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9am with David and Kim -

View in ParlView

(generated from captions) Seven weeks ago the Shadow

Treasurer, he was soaking up the

Mediterranean sun. He had exactly

24 jet-lagged hours to gather

enough support to become the new

leader of the Liberal Party. This

he had. Some said it was his tan,

while others say it was only a matter of time. Malcolm Turnbull

has wasted no time in taking the

Government to task over its

handling of the financial crisis or

admitting to smoking a little dope.

We've barely had a chance to get to

know the real Malcolm Turnbull

since he took the top job S. he a

misunderstood visionary, destined

to become PM or a dogmatic meanie?

Good morning. I'm certainly

dogmatic. You're dogmatic f you

like dogs, isn't that right? I too share a love of

share a love of dogs. And I do,

except one of them is a rat bag. A

dogmatic would be a dog that took

itself for walks automatically and

didn't need its owner. Picked up

its own poo. Exactly. Think of that,

I've often thought, they walk along

the street and we pick up their poo.

What do they think of us? That's

such a good point. They think

they're doing us a favour. They

probably wonder why we're not

sniffing their backsides? That's right. I've always wondered what do

you do when you get the first load,

it's always difficult to scoop up

the second load? When your hands

are full. It's very interesting

that you're doing it with your bare

hands. Most people have a little

Can I plastic bag. Anyway. I don't know.

Can I ask you s this true? I read

that the first time you met your

wife, you proposed to her? Um, no,

I didn't propose to her immediately.

I proposed to her not long after we

met. But her response was she would

think about it when we'd grown up.

We were both quite young. When Lucy

and I met, she was 19 and I was 23.

We got married two years later. So

was it instant for you? Did you

know the moment you met Lucy? Yeah.

It was. I mean, look, I was - How

does that happen? What can I say?

entranced with This is a good question. I was very

entranced with Lucy when I met her.

And a part of me was saying,

"You've got to marry this girl."

But obviously I didn't want to

frighten her. So, look, we became

very close very quickly. But she

was, Lucy was 21 when we got

married. She was only I think eight

days shy of 22. So, you know, - she

wasn't a baby, but she wasn't, not

many people get married that young.

We got married young. And obviously

time has proved that was a very

good decision. That showed enormous

patience and something you've often

not been credited with, I think?

Well, it takes two to

Well, it takes two to tango. And it

requires great, you've got to be,

again, the issue is loving and

wooing is an exercise in persuasion. And you don't want to frighten your

true love away by being too rushed.

Why is that relationship so

important as a person, politically,

the support that Lucy gives you?

Because she's very much her own

person. She's successful,

independently successful of you.

Well, she is. But, it's interesting.

Lucy and I have been together since

we were kids, really. I mean, since

she was 19, I was 23. We've been married since 1980. We're very,

very close friends and - everybody

has got an understanding of their

own marriage and every marriage is

different, right? So I can tell you

about us. We're very, very close

friends. We enjoy each other's

company enormously. We're happiest

doing things together. What is

amazing and rare is that we've

worked together a lot too. A lot of

couples are very, very close but if

you said, "Could you work with your

husband or wife?" People people

would say, "No, couldn't imagine

anything worse." We've done a lot

of things together, the Spy Catcher

case, what we did 20-odd years ago.

Which as young lawyers we took on

the British Government and won.

Lucy and I were the legal team and

Lucy actually wrote the legal

argument that finally won the day

in the High Court of Australia. If you read the High Court's decision

in UK Attorney General against

Hieniman, the argument is there is

Lucy's argument picked up by the

seven judges of the High Court.

She's more brilliant than you are?

She's much more brilliant. More

brilliant than anyone. Very

political answer. Lucy is, she's

got so many qualities but she's a very, very - she doesn't practice

law anymore - but she's gut an

incredibly sharp legal mind. And

she's very analytical and she's a

very clear thinker. And ultimately

- All qualities that appeal to you

clearly? You've got to know all the

law, to be a good lawyer. And

you've got to be able to stand on your feet and make an argument. But

you have to think clearly and

express yourself clearly. Lucy is

excellent at that. Just want to

move on if I can - is it a good

time to be an ex-banker? Some

people would say it's better than

being a banker. That's what I'm

saying? In terms of myself and, I

mean, Lucy, for that matter, I

think the background I've had in

business and, you know, the

financial world is very helpful to

me now because I do. Nobody is an

expert on all of these issues,

most important thing is to reach right? Totally unprecedented. The

out and pull in the best advice.

Probably the most fundamental crit

kfpl we've had of Mr Rudd in --

criticism we've had in Mr Rudd in

this is the decision he's made to

cause all the hardship to guarantee

the bank deposits - he made that

directly to the Reserve Bank.

Didn't you back it nilgtsy? We recommended cerbgz initially? We

recommended there would be a

deposit guarantee of $100,000. The

idea is with deposit guarantees and

- and that's roughly where they're

set in almost anywhere in the world

- is to have the deposit guarantee

high enough so that households and

small businesses feel that they're

rel cbgz their relatively small

deposits are safe so people aren't

anxious. It's essentially, it's much a psychological as a financial anxious. It's essentially, it's as

measure. But not so high that it

starts to distort financial markets

and money markets. And the problem,

so that's why in the UK it's 50,000

pounds and most European countries

it's 50,000 euro. In America,

$100,000 US. They've increased it

recently, but still only to $250,000. Going to

$250,000. Going to an unlimited

guarantee was a very big move. Now,

when Mr Rudd announced it, you're

quite right, we said in the spirit

of bipartisan, even though we

hadn't been consulted at all, we

said, "OK, we take you at your word,

Mr Rudd. We accept what you say

that you've been working closely

with the Reserve Bank and APRA and

it turned out he hadn't spoken to

the Reserve Bank directly at all."

I have to say, that I think if on

that weekend of the 11th and 12th

of October, if this had been kicked

around more thoroughly, if there

had been more debate and all the

relevant people in the room,

certainly if we'd been in the room,

which we offered to be, I think they would have made the which we offered to be, I don't

decision they did. Which they

clearly now regret because they're

abandoning it. How big a mess has

it created? Well, it's created a

mess, there's no doubt about it.

How big is it? Is it salvageable?

Well, it will take time. I mean,

you can't just turn the clock back

to the 11th of October, sadly. I'm

sure even Mr Rudd - Wishes he could.

In his quieter moments wishes he

could. He must know he's made a big

mistake here. It was swift and

decisive which turned out to be

rushed and bungled. He said it was

swift and decisive. Ultimately, you

judge policies by their results.

You can give yourself brownie

points and get the cameras in to

take pictures of you with your

sleeves rolled up and so forth,

working hard. You say you can be

swift and decisive. If you make a

swift and decisive mistake, nobody

will thank you for it. You would

have learnt that from Kerry Packer,

wouldn't you? Were you spooked? The

'Australian' said you shifted funds

out of a managed fund on the 12th?

Not at all. I disclose, we disclose

all of our investments, right? And

the funds that I invest in, as do many people in managed funds, the

fund that is referred to is

actually not a fund of the kind

that's been in controversy, it's

not a mortgage trust or a cash

management trust, it was a real

estate securities fund, so invested

in effect in equities. The timing

was awkward? You take advice from

your financial planners, invest in

things, dispose of things. That

fund, like all of the real estate

investment funds, had declined

significantly in value and we were

advised to liquidate it. But, I

think as the article revealed, I

still have investments in a fund

that is frozen. I

that is frozen. I guess I'm in the

same boat as many people that have got investments in managed funds. A

lot of them have had their

redemptions frozen. Yeah. I'm

interested to learn more about you

as a person in terms of your father.

Reading about your father, it kind

of brought a tear to my eye last

night, actually. Your parents broke

up. But you've said publicly that

your dad never, ever said a bad word about your mother? That's

quite true. He was quite

disciplined about that and had

every reason to be resentful and,

of course, in a lot of divorces, as

you know, very often the parents will fight the battle through the children. One parent will be

bagging the other to the kids and

the other way around and so forth.

And Dad was, he was remarkable. He

was absolutely determined that I

was, even though Mum had left and

living in another country, and the

communications were difficult. My

mother and I used to send recorded

tapes to each other and Bruce used

to encourage us to do that. He was

very - it wasn't just that he

didn't say bad things about her, he

constantly praised her and he built

her up. He had obviously said,

"Right, this little boy's mother's

cleared out. In the normal course

of events, that doesn't make for a

good relationship between him and

his mother. I'm going to do

everything I can to make sure that

this little fella loves his mother

as much as if she was still here."

Do you remember how you felt when

she left? I do. I was very close to

my mother. But, I mean, as you can

imagine, millions of children have

this experience of divorce. So it

was a sense of - I missed her

desperately. But, again, Bruce did

everything he could. He was quite

successful. I wouldn't use the term

brainwashed but it was sort of

getting close to that. He was a

very charismatic guy and said,

"Right, objective - make sure young

Malcolm doesn't resent his mother

for leaving." And he then set out

to do that. And when he died qaegs

he was killed in 1982 in an

aeroplane accident when he was only

56. It was very, very sad. And my

mother died in 1991. And when they died, obviously I inherited all

their papers. And I saw the letters

each of them had written to the

other. And when I saw the letters

that he'd written to her of great,

sort of, "How could you do this type of

type of letters?" These were the

days when international telephone calls were impossibly expensive calls were impossibly expensive and

so forth. And I thought, "He would

sit down and write something as

heartfelt as that and seal it up

and post it and then he would turn

around to his little boy and say

'Your mother loves you more than

anything. '" so it was a great

example of strength and putting

somebody else first. I'd like to

talk to you about your time with

Kerry Packer. As we alluded to,

you've been called arrogant and a

bully and charismatic and hugely

talented. It's been said when

you're on the wrong end of Malcolm,

it's terrifying. How were the

arguments you and Kerry Packer had?

We had some very funny - we had

rowdy arguments, yeah. Plenty of

colourful language, no doubt? Well,

yeah, a little bit. But he was a

very funny guy. You talk about

volcanic, Kerry was volcanic. In a

way that very few people are. But

it was part of the theatre. He

could go from being volcanic to

cooing like a dove if it suited his

purpose. But I remember once I had

a great argument with him about

something or other, he was wanting

to do something I didn't agree with.

And I gave him this burst. At the

end I said, "This is a very bizarre

way to run a company?" I don'ts

think we were public at the time.

And Kerry lent back in his chair

and give a wicked little smile and

said, "Ah, Malcolm, what you've

overlooked is that I'm a very bizarre person." No argument. I

burst out laughing. And he had,

Kerry's often portrayed as being

all explosions and all gruff. But

he had a very delicate, witty touch.

Another great one was there was a

mutual friend of ours, James Wolfensen who became president of

the World Bank. He was trying to

get Kerry restrained. We were

always trying to restrain him. Jim

said, "Remember, Kerry, revenge is

a dish best eaten cold." Quick as a

flash, "Better eaten hot than not

at all." Good to get to know you a

bit more. Great to see you. Thanks.

There would be chicken soup,

chocolate and just about anything

cooked by mum for comfort food.

Maggie Beer will have sticky bananas and French toast.