Transcript
17 June 2009
Interview - Sky News AM Agenda
Subjects: Building industry, NSW Budget, protectionism, Peter Costello
KIERAN GILBERT: Good morning and welcome to AM Agenda.
The Deputy Prime Minister will today introduce legislation for the Government's building industry watchdog. The unions and employers both aren't happy with what the Government's putting forward, and that, the Prime Minister says, shows the Government has got the balance right.
Coming up on AM Agenda I'm going to be speaking to the Liberal MP Jamie Briggs and the Labor Parliamentary Secretary for Employment, Jason Clare.
First though on the program, I'm joined here in our Canberra studio by the Trade Minister Simon Crean.
Good morning, Mr Crean.
SIMON CREAN: Morning, Kieran.
KIERAN GILBERT: You're a former president of the ACTU. Yesterday in caucus apparently you argued for this building industry watchdog. Why is that?
SIMON CREAN: Well, because I don't believe you reward bad behaviour and elements of the union movement who have been involved in that bad behaviour shouldn't be rewarded. But the rest of the trade union movement that's trying to do the right thing should not be penalised. This legislation gets that balance right.
It's got a switch-off mechanism that rewards good behaviour, but it keeps the discipline, the strong cop on the beat to ensure that bad behaviour doesn't exist.
Now, my first meeting as ACTU president I was having to deal with issues that led ultimately to the deregistration of the BLF. There have been these elements around which at various stages the trade union movement has been able to deal with and deal with properly.
Unfortunately, it's not been able to be eradicated and this was the only step - the option the Government was left with, particularly following the report of Wilcox. Because what Wilcox said is - and he is a liberal-minded person, his inclination was to remove these powers - but said on the evidence that I've looked at, I have no option but to recommend their retention in certain circumstances.
We can't ignore that report.
KIERAN GILBERT: But some of your colleagues, other union figures in the past that are now members of the caucus, have said the law treats building workers like organised criminals, like terrorists, that they don't have the right to silence. SIMON CREAN: It does - it doesn't do that at all. What it does is to say we're not going to reward bad behaviour, and I absolutely agree with that. In all my leader…
KIERAN GILBERT: But it's compulsory…
SIMON CREAN: …all my leadership of the trade…
KIERAN GILBERT: …compulsory interrogation.
SIMON CREAN: …union movement, I was never prepared to defend thuggish elements. I was never prepared to defend legal[sic] activity and nor should it[sic].
Once the trade union movement gets to the position of defending that sort of action, it's no longer a trade union movement. And I think that everyone in the trade union movement does support that principle. Sure…
KIERAN GILBERT: So, is the current leadership wrong?
SIMON CREAN: No, no, sure there's a…
KIERAN GILBERT: Is the current ACTU leadership wrong for standing up for those elements?
SIMON CREAN: I think the current ACTU leadership needs to understand the difference between the principle, with which I agree - there should be one set of standards for everyone - the principle versus the practice.
And if in fact there are still bad elements, which they acknowledge remain, it is a minority but it's a bad … They are bad elements, they bring the trade union movement into disrepute.
They should be supporting this action. Now…
KIERAN GILBERT: Will it get through…
SIMON CREAN: …I disagree with their conclusion, but they're entitled to their conclusion.
KIERAN GILBERT: Will it get through the ALP conference now? Or will the unions be able to get enough support to be able to block this at the conference next month?
SIMON CREAN: I think this was a very significant decision of the Parliamentary Labor Party. It was a sensible, measured debate.
There are different points of view, but I think in the end the Government has got the balance right and I commend Julia for achieving that outcome. But having got the balance right, I think that argument will carry the day at conference.
KIERAN GILBERT: On another issue, the Rudd Bank, as it's been called, was blocked, that legislation; another piece of legislation blocked in the Senate. What's your response to that? Will the Government put this back up again, do you think?
SIMON CREAN: Yeah, and so it should, because this is economic vandalism by Malcolm Turnbull. This is a gap in the property construction market where projects are not able to rollover financing because they can't get the lending from overseas banks because they're in so much strife. This is a mechanism to fill that market gap. This…
KIERAN GILBERT: It's not a risky investment?
SIMON CREAN: Well, it's even more risky if we don't do it, Kieran. Because what happens if the construction projects fall over? What about the job losses?
I mean, we've heard the Liberals rabbiting on in the Parliament about impacts on employment from the global recession and they've stood in the way of this very measure that's designed to recognise the impact of the global financial crisis on Australia, to understand the various elements and to be another brick in the wall for insulating Australia as best we can from that.
KIERAN GILBERT: There's a buy Australian provision in the New South Wales Budget that we heard yesterday from Eric Roozendaal. He argues that it - why not tilt the balance in favour of local producers to protect local jobs? What's wrong with that argument?
SIMON CREAN: It doesn't protect local jobs. This is the misguided and fundamentally flawed view about this decision. Effectively what the Government of New South Wales is doing is putting a 20 to 25 per cent tariff on all of their government purchases.
Now, government purchases in New South Wales: $4 billion. It's effectively, potentially putting the cost up by another billion dollars.
KIERAN GILBERT: Does this breach trade agreements that Australia has signed?
SIMON CREAN: It does breach certain trade agreements, but most importantly it is a reversion to protectionism. Because it's a de facto tariff. If we do it, other countries will follow suit. We'll end up in the downward spiral of tit for tat protectionism, which worsened the Great Depression.
Every commentator around the world is saying this is what we've got to avoid. Australia was out of the blocks condemning the US when they introduced the Buy America campaign which mandated that goods had to be produced in the US.
We will not be hypocrites in this regard, Kieran.
KIERAN GILBERT: So, what can you do to stop New South Wales? Will the Prime Minister intervene, speak to the Premier? Or…
SIMON CREAN: We've…
KIERAN GILBERT: What's going to happen?
SIMON CREAN: We've written to the Premier. We need to understand better how this is going to apply in practice.
I can understand the rhetoric. I can understand in the context of presenting this as a Budget that's going to be about jobs - and by the way, the Budget seems to have been received very well.
What I don't like is this element in it, because we've already had com… issues raised with us by the EU and the US saying, what's going on here…
KIERAN GILBERT: So you hope…
SIMON CREAN: …you attack…
KIERAN GILBERT: So you hope that they'll backtrack on that and scrap it?
SIMON CREAN: Let's see how they intend applying this in practice. But this is a misguided view in the name of protecting jobs. It will cost jobs, because one in five jobs in Australia is reliant on trade.
If we get into a tit for tat downward spiral war on protectionism, Australia will be the loser. We will lose jobs as a consequence of the retaliatory action that occurs from this.
KIERAN GILBERT: Just finally, Peter Costello has announced he won't be recontesting the next election. Mr Rudd looks like he will be considering him for a senior role, representing Australia? Do you think that that's a good move?
SIMON CREAN: Well look, I think Peter Costello as a person has made important contribution to this country. We disagreed with a number of things that he did, or the lost opportunities. He didn't respond in our view to the intergenerational report and set Australia up in terms of retirement income, superannuation, any of those sorts of things.
But nevertheless, he has been a significant contributor to this nation. He is a young person, he has still got a great contribution. I know he's been looking for job activity in the private sector.
I think it shows the breadth of access by this Government, unlike the Government he was part of, I might say, in terms of recognising talent from whichever side it comes, and being prepared to try and put it to best use.
KIERAN GILBERT: Simon Crean, appreciate your time. Thank you.
SIMON CREAN: Thanks, Kieran.
ENDS
Media Inquiries Departmental Media Liaison 02 6261 1555