Interview with Sky News - PM Agenda
Transcript, proof copy E&OE
5 May 2010
KIERAN GILBERT: Mr Smith, thanks for your time. Before we get onto the reasons why you're in New York, while you've been there, there's been an arrest in the terrorism scare in Times Square. What's the sense been like in that city at the moment?
STEPHEN SMITH: Well, there was a big presence immediately after the discovery of the van and we saw that presence for about 24 hours.
Because there was no explosion and because, fortunately, there were no injuries or loss of life, I think the city is pretty much now back to business as usual. People have very much taken it in its stride. There is, of course, a lot of interest in the arrest and now charge. But because it's a charge and there needs to be a judicial and legal process, one needs to be careful about what one says in that respect.
But it just, again, underlines the need for countries - not just the United States, Australia, but other countries - to be ever vigilant about the threat of terrorist activity and terrorist attack. It's not going away. It's a regrettable feature of the modern world.
KIERAN GILBERT: Okay. Now onto the reasons why you're in New York at the United Nations. You're attending the Nuclear Non-Proliferation Treaty Review. We've seen the sparring between Ahmadinejad and Secretary of State Clinton. Beyond the posturing, has there been any progress on that front with Iran?
STEPHEN SMITH: We saw, yes, some theatre yesterday which was not a surprise.
We don't want the Iran issue to detract or deflect from the very serious work of the Review Conference. Australia continues to very much support further efforts before the Security Council to bring Iran to book over its nuclear program. We want Iran to change its policy approach. All of the available evidence, including from the International Atomic Energy Agency, is that one can't be satisfied that Iran's program is a civil nuclear program.
But in addition to that particular issue, the work of the Review Conference is the serious long-term work of disarmament, of non-proliferation generally, and also safeguards for civil nuclear use.
So I'm confident that the Iran issue won't detract or deflect from that serious long-term work. But we do have a proliferation issue with Iran and we want the Security Council to take further steps so far as Iran's program is concerned.
KIERAN GILBERT: What's the sense you're getting - what's the sense you're getting from the people you're speaking to at the United Nations on whether or not that is - there's a decent prospect of that further action?
STEPHEN SMITH: In my discussions, not just at the Conference but also in recent weeks, it's quite clear that there is a growing view that the Security Council needs to deal with the issue again by way of sanctions. Whether those sanctions will be regarded by all members of the international community as being effective enough, time will tell.
In Australia's case, we already implement all of the Security Council's sanctions against Iran. We've also adopted our own autonomous sanctions. And we've made it clear - I've made it clear privately and also publicly - that we are in the market, so to speak, for not just supporting further Security Council action by way of sanctions but also we're happy to contemplate further autonomous sanctions in our own case.
We need Iran to change its policy approach and efforts at dialogue, to date, have not been successful. So we are of the view that further action needs to be taken by the international community.
KIERAN GILBERT: On the issue of North Korea, there are reports this week that Kim Jong-il has been in China. Have there been any developments towards an outcome through the Six-Party Talks? While you've been in New York, have there been any discussions along the sidelines in relation to that?
STEPHEN SMITH: Well Iran has, of course, been a much more high profile issue and much more in the forefront of people's deliberations.
Australia continues to urge North Korea to return to the Six-Party Talks, to return to those discussions and our attitude is that they should do that unconditionally.
North Korea, of course, is the second significant proliferation worry that the international community has. We've been strong supporters of the Six-Party Talks and we urge North Korea to go back to the table to continue those discussions.
KIERAN GILBERT: Minister, onto some domestic issues now. We've seen the reaction to the Government's mining tax in WA and the resources states. It has not gone down well with the resources sector.
The WA Premier, Colin Barnett, is warning of an electoral backlash against Labor in your home state. Of course you are the Member for Perth, what do you say to that and would you expect a backlash, electorally, off the back of the super profits tax?
STEPHEN SMITH: I think people just need to very carefully understand the long-term nature of both the petroleum resources industry and the minerals resources industry.
The resources rent tax that the Henry Review and the Government have adopted for the minerals resources industry, is a 40 per cent tax that has being applied to the petroleum resources industry for over 20 years.
It's a tax on profits, so it doesn't stop projects getting up and running. And in the face of a comparable or similar resources tax, we've seen the Gorgon project get up recently. We've seen very large liquefied natural gas projects get up.
So I've seen, over the years, from Western Australia, people making assertions that a change of policy here, or a tax there, will see the death of Australia's minerals resources and it continues to go from strength to strength.
There are, of course, other benefits. There's a reduction in the general company tax rate. That will help small and medium-sized exploration and mining companies. There is a cash - effective cash rebate for explorers. And the proceeds, of course, of the rent resources tax will see significant infrastructure improvements.
So this has benefits as well as what sections of the minerals resources industry will see as the imposition of a tax.
So far as the political fallout is concerned, well let's just wait till we see the election. On election night in 2007 I predicted that at the 2010 election Labor would win seats in Western Australia. That continues to be my view. And the community in Western Australia, the people of Western Australia will look at more than one particular issue when they make their judgements about how they vote in the election this year.
KIERAN GILBERT: You know the electorate in WA better than most. The Prime Minister says, nationally, Australians deserve a fairer share from the resources boom.
In the boom state in WA, is there a feeling among many that they're not getting a share of the wealth that they see around them? Is that a fair assessment of the politics that you'll be facing in WA, that there is some resentment among some constituents that they're not actually sharing in the boom despite living in the boom state?
STEPHEN SMITH: Well, the people of Western Australia, just as the people of Australia, want to see a fair return to Australia and Australians for the exploitation of our natural resources. And one of the complaints that has been made for a long period of time, including consistently under our predecessors, under the Howard Government, was that not enough had been returned to Western Australia for infrastructure purposes, including and in particular to the north-west of Western Australia where we see very many of the petroleum resources projects in particular and also more generally for minerals resources projects.
So one of the benefits which will flow as a consequence of the changed tax arrangements is an increase in investment in infrastructure. That can only be a good thing, and the people of Western Australia will welcome that.
People should also not underestimate or under-appreciate the changes that will benefit the exploration industry in Western Australia. Over the years I've always heard the complaint that not enough is being done to assist those people at the start of the process. And the changes we've made to encourage exploration is a very good thing, and that will be welcomed by explorers, by small miners, by medium size miners in Western Australia.
So this is by no means a changed arrangement which cuts just one way. There will be significant benefits and the people of Western Australia will see that.
But it should be remembered this is a tax on profits. It's not a tax on a project before it gets up and running. It's comparable to the arrangements we've seen in the petroleum resources industry for a long period of time. And our petroleum resources industry and our minerals resources industry continue to go from strength to strength, and I expect that will be the case into the future.
KIERAN GILBERT: We've seen this week the disastrous numbers in the Newspoll. Would you hope that after the last couple of weeks with the Government mopping up some political problems, that you will be able to consolidate now, through the Henry Review, and into next week through the Budget and beyond to the election, to consolidate with that economic performance underpinning the Government's re-election prospects? Or are you really worried by those Newspoll numbers this week?
STEPHEN SMITH: I always hate using clichés on your program but this year in particular there's only one poll that counts and there'll be plenty of polls between now and election day. And I also always caution people about taking one poll in isolation. If you do take anything from published opinion polls, you need to look at the longer term trend, and there's plenty of time for that to emerge following this poll.
In the end, the people will have a choice as to whether they return the Government. We have been a Government which, in my view, has managed the economy well in difficult circumstances. Like any Government, yes we've made some mistakes, yes we've done some things which people don't like. But in the end I think people will come to the conclusion that we have been a competent and assured Government. And the alternative to that is Tony Abbott and the very clear risks that he brings in terms of economic management and his own approach to public policy.
So in the end it will be a choice between a continuation of a Government that has done some very tough things so far as seeing off the global financial crisis, as against the risks that Mr Abbott brings.
KIERAN GILBERT: Just finally, Mr Smith, a WA court has been played a tape with some comments from the former WA Premier, Brian Burke, in which he has some less than complimentary things to say about you. What did you make of those remarks? Were you surprised?
STEPHEN SMITH: I've seen a reference to those remarks. As I understand it, Brian Burke is again facing charges of dishonesty and corruption, so these are comments that have been provided as part of evidence in a criminal court hearing against him, so I need to be careful about what I say.
But can I just make this very clear point. I regard any unflattering remarks that Brian Burke might make about me as being a badge of honour. There's that old Australian saying that you can judge a man by the company he keeps and I'm very proud of the fact that for a long period of time I have not kept Brian Burke's company.
I'd rather that Brian Burke was saying unflattering things about me than complimentary things about me. And the fact that he has a poor view of me tells me that at some stage in my life and my political career, I must have done something right.
So any adverse comments that come from him I regard as a badge of honour. I won't be drawn any more on those matters. As I say, they are matters which have arisen again in the course of a charge of dishonesty against Mr Burke.
KIERAN GILBERT: Foreign Minister Stephen Smith in New York, thank you very much for joining us on PM Agenda.
STEPHEN SMITH: Thank you. Thanks very much.
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