EMMA ALBERICI, PRESENTER: Even as Wayne Swan continued his attack on some of the nation’s wealthiest entrepreneurs, the Prime Minister was making friends with business leaders today, asking their advice on how to cut red tape.
Meanwhile the Reserve Bank kept interest rates on hold, but warned that productivity would need to increase in order to achieve economic growth forecasts.
Political correspondent Tom Iggulden reports.
TOM IGGULDEN, REPORTER: The Reserve Bank’s decision was anticipated, and so was most of the reasoning in the Governor’s accompanying statement. International conditions are holding ground or firming, while local growth is expected to remain at about 3 per cent, with relatively low inflation.
But Glenn Stevens is cautioning: “this forecast is an expectation that productivity growth will improve somewhat as a result of the structural change occurring in the economy”. And that’s something the Government’s keen to look as though it’s helping along.
The Prime Minister’s forming a new business advisory forum – to be comprised of around 25 business leaders who will help the Government cut down on red tape. The idea is to harmonise state laws to allow workers to move more easily between jobs.
JULIA GILLARD, PRIME MINISTER: You’ve just seen on display today the partnership that there is between the Australian Government and the business community.
TOM IGGULDEN: But the love’s not being spread around the entire business community. Wayne Swan’s keeping up his attack on billionaire mining magnates.
WAYNE SWAN, TREASURER: They’ve been seeking to distort the public debate because they’ve got very deep pockets.
TOM IGGULDEN: But the Prime Minister says the Treasurer’s problem with mega-rich miners doesn’t mean the Government’s got a problem with business.
JULIA GILLARD: We’ve always wanted to have a good relationship. I believe this is a demonstration of what you can achieve with a productive relationship.
TOM IGGULDEN: Business Council of Australia president Tony Shepherd was on hand for the announcement.
TONY SHEPHERD, BUSINESS COUNCIL OF AUSTRALIA: I wouldn’t agree we haven’t been the best friend of Government for a long time. We’ve enjoyed a very robust, good, working relationship.
TOM IGGULDEN: Among the Council’s members is Fortescue Metals, whose chairman is one of Mr Swan’s targets, Andrew Forrest. Mr Shepherd was asked whether he agreed with the Treasurer’s comments.
TONY SHEPHERD: Good question. I didn’t think we’d get through this press conference without it. (laughs) I think all Australians want their leaders, political, business or community leaders to work together, to work cooperatively.
TOM IGGULDEN: Even those who are willing to publicly disagree with Mr Swan’s campaign …
PETER ANDERSON, AUST. CHAMBER OF COMMERCE AND INDUSTRY: I didn’t think it was a helpful intervention.
TOM IGGULDEN: Were singing his praises with the Prime Minister looking on.
PETER ANDERSON: He has been extremely willing to hear our representations, even on issues which have created differences of opinion.
TOM IGGULDEN: The two-pronged strategy of attacking the mega-rich while wooing the business mainstream is key for Julia Gillard. She needs the latter’s support to underline her economic management credentials, while playing Robin Hood with the former helps shore up the ALP’s blue collar base, and it gives her a handy weapon to pressure Tony Abbott to unlock: details of his economic policies.
TONY ABBOTT, OPPOSITION LEADER: Well, our policy on foreign ownership will be announced in good time before the next election.
TOM IGGULDEN: While the Opposition Leader toured country Victoria, in Sydney it was back to the future for the incoming Foreign Minister. Bob Carr returned to the Parliament he was first elected to serve almost 30 years ago, and quit as premier six years ago.
REPORTER: Would you and Helena go Federal after you get bored doing nothing?
BOB CARR, INCOMING FOREIGN MINISTER: No, I don’t think so, no, no.
TOM IGGULDEN: But he did, and today a joint parliamentary sitting at Macquarie Street gave its assent to Mr Carr’s move to Canberra. It wasn’t an entirely smooth welcome back to politics.
PROTESTER: Shame, Bob, shame!
TOM IGGULDEN: A lone protestor with a long memory attacked Mr Carr’s record as Premier.
BOB CARR: I’ll look forward to serving the people of NSW in a new capacity.
TOM IGGULDEN: Mr Carr was unfazed, saying it was “democracy in action”.
BOB CARR: In the old days they used to throw eggs.
TOM IGGULDEN: A gentler reception no doubt awaits in Canberra.
BOB CARR: Let’s bring on the joint sitting.
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