Newspoll, Howard & Costello, Tax relief, bracket creep, Centenery House, fitness Mark Latham - Leader of the Opposition

Radio Interview with Mike Carlton

Transcript - Radio 2UE - 9 March 2004

CARLTON: Mark Latham joins us from our Canberra studios, good morning.

LATHAM: Good morning Mike.

CARLTON: You'd be pleased with that wouldn't you?

LATHAM: Well these polls bounce around, the one prior to this was 50/50, and I've got to say I agree with your assessment that you've only got to remember back to 2001 where at one stage Labor was ahead in the polls and ended up losing the election, the incumbent government has a lot of advantages and we remain the under-dog for the forthcoming campaign, long way to go, wouldn't be getting over the moon at any stage.

CARLTON: Well you're not the underdog on these figures, you're way out in front.

LATHAM: Realistically you've got to look at the trend and the previous poll was 50/50, the incumbent government has advantages, they'll be loading up their tax-payer funded advertising campaign through the course of this year. As you just pointed out, Mr Howard is a tough and experienced campaigner and in 2001 we saw that he'll do anything to win an election, and already he's opened the purse strings down at the Treasury. These days the Treasury Secretary is locking up the volt and the opinion pollster's are opening the door to free up the money as Mr Howard goes on his spending sprees. We've seen that before in 2001 and we know that this is a very tough election year in which we are part.

CARLTON: Alright, so you're pleased on the polls then, but you're not resting on the laurels, that's it?

LATHAM: You know, when I first got this position some polls were encouraging, I said take them with a grain of salt. The feedback I get from the Australian people is encouraging. For me the best part of this position is to get out among the people, try and raise positive ideas and policies for the future, try and be constructive. So that's the feedback I take as genuine, face to face with the Australian people, and if the polls reflect some of that, that's good but let's not get carried away.

CARLTON: Alright. Do you think Peter Costello would take him on before this election?

LATHAM: Well I think the Government needs to clarify where they stand. It has become a bit of a secret society in that Mr Costello won't rule out a challenge and Mr Howard won't rule out handing over to Mr Costello after the next election. Mr Howard and I run for high office at the end of this year, Prime Minister is a big job and in democracy people have a right to know where you stand in terms of your intentions. Are you going to serve the full three year term, is there a plan to hand over to Mr Costello? It's not that hard to be open and frank.

CARLTON: Well they say there's not, there's no plan what so ever. You don't really think there is do you?

LATHAM: A parliamentary secretary, a member of the executive, Chris Pyne on Friday night said that there was, and after the next election Mr Howard was committed to handing over, so I think…..

CARLTON: Yeah but he got a smack, he's a Costello freak anyway, he's one of Costello's supporters and he got smacked down in a big way didn't he?

LATHAM: One would have thought a Costello supporter might know something about those things so that's what made it interesting and perhaps informative.

CARLTON: So you, you really think this would be John Howard's last election, and in that sense a vote for John Howard is a vote for Peter Costello?

LATHAM: That's the risk. That is the risk going into the next campaign. People might think they are voting for Mr Howard, if there is an intention to hand over to Mr Costello it ends up a vote for a very different person and that's a risk people need to think about going into an election campaign, and the way to deal with that risk is for the Prime Minister to be open and honest, bringing Australian people into his confidence. It was said that he almost quit 12 months ago, he's got to give a clear impression of what he plans to do in the future and that's a reasonable expectation in a democracy where the voters, the public have got a right to know where you stand.

CARLTON: But you're really stirring, I mean if Howard comes out and says yes I plan to contest this election and hand over to Mr Costello half way through you've got him on toast, if he comes out and says no I intend to do two more elections you've got him on toast as well haven't you? Why should he fall for your trap?

LATHAM: You can take the point that he's got options there where he can just tell the truth, just be honest with the Australian people about his stance. There's nothing wrong with that, you get voted on and judged at election time in many, many areas and whether or not you've got to serve the full three year term and what's the scenario in terms of leadership of the Liberal Party, they are all things the Australian public have got the right to know, the right to know before they cast their vote. That's not an unreasonable expectation in a democracy where we'll all be putting our policies and intentions for the future.

CARLTON: Alright, now Australian people have also got a right to know what your policies are and your spending plans and your taxing plans, will Labor be putting up taxes?

LATHAM: Our commitment is personal tax relief and I said two weeks ago that we wouldn't be increasing company tax rates or capital gains tax to do that and we've also got a commitment to ensure that tax as a proportion of GDP, there's no higher than where it is today. What about the Howard Government's record of the highest taxing in history. So they're good commitments and our emphasis is on cutting government waste and mismanagement, to endure that our social investments are fully funded and fully paid for.

CARLTON: They're also very vague commitments and you could drive a coach and truck and cart through most of them.

LATHAM: No, no that's a pretty firm commitment. You wouldn't have many oppositions which such a clear position this far from an election and of course two months before the Budget. People are expecting taxes will go up in the budget and we'll obviously have to have a look at that and see how we respond.

CARLTON: Will you make any changes at all to capital gains tax?

LATHAM: No, our commitment is to ensure capital gains tax doesn't go up and that's the same commitment we've got with company tax……….inaudible…and getting down personal tax.

CARLTON: Is that rock solid, you will not change capital gains tax?

LATHAM: Yes, yes I said that two weeks ago in the Australian Financial Review. Through bracket creep people have been hit hard in recent times and they deserve a bit of relief.

CARLTON: Are you going to bring down the two top tax rates, 47 cents and 42 cents?

LATHAM: We've got to see what the Government does in the Budget before we can announce our detailed tax plan but it will be out there, it will be out there after the Budget and people will certainly know where we stand….

CARLTON: Because it was suggested you had a plan to bring it down to level with the company tax rates to get rid of tax avoidance.

LATHAM: We have to have a look at what the Government does in the Budget and make our response. We believe in personal tax relief, we have got a priority for low to middle income earners. And what we can do further up the scales will depend on the state of the Budget. But it is obviously a worry that the Government spending spree that is going on, that the surplus is going to be run down and the finances won't be in very good nick. This is what happened prior to the last election and it is a worry in terms of economic management because running down a surplus places upward pressure on interest rates.

CARLTON: Do we believe you on this? Laurie Ferguson one of your front benchers said the other day there is a good chance taxes would have to rise under a Labor Government. Your finance spokesman Bob McMullan was on Channel Nine this morning and admitted .. well this is how it is being reported that taxes would be increased under Labor.

LATHAM: No what Bob said is that we wouldn't be increasing taxes as a proportion of GDP and he mentioned our commitment to reducing personal income tax, to provide some relief there. He made the common sense point that in the history of Federation, in the three year term there has never been a Government that has frozen every single tax and nothing happens for three years. So he just made that common sense observation, a very honest and sensible observation to make.

CARLTON: If you are going to keep taxes at the same percentage of gross GDP, gross domestic product and you are going to cut income tax you have got to put up another tax somewhere else to balance it out.

LATHAM: No the answer is in eliminating wasteful Government spending and we have identified five billion dollars worth of savings already and that is five billion dollars more than we have seen from the Howard Government that has been spending money in recent times but without matching savings. And that is the discipline we have put on ourselves, that is, if we want to make social investments in health, education and other areas which we do then our discipline is to ensure that we have got savings in place to ensure that the Budget is kept in good shape. So we have been saving and working towards the social investment and the Howard Government should be doing the same.

CARLTON: But if you have got ten billion worth of spending you have to pay for it somehow.

LATHAM: We have got commitments that we have outlined and we have got identification of more than five billion dollars in savings and that is good work by an Opposition that has been on the job. We have not been sitting there for a couple of years thinking, oh there will be a surplus there we will just spend that. We have actually been identifying areas of waste and saying certain programs and agencies we will be abolishing and cutting back on so we can make way for our commitment to improve health and education access for the Australian people.

CARLTON: So let me just get this rock solid. Turn over every stone if we can. There will be no change to capital gains tax under a Latham Government ?

LATHAM: Well I gave those commitments earlier on and I repeat what I said, please understand the Labor commitment which is personal tax relief and I think the PAYE tax payers are carrying much to big a burden under this Government and we have got a commitment not to increase company taxes, not to increase the capital gains tax and ensure we do not worsen the Howard Government's record of being the highest taxing Government in Australia's history.

CARLTON: Another thorn in your side is this deal over Centenary House, the ALP building in Sydney which is rented out to a Government Department at what seems like a rort of a rent. The Government keeps attacking you on that, wouldn't it be time to re-look at it and get rid of it and clear it off your plate?

LATHAM: Well it was cleared by a Royal Commission a decade ago and you cannot sneeze at a Royal Commission, I mean it is the highest level of inquiry

CARLTON: Yes but you must admit it is a bit dodgy?

LATHAM: What aspect of the Royal commission and the report was dodgy?

CARLTON: Well the fact that it clears you and it cleared the Labor Party of a rort, in flogging off its property to be rented to a Government Department at what appears to be a very, very high rent these days.

LATHAM: No, it said the rent and the lease was reasonable and negotiations were conducted at an arms length of the Australian Property Group. And quite frankly Mike no one has produced any evidence to the contrary and Tony Abbott or any one else saying it is a rort doesn't necessarily mean it is the case.

CARLTON: You have to admit it is a very good deal?

LATHAM: The Government didn't mention the issue for the two years after the last election and the only change in that time is the Labor leadership. The only reason they have raised this now after two years of silence from the 2001 election is because of the change in the leadership. They are just trying to throw some mud around Liberal style, Tony Abbott style in the Parliament and assertion by Abbott is not fact. Anyone who reads the Royal Commission Report from ten years ago is struck by the clarity of the findings and the way in which he totally cleared that arrangement.

CARLTON: So you are not going to try and get it out of the way so it wont come back to haunt you?

LATHAM: Well it is out of the way when a Royal Commission said that the lease was reasonable and negotiations had been conducted at arms length. And nobody, nobody in the ten years since and ten years is a fair time in politics has produced any evidence or suggestions to the contrary.

CARLTON: Speaking of Tony Abbott, the Herald reported today that the Government might seek to put some form of dental care in under the Medicare umbrella are you aware of that story this morning?

LATHAM: Well I hope they do bring in dental care, we have been arguing that for many many, years and Labor has got a policy to ensure that the five hundred thousand Australians who are waiting on dental waiting lists, most of them elderly can actually get their teeth fixed up. So it doesn't' seem to me we are making very good use of Australia's prosperity if we have five hundred Australians waiting for dental care. If the Government adopts Labor's policy I will be happy. Like Parliamentary superannuation, I put out a policy an the Government accepted it and we are happy to set the agenda and ensure that in these important areas policy is advancing and we get better outcomes for the Australian people.

CARLTON: They keep pinching your ideas.

LATHAM: Well in Opposition you don't get to make that many laws or get to put in place that many programs and I have been delighted the Prime Minister adopted my plan to close down the Parliamentary Superannuation Scheme and now is he is going to adopt my plan to provide some decent dental care then I am happy for the elderly citizens who at last get a fair go. So if you can achieve things from Opposition that is good and from day one I said I wanted to be positive, I do not believe in opposition for opposition's sake so if we are getting things done and forcing the Government to adopt good Labor ideas then I am tickled pink about that.

CARLTON: When do you think the election might be?
LATHAM: Well Mr Howard doesn't give me any clues you see. He is a wiley man. I think you have to go back to one of those voices you had earlier on, the fellow talking to the mirror on the wall. See what the mirror says.

CARLTON: Will he want to go before George W Bush? Bush is going to go in November.

LATHAM: I just don't know what plans Mr Howard has got and he doesn't want to give me any free kicks.

CARLTON: The other great concern being raised in the newspapers is that you are packing on a bit of meat, they saw you in the T shirt at the cricket, are you putting on a bit of weight in the job?

LATHAM: I am probably not in the good shape I used to be, so yes they are probably right I am getting a bit bulky and I could trim down a bit, maybe a good disciplined diet and the start of another fitness campaign. You have been there Mike, you know it is good to get it off but then hard to keep it off. So with me it has come back, and I have got to go down the Mike Carlton trim, taut and terrific path and get serious about some exercise and a better diet.

CARLTON: How much have you put on since you have been in the job?

LATHAM: A couple of kilos, I think I bulked up a bit last year and I sort of lost the weight and I weighed I think in the old scales between fifteen and a half to sixteen and a half stone, I don't do the kilo conversion. So normally around the sixteen stone and if I get a bit closer to fifteen and a half then I will be a lot happier.

CARLTON: have you been doing a bit of working out?

LATHAM: I have been doing a bit of walking but I only got out for an hour and a quarter walk this morning up to Red Hill so I was worried on Sunday, my cricket form wasn't all that good because I wasn't as fit as I could be so a good lesson there to get out and do a bit more exercise and I am not Robinson Crusoe am I?

CARLTON: Certainly not.

LATHAM: I am trying to get mine off.

CARLTON: Good to talk to you Mark, thanks for your time.

LATHAM: Thanks Mike