ABC News Radio with Marius Benson

Subjects: Newspoll, Australian economy, banks, leadership, same-sex marriage.

Transcript, E&OE

13 February 2012

SANDY ALOISI: Last week when Parliament resumed for the first time this year the Prime Minister declared the economy to be the main game in Australian politics. Tony Abbott welcomed that declaration, replying 'make my day'. And today there is evidence that the Opposition Leader's confidence is justified, with a Newspoll in The Australian finding he has a clear lead over Julia Gillard on economic management. And the Government's position is being made more difficult by continuing speculation that Kevin Rudd is poised to challenge for the leadership. For a government view on those issues, Marius Benson is speaking to the Trade Minister Craig Emerson.

MARIUS BENSON: Craig Emerson, the Prime Minister last week said the economy was the main game and Tony Abbott said he would welcome that move. Is he entitled to the confidence he expressed on the economy, given the Newspoll today that shows that voters much prefer him over Julia Gillard as an economic manager?

CRAIG EMERSON: Well, Labor does have a plan to build a strong economy with a fair share going to all Australians, especially working Australians. Mr Abbott has been successful with his mindless negativity. There's no doubt that in terms of the carbon price he's had some effect on people's beliefs as to what that impact would be. He says that Whyalla, for example, will be wiped off the face of the earth. His own so-called plan would involve a hit to households of $1,300 each. But there's no doubt that one thing Mr Abbott is good at is mindless negativity. What the Australian people do ultimately expect of political parties is an economic plan. Labor has one; Mr Abbott doesn't.

BENSON: Well, in the eyes of the electorate, something's wrong with the Labor plan. Is it the plan that's at fault or the chief saleswoman?

EMERSON: Julia Gillard has taken on the economy this year and taken the challenge up to Mr Abbott, along with Wayne Swan and the rest of the economic team. The proof of the carbon price will be from 1 July, when people will come to realise that, no, Whyalla is not going to be wiped off the face of the earth, that the cost of living is not going to go through the roof, that civilisation as we know it will not end.

BENSON: On another financial issue, the banks don't seem to be taking much notice of you at the moment. The Reserve left its rates on hold last week; the Treasurer urged banks to do the same. Two put up their rates last week; two more expected this week. Why are you being ignored?

EMERSON: Well, I think the banks are complaining that their borrowing costs are going up and that's related to the instability in Europe. But it's for them to explain themselves to customers. If interest rates are increased, then I think it's arguable that the banks are operating against their own best interests. But, more importantly, they're operating against the best interests of mortgage-holders, of consumers and of small business.

BENSON: There's increased talk of a Kevin Rudd leadership challenge again today. Do you believe a challenge is inevitable?

EMERSON: No, I haven't seen that, but it doesn't surprise me because this is an easy story in the media. I'm not saying it's a media fabrication, but I'm saying it's a big media exaggeration.

BENSON: Not a fabrication. Do you concede there's some truth in the Rudd leadership challenge talk?

EMERSON: I've consistently said that it is not a complete media fabrication. I have said that time and time again. But what I am saying is it is a wild exaggeration.

BENSON: All right. Well what's the truth? What's the true extent of it in your mind?

EMERSON: In fact, I think that there is no substantial issue here at all. But there is a media issue. And the media is entitled, if it thinks that this is a great story, to continue — as you are right now, Marius — thinking this is the story of the day, the story of the week. It isn't. Much more important are the efforts and the policies of the Gillard Government to build a strong economy and to share those benefits more fairly through the economy and through to working Australians.

BENSON: Just a final question: the gay marriage Bill is being introduced; a couple of different people introducing legislation on that. Labor will have a conscience vote on it. When it does come to a vote somewhere down the track, could you just state again your position on that?

EMERSON: My position is that marriage is a union between a man and a woman, the same position of the Prime Minister. And, you're right; we will have a conscience vote. The contrast is with Mr Abbott, who promised the Liberal moderates in the Shadow Cabinet a conscience vote — rang them up personally to promise them that, and went to Shadow Cabinet and broke his promise to them. They're livid; Christopher Pyne's livid; Julie Bishop was misled. Malcolm Turnbull was so badly misled that he went out publicly and called for a conscience vote, after having been rung by Mr Abbott, only to be told at the actual Shadow Cabinet meeting that Mr Abbott had changed his mind and broken his promise.

BENSON: Craig Emerson, thank you very much.

EMERSON: Thanks Marius.

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