BENSON: Penny Wong, there's some fairly tough reading for Labor in today's headlines. Can I begin with the NSW budget coming down today? The state budget will increase mining royalties. This is a direct act to recoup nearly a billion dollars lost to carbon tax in the next four years. Are you concerned by that move by NSW?
WONG: What I'm concerned about is the story that Tony Abbott has been egging on Premier O'Farrell to impose a mining tax. That shows two things about Tony Abbott, and Barry O'Farrell. It shows that Tony Abbott is entirely about politics, not about what's good for the country, or for his state. Second, on the one hand Mr Abbott says a mining tax is bad, but he thinks a state mining royalty is good. So, he's entirely inconsistent because he's entirely focused on politics.
BENSON: Do you intend to retaliate in some way to make up for this lost revenue, if NSW goes ahead with this?
WONG: We'll have to deal with that if and when it happens.
BENSON: Let me ask you about some remarks by Don Argus, he's the former head of BHP Billiton, and the National Australia Bank, one of the most respected figures in Australian business. A year ago you appointed him to advise you on the mining tax. He's got some advice for you today. He says you, the Government, are being lazy on economic reform and productivity growth.
WONG: I have a lot of regard for Don Argus, but on one issue that he's outlined I simply don't agree with, and that is that the way forward on productivity is to put in place industrial systems that reduce people's wages and conditions.
BENSON: Don Argus says your tax reform agenda is just expedient, simply designed to navigate the political landscape of the day, and not in the best interests of the country. And this is the bloke whose advice you're paying for.
WONG: Can I say on carbon pricing and I know that's a controversial issue for some people this is a policy that is about the future of the nation. I don't think anybody looking at the debate on pricing carbon since 2006 which is when Prime Minister Howard first talked about it, so, five years I don't think anyone looking at that debate would believe it's an easy debate or a politically expedient debate.
BENSON: Just on the economic outlook for Australia. Overnight the National Australia Bank has almost doubled its annualised economic growth forecast for Australia, because company profits are so strong. Does that tally with what Treasury is telling you?
WONG: Obviously we release figures around the economy the Government does when they are brought out. But I would say this, we have been saying for some time there's a lot of volatility on global markets. We've seen that. We're not immune from that volatility but we do face it with enormous strength.
BENSON: Let me leave economic figures there and ask you about some political figures. The Newspoll out today shows Labor is stuck at 27 per cent in its primary vote. It hasn't moved. The Prime Minister is in free fall. Disapproval now outweighs her approval to the point of her rating being minus 45 per cent. The second worst ever recorded in a poll.
WONG: Obviously, this isn't entirely unexpected given what we've seen over the last week. But what I would say is this, leadership is leading the party and the nation when times are tough, as well as when things are easy. And what we have in Prime Minister Gillard is a person who is both decent and tough.
BENSON: But she is being criticised for not being tough but for being ineffective in failing to deliver in the past week on the border protection issue.
WONG: In terms of delivery, she has secured agreement for passage of the carbon price. That wasn't able to be secured when we were in majority government. That's a very significant achievement. Obviously, the High Court case was a disappointment for the Government, as we've said, but we'll work our way through the implications of that decision.
BENSON: Kevin Rudd is vastly preferred by the electorate to Julia Gillard as leader. Does that surprise you?
WONG: What I would say is this we have a Prime Minister Prime Minister Gillard and she is doing the right thing by the nation and she'll be leading us until the next election.
BENSON: Why do the voters prefer Kevin Rudd?
WONG: What I'd say is this these are difficult times. We have a very large set of reforms, many of them are highly contested but Prime Minister Gillard is pressing ahead with those and that's the right thing to do.
BENSON: With hindsight, was it a mistake 14 months ago, or more than 14 months ago, to sack Kevin Rudd?
WONG: Look Marius commentators including yourself have talked a lot about those events. I'm more focused on the future and on the present.
BENSON: But you're a decision maker, you made that decision. You are responsible for that decision. In the light of hindsight, what do you think of that decision?
WONG: And as a decision maker what I'd say to you what is in the interests of Australia is to focus on getting a carbon price through and a minerals tax through.
BENSON: Can you win the next election looking ahead? Or is that a lost cause already?
WONG: Politics is always tough and whilst I know some Liberal Party people are already crowing about the next election, I think what we're doing is governing for the country and we'll continue to do that.
BENSON: Penny Wong, thanks very much.
WONG: Good to speak with you.
ENDS