HENRY: Penny Wong, Finance and Deregulation Minister, joins me now youll be speaking there Penny. Thanks for your time this morning. Whats the point of the forum?
WONG: Good morning. Good to be with you again. The forum is about how we ensure prosperity in this, the Asian Century, for Australia. Theres a lot of work the Governments doing. But we also know theres a number of challenges out there for business, such as the high dollar. Weve got a big change in the global economy. This forum is all about what we need to do here in Australia to ensure prosperity in the years ahead.
HENRY: How will you know whether its been successful and not just more money spent on a table full of croissants? Have you got any way of knowing that it hasnt been a waste of time?
WONG: (laughs) I dont know if there are any croissants, to be honest with you, I havent actually got to breakfast yet. My view is this: weve had a couple of forums which have actually been really important in terms of new policy and new policy directions. One was the Tax Forum, where weve seen a couple of the ideas out of that picked up in the Budget and subsequently. And there was the Business Advisory Forum just before the Council of Australian Governments earlier this year where we made really good progress on further deregulation, further streamlining of regulation to improve productivity. So I reckon dialogue is a pretty good thing. Consultation is a pretty good thing, because thats how you both work out what is the best way forward, but you also bring people with you.
HENRY: It is a huge issue though, isnt it? I mean, you mentioned already the high dollar. Now, that is a major concern for the business leaders who are there but also for the unionists who are there. But is there anything you can do about the high dollar or is it a matter of reforming the economy because its going to be with us for a very long time?
WONG: Its a really good question. And in fact, thats precisely why we need the sort of discussion we have today and were starting the day with a session including the Reserve Bank Governor, about the high dollar and the patchwork economy. Because youre right: governments cant actually change where the dollar is. Thats a function of whats happening in currency markets globally. But what we can do, is look at policy settings that reflect the challenges businesses have when facing the high dollar. Obviously, the Governments already investing in skills, investing in education. But we do need to think about what are the sensible ways we can help manage this change, which is being imposed upon us essentially in the global economy, how we can turn that change to good.
HENRY: Now, one of the other aspects, obviously, is the and its a phrase I hadnt heard up until a week or so ago the patchwork economy. How can you create the environment whereby we use the mining boom, the security of the mining boom, to focus on other areas of the economy? To build it up so that when the mining boom disintegrates theres still a viable economy left?
WONG: Obviously one of the things the Governments doing is the mining tax and looking to use that revenue across the nation. The patchwork economy is a reality. And we know, as a nation were doing very well in terms of our economic growth, in terms of unemployment, in terms of contained inflation and interest rates falling. But the experience within that does differ significantly. I mean, if youre a manufacturer whos been hit by the high dollar, thats a very different experience to someone in the mining industry. So there are a number of things the Governments already doing. But that is precisely the policy question we need to talk more about today. How do we build on those reforms and how do we spread the benefits of the mining boom across Australia?
HENRY: Well how do we create benefits, really, isnt it? We use the benefits of the mining boom to give ourselves a bit of breathing space so we can get others... maybe manufacturing, right. What the unions want, of course, is for you, for the Government to subsidise failing industries just as youve done with the motor industry. Ford is an example. Youre not prepared to do that though, are you?
WONG: Look, what Ive said is we have to think about what were using taxpayer money for, and whats the best use of taxpayer dollars. And the best use of taxpayer dollars has to be, how do we ensure industries can remain productive in the decades ahead, not just get through a hard time now only to fail later? And so, we need to make sure our investments are about the long-term, not just the short-term. Thats why investments in skills is such a good thing to do
HENRY: Sure.
WONG: ...because then youre investing in your people.
HENRY: But the short answer is: youre not going to prop up any other industries. So the unions may as well just forget that whole argument?
WONG: No, I think its important not to get caught up in what people think the other is saying. Youre right, you have to think about how you use taxpayers dollars, you have to make sure youre not subsidising a firm that isnt going to survive in the decades ahead. But, what you can do is make sure you invest wisely the benefits of the boom into making sure we have a more productive, more competitive economy. We want to see a strong and vibrant manufacturing industry in the years ahead, but it will be a different manufacturing industry from todays. Just as todays is so different from the manufacturing sector that our parents grew up with.
HENRY: Alright, just really, really quickly. Ive got Dave Oliver on in just a moment. Do you want me to tell him for you that hes barking up the wrong tree if he wants more subsidies?
WONG: (laughs) Im sure Dave and I can have a chat today at the forum. Hes interested in the same things we are: Australian jobs. And I think weve just got to work out how we... whats the best way to make sure we lock in the low unemployment rates weve got for the years ahead.
HENRY: OK Penny, there is, Im sure, a trestle table about the break under the weight of croissants that you need to go there and sort that out for me. Thank you very much for joining us this morning.
WONG: Good to be with you again.
ENDS