ABC News24 with Lyndal Curtis - 02/05/2013

02 May 2013

CURTIS: Penny Wong, welcome to ABC News24.
WONG: Good to be with you.
CURTIS: Is it fair to say that the Prime Minister is putting forward legislation at a time she didnt want to introduce the tax hikes shed previously ruled out?
WONG: Lets understand why were in a position where were poised to get a secure funding source for DisabilityCare. Its because the Prime Minister had the courage and determination to put one on the table, just as she had
CURTIS: After she previously ruled one out...
WONG: ... and she has been very clear that she has changed her mind because of the circumstances and because of her determination to get this done for the 410,000 Australians who deserve this support.
CURTIS: If she was so determined to get this done, why did she, yesterday morning, say she wouldnt legislate before the election?
WONG: I have to say, sort of implicit in that is that weve just come up with this. Can I just remind us everyone of where weve come from? Labor put this on the agenda. Labor sent this to the Productivity Commission. Labor negotiated with the states for launch sites. Labor put $1 billion for the launch sites in the previous Budget at a tough time, fiscally. And Labor is negotiating with the states for full-scheme operation across the country. So, this is a Labor reform weve been working on for many years.
CURTIS: But, as you said, funding certainty was needed.
WONG: And funding certainty is needed. Which is why the Prime Minister was prepared to stand up before Australians and say, I have changed my mind because this needs a secure funding source and the budget cannot bear this over the long term without an additional funding source, so Im putting it on the table.
CURTIS: The Opposition Leader, Tony Abbott, has basically said hell support the idea, but there are some conditions. He wants the full funding spelt out how the scheme will be funded when its fully operational, and the Medicare Levy increase doesnt cover that full cost. Will he see that detail in the Budget before this legislation is voted on?
WONG: Well, we do welcome Mr Abbotts change of heart on this we do welcome it. And what wed say to him is lets get on and do it. When it comes to the future funding of the scheme, Im going to make a couple of points: first, this is a Government that has put many structural saves into the Parliament and into our budgets that improve the long-term position of the Budget. A number of those have been opposed by Tony Abbott.
So, here he, on the one hand, wants more structural saves, but hes opposed the private health insurance savings measures, hes opposed the Baby Bonus savings measures, and now hes saying, Oh, but youve got to put more on the table. Well, we will build on this history, this approach, of having structural saves in our next Budget, and they will be there for all to see. But
CURTIS: Will they be structural saves intended at fully funding this scheme come 2018?
WONG: It is our intention to ensure that a Government in 2018-19 can fully fund the scheme. Of course that is our intention to ensure we have the Budget in a position to be able to do that. But I just want to make this point: if Tony Abbotts going to say, put up your saves, I think he should be asked where his are. Because some of the savings measures which benefit the Budget over the long-term, which is what were talking about, are the very things he opposes.
CURTIS: But at the moment this is your scheme and your legislation and hes said hed support it if you give him this detail...
WONG: And we will. Weve said very clearly our Budget will make clear further structural savings that build on the previous structural saves some of which he opposed to ensure we can fully fund DisabilityCare into the long-term.
But I would say this to Tony Abbott, and you know, whilst we do welcome his change of heart, its quite clear from the comments that Joe Hockey made yesterday about what a dreadful idea a levy was, this has been an inching towards this position by the Coalition. Having said that, we welcome their change in position.
CURTIS: ... And its an inching towards that has happened on your own side as well.
WONG: I dont think thats fair. I dont think thats fair. I think Labor has made clear we want DisabilityCare. Weve been working on it for a long time. We havent just decided this is a good idea. Jenny Macklin and the Prime Minister have been working on this for a very long time.
CURTIS: Now, the Opposition Leader also has a number of other things he wants detail on, including the rules on how the scheme will operate which are still in consultation. Is the Government prepared to consult with him, to sit down and talk to him about the bits of the scheme you know about, putting aside the bits of the scheme the launch sites are intended to develop, rather than just dealing with him through the media?
WONG: We want to get this legislation through. But when it comes to getting the legislation through and answering some of Tony Abbotts questions, it might be useful if he read the legislation that he already voted for which does set out the principles around eligibility. Perhaps his Shadow Minister could explain to him the rules which have been put out for consultation, because a number of those documents actually go to some of the very issues weve raised.
But, look were in this to succeed in passage of the legislation, and were willing to look at the issues that Mr Abbott has raised a number of them are issues were already working on. For example, the operation of the Fund, we made clear every dollar from the Levy goes towards DisabilityCare costs, hes made some demands around that. Theyre frankly very similar to the way in which were approaching the development of the Fund.
CURTIS: The Prime Minister started out this week saying the budgetary situation meant that she was prepared to put on the table things that she had previously ruled out; spending cuts, revenue increases. Is the Medicare Levy hike the only one we will see in the Budget, or are there others?
WONG: This is a good way of getting Budget speculation into the conversation
CURTIS: Oh, I was just asking for a general
WONG: No, no, it is an entertaining way to do it, Lyndal, but Im not going to participate. We have made clear that weve got a situation where we are seeing less revenue to government for a given level of economic activity in the economy than weve seen before. That makes our job harder. It makes the challenge for the nation harder. But we will continue to approach this Budget with the same long-term responsibility that we are approaching DisabilityCare with.
CURTIS: Finally, the Treasurer said yesterday the Budget will chart a pathway back to surplus. Given you abandoned the last pathway back to surplus, how much credibility should people give what is unveiled on Budget day? WONG: What Id say to Australians is we will lay out our pathway. And some of the people who will criticise that on the Opposition side are people who have never been prepared to be upfront with Australians about their plans and their cuts. And, in an election year, Budget and Budget Reply is a time where the Opposition Leader should be held to the standard that he demands of everyone else, which is how will you make it add up?
CURTIS: Penny Wong, thank you very much for your time.
WONG: Good to speak with you.
ENDS