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ABC News Breakfast -

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(generated from captions) weekend. Let's cross to the Prime Minister. The Prime Minister is

in the town of Ballan,

north-west of Melbourne. Let's

take a listen to what she has

to say. She has been launching

a new rail link. I don't want

to get into an argument with

Ted about carbon pricing right

now. We will arm wrestle, come on. I'd probably prefer to say

I no longer quite understanding

Mr Abbott's analogies in all of this. He used to say carbon

pricing would be a wrecking

ball across the economy. Then

somehow a Cobra got into the

act and now there is a python.

It is not clear to me whether

the python has eaten the

wrecking ball and it is

fighting with the Cobra. All of these tortured analogies are

telling you that the claims

that have been made by the

Opposition about carbon pricing

are reckless and wrong and will

be proved to be reckless and

wrong on 1 July. REPORTER:

Prime Minister, yesterday the

people's bank of China cut

interest rates for the first

time since 2008. What will this

do to the Australian economy? Well, the Chinese economy

growth rates have moderated,

that's certainly true. When we

are talking about moderation in

Chinese growth rates we are

talking about from a very, very

high growth rate to still a

very high growth rate, so the

Chinese economy is going to

continue to grow and grow strongly, relatively strongly.

In terms of our resources

exports, what we have in our

nation is fuelling urbanisation

in China. China is continuing

to lift hundreds of millions of

people out of poverty and it is

continuing to have hundreds of

millions of people move from

being farm dwellers or dwellers

in villages into dwellers in

big cities. That urbanisation

means they have a voracious

appetite for the resources that

we have to sell. That's good

news for Australia. You saw that reflected in the national

accounts figures this week with the Australian economy

continuing to grow. Indeed,

returning to the sorts of

growth rates we saw before the

GFC, but an important thing

from those growth figures was

it is not just mining that is

contributing to the strength of

our economy now. As I said

during the week, this is a

tremendous achievement for the

Australian people when you can

look around the world and

literally see suburbs and towns

that are wastelands where

people don't get to work

anymore because there are no

jobs and people are losing

their homes and then you look at the strength of the

Australian economy, it is a

truly remarkable thing we have

done together. Are you happy

with the AFP's attempts to prosecute Captain Emad and do

you think the Opposition

arguing the temporary protection visa system would

have enabled him to be charged.

Do you agree there are holes in

that? The Federal Police

commissioner Tony Negus dealt

with this comprehensively

yesterday. What was involved

with a series of operational

judgment calls and they are for

the Federal Police to make. Are

you happy with the work they

have done so far? Look, they

make operational judgment calls

and Commissioner negus grease addressed them in detail

yesterday. (Inaudible Question). I am not going to

comment on operational judgment

calls made by Police as they go about their work. Would

temporary protection visas have

pre vended this from happening?

The evidence on temporary

protection visas was it didn't work to address people

smuggling issues. There was

some evidence that it was

encouraging women and children

on to boats because they were

seeking to reunite with a

family member. I don't think

any of us want to see women and

children taking those kind of

risks. We know all too

tragically where that can end

because we have seen hundreds of asylum seekers drown trying

to make the journey to

Australia. I think the best way

of addressing this scourge of

people smuggling is the

arrangement that we have struck

with Malaysia but because of the negativity of the Opposition, we are not in a

position to put it in place. Do

you think it is time for the

world perhaps consider military

intervention in Syria? Look,

we continue to be appalled by

the violence in Syria,

absolutely, and I think people around the country would have

been moved by some of the

images we have seen of the loss

of life including the loss of

life of children. We have seen

very, very graphic images of

that. We continue to support

the Annan plan. This is a very difficult

difficult situation and we will

continue to work with the rest

of the world to put pressure on Syria to cease the kind of

violence that we have seen

against the people of Syria. Do Russia and China need to step

up? Look, we have addressed

these issues fairly comprehensively as this

dreadful situation has

unfolded. The whole world has

to play its part in addressing

this situation and bringing all

possible pressure to bear to

see this violence come to an

end. Just on the Grattan

Institute, they are calling for

the retirement age to be lifted

to 70 and GST to be expanded to

health and education and food.

Do you support that? No, I

don't support lifting the rate

of the GST. We have made

decisions about the retirement

age and we are not revisiting

those decisions. The aim of the

Grattan Institute report is to

talk about work force

participation and particularly

seems to me from today's report

to focus on work force participation for women. One of

the big, big steps we have

taken to facilitate work force

participation is lifting the tax-free threshold on 1 July.

It will be tripled . That will

mean a million people will no

longer be in the tax system.

Half a million will go from

paying tax to paying no tax. It

completely changes the equation

for the benefits of returning

to work after you have had a

child. Many women go back to

work part-time and this will be

a huge tax benefit to women returning to work part-time

and, of course, we are

continuing to strongly support

our childcare system with

record investments and I'm

working with the childcare

community, parents and providers and the relevant

unions to see what else we can

do to assist families with

childcare. Anything else you

want to cover? I think we have just about done the

international regional rail link. That's the Prime Minister

Julia Gillard standing

alongside the Victorian alongside the Victorian Premier

Ted Baillieu traversing a range

of subjects there. As hinted by

Ted Baillieu, the situation if Syria, people smuggler,

Australia's growth prospects. I await with interests the

outcome of the proposed arm

wrestle by Ted Baillieu to

settle the differences on the

carbon tax. On size, he might

have the upper hand. The Prime Minister can be tough. She was

in regional Victoria launching