Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Disclaimer: The Parliamentary Library does not warrant the accuracy of closed captions. These are derived automatically from the broadcaster's signal.
ABC News 24 1pm News -

View in ParlView

(generated from captions) looking at awe. It is not but I really enjoy the job for the fans and the kids, but I learnt that it gets quite claustrophobic in thats can tum and between March and April, there can be really warm days You feel like you're lacing up your boots, you can feel like you can charge dlu a brick wall out there. He has stuck through the club through thick and thin.I've just a fan in a suit, to be honest. I said to my friends if we win a premiership, I will be getting a tattoo and that will be happening if we get over line on Sunday night. Come Sunday night, he will be hoping the sporting gods will be smiling on his beloved Sharks. And now to the MP for the Shire, the Treasurer Scott Morrison has just stepped up for a - not a media conference. He is addressing the Lowy Institute. All those porch lights will be on tonight and on Saturday night and we can switch them off after Sunday. But today I'm completing the third in a series of presentations that I have been giving, which is addressing this topic of staying the course. And after 25 years of uninterrupted annual economic growth an entire generation has grown up without ever having known a recession in this country. This is despite the global financial crisis, an Asian financial crisis and global terrorism, SARS, one in 100-year floods, droughts and a one-third fall in our terms of trade. For some, a quarter of a century of economic growth has given rise to complacency. What dos it matter if our Budget is in deficit or our debt is now growing at $1.4 billion in gross terms a week? Just raise taxes and borrow more. What could possibly go wrong? At the last election, the Labor proposed to increase the deficit by $16.5 billion, increase taxes and on record arguing there is sample room to frth increase our government debt even further. But for others they are asking different questions about why they feel they have not benefitted from Australians' growth as much as they may have expected. By asking practical questions as families, like, "Why are our wages no the increasing like they used to?" "Or, "Why can't I get the extra hours that I was getting before?" Or where will the next job come from, or indeed the jobs of their kids? These sentiments and these questions are very real and they are looking to something to explain it as to how they feel. According to a recent poll, almost half of all Australians are in favour of banning Muslim immigration. There are similar results for banning foreign investment and opposing free trade agreements. Support for these measures is the product of genuine anxiety in our community about these issues, and it can be politically popular and indeed rewarding to simply endorse these policy sentiments, as some do. However, there is great danger in following this path. Investment, trade and immigration bans not only fail to address the real cause of the kerms that Australians feel they now have, but worse, they would cut Australians off from the primary sources of our prosperity for over two centuries. Australia cannot afford to adopt what I call the doona economics approach, which says that you can pull the doona over your head and somehow we can insulate our selves from the economic changes that are occurring globally and domestically.Foreign invest ment, trade and immigration- and a mean an immigration PM that is focused on bringing people to Australia, who make a contribution rather than take one - creates jobs, boosts wages, drives growth, inceases our living san dards, and always has. Ensuring that foreign investment trade and immigration policies continue tore serve our national interest is a core component of the Turnbull Government's national economic plan for growth. During the past month, I have been delivering a series of presentations titled Staying The Course, setting out how the Turnbull Government's plan for jobs and growth is being implemented, to address the concerns for Australians - seeking greater job and income security in a transitioning economy, to deal with the cost-of-living pressures that they face. In the first of these presentations I stress the need for us to build up our economic resilience, to deal with the inevitable external shocks that will come our way. In addition to making our banking and financial system even stronger, we must urgently address our climbing public debt. Thanks to the Howard Government-Costello Government, when the last crisis hit, the Commonwealth was debt-free in net terms. They do this by achieving three things: Firstly, they arrested the growth of debt when they were elected by restoring the Budget from a deficit of 2.1% of 95/6 to 0? '97/98. This was achieved predominantly by getting public expenditure and control. Secondly, they maintained Budget surpluses for a decade, by implements economic reforms that supported growth in our economy. As national incomes rose from increased profits, higher wages and prices for what we were selling, so did government revenues. By not spending more than was coming in for 10 years, they achieved cumulated surpluses of 11.5% of GDP that eroded the debt year on year. Thirdly, the Howard Government-Costello Government realised asset sales of almost 9% of GDP, from '96/97 onwards. This further assisted the retirement of debt and provided the foundation of the future Fund that now stands at more than $120 billion. To arrest our debt we must get the budget back into balance by first getting expenditure under control. The budget I delivered in May projects a return to ballots in 2021 subject to parameter variations with Commonwealth expenditure to fall from 28.5% to 25.2%, still above trend. To get this expenditure under control requires us to address the cumulative impact of previous spending decisions and make them affordable in today's fiscal environment. Prior to the 2013/14 budget which you can see from this chart there had been 14 consecutive budgets where the government made decisions to increase policies bending in net terms, and that is shown by the red bars you can see below the line. This means that policy decisions to increase spending on new programs and initiatives were not offset in those budgets or paid for by policy decisions to reduce spending in other areas. Now, in surplus years, as you can see, with the grey and green bars, the new policy spending was paid for by higher revenues, reflected in the parameter changes, driven by increased employment and the growing incomes of a growing economy. Nominal GDP growth from 2003/ 2004, two 2006 /2007 was 0.8% a year. In the right Gillard Rudd years, new policies bending, as you can see in 08 and 09 in particular, reached historic levels in 26% of GDP. Now this included converting temporary spending measures from the Howard government in the form of various supplement payments introduced under that government when they could be afforded, and these were translated into permanent payments under Labor. Now, there were 53 supplement payments in our welfare system today -- there are. During this time nominal growth in GDP fell from 5.8% and the record new spending was funded by significantly increasing the debt. The result under Labor was a huge surge in net debt from a positive balance, Money in the Bank, of $45 billion in the budget they inherited to a net debt of over $200 billion in the budget they left behind. Net debt is now back at more than 17% of GDP. Now, the other outcome from this period was too hard baked in more than a decade of structural increases in policy spending into the budget, which now comprise an inestimable proportion of our current spending profile. With an inherent deficit, a growing debt and nominal growth over the last three years running at less than 3%, we've been disciplined as a government not to spend more than we save, but there's much more to do. Our task is to address expenditure measures wherever possible that can no longer be afforded, and no longer fit for purpose, or can be better targeted to achieve the service levels that we all expect. The same applies to read new measures where it leads to greater sustainability and the integrity of the tax base and our changes to retirement incomes on both the assets test for the age pension and the superannuation tax concession changes are primary examples of this approach. In our last sitting week in Parliament we finally made progress in getting $6.3 billion in expenditure reductions passed through the parliament, which will reduce Commonwealth debt by more than $30 billion by 26/27. It took three years to get there and it represents frankly only a modest start. There's another $20 billion the government has in expenditure restraint measures yet to be passed by Parliament. As was the case with the Howard Castello government, the debt went be repaid by expenditure measures alone. We will need to boost our incomes by implementing economic policies that left productivity, drive investment, increased profits and support higher real wages. That is why my second address at the Australia Israel chamber in Melbourne is only I'd titled it Staying The Eagles, Increasing What we Earn. -- Course. A national competition policy reform and a national innovation and science agenda. Our 20 year defence procurement plan and our $50 billion national infrastructure plan to name but a few. Today I want to address how keeping the door open of our economy to investment, trade and immigration will also help to increase what we earn and boost our living standards. As a large resource rich country, with relatively high demand for capital, Australia has relied on foreign investment to reach the shortfall of domestic savings against mis-hit investment needs for over two centuries. This chart goes back to 1860. Unlike many advanced economies, Australia needs to fund a current account deficit of around 4% of GDP on average each year. Restricting the foreign capital inflows needed to fund this size would result in a reduction of living standards for Australians with less investment, lower growth, fewer jobs and lower wages. Previous Treasury modelling suggested that this reduced capital inflow would lower GDP over a following decade by 2.6%, gross national income by 2%, and would reduce real wages by 7.2%. Foreign capital has allowed the Australian people, including our generation, more than probably any other, to enjoy higher rates of economic growth, employment and a higher standard of living than could have otherwise been achieved from domestic savings alone. The Australian economy has been built on successive waves of foreign investment, first from Britain, then the United States, Japan, and now increasingly from China. In 2014/15 the government approved almost $200 billion in foreign investment flows into Australia to fill the gap in investment demand. Over the past five years, investment from China has grown most strongly by more than 20% off a low base, while there's been a 10% plus growth from Japan and the Netherlands. Notwithstanding this growth in Chinese investment, the 2014/15 Chinese accounted for less than a quarter of all applications by value. Today there is more than $3 trillion of foreign investment in Australia, 700 $35 million is in foreign direct investment and a further $460 billion in portfolio investments. Of the various forms of foreign investment, foreign direct investment, FDI, has been the most stable funding source than other key forms of external finance such as foreign portfolio investment and debt. According to the ADF, the primary source countries for the stock of FDI are the United States with more than 173 billion, a quarter, Japan at 86 billion and the UK at 76 billion. With China, Singapore and Canada at less than 5% each, and that is by value. Other things being equal, good FDI is our preferred means of financing our current-account deficit. It not only covers the gap but does so in a way that brings multiple benefits to our economy. This includes increased competition. The entry into the Australian market of German grocery chain Aldi and Costco has had a massive impact for consumers and has shaken up a tightly controlled supermarket duopoly. Aldi and Costco will account for 20% of the sector over the next decade. The decision to allow foreign banks into Australia had similar in packs on our system in the 1980s, expanding credit growth to businesses that in turn fuelled their growth -- impacts. The FDI has created offerings around manufacturing and even in our export mainstays of resources and energy... For instance Boeing has made a significant contribution to the Australian economy over the last decade and invested $800 million in Victoria, around 1200 people work in Port Melbourne at its facility and it now houses Boeing's largest R&D site outside the US. Nine Australian universities are collaborating directly with Boeing at their research and technology hub in Australia. FDI also drives productivity improvements for improved access to markets, technology transfer and hardwired links into expanding global supply chains. In 2016, GlaxoSmithKline opened a pilot vaccine facility in Victoria which uses groundbreaking technology for the delivery of vaccines and they invested more than $100 million over the past four years. In 2014, British defence, and era space -- aerospace company BAE Systems set up here and also there was a technology park in Adelaide. FDI is also supporting jobs and communities in agriculture, where the sector is desperately in need of capital. The bottom line is that in many cases, foreign investors are coming in and supporting agricultural enterprises that have not received the same support from Australian investors. British dairy company Long Reef farm invested more than $100 million in a high-tech facility in New South Wales. Chinese investors have also been active in agricultural investment. However, the level of involvement suggested in some public commentary is exaggerated. The agricultural land register firstly shows that 86.4% of all agricultural land in Australia is owned by Australians, and of the 13.6% of agricultural land owned by foreign interests, over 80% of this interest is leasehold Stoppila Sunzu on half of 1% of all agricultural land in Australia is owned by Chinese Nationals and like the foreign investment, more broadly Chinese Nationals are not the dominant foreign ownership source. China accounts for 3% of all foreign-owned agricultural land while the Americans, British and Dutch account for more than two thirds of those holdings. Of the major agricultural foreign investment applications, Daesh Treasurer have approved the largest combinations of investors, not Chinese -- I as treasurer. Like foreign investment from all other sources, the Chinese are adding value, creating jobs and improving productivity. This year, Kimberly agricultural investment, a Chinese subsidiary,... KIA has invested up to $700 million over six years on greenfield agricultural development. While acknowledging the value and contribution on foreign investment to our national prosperity, it is important to strike a balance between maintaining an attractive and welcoming environment for foreign capital on the one hand and maintaining community confidence in the foreign investment regime that we administer. As I found with immigration in my capacity in that portfolio, Australians must have confidence that there are clear rules that protect the national interests and that these rules are being enforced. That is why our government has been acting to strengthen the controls we place on foreign investment and we are following through with improved enforcement to pursue those who break the rules. For residential real estate we've established a dedicated unit within the ATO to review cases and strengthen compliance, this has improved compliance enforcement through the use of the ATO's sophisticated data matching systems and staff with compliance expertise. $96 million of investment have been ordered under this new regime by our government. Foreign investors can't profit from breaking the law, stricter and more stringent penalties have been introduced to make it easier to allow foreign investors to break the rules. We've increased application fees for foreign investors purchasing real estate to ensure taxpayers don't have to fund the cost of administering this system. For agriculture, we increased scrutiny and transparency around agriculture investments, including by lowering the screening threshold from $252 million applied cumulatively. On the 1 March 20 15th we did that and enshrined it in legislation. -- 2015. We also introduced increased and unprecedented transparency into the system through the creation of a comprehensive register of foreign ownership of agricultural land that I referred to before that commenced collecting data on the 1 July last year. Infrastructure asset sales is a new and growing challenge for our foreign investment regime. It requires a greater capacity for focus on national security issues. In response I boosted the firm's expertise in the area with the appointments David Irvine and David Piva. They have well-recognised in these areas, adding much value to firms' deliberations. We allowed them to firmly, formally review asset sales to private foreign investors from the 31 March this year in accordance with the relevant thresholds. It is also important that we place tight controls on how these assets are managed and controlled when foreign investment is involved, that is why as treasurer I have proposed unprecedented new conditions on foreign investment in infrastructure assets to ensure control of the assets is kept in the hands of Australian citizens with security clearances as appropriate. This includes insisting the majority of board members of new ownership entities are Australian citizens, and even requires a majority of Australian citizens board members to satisfy requirements for board meetings, including subcommittees. Another key issue that concerns Australians about foreign investment is whether foreign investors pay tax on their operations in Australia. That is why on each transaction I approve I have imposed a new tax deed which, if a company for example sees to shift profits offshore to avoid paying tax in Australia, I can force the investment of the asset in addition to other penalties provided in our multinational anti- avoidance laws we introduced at the end of last year. It is true that the vast majority of foreign investment proposals that go to the firm and ultimately the decision make-up, myself as treasurer and others, are accepted. But that is not without proper scrutiny first. By either myself on major transactions or the Minister for Small Business, or treasury on lesser value transactions, making the final decision. I'm on the record as throwing my support behind proposals that have demonstrated their not contrary to the national interest and could make a positive contribution to the community and economy. But at the same time I have demonstrated I will not approve foreign investment proposals if I come to a considered view they are contrary to the national interest. If I said yes to everything, the Australian community would be rightly concerned. We want to ensure that the process is as efficient as it can be for the first time with a survey to invite feedback on the experience of our systems. We want to see if we can put something in place to have a mechanism for users to give feedback if they want to. Now, the investment trade has also been a staple and critical to a dressing our current account deficit and addressing our living standards. There was a quarter component of our plan for jobs and growth that we took successfully to the election. We expanded our export and trade volume. We delivered $363,000,000,000 to the economy and accounted for 19% of our GDP in value terms. In the quarter, our exports rose to be 9.6% higher over the past year. This is the highest growth in exports since the Sydney Olympics. A key teacher of our export growth is that it is increasingly broad-based. It supports a successful transition from the mining boom to broader-based growth. The industry continues to shift from the investment phase 2 B production base. Service exports were up 6.3% through the year, with tourism and education continuing to be strong. Exports also account for growth. With more than 7,000,000 visitors a year, including one in 100,000 every month from China, it adds more than $40,000,000,000, or 3% a year to GDP. It supports 580,000 jobs. Students generate $19,000,000,000 for our economy with around 650,000 students rolling last year. As well as healthcare, there is human services. Aged and disability care is an area where we have a strong reputation. Our trade agreements open up real opportunities for these services. The results have been achieved against the backdrop of declining growth in the volume of world trade, which is concerning. World merchandise trade has stayed below 3% on an annual basis for 5 years. In 2015 if value fell because of all skin prices. In a world where many economies are contemplating pulling the drawbridge cup on trade, it is in Australia's national interest to stay the course and argue the case to keep markets open. We cannot afford not to trade as an economy. The Coalition government has practised what it is preaching. First it did so under Abbott, and under Turnbull. The powerhouse economies of North Asia, China, Japan and South Korea are helping expand Australian sales abroad. They cut tariffs on Australian exports and they provide for more open treatment and greater regulatory certainty for our service providers and investors. Processors are being rolled out. Australian companies have every opportunity to compete on a level playing field and make the best of their hard work. They make the best of their ideas in an international marketplace and practically speaking, it has been pleasing to see some of the early results from the most recent of these deals with China. For example, in the first 6 months of this year, there has been a double of the Chinese imports of fresh mangoes, cherries, table grapes and oranges. Paris had been cut twice already -- tariffs. Imports of boneless meat into China have increased this year, also. The tariffs are coming down. There is good news on fresh lobster, abalone, and manufactured products such as zinc. They take advantage and we take advantage of the reduction of tariffs. These early good results built on the success that we have had with the FTA in Korea and Japan. We have Sake producers selling Sake to Japan. Macadamias, table grapes, rolled oats, and wine are also among the things. I feel like I am a spokesperson for one of their grocery shops. Also we are an immigrant nation. We are the most successful, attic. -- I think. Not only has the volume of our immigration program the driver of population growth, but it has supported our economic growth and the composition of our intake has been important as well. Our immigration program sets itself apart from other countries because it is built on attracting people and families in a non-discriminatory way to Australia, who want and are unable to make a contribution rather than take one. Immigration policies have always had a strong economic focus. We have a higher proportion of foreign-born citizens and a lower unemployment rate than many other OECD countries in those communities. We do it better than anyone. An immigration system gives towards attracting migrants with high rates of workforce engagement and employment in skilled areas increases the productive capacity of our economy, benefiting all Australians. There is a boost in economic activity which increases GDP for each person by 7%. It is estimated to be 60% higher in 2060 with the natural increases in population. In today's terms it almost $1,000,000,000,000. Not only did we double migration but we increased the skilled migration from less than 30% under labour in 1996 to almost 70% where it has largely remained ever since. The tribal government is committed to ensuring that we keep a strong economic focus within our immigration program. The factors that produce these economic results also result in greater social cohesion. In the 2011 social policy paper, titled selection, migration, and immigration, white multiculturalism works in Australia and bailed in Europe, there was a study of the effects of immigration. The relatively high education and occupational status of immigrant's parent explains, in their analysis, the performance of these individuals. It was observed that Australia's usually received migrants who can integrate well into society. Australia has been cherry picking. We choose the best qualified ones to make a positive contribution. To continue the process of attracting migrants, it should not change its policy. They are correct. Coalition governments have always seen the merit of this approach. From Menzies, to Turnbull. Seeking the reinforcing outcomes of economic contribution and social cohesion provides the foundation of community confidence in our immigration program which is necessary for its ongoing public support. Upholding this confidence is one of the key reasons why I, personally, our government and the government before us took such a strong sense of border protection while at the same time, our immigration has doubled by the Howard government. Public concern about our immigration being too high was halved. Double the rate of intake, half the rate of concern. More recent Scanlon foundation surveys have found that the proportion of Australians who believe immigration is too high has fallen since 2007 when builders were in turmoil after blood government policies affected. -- Rudd government. Immigration has a positive impact on our economy and 72% people agreed that this acceptance makes us stronger. That is a result of immigrant's hard work and once. That is in contrast to a Scanlon survey that focused on immigration in 12 European countries. It would be foolish for anyone to deny that there is concern about immigration in Australia. The way to address it is not to be dismissive of those concerns but to engage on those concerns and have policies that effectively address them. This is what the Coalition has done under Howard, Abbott, Turnbull and their respective immigration ministers. The same is true in our approach to foreign investment and trade were our policies deliver real benefits for Australians across the country. So, we will continue immigration, trade and foreign investment policies that are focused on our national interests. We do this by focusing on how Australians can participate and benefit from a growing economy to boost wages and to increase profits and to raise our living standards. This has been our history. It has played a major role in delivering the prosperity that we enjoy today. We cannot deny the same prosperity to future generations by disconnecting ourselves from the very sources of this prosperity. That is foreign investment, and trade and immigration in the future. Our economy is successfully transitioning, and remarkably so. We are one of the fastest growing economies in the world today. In the last 2 years we have grown by 3% and generated around 220,000 jobs. We have just completed 25 years of consecutive growth and are going after the Dutch record in about a year and a quarter of's time. The plan we are delivering is all about setting up the next 25 years. Thank you for your attention. Treasurer Scott Morrison making a keynote speech at the lowly Institute at trade and innovation. -- Low. Floodwaters are rising across parts of South Australia after two nights of severe weather. Asia emergency warning has been issued north of Adelaide. -- a flood emergency. It could head into the Barossa Valley with homes under threat. Maul has said he is disappointed by former Liberal frontbencher Wyatt Roy's decision to travel to Iraq -- Malcolm Turnbull. He was caught up with Kurdish forces and Islamic State during a trip to the country. One person has been killed and more than 100 injured after a train ran out of control in the US state of New Jersey. The station at Hoboken is one of the busiest in the area used by commuters travelling to work in Manhattan. AFL fans are counting down the hours until tomorrow's Grand Final, out in their thousands for the annual parade in Melbourne. The Swans are taking on the macro bulldogs, making their first finals appearance in more than 50 years. Returning to the flood crisis in South Australia and several warnings are in place with several homes falling victim to the deluge. SES Deputy Chief officer is in Adelaide. We are still concerned specifically with the Northern areas, the river continues to rise and at this stage it is rising faster than we had predicted, certainly with the rainfall we have had. The threat to old Noarlunga and the other areas isn't happening as quickly as we wanted and we are optimistic that may have peaked, but I don't want to say that yet because it's been very dynamic all morning.

This program is not captioned. This program is live captioned by Ericsson Access Services. Today, flood emergency homes and businesses inundated in South Australia after days of heavy rain.

The superstorm extends to Tasmania cutting power to some homes and leaving others flooded. The former Liberal Minister cops flack for travelling to Northern Iraq and getting caught in the crossfire. Good afternoon, you're watching ABC News. I'm Jeremy Fernandezment also ahead on the program - panic in the US, a woman is killed and scores injured after a train slams into a railway station. And the biggest weekend of football is upon us. Thousands of fans turn out to support their teams in two grand finals.