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Sky News On The Hour 9am -

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Subjects: Clean energy future; Qantas; Ombudsman; Visit by Her Royal Highness; Trade

PM: Can I start by saying a very big thank you to Silvia and the team here at Dysol, for making me
so welcome today and for taking the time to explain to me what they are achieving here, and by
letting us take this tour, they're giving us a sneak peak of what our clean energy future can look
like.

A lot of Australians are thinking about a clean energy future. They know that putting a price on
carbon will drive us towards that future, and they are wondering what that will look like.

At the same time, many Australians are concerned about the future of manufacturing and we have been
responding to that, including by announcing my taskforce on manufacturing yesterday. Here today we
can get a sense of both that clean energy future and what the future of manufacturing can look
like.

Australians are very familiar with seeing solar panels on roofs - that happens in homes, it happens
in businesses. What we're looking at today is the work leading to the next generation of solar
technology, where you won't have a roof and a panel on top of it. Instead, you will have a dye
which is part of the roofing material which is collecting the sunlight and turning it into energy.

The applications for this are amazing, mind-boggling, and really without limit. We can talk about
cars being painted with a dye that can collect solar power to help power the car. These are the
kind of applications coming from the work here. It's a new future in clean energy and it can also
be a new future for Australian manufacturing, as things we make, like roofing materials, can have
this innovation embedded in them.

So, a very big thanks to Dysol for showing us this work here today.

Coming here today is on a day when we have had the Investor Group on Climate Change, a body that
represents four major international investors in a clean energy future, a body which has at its
disposal some $20 trillion, talk about the positive investment opportunities that can come in
Australia from having put a price on carbon.

This investor group representing $20 trillion of assets sees the economic opportunities right here
in Australia which will come from putting a price in carbon. That interest from international
investors, as well as looking at this innovative work today, is telling us the story of what a
clean energy future can look like and how that clean energy future can be seized by putting a price
on carbon.

Unfortunately, Tony Abbott is a risk to this future. Businesses this week have said that his
reckless attempts to create negativity, to wreck this clean energy future, are putting at risk
future investments and putting at risk Australian jobs.

Mr Abbott is in the business of creating the maximum uncertainty now, and that has direct
consequences. It's like rolling a wrecking ball through the creation of this clean energy future.
Businesses are pointing to the risk that the uncertainty generated by his statements causes.

His statements are causing uncertainty and that's a direct risk to jobs. His statements are causing
uncertainty and that's a direct risk to investment. His statements are causing uncertainty and
that's a direct risk to power prices.

At the same time as he causes that uncertainty, we've had a modelling organisation that he himself
has described as reputable and professional verify that carbon pricing means that an average
household will be better off, that the flow through impact from putting a price on the big
polluters will be $8.50 a week, whereas the benefits received will be $10.90 a week, that almost 70
per cent of households will be better off.

Now, this information from a modelling organisation Mr Abbott has described as reputable and
professional puts a lie to his scare campaign on cost of living - a complete lie to that scare
campaign.

We are very determined that we seize the clean energy future represented by the great research
happening here, and right around this country scientists and researchers working with Australian
businesses are designing that clean energy future for us.

But to make it happen we need to put a price on carbon; to make it happen we've got to make sure
that Mr Abbott's wrecking strategy comes to an end. And the great irony of this wrecking strategy
is Mr Abbott is engaged in wrecking now, even as he and his team prepare to back flip on their
promise to repeal carbon pricing.

Mr Abbott is wandering around saying he will repeal a price on carbon, but at the same time his
environment spokesperson, Greg Hunt, has announced that if they're ever a government they'll have a
white paper on repealing the carbon price. That's political code for getting ready for a back down.

So, all of this negativity is in pursuit of absolutely nothing. If Mr Abbott is ever elected as
Prime Minister of this country he will not repeal the price on carbon, but his wrecking strategy
and negativity now has a cost in Australian jobs, investment and potentially power prices.

I'm happy to take questions.

JOURNALIST: What would you have Tony Abbot do? He's the Opposition Leader and you're blaming him
for the uncertainty, but isn't the uncertainty caused by the situation in Parliament at the moment?

PM: No, it's not. It's caused directly by Mr Abbott's statements. That's what business is pointing
to. Reputable businesses this week, like Virgin, like AGL, have directly pointed to Mr Abbott's
statements.

This legislation has gone through the House of Representatives. It will go through the Senate.
Parliament will have played its role and done its job. Mr Abbott is out there with these wrecking
statements because he wants to cause the maximum amount of damage now in pursuit of absolutely
nothing because if he's ever Prime Minister he will not repeal the price on carbon.

JOURNALIST: (inaudible) detecting a tide turn over carbon pricing (inaudible)

PM: Australian businesses have consistently said that they want certainty; that they understand
climate change is real; they understand the really negative impacts it can have for our country -
business is concerned about those risks, rising sea levels, more extreme weather events. You would
expect major Australian businesses to be concerned about what they means for them and what it means
for the Australian nation. So they've consistently said we need to seize a clean energy future and
reduce carbon pollution, and economists have consistently said the cheapest way to do that is to
put a price on carbon. That's why we've acted.

Now they're pointing to the risk that Mr Abbott's statements today and yesterday and the day before
actually pose to a clean energy future right now. He is introducing a note of uncertainty whilst
the Government has provided the certainty and investment framework business wants and needs.

JOURNALIST: PM, Alan Joyce has today warned of job losses at Qantas as a result of the consistent
strike action. When do you think is the appropriate time for the Government to intervene in this
dispute?

PM: Look I am concerned about the Qantas dispute. I am concerned about its impact on Qantas itself,
on other businesses, and of course on passengers. Parties are still negotiating this dispute. Just
yesterday Qantas put an offer on the table to its workforce to resolve the dispute, so my message
remains to the parties: get around a table and get this fixed.

JOURNALIST: How about Webjet's email that's been leaked to the Herald today suggesting that they
may stop selling Qantas tickets as a result of the uncertainty of its flight schedules?

PM: Of course third parties are being affected by this dispute. Third parties do have their role
and their own rights under the Fair Work system if they want to take them up, but what is in
everybody's interests is to get this dispute resolved. Qantas and the relevant unions are still
negotiating. Qantas has put an offer on the table, and so my message still is get around a table
and get it fixed.

JOURNALIST: I understand the Government (inaudible) when the national economy might be affected. At
what stage in a dispute like this does (inaudible)

PM: Well, parties are still negotiating here. Our Fair Work system is about industrial parties
bargaining in good faith to get an outcome that works for both the employees and for the business,
so Qantas has an offer on the table. My message is: get this fixed. The parties themselves need to
come together, negotiate and get this done.

JOURNALIST: Do you still have faith in the Ombudsman?

PM: Look, I've indicated publically that I have been concerned about the conduct of the Ombudsman.
I think it remains for the Ombudsman to explain how this conduct meets his obligations of
independence and impartiality. That's a question for the Ombudsman himself.

JOURNALIST: Is it appropriate he resigns?

PM: I've made my concerns clear. The Secretary of my Department has spoken to the Ombudsman about
those concerns.

JOURNALIST: Before we run out of time Prime Minister, there's been a lot of chat over the TV, radio
airwaves today about your bowing to the Queen, not curtsying (inaudible)

PM: Look the advice to us was very clear that in terms of dealing with the Royal Family, whether
you want to curtsy, whether you want to bow is a question for you, that they are happy with what
people are comfortable with. As I greeted the Queen she extended her hand to shake hands and
obviously I shook her hand and bowed my head.

JOURNALIST: (inaudible)

PM: The advice to me was very clear that you can make a choice with what you feel most comfortable
with, that's what I felt most comfortable with. The Queen extended her hand and I shook her hand.

JOURNALIST: Should we be pursuing a free trade deal with Japan rather than China, as Tony Abbott
seems to (inaudible)

PM: I've seen that this morning, and isn't this typical - Mr Abbott mouthing populist platitudes
that he thinks will be music to the ears of manufacturing workers, while at the same time he's in
the Parliament voting against support for the steel industry, voting against steel workers jobs and
at the same time he's planning to cut half a billion dollars out of Government support for
manufacturing in this country.

So, none of these statements can be taken seriously. This is a man who's put his hand up to destroy
steel workers jobs. This is a man who wants to rip half a billion dollars out of manufacturing in
this country and cause job losses.

Thank you very much.