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ABC News Breakfast -

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(generated from captions) that we can only meet this

President Barack Obama speaking challenge together. The US

there ahead of the G-20 summit

in London. Now back home, and

retail spending figures out

yesterday shows the biggest

monthly slump since the

introduction of the GST in

2000. That combined with other

negative forecasts have lead

many industry leaders to

declare Australia is already in

recession. Acting PM Julia

Gillard joins us now from

Adelaide. Julia Gillard good

morning and thank you for

joining us. Good morning vir

potential for another stimulus Virginia. Reading of the

package to be put in place by

the Rudd Government. What sort

of focus will this one have?

Well there is obviously

speculation in today's

newspapers Virginia and I don't

speculate about what's going to

be in the budget. It seems to

me we have three seasons in the

year. We have footy season,

cricket season and now we are

adding Budget speculation

season as a new one. I am not

going to... It is often fueled

by the government itself

through strategic leaks. So

let's be a bit fair there.

Well, I am not participating

in budget speculation season.

But we are still delivering and

rolling out our $42 billion

nation-building and jobs plan.

That's a big economic stimulus

package. Obviously some of the

cash payments have been

delivered. Some are still to

be delivered. But the single

biggest element of that package

was infrastructure around the

country, most particularly in secondary schools and primary schools, right around the

nation. So that stimulus package is still being rolled

out around the country to

support jobs in every

community. And when we look at

what responsible economists are

saying right around the world,

they are saying "act, act

quickly and stimulate your

economy to support jobs".

That's exactly what the Rudd

Labor government has done. Yes

and if it was needed again,

would you do it again? We

have always said that we stand

ready to act further if that's

necessary. But our $42 billion

package is still being

delivered. It - the single biggest element was the

infrastructure, particularly in

country. That infrastructure schools right around the

is going to be hitting schools

soon. You will see construction sites in schools,

you will see repairs and

maintenance in schools. And

that activity will be

supporting jobs right around

the country. That is still to

come from the $42 billion

nation-building and jobs

plan, It is a balance ing act

though isn't T have you to

stimulate but you have got to

be wary of the whole you might

dig us into debt. It was

interesting to note Steven

Walters from JP Morgan said if

authorities throw a sinker you

will get a bounce and you have

to some degree. For how long

can you afford to keep doing

that? When we put the stimulus

packages together we did it so

it would have an effect on the

economy over time. Last year

we had the more than $10

billion economic stimulus

package to get money into the

economy and the evidence is

that that worked. It worked to support retail sales and

Virginia, it is most

particularly worked to fuel new

home construction with the

results in, the statistics in

about increases in new home

construction pleasing indeed.

That is largely apartments

though aren't they? Well,

construction activity has been

fueled by that stimulus package

because the single biggest

payment for first home buyers

was for people who are buying

newly constructed homes. So

that stimulus package was there

working in the economy and the

evidence very clearly is it has

times in this country would had an affect and economic

have been tougher without that

economic stimulus. Then the

$42 billion package which is in

delivery now and will be in

delivery during the course of

this year, and into next year

in the form of vitally needed

infrastructure in Australian

schools. So we are talking

about continuing support for

economic activity, right around

the country to support jobs.

And we have picked those

investments because they will

matter for the long-term. We

need to act to stimulate the

economy now. And that's what

our packages do. But our

packages will also mean for the

next five, 10, 15, 20 years,

kids in schools will be

studying in better facilities

as part of the biggest school

modernisation program the

country has every seen. On

unemployment. Governor-General

Wayne Swan has said that clearly our unemployment will

be higher than 7%. Do you

think we will at least keep our

nose underneath the OECD

forecast of 10%? I am not

predicting unemployment

figures. We publish treasury

forecasts. We published the last forecast at the time of

our nation-building and jobs

plan. And the next one will be

available at the Budget. What

I said yesterday is since we

published the most recent treasury forecasts, obviously

we have seen deterioration in

the world economy. The OECD

and the World Bank are very

forcefully made that point in

the last couple of days. That

the deterioration in the global

economy is faster and stronger

than they had earlier

predicted. We are saying to

the Australian people we are

not immune. We are not immune

from the global recession. It

is impacting on our economy.

It will continue to impact on

our economy. And obviously

that's got consequences for

jobs in this country. In the

face of those sorts of global

forces you can make two choices

- you can sit back and two

nothing - and we have had

plenty of advice from the

Liberal Party to sit back and

do nothing - and you can get on

the front foot, act decisively

and support jobs and that's

what we have done, On that

score then, given the job

services Australia system, the

details of which will be

outlined today. We hear around

63 individual businesses have

missed out locally here in

Australia. As a government you

are desperate to keep those

jobs and not to have

unemployment go higher. How

comfortable are you with this

outcome that clearly

Australians are now result as a

result of your new policy are

going to be out of work? Can

you just make a point about the

job tender round, which I think

is an important one. We

inherited from the Howard

Government, which had been lazy

and neglectful in this area, no

option but to do the tender round now. The Howard

Government, which was never

interested in improving

employment services, just

drifted along, reissued

contracts, never troubled

themselves to see whether or

not surfaces could be improve -

services could be proved. Well

that system couldn't keep going

and the legal advice to us was

very clear. We needed to

engage in a new tender round

and that's what we have done.

This say better outcome with Australians missing out on

jobs? This is actually a

better outcome than what you

had before? You would stand by

that? Well, Virginia, point

number one - lazy neglectful

incomp tint Howard Government.

We had no choice but to do the

tender now. Doing the tender

now our aim was to improve

employment services for

Australians who are unemployed.

Point number three, in terms of

who has received successful

tenders in this round, who has

succeeded to get a contract,

around 90% of services will

continue to be provided by

people who provide services

now. Yes, there will be some

change. And for employees who

work for... Julia Gillard there

won't be change - there will be

job losses as well as change.

There will be job losses. Are

you comfortable with that? Aim

coming directly to that point.

For those firms that haven't

succeeded in this tender round,

their employees skilleds will

still be sought by those who

have succeeded in the tender

round to provide services.

These services are provided in

geographic regions, they are

provided right around the

country. Of course there will

be some change. But for people

who work in a service now and

that surface hasn't succeeded -

service hasn't succeeded, there

will obviously be new

opportunities in their locality

for the services that have

succeeded in the tender round.

The aim of all of this is to provide better employment

services to Australians. And

there is no better time than

right now to be improving

employment services for

Australians who find themselves unemployed. No because there

will be plenty of work for

them, particularly given those

that have been put out of a job

that they originally had in

employment services just very

briefly, because time is

against us, one quick question,

we are read anything Fairfax

papers today Joel Fitzgibbon

took another trip payed by

Helen Liu but, of course,

before he was actually a minister in the government.

Are you getting sick of this

issue and having to deal with

it? Well, Joel Fitzgibbon has

answered all the questions

about his time as a member of

parliament. He stepped up, But

not this new one. We, of

course Virginia this is from a

time before he was a member of

parliament. So there is no

part of the system that says

someone who comes into

parliament has to declare

everything about their before.

What we do is make

contemporaneous declarations

about things as we are members

in parliament. Joel Fitzgibbon

admitted that error in that.

He corrected that error. He

apololgised to me. He

apololgised to the Australian

people for that - error and