TRANSCRIPT: PARLIAMENT HOUSE PRESS CONFERENCE, 22 May 2020

E&OE

Subjects: Funding for local governments; China trade, energy roadmap, Eden-Monaro by-election

WITH: THE HON. MARK COULTON MP, MINISTER FOR REGIONAL HEALTH, REGIONAL COMMUNICATIONS AND LOCAL GOVERNMENT.

MICHAEL MCCORMACK

Good morning, it’s great to be here with my ministerial colleague Mark Coulton to announce the latest stimulus package the Federal Government is providing to help Australians through the COVID-19 crisis and today we're announcing $1.8 billion for local government.  Local government, which, of course, is the first tier of government, the tier perhaps closest to community, the tier perhaps closest to people and the tier that we believe, when we directly fund that form of government, that money can hit the ground the quickest, hit the ground the easiest.  What we want to see through this $1.8 billion stimulus package, $1.3 billion of which will be bringing forward financial assistance grants and the other half a billion, $500 million, will be to a stimulus package for local roads, for local community infrastructure, community-led recovery, not necessarily a Canberra-led recovery. 

Mark Coulton and I have been in touch with the 537 councils right across Australia, Mark in his capacity as the Local Government Minister, amongst other things, but myself in the space of Infrastructure, Transport and Regional Development, writing to those councils on March 6 and asking them for what projects they felt they should be able to fund.  I've taken on board the advice that more than 400 councils have provided.  We're going through those and certainly with this $500 million what we are going to see from July 1, when the money is made available to them, is projects to enhance local roads, projects to refurb town halls and that sort of thing. 

And what it’s going to do is provide local jobs and perhaps even more importantly, local procurement so that many of those small and medium enterprises, which have been so hard hit by COVID-19, particularly in regional areas, can enjoy the benefits of that federal funding.  I'll hand over to Mark and then happy to take some questions. 

MARK COULTON

During the recent pandemic, local councils have done a great job, have stepped up, in some cases, deployed underutilised staff into volunteer groups like Meals on Wheels and they've shown local leadership in their communities and it has come at a financial cost to them and so apart from the $500 million package that will enable them to oversee programs that will employ local people who have found themselves out of work because of the COVID-19 crisis, the bring forward of the federal assistance grants is something that has been requested by councils. It will give them security as to be able to plan their budgets at this time of the year and a bit of extra cash to enable them to make up for some of the shortfalls that they've had to deal with. 

So, you know, we have a history with our Government, dealing with local government. We've gone to local government during the drought for them to distribute local stimulus through the recent fires and other natural disasters and it was only natural that we would go to local government at the moment when we need to get a stimulus package that was actually going to go into every community and every town and every village across Australia. 

JOURNALIST

What sort of independent oversight will you have to ensure the integrity of this and that all the decisions are made on merit and have you directed that there shouldn't be any colour coded tables?

MICHAEL MCCORMACK

No colour coding, Mark.  What there will be is the councils will, for those councils who have already brought forward their projects and talked about their community priorities, that's going to be important, that we will take and assess those.  The Infrastructure Department will be doing that.  I will, of course, have a look at those as well. 

But each and every one of the 537 councils across Australia will benefit from this.  It will be based on what their Roads to Recovery funding is and so it's based on their road network and the length of their road network as well as, of course, the number of people, the number of people that they have in their local government area. 

So it's a formula worked out a long time ago by the Department, very accountable, very transparent.   Each and every one of the local government areas right across the nation will benefit from this – regional, metropolitan, remote, the whole lot. 

JOURNALIST

And the $500 million additional, is that coming from debt?

MICHAEL MCCORMACK

It's part of the $100 billion record amount that we're spending on infrastructure over the next decade.  It's part of that. 

JOURNALIST

Minister, just on a different topic, you have large parts of your party that support a pro-coal agenda in this country.  Can you guarantee that you can bring them on board for the Government's technology roadmap which foreshadows coal being supplanted by gas and pumped hydro in a transition to cleaner sources of energy?

MICHAEL MCCORMACK

When you say large parts of the National Party, I think you mean all parts of the National Party.  We're all pro-coal but we're pro-coal, we're pro-all technologies.  We believe in technology rather than taxation.  I mean if you ask Anthony Albanese, he'll say one thing in Bega today and another thing in Marrickville tomorrow.  With National Party members, we'll say one thing in our electorates today and we'll say exactly the same thing when we come to Canberra, we'll say exactly the same thing wherever we are in Australia because that's what the National Party, who understand that there are many, many jobs in coal, many, many jobs in resources, many, many jobs in renewables as well and I know Mark Coulton's electorate has a lot of renewable energy technology happening with solar farms and the like.  Gas, of course, is important too. I've spoken to Minister Angus Taylor on many occasions on the need for technology rather than taxation.  That is the National Party way.  That is the Government's way.  And, indeed, this technology roadmap is a draft, it's in its draft form so there will be the opportunity for input into that process. 

JOURNALIST

So how concerned should Australians and industry be over China changing inspection procedures for iron ore?

MICHAEL MCCORMACK

We'll work through that.  We'll work through that in a measured, considered way as we always do, as people would expect their Government to and I know that the Resources Minister Keith Pitt, Trade Minister Senator Simon Birmingham, are working with our Chinese diplomats, working through DFAT, working through the proper processes.  We'll get an outcome. 

China knows and understands, that we produce the best agriculture, the best resources in the world and we'll go on doing that.  They obviously, are going to need the products that we export, they're going to need them into the future.  Yes, we'll have a few hiccups along the way, that's the case no matter whether it's Asia, no matter where the case might be.  But we'll work through those in a careful, considered and diplomatic way. 

JOURNALIST

Barley, beef, iron ore and today coal, how concerned are you about this decision apparently in China to steer away from using Australian imports and use domestic coal supplies instead?  Coal is our third biggest export commodity to China.

MICHAEL MCCORMACK

It is Brett, you're totally right.  Of course, as I said, again, we'll work through this in a careful, considered way.  We understand that China is a big customer of ours, $149.7 billion of exports and we want to make sure that not only we retain as many of those exports but, indeed, we increase them as time goes on and I've got every confidence that Senator Birmingham as the Trade Minister, Keith Pitt as the Resources Minister will be able to do just that. 

JOURNALIST

It's a bit difficult isn't it, to work through in any sort of considered way when China won't even pick up the phone, won't take a phone call from a Minister.  How do you then contact the Chinese authorities and talk to them if they're not going to pick up the phone?

MICHAEL MCCORMACK

I say, again, I know I've got every confidence that Senator Birmingham will be able to work this out in a rational, clear and proper way, working through our DFAT officials, working with China.  China needs Australia just as much as Australia needs China and it's a two-way relationship, it's been happening for many, many years and I'm sure it will be happening for many more years to come. 

JOURNALIST

Just in regards to Joel Fitzgibbons' comments, how concerned are you or are you happy with the way Australia has behaved in calling for an inquiry into COVID-19?

MICHAEL MCCORMACK

Well, this was and is a Team Australia moment and Joel Fitzgibbon has once again failed the test. 

JOURNALIST

Just on India. We've heard some encouraging signs from that market in terms of picking up some of the slack on barley.  Is that welcome news that there is an outlet for Australian farmers and can you update us on the six ships that have barley exports on the way to China at the moment but haven't been able to sort of deliver them?

MICHAEL MCCORMACK

There's an old saying about a slow boat to China, but, indeed, that barley, it's important that it reaches the destination, it's important that it reaches the port and it doesn't matter what the speed of the boat might be, we want to see it offloaded.  Australian barley is the best barley in the world and I know particularly for our West Australian and South Australian growers, yes, we grow a lot of barley on the east coast as well.  My late father Lance used to do that himself.  But particularly for WA and SA growers, they've produced a lot of the barley which is, indeed, used by China.  We want to make sure that that reaches its destination. 

You're right, Brett, the Indian opportunities are there and welcome and we look forward to diversifying our trade opportunities wherever and however we can.  I'm really pleased that under the international air freight mechanism, which we've been able to establish as part of our sector-wide $1.28 billion assistance to Australia's aviation industry, that we've found, indeed, some potentially new markets for all sorts of things, not least of which is Victorian sheep meat, salmon from Tasmania, Geraldton lobsters and the like because otherwise their markets may well have been lost and dried up in the COVID-19 pandemic. 

But we're working through that.  I know, I say again, that Simon Birmingham is working very, very hard.  We'll continue to do that to diversify our market opportunities right across the world.  That's why we signed a free-trade agreement with Peru and I know that all the other free-trade agreements that have been signed through Andrew Robb and others have made such a difference for Australian farmers and when you are an Australian farmer, making a sowing decision right now, you want to be sure that the grain that you grow is going to have a market. You want to be sure that if you're a beef producer in Kevin Hogan's electorate and wanting to get it through the Casino abattoirs, that it's going to have a market. 

So for all that we say and all that we do, we need to be, of course, measured and careful because we want to make sure that those farmers, those workers in those meat processing plants, have a future.  I'm sure they do.  I'm working each and every hour, making sure that we get the right outcomes here and I've every confidence that we will. 

JOURNALIST

Does the Government have any concerns about China's proposal for the national security law for Hong Kong?

MICHAEL MCCORMACK

Well, it is a matter for China, but we want to make sure that one country, two systems continues to operate.  We want to make sure the rule of law, of course, is kept.  Far be it from me to lecture Beijing on something like that.  It is up to them, ultimately.  But, of course, we want to see the best outcome for the people of Hong Kong.  Australia's relations with Hong Kong are very strong.  We want those to continue.

JOURNALIST

Will the Nationals contest the seat of Eden-Monaro?

MICHAEL MCCORMACK

We're still making that decision and of course, I say, again, it will be made very much at a local level.  As the leader of the Party, I've never usurped the power and the autonomy of those local branches to make a decision which is best for them and I've said that right throughout this by-election process.  If we do, that will be decided by the local branches, of course, in concert with our State Executive.  Our Federal Executive will also obviously have a bit of a say in it but we look forward to seeing what those local branches say. 

The National Party and its predecessor, our forebears in the Country Party, have been going for 100 years because we've left those decisions at a local level. Local people determining what's best for them at local level. 

JOURNALIST

You and the Prime Minister had foreshadowed The Nationals would run a candidate and the Liberal Party would run a candidate.  You're not certain about that now.  It may not be the case that that's what happens?

MICHAEL MCCORMACK

And who's to say whether the Liberal Party, I'm sure, will run.  They're yet to make a decision on a few things.  We'll see what happens.  I'm sure in the fullness of time and that will only be in a couple of weeks, we'll all know all the candidates.  It could be a three-cornered contest.  If it is, well and good.  I ran in a three-cornered contest in 2010.  We're happy to put our names on a ballot paper and to put our policies forward for regional Australia.  We've done that for 100 years, we'll do it for the next 100 years.  We won each and every one of our 16 lower house seats, two of which were transitioning at the last election.  The National Party is as strong as it's ever been. 

JOURNALIST

Sorry, one more.  Do you support net zero emissions by 2050 which is a target that a lot of other countries have adopted and Australia's yet to make a decision about?  Would you see Australia being able to achieve that target and should Australia achieve that target?

MICHAEL MCCORMACK

Well, it's 2020.  We're talking about 30 years in advance.  I know a lot of people set their hair on fire about climate change and all the rest and yes, it is important.  Our farmers, for them, it is important.  For our factories it is important.  But what's also important is jobs for the here and now.  What's important is that, yes, we continue on a path of lowering our emissions and we're doing that.  We're doing that whilst at the same time not taxing our farmers out of business.  We're doing that at the same time as making sure that, as best we can, we can have a manufacturing industry, that we can have people working in factories and industry and we're not sending everything offshore to countries where they couldn't care less about making sure that they lower emissions.  We're doing it in a right and responsible way whilst at the same time protecting the interests that protect Australia. 

This is, of course, another Team Australia moment.  We want, of course, the best outcome, the best environment for those future generations who will follow us, that is our legacy.  We will make sure that we do it in a right and responsible way and we're meeting all of our international agreements like we said we would and we're doing it without taxing the hell out of our farmers and our businesses and indeed, our families who have the right to be able to turn on the switch and to get reliable, affordable electricity and power.  And that's why coal is so important, that's why a range of technologies is so important.  I know that's what Ministers Pitt and Taylor are working towards, the Prime Minister is working towards.  That's the goal of each and every one of us.  Thank you very much.

Shane Manning