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Transcript of interview Peter Van Onselen: Sky News, Australian Agenda: 10 February 2013



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Australian Agenda 10 February 2013 Julie Bishop

Sky News

Australian Agenda

Interview with Julie Bishop

10 February 2013

Interview with Julie Bishop, Deputy Leader of the Opposition

Australian Agenda program, 10 February 2013

Peter van Onselen:

And as mentioned off the top of the program, we are joined here in the studio by the

Deputy Leader of the Opposition Julie Bishop. Ms Bishop, thanks for your company.

Julie Bishop:

Good morning.

Peter van Onselen:

There's an argument about you in today's 'Sunday Telegraph'. It talks about how if all

goes well, you'll be Deputy Prime Minister. How does Warren Truss feel about that?

Australian Agenda 10 February 2013 Julie Bishop

Julie Bishop:

I can't vouch for the accuracy of Sunday Telegraph's stories, but clearly as everyone

knows, should the Coalition win Government, the National Party take up the Deputy

Prime Minister's position...

Peter van Onselen:

Even if the Liberals win in a landslide and can govern in their own right?

Julie Bishop:

That's part of the Coalition agreement. But let's not get ahead of ourselves. We have a

very tough election ahead of us and we will be focusing our efforts on ensuring that the

Australian people see us as the alternative to what is a shambolic dysfunctional

Government.

Peter van Onselen:

One of the issues in this election year, which I'm sure Paul would like to talk about as

well, is going to be the female vote and, you know, some of the debate that's been had

after that speech by the Prime Minister. In that same story in the Sunday Tele today,

you made - you had there's a quota attributed to you about making the point that

women can't have it all.

Is that the right message to send to women with children that, in a sense from a career

perspective, if I'm interpreting this correctly, they may not be able to rise to some of

the lofty positions that women that haven't had kids can?

Australian Agenda 10 February 2013 Julie Bishop

Julie Bishop:

Again, I can't vouch for everything in a 'Sunday Telegraph' article. But the point I was

making is that there was an article written recently in the United States by Anne-Marie

Slaughter who pointed out that as a high profile career women, she had to make a

choice and the choice was she gave up her career to focus on her children.

The point I'm making is today women have many, many choices but as you make one

choice, then that may well rule out something else. And so it was just a commentary

on the challenges facing women and we understand that. That's why Tony Abbott's

going to introduce this paid parental leave scheme that reflects the challenges facing

working women. And we believe that a number of our policies will appeal to women

who either make the choice of staying at home or going to work or women who try and

combine both.

Paul Kelly:

But you do seem to be criticising women who think they can have it all.

Julie Bishop:

I'm not criticising. I'm just stating as a matter of fact, Paul, that if you make one

particular choice, then it can rule out other alternatives. And there are options for

women. There are choices for women. But, at the end of the day, it might mean that

you can't do everything that you wish to do. I mean, there are a lot of things that I'd

like to do but because I'm a Federal Member of Parliament flying back and forth

between Perth and Canberra on a regular basis, there are some things I can't have.

Australian Agenda 10 February 2013 Julie Bishop

Paul Kelly:

Well, staying on this article, is it true that Julia Gillard doesn't talk to you?

Julie Bishop:

Yeah, we don't have much of a relationship at all. I have friends on the other side of

the Parliament. Just because they are Labor members, it doesn't mean that I don't

have things in common with them and we can discuss things and I have an easy

rapport with a number of people on the Labor side, but that doesn't include the Prime

Minister.

Paul Kelly:

But isn't this pretty pathetic; that the two senior women in the National Parliament

don't speak to one another?

Julie Bishop:

Yes, it is pretty extraordinary. I've certainly gone out of my way to strike up some

conversation, but it seems that I'm not Julia Gillard's favourite politician at present.

Paul Kelly:

Well, when did this start?

Australian Agenda 10 February 2013 Julie Bishop

Julie Bishop:

It's been around for a long time. I mean, I don't want to go into details, but I have a

much easier rapport with other members of the Labor Party than I do with the Prime

Minister.

Paul Kelly:

And what sort of response did you get from the Prime Minister, at a personal level,

when you began to question her late last year about the Slater & Gordon incident?

Julie Bishop:

I think she was expecting it. She knew that when she unleashed that disgraceful attack

on Tony Abbott, calling him a misogynist, saying to a happily married man, the father of

three beautiful girls, that he hated women, I think Julia Gillard knew that she was

making...

Peter van Onselen:

Do you really think she meant it that way though? I don't think she meant it as he

hated women. I think she meant it in this definitional change that seems to be

happening to the word "misogyny". Just simply that he didn't favour women in a sort

of modern sense.

Julie Bishop:

Well, that's clearly nonsense. Whichever way she meant it - and you'd have to ask her

what she meant by the use of the word "misogyny" - I think it was a deliberate choice

Australian Agenda 10 February 2013 Julie Bishop

of word and the Macquarie Dictionary hadn't redefined it at the time she made the

statement, but it was a whole attack on Tony Abbott which is clearly ridiculous. It's

demeaning to his family. It's demeaning to the women who work with him. But I think

that it was designed to paint Tony Abbott in the worse possible light and I thought it

was disgraceful.

Paul Kelly:

But it has clearly done some damage. I mean, it's obviously done some damage to

Tony Abbott and he's had to adjust his own tactical approach. Do you think Labor will

continue with this attack in the election year?

Julie Bishop:

Yes, I do believe they will. They obviously think that they can score personal blows,

score points against Tony Abbott. It's false. It's clearly not true. Tony has a great

rapport with women. I work very closely with him. He's got females surrounding him.

His Chief of Staff. He has promoted a number of people in the party. His history as a

minister is to promote women's issues. As Minister for Health, he had a whole range of

policies that were directed towards enhancing women's health issues. So I don't think

that the fact that he has this wonderful background in promoting women's issues will

stop Labor from going for the very low personal attack.

Paul Kelly:

Do you believe that this puts a special responsibility upon yourself, as the senior women

on the Coalition side, in terms of replying to these attacks? I mean, is that the way

that you actually see it yourself?

Australian Agenda 10 February 2013 Julie Bishop

Julie Bishop:

Well, I certainly believe that when lies are told about Tony Abbott, they should be

refuted. Not just by me, but by every member of the team who knows Tony, has

worked with Tony and understands that he is not a misogynist. In fact, he's very

supportive of women's issues and choice and options for women and that's reflected in

his policies.

Peter van Onselen:

What about the fact that Tony Abbott says that he won't be changing his frontbench in

Government? You will be hoping, I suspect, that if you pick up seats, that there will be

more women amongst those, yet there is only two women on the Coalition Shadow

Cabinet team. Wouldn't you like to see changes, if for no other reason, than to get

more women around you in that all important room?

Julie Bishop:

Well, certainly we have a very united frontbench team and the main criticism of our

frontbench seems to be that some of them don't have a high media profile. Well, being

the most prodigious user of Twitter or being in the media all the time is not the test of

a good Shadow Minister and our Shadow Ministers are working hard, consulting with

industry and business and families and out in their electorates, building their policies

and building their credibility in their portfolio area and Tony Abbott says, as things

currently stand, this is the team he intends to take to the next election.

Australian Agenda 10 February 2013 Julie Bishop

But, of course, there are always opportunities to promote people and I'm sure that

Tony will promote some of the exceedingly talented females that we do have in our

team.

Peter van Onselen:

After the election? You'd hope soon after the election?

Julie Bishop:

Well, it's a matter for the leader obviously and circumstances. But the current team is

very experienced, very focused and operating exceedingly well and when you contrast it

with the dysfunction within the Labor frontbench, half of them can't stand each other

and there is this ongoing leadership crisis within the Labor Party. I think the Coalition

appears as a very, very credible alternative.

Peter van Onselen:

We are going to move on to portfolio issues shortly, but just one question. You

mentioned - or Paul asked the question - about the AWU attacks between you and Julia

Gillard last year.

The opposition have not started the year with a continuation of that line of attack. Are

we going to see more of it or have you, in a sense, given up on that?

Julie Bishop:

Australian Agenda 10 February 2013 Julie Bishop

Well, don't forget these aren't ideas that the Coalition came up with. This whole story

about Julia Gillard and her involvement in the slush fund comes from her own side,

from former AWU members, from the Fair Work Australia - or the Industrial Relations

Commissioner in Cambridge. So her own side are promoting this story. We ask

questions...

Peter van Onselen:

Sure. But you asked all questions almost - I mean, almost Question Time entirely at

the end of 2012 but nothing so far.

Julie Bishop:

Peter, there is a police investigation in Victoria underway into Julia Gillard's involvement

in the AWU slush fund affair and as new matters come to light, I certainly won't flinch

from asking Julia Gillard questions about her involvement in a matter that ended up

with hundreds of thousands of dollars going missing and no-one has been held to

account.

Paul Kelly:

Okay, but let's just clarify this. Is it the Opposition's intention to pursue the issue in

Parliament this year?

Julie Bishop:

Australian Agenda 10 February 2013 Julie Bishop

It's not the Opposition's intention to flag, on Australian Agenda, our tactics in the

Parliament. But most certainly I will not flinch from asking Julia Gillard questions about

her...

Paul Kelly:

So you won't back down?

Julie Bishop:

Absolutely not. This goes to her character, her judgment and the not insignificant

matter of hundreds of thousands of dollars going missing from the AWU.

Paul Kelly:

To what extent is there a bit of tit for tat here? I mean, Julia Gillard accuses Tony

Abbott of being a misogynist and a few months later the opposition launches this very

concerted parliamentary attack on Julia Gillard's past when she was a lawyer at Slater &

Gordon. There does seem to be a connection.

Julie Bishop:

Paul, Julia Gillard came out and made a number of statements to the media about this

AWU matter as a result of leaks from her own side, as a result of a statement made by

Robert McClelland in the Parliament. So she put on record a whole raft of explanations,

or non-explanations, as to her role.

Australian Agenda 10 February 2013 Julie Bishop

It was as a result of those public statements that we were able to ask her questions

because her story just does not stack up. There are many unanswered questions about

a rather shameful affair in AWU history.

Paul Kelly:

Now, we mentioned Kevin Rudd a while ago. You are close to Kevin Rudd. Does he

confide in you?

Julie Bishop:

I don't know whether you'd call it "confiding" but we certainly have spent some time

together. We've travelled overseas together. We do catch up from time to time.

When he was the Foreign Minister, he was very gracious in giving me briefings on

matters of concern to the country and so over a glass of wine or two, we've shared

some thoughts.

Paul Kelly:

And given the fact that you "share thoughts" with Kevin Rudd, that he does, I think,

confide in you, given the answer you've just given, what's your assessment of the way

Rudd sees the current year in terms of the leadership?

Julie Bishop:

Well, I wouldn't say he "confides" in me. In this atmosphere within the Labor Party of

leaks against Prime Ministers, and then people investigating the leaking of the leaking, I

wouldn't suggest he's confiding in me as such.

Australian Agenda 10 February 2013 Julie Bishop

This is my personal assessment. I believe that Kevin Rudd has one more tilt at the

leadership in him before the next election and that is because if Labor loses the next

election, Kevin Rudd won't be the Opposition Leader.

If Labor wins the next election, Kevin Rudd won't be the leader. So he's got one

chance and it will be between now and the 14 September.

Peter van Onselen:

Watch this space.

In your portfolio area, yourself and Scott Morrison travelled to Sri Lanka recently. Now,

the UN has come out and said that the idea that the Coalition has about turning back

boats on the high seas would be illegal. Is that embarrassing as Shadow Foreign Affairs

Minister for the UN to be saying that?

Julie Bishop:

Not at all and I disagree with their assessment of it. In fact, the United States does this

on a regular basis with people who are coming from Haiti or from Cuba and there is a

United States case about this and they have shown, time and time again, that they are

within their rights to do it.

We went to Sri Lanka for the express purpose of seeing what the conditions were like

on the ground. Particularly in the former Tamil Tiger held strongholds in the north and

Australian Agenda 10 February 2013 Julie Bishop

we've satisfied ourselves that our policies are right and that what we are seeking to do,

should we win Government, in stopping the people smuggling trade can be achieved

with the cooperation of the Sri Lankan Government.

Paul Kelly:

To what extent will you try and use the same technique when it comes to other

countries; that is, get their support for turning back the boats?

Julie Bishop:

There will be a regional approach. Clearly, this is not something just between Australia

and Sri Lanka because the asylum seekers are coming from other places as well.

So we will work through the Bali process. We will try to work cooperatively with as

many Governments as we can in the region.

But our specific concern, in relation to Sri Lanka, was this spike in people coming from

Sri Lanka, even though the Civil War had ended some three, four years ago and we've

satisfied ourselves that we can work very cooperatively with Sri Lanka to ensure that

the people smuggling trade that has flourished there, under the Gillard Government in

Australia, can be dismantled.

Paul Kelly:

Well, can we just try and nail down the situation in relation to Indonesia? In a Coalition

Government, you'll be the Foreign Minister, you'll have responsibility for relations with

Australian Agenda 10 February 2013 Julie Bishop

Jakarta. So what is the balance between cooperating with Jakarta and taking a tough

line with Jakarta as far as the Coalition Government is concerned?

Julie Bishop:

Tony Abbott and I have already met with the relevant Ministers in the Indonesian

Government on a number of occasions. I have a very good working relationship with

their Foreign Minister Marty Natalegawa and we'll continue to work with them, should

we win Government, to find solutions to the people smuggling trade in Indonesia and

how we can work together.

Paul Kelly:

So you want a solution with Indonesia?

Julie Bishop:

With Indonesia.

Paul Kelly:

You are quite certain about that?

Julie Bishop:

Quite certain about that.

Australian Agenda 10 February 2013 Julie Bishop

Paul Kelly:

You won't be imposing decisions...

Julie Bishop:

Absolutely not.

Paul Kelly:

Or policies on them?

Julie Bishop:

Of course not. We have great respect for the Indonesian people and the Indonesian

Government and, as John Howard did in the past, we will in the future work

cooperatively with Indonesia and ensure that we have a coordinated approach to

dismantling the people smuggling trade.

Peter van Onselen:

You mentioned "work cooperatively" with them. Is it true that one of the things that is

on the table, in terms of Coalition planning on this, is to try to assist Indonesia with its

terrorism problem with Southern Philippines, whether that is strategic assistance or

whether it is intelligence assistance as a way of cooperating so that they then help us

with the people smuggler business that's delivering asylum seekers to Australia?

Julie Bishop:

Australian Agenda 10 February 2013 Julie Bishop

Indonesia is one of our closest neighbours and one of the most important countries in

Australia's foreign policy considerations and we will work very closely with the

Indonesian Government to assist them in concerns that they have over particular issues

as we hope they will work with us over our concerns.

Peter van Onselen:

But does that include that particular issue, Ms Bishop?

Julie Bishop:

Well, I'm not going into the details. We are the opposition. I'm not in a position to

make agreements with foreign Governments nor enter into any sort of arrangements

with them at this stage.

But can I just say this: we have a very good working relationship with the Indonesian

Government which we continue to foster now, so that when we are in Government,

there can be a seamless transition to working closely with them and a whole range of

issues, terrorism, border protection, illegal trafficking, a whole range of things.

Peter van Onselen:

Can I put it this way then: have they, in your discussions with the Indonesian

authorities, have they expressed to you that one of their concerns is terrorism from

Southern Philippines when you're talking to them about your concerns about boat

people coming to Australia?

Australian Agenda 10 February 2013 Julie Bishop

Julie Bishop:

I won't go into the detail of confidential discussions I've had with their security defence,

intelligence representatives. But clearly, terrorism is an issue that we've discussed in

some detail.

Paul Kelly:

You've made it clear that you're unhappy with the lack of influence that DFAT has inside

the decision making process within the Australian Government. How will you change

that as Foreign Minister?

Julie Bishop:

Over successive Governments, I think the Department of Foreign Affairs and Trade's

influence has waned as other departments have taken more responsibility, particularly

Prime Minister's office, has in the last couple of years, centralised a number of foreign

policy initiatives within that office. And I believe that DFAT should be at the centre of

foreign policy decision making in this country.

It's a question of ensuring that the head of DFAT has the appropriate authority. For

example, at the National Security Sub Committee of Cabinet meetings, in terms of

developing particular policies.

So much of our foreign policy has been seen through the national security prism. Now,

that's understandable post-September 11, but I think in the 21st century, we really

have to focus on what is the Department of Foreign Affairs and Trade's true role in

promoting Australia's national interest.

Australian Agenda 10 February 2013 Julie Bishop

I'm very keen for it to have a focus on what I call "economic diplomacy", that we

ensure we can find markets for Australian goods, we can focus on our export orientated

economy and do what we can to promote Australia as a strong and prosperous

economy.

Paul Kelly:

Okay, well, all of this requires an increase in the budget. Are you confident you can get

an increase in the budget and to what extent would you be prepared, as Foreign

Minister, to be looking at a bit of transfer of funds from this incredibly large foreign aid

budget to Australia's own diplomatic strength?

Julie Bishop:

Paul, clearly, one of our first priorities in getting into Government will be to start to pay

down Labor's debt. Some $250 billion in gross debt is a mammoth task for any

Government to have to grapple with. And so our first priority will be to start paying

down that debt.

But once we are in a position to look at increasing budgets in places - obviously defence

is a place where we need to increase the budget, given that Labor has decreased it as a

percentage of GDP to very dangerous lows - I am hoping that the Department of

Foreign Affairs and Trade will also be able to put in a pitch for an increase in its budget.

Peter van Onselen:

Australian Agenda 10 February 2013 Julie Bishop

Can I ask you: what kind of Foreign Minister will you be in terms of appointments and

political appointments? John Howard was known for not giving anyone in Labor much

of a break when it came to political appointments. Kevin Rudd actually upset his Labor

colleagues when he became Prime Minister by making quite a few appointments as

Prime Minister that were based on Liberals, such as Brendan Nelson getting positions.

What will your advice be to Tony Abbott in these sort of appointments assuming that

you do win the next election?

Julie Bishop:

I've always believed in merit-based appointments and I would be looking for the best

people for the job. I think...

Paul Kelly:

So you would give Kevin Rudd a job?

Julie Bishop:

Well, if Kevin wants to apply for a job, I'll judge it against the others who are applying

for that same position. But certainly he has talents and ability and experience in

foreign policy that shouldn't be wasted and I think that former Prime Ministers usually

have a contribution to make. But I will certainly be looking for a range of people to fill

our posts overseas because they are, after all, Australia's voice ambassadors to the

world and I think there are a number of people, not only within the department, but

also outside that have a lot to contribute.

Australian Agenda 10 February 2013 Julie Bishop

Peter van Onselen:

I've got a feeling that if Kevin Rudd is applying for a job, it might not be for a position

in Foreign Affairs. Paul Kelly and I have been talking to Julie Bishop, the Deputy Leader

of the Opposition, and to continue that discussion, we are joined now by Senior News

Limited Columnist, Piers Akerman, and Business Editor at 'The Australian', Geoff Elliott.

Gentlemen, welcome to the program.

Piers Akerman:

Thank you.

Geoff Elliott:

Thank you.

Peter van Onselen:

Ms Bishop, we were talking just before the break about Mark McGowan.

Now, he's fighting a difficult election, according to Newspoll, over in Western Australia

against your colleague, your Liberal colleague, Colin Barnett. He has come out

yesterday, in response to questions about the carbon tax, and said he wouldn't have

introduced it and he doesn't agree with it.

Australian Agenda 10 February 2013 Julie Bishop

By the sounds of it, he is trying to basically get as far away from Julia Gillard as he can

in this campaign.

Julie Bishop:

This is very damaging for Julia Gillard. She would have us believe that Australians have

accepted her carbon tax, but clearly what's happening is that polling for Labor in

Western Australia have indicated that the carbon tax is poison. That families are

concerned about it. They are concerned about their job prospects, the cost of living,

driving up electricity prices. They are worried about how it will hurt investment. And

Mark McGowan has been advised that he better distance himself, not only from Julia

Gillard, but from her poisonous carbon tax.

Peter van Onselen:

Is it going to help him, do you think?

Julie Bishop:

I don't think it will assist him in anyway, but clearly, he believes that he needs to

distance himself from the carbon tax because it is so unpopular in Western Australia.

Coming on top of the mining tax, Western Australians can be forgiven for thinking that

the Gillard Government has declared war on Western Australia.

But the problem, of course, is nobody will believe Mark McGowan. It's been 12 months

or more that he's refused to say where he stands on the carbon tax and here we are, a

Australian Agenda 10 February 2013 Julie Bishop

couple of weeks from the election, and he comes out and says "No, I don't believe in a

carbon tax and I oppose it and I wouldn't have introduced one".

Show me a Labor Premier that doesn't embrace a tax and it will be a revelation.

He will impose more taxes should he get into Government but he sees it as convenient

now to say he opposes a carbon tax.

The point is, it's very damaging and destabilising for Julia Gillard.

Peter van Onselen:

Can I ask you then this: I mean, so you think that he will impose other taxes, but Julia

Gillard, is she likely to campaign in Perth? Is she likely to be welcomed to come into

Perth if you've got a leader at State level that is turning around and saying something

like that?

Julie Bishop:

Well, my understanding is that Labor don't want her anywhere near the Western

Australian Labor election campaign. For example, Julia Gillard is not being invited to

launch Labor's campaign, but, of course, Tony Abbott will be in Perth for the Liberal

campaign launched in the middle of February.

Australian Agenda 10 February 2013 Julie Bishop

Colin Barnett will welcome having Tony Abbott's presence there because Tony Abbott

will be campaigning against the mining tax and against the carbon tax, which are both

so damaging for cost of living and investment and job opportunities in Western

Australia.

Geoff Elliott:

Is it just another variation though of the politics of the west where they do tend to, you

know, dis the Feds, if you like.

You know, we see that even from Colin Barnett, not so much obviously with your party,

but obviously with the Gillard Government's approach to foreign policy looking north

rather than to the east, but there's a tradition of Western Australian politicians

distancing themselves from Canberra.

Julie Bishop:

Well, geographically we are on the West Coast and when you look north and look west,

it's not just a geographic location, it's a state of mind.

Western Australia does see its economic opportunities to the north - China, India,

Japan, South Korea - and the Government in the west, very disappointed with the

performance of the Gillard Government in terms of forging strong relationships with

countries in our region, for example, the live cattle export trade disaster that the Gillard

Government imposed with its ban on cattle exports to Indonesia. That had a dramatic

impact on Western Australia.

Australian Agenda 10 February 2013 Julie Bishop

The carbon tax will have a huge impact on the resources sector in Western Australia, let

alone cost of living for households, and the mining tax appears to be directed to

Western Australia. Hence, the constitutional challenge for the mining tax.

So I think that Colin Barnett is quite entitled to complain that the Gillard Government

has declared war on Western Australia and he will stand up and fight for Western

Australia.

And this is the point about Mark McGowan. At the end of the day, he'll fall in behind

Labor. He won't stand up - if he's the Premier of Western Australia, he won't stand up

for Western Australia against a Labor Federal Government.

Peter van Onselen:

But if he's prepared to do so from Opposition, as he's just done now, surely if he's got

the authority of being Premier, he's certainly going to be prepared to stand up to Prime

Minister Gillard?

Julie Bishop:

I doubt that very much. Everything that he's demonstrated to date is that he'll fall into

line and when there's a bit of pressure on him, he's just been advised - I think Hawker

Britton are over there in Perth now, he's been advised that the polling is disastrous on

the carbon tax in Western Australia.

Australian Agenda 10 February 2013 Julie Bishop

I've not met anybody who embraces new taxes in the west. They don't think it's a

great idea to put a tax on electricity, to send electricity prices up and up and up, year

on year, for a State that's so dependent on a resource and mining sector.

Geoff Elliott:

Do you think the East Coast establishment sort of understand the changes in Western

Australia? I mean, it's got an economy growing at a faster rate than China for instance.

Do you think...

Julie Bishop:

And unemployment at 4.25%. The Gillard Government tries to take credit for

unemployment at 5.4, but when you look at Western Australia's figures, that's what's

assisting.

I mean, unemployment in Tasmania and elsewhere is going north. Whereas in Western

Australia, it's down in the 4s.

I think there is a lack of understanding as to what is required for the Western Australian

economy to keep going at this turbo charged pace.

It doesn't need the heavy burden of regulation, particularly in the environmental

regulation controls that are being imposed. It certainly doesn't need additional taxes

and the mining tax, come on, it does take a special kind of genius to design a tax that

Australian Agenda 10 February 2013 Julie Bishop

has forecasts of, what, $4 billion and then $2 billion and raises only $126 million and

the Government has spent it anyway.

Paul Kelly:

Okay, let's look at the GST. Colin Barnett has put a major claim on an Abbott

Government saying that in relation to the distribution of GST revenue, he wants a

better deal for the west and the west getting back 70 cents of GST revenue in the

dollar. What's your response to that?

Julie Bishop:

We agree that Western Australia should have a fair go and we'll certainly be looking at

the GST in Government.

There's nothing we can do from Opposition. But we believe that Colin Barnett has

made a fair point that if the Western Australian share goes down at the level that it's

been decreasing, it ends up getting 10, 20 cents in the dollar. I mean, that is a

nonsense.

You want to ensure that Western Australia has sufficient GST to build the infrastructure

that enables the economy, in the west, to continue to...

Peter van Onselen:

So what would your baseline be then?

Australian Agenda 10 February 2013 Julie Bishop

Julie Bishop:

Well, they are the sorts of details that we will work out in Government. But he does

have a point.

Paul Kelly:

Sure. But can I just ask you then: given that the current model means that the funds

going to WA are going to be reduced all the time, do you think we've got to look at a

new model for GST revenue distribution?

Julie Bishop:

Well, obviously this is one of the issues. With an economy like Western Australia's,

generating so much income, you can't possibly then punish it by reducing its share of

the GST.

Paul Kelly:

Would you prefer a new model? Would you like an Abbott Government to have a hard

look at it and come up with a new system?

Julie Bishop:

We'll certainly have a hard look at it, whether it means a new system or not remains to

be seen. But Colin Barnett has a fair point and Tony and Colin have discussed this on

occasions and I'm sure they'll continue to do so.

Australian Agenda 10 February 2013 Julie Bishop

Peter van Onselen:

You won't give us any details but is there a commitment there that something will be

done? It won't sit as it is now where WA sees its revenue continuing to slide in terms

of GST distribution?

Julie Bishop:

Well, you just have to look at some of the comparisons. You have a State - let me take

Tasmania...

Paul Kelly:

I was going to ask you about Tasmania.

Julie Bishop:

Where the Green Labor Coalition have done all they can to suppress economic activity

in Tasmania. Well, that Government should not be rewarded by suppressing economic

activity by getting handouts from Western Australia. There has got to be fairness in the

system and Colin Barnett has raised that point.

Peter van Onselen:

Yet you won't give us any details on it and I suspect the reason might be because the

Liberal Party is very hopeful of picking up seats in Tasmania and the reality is that if

Australian Agenda 10 February 2013 Julie Bishop

you say that you're going to do something about the GST situation in WA, it means a

State like Tasmania is going, by definition, get less money?

Julie Bishop:

Well, clearly there has to be fairness in the system. Everybody would agree with that.

That gives a head nod. And you cannot punish a State like Western Australia for being

successful and putting in place pro-development policies that drive, not only the

Western Australian economy, but the Australian economy and that's what the Barnett

Government has done.

Paul Kelly:

I think, you know, there's been a big debate today based on the leaked Coalition

discussion paper about northern Australia.

How committed is the Coalition to a new development strategy for northern Australia?

Julie Bishop:

We're very passionate about developing the north. We have been for some time. We

took to the last election a number of policy initiatives that would see greater

development in the north, whether it's in relation to food or water, infrastructure

generally.

That was a draft discussion paper. It was a collection of ideas that a number of people

have put to us. One of my ideas was in there. But it's not our policy. It's been sent to

Australian Agenda 10 February 2013 Julie Bishop

a number of people for input, a number of prominent Australians, and I understand

Andrew Robb is getting feedback from a whole raft of people...

Paul Kelly:

But, presumably, this in some form or other will end up being policy?

Julie Bishop:

That's right. In some form or another. But I notice that Labor went into a complete

lather about it. I mean, how dare the Coalition come up with policy ideas and no fewer

than 11 Ministers put out press releases, damning some of the ideas in it.

Well, that's obviously ridiculous. We will have a policy about developing northern

Australia which will have a number of initiatives in it...

Paul Kelly:

And it will be based on economic incentives presumably? I mean, what else can you

do. There will be a whole series of economic incentives, will there?

Julie Bishop:

We're very aware of the tax consequences of creating zones. There are a number of

issues that we're looking at there. But people are giving us ideas and we have ideas of

our own. It will come together into a policy paper that we'll be putting out for

consultation.

Australian Agenda 10 February 2013 Julie Bishop

The idea of building centres of excellence in the north is certainly one that I'm

promoting and I support.

The figure about money being redirected from the aid budget is not right. But most

certainly the idea of us building centres of excellence in to tropical disease research for

the benefit of countries in our north is one of our ideas and I hope that we will be able

to announce that.

Geoff Elliott:

The tape obviously is an enormous issue though, and, I mean, if we were China we

probably would have had a couple of more cities up in the north by now, and not saying

that we should go down that path, but, you know, obviously the zonal taxation issues,

how do you get around the issue of green tape?

Julie Bishop:

Well, Tony Abbott has already announced that the Coalition will ensure that the

regulatory burden in this country is lessened by having a one stop shop environmental

approval process as opposed to the State and Federal dual trap that's happening at

present holding up projects for years.

We will shorten that time, still maintaining the environmental integrity of the process,

but we will certainly lift that regulatory burden.

Australian Agenda 10 February 2013 Julie Bishop

But the issues that we are going to have to deal with are the carbon tax, because that

is just a drag on investment and a drag on job prospects, and the mining tax which,

likewise, even though it's poorly designed, we can see that Labor and the Greens want

to increase the mining tax so that it really does hit our strongest performers hard.

Peter van Onselen:

So on that view, you really do have to stick by your commitment that if you can't get

the mining tax repealed through the Parliament, if you win the next election, you will go

to a double disillusion election? It is not enough simply to drop the effective rate to

zero?

Julie Bishop:

The carbon tax will be an absolute definite for us. We will absolutely get rid of the

carbon tax. We will absolutely get rid of the mining tax and should we be stymied in

that, if our mandate is not recognised by Labor or the Greens, well, then that would

mean a double disillusion.

Piers Akerman:

So how do you propose to address problem States, like Tasmania, where Labor Green

policies over the last decade or more have institutionalised mendicancy and absolutely

throttled any development, whether it be at mining or farming or?

Julie Bishop:

Australian Agenda 10 February 2013 Julie Bishop

Well, clearly there are very entrepreneurial people in Tasmania who are wanting to be

part of the mainstream economy and on a number of visits that I've had there, there

have been some terrific projects in Tasmania, some wonderful businesses that are

doing things on a world class scale, including in manufacturing. And they just need an

even break. Get rid of the mining tax, get rid of the carbon tax, bring down the debt,

encourage productivity and a State like Tasmania, can be a contributing part of our

Australian economy, just as other States can and should be.

Paul Kelly:

I wonder if I could take you back to the foreign aid budget. This is a massive amount

of money.

Now, I just want to clarify the Opposition's position. What is your commitment in terms

of an increase in the foreign aid budget?

Julie Bishop:

Our commitment has not changed, other than Labor have made it impossible to meet

the date of 2015 to reach .5% of gross national income by 2015...

Paul Kelly:

So what's the Coalition commitment?

Julie Bishop:

Australian Agenda 10 February 2013 Julie Bishop

Well, our commitment is to .5% of gross national income but we can't put a date on it

because of the state of the...

Paul Kelly:

You can't put a date on it?

Julie Bishop:

No, we can't. And can I point out Paul? Can I just point this out though...

Paul Kelly:

So this is a worthless commitment because there's no timeline?

Julie Bishop:

Well, this is the commitment that we took to the 2007 election. It's a commitment that

we took to the 2010 election and said that on the basis of the books, as we knew them,

we'd be able to meet that commitment by 2015. Labor has now pushed that out...

Paul Kelly:

Of course you can't.

Julie Bishop:

Australian Agenda 10 February 2013 Julie Bishop

Way beyond the forward estimate. So we have no idea what will be required to meet a

.5%, in terms of an increase, by 2016.

Paul Kelly:

Well, can I just ask another question? I mean, it's widely believed, given the enormous

rate of increase in the foreign aid budget, that it's just riddled with all sorts of waste, all

sorts of inefficiency. Is that your view?

Julie Bishop:

I am deeply concerned that there are instances of duplication and misdirected priorities.

That's why I wanted an independent review into aid effectiveness and aid efficiency.

To his credit, Kevin Rudd introduced that review when he was Foreign Minister.

However, there is a fundamental recommendation that has not been implemented by

this Government and that is, according to the review, there must be benchmarks in

place before the aid budget is increased so that we can judge its effectiveness, its level

of efficiency. The Government have not put those benchmarks in places.

Paul Kelly:

And you'll put them in place?

Julie Bishop:

Australian Agenda 10 February 2013 Julie Bishop

Absolutely. That will be one of the first things we will do in respect of the foreign aid

budget. We will put in place key performance indicators, or benchmarks, that they

must meet before there is an increase and that will be the first thing we do.

And the feedback I get from Governments overseas, whilst they are all very grateful for

Australia providing significant amounts of aid, so often they say "But it's not in the

areas that we want. It's not in areas that are likely to increase self sufficiency or

economic independents".

So often we are giving aid in areas that just increases their dependency on overseas

development assistance.

Peter van Onselen:

Julie Bishop, you have been very generous with your time. Thanks very much for

joining us on Australian Agenda.

Julie Bishop:

It's been my pleasure.