview plays>

Let’s go to Nick Champion first on this, it seems inevitable to Government is going to expand the air strikes into Syria, will Labor back it?

NC…

KIERAN GILBERT: Let's go to Paul Fletcher on this and the Prime Minister’s comments this morning to Alan Jones. Paul your thoughts on that?

PAUL FLETCHER: Well if you look at histories of world war two and the accounts of Allied soldiers as they liberated concentration camps and the sheer horror and incredulity, they simply could not believe what they were seeing, and the response in the USA and Britain and around the world as this news became known was just shock and horror. In other words it hadn't really been believed - there was t obviously information coming out beforehand but in a time before social media and so on it generally had not been believed quite how horrific the things the Nazis were doing in the concentration camps were.

So the Prime Minister makes a very powerful point that one of the differences is that Daesh boasts about what they do. And of course that is in part designed to aid a campaign of terror, and it is a difficult additional factor in modern terrorism which civilized democracies around the world including Australia, responsible members of the world community, need to take account of as we work through how we deal with what Nick rightly describes as a very significant problem, the collapse of Syria - this is a country of 20 million people which is descending the most awful civil war and chaos.

KIERAN GILBERT: Just spilling over into the humanitarian tragedies as well in Europe, we see those all those terrible pictures of young children and so on dying in the effort to make it to Europe, it's horrific.

Let's look to the GDP issue just to finish off if we can gentlemen, it’s a big issue of course in this country, the slowing growth – Paul Fletcher the Treasurer tries to shrug it off, but should we be so sanguine about it?

PAUL FLETCHER: Well I think what we do need to do is recognize as the Treasurer has made the point that our economy is in transition. We've had a remarkable resources investment boom, we're now going into a different phase where resources export volumes continue to be high but the prices have dropped significantly.

We also had a particular seasonal factor with the port of Newcastle heavily affected in April which was reflected in the numbers. That being said, point-two percent growth on top of a very strong point-nine percent in March, we look to be navigating this transition with greater success than countries like Canada, Brazil, other heavily resource-based countries and of course we have a plan to deal with this transition.

It's encouraging to see services exports up over 7% and services is a big opportunity under the China Australia free trade agreement which again makes it so important that Labor comes out and clearly supports the China Australia free trade agreement rather than dancing to the tune of the CFMEU.

KIERAN GILBERT: And it’s not going to hurtsectors like tourism for example which has been booming in the last little while, the growth in tourism comparable to that of the 2000 Olympics, the lower dollar helps important sectors like that doesn't it Nick Champion, I guess the tertiary education sector too?

NC: ...

KIERAN GILBERT: We’re out of time Nick Champion, Paul Fletcher thanks for your time this morning.

[ends]