Transcript of interview with Fran Kelly, ABC Radio National Breakfast

Subjects: Global economy; Libya; domestic politics

Transcript E&OE, proof only.

9 December 2011

FRAN KELLY: The Foreign Minister Kevin Rudd has just arrived in Europe after a quick visit to Tripoli where he met with the interim Prime Minister. Later today he will meet his Italian counterpart as EU leaders try to resolve the crippling debt crisis once and for all in that summit in Brussels.

Kevin Rudd, welcome to Breakfast.

KEVIN RUDD: Thanks for having me on the program, Fran.

FRAN KELLY: Kevin Rudd, ahead of that EU summit in Brussels on the debt crisis, French President Nicolas Sarkozy said there was no second chance for the eurozone and said, quote, 'never has the risk of Europe's explosion been so great'. Do you share his view?

KEVIN RUDD: I think from the perspective of the Australian Government and those who have followed these debates over a long period of time now, we have reached a critical point with Europe.

Financial markets have essentially voted Europe down for some months now because many of the measures which have been adopted up until now have not dealt with the fundamental problems in Europe which go to the whole question of fiscal discipline within Europe and the need, therefore, for Europe to move in the direction of a fiscal union. That, therefore, remains the critical question for European leaders to deal with.

Other measures concerning European Financial Stability Fund will deal with immediate-term measures to provide support for the European banks, but what financial markets are looking for is a deeper resolution of indebtedness – sovereign indebtedness with Europe which goes to fiscal discipline.

FRAN KELLY: Now, Minister, you've just come from Tripoli – how was the spirit in the Libyan capital?

KEVIN RUDD: Well, in Tripoli today it's been an extraordinary set of meetings with the Prime Minister and the Foreign Minister and other ministers.

There is a strong degree of optimism on the part of this government as they move towards elections in the middle of next year. They are grappling with real problems of ensuring law and order within Tripoli and other cities itself. And my experience in the city today was calm and there were no obvious signs of disturbances. But they do have a problem on their hands, which is how do you effectively disarm the militia which have been such a critical part of the Libyan revolution but whose services now are no longer necessary. That's the immediate task, as well as preparing for elections.

FRAN KELLY: It's a two-pronged task, isn't it, because the militia, of course, were people who, you know, a year ago were IT students or accountants or shopkeepers, so the country presumably needs those people back working and training for the economy. And we've also heard from, you know, a number of Libyan citizens in news reports of how they're fearful of all the guns.

KEVIN RUDD: Well, people are concerned about that, particularly the citizens of Tripoli, the largest city. Also, there's a parallel challenge in terms of urban employment and urban unemployment, with rates running north of 20 per cent – therefore, providing jobs for these young people who have been part of the revolution in recent times is a big challenge.

Nonetheless, I think it's very easy for people simply to become pessimistic about Libya's future, given the violence we've seen on our screens over recent months. What I sensed on the part of the government was a calm and steely resolve in order to set these things right, prepare for democratic elections which will be the first effectively in this, in the country's history but we're also providing support through the UNDP to assist in creating Libya's first elections – electoral system, and this is no mean task in itself.

FRAN KELLY: And specifically, did the interim Libyan Prime Minister Abdul Raheem al-Keeb – did he ask Australia for any specific assistance?

KEVIN RUDD: We discussed cooperation in a number of areas.

The other immediate problem related to your earlier questions, Fran, is our support for the United Nations de-mining activities within Libya. Libya has a whole range of problems in the area of unexploded ordnance and we are providing direct funding to the UN de-mining operation to assist in removing these threats to life – and particularly those of children – across the country.

Other areas where we've provided direct assistance are to the World Health Organization in dealing with some of the challenges which present themselves in Libya following the civil war, physical and psychological challenges; and more broadly, we're looking to work with the Libyans in the area of dryland farming in order to boost their agricultural productivity.

FRAN KELLY: And Kevin Rudd, to domestic matters now; your supporters accuse those close to the Prime Minister of leaking sections of Labor's election review that were critical of your leadership, as an attempt to discredit you.

Tensions between you and Julia Gillard show no sign of easing; aren't they getting in the way of running a good government?

KEVIN RUDD: Well, my objective, Fran, is to be an effective Foreign Minister for the country.

I think over the last 12 to 18 months I have done that, at least to the best of my ability.

What others provide by way of commentary on that score is a matter for them. I'm just getting on with the job, and the challenges – which we partly discussed in this interview – are real. And I'm very mindful, given how we negotiated Australia through the first global financial crisis and kept the country out of recession, the need to have all hands to the tiller as we deal with the challenges which may spill over from Europe from this financial crisis.

FRAN KELLY: The political challenges are real too though for Labor with the ALP's primary vote stuck at around 31 per cent. Looking to 2012, in your view, what's the key to lifting that primary vote to anywhere close to election-winning levels?

KEVIN RUDD: Well, my responsibility as the Foreign Minister is simply to execute what I need to do in boosting our national security and national economic interests within the overall framework of my portfolio. I'll do that to the best of my ability.

The Government more generally will have to negotiate the hazards of the global economy; that's where I'm also deeply engaged, and the good thing which stands behind the Government is the fact that we have collective experience coming from our time in confronting the first global financial crisis in keeping Australia out of recession. These, I think, are the essentials to the period ahead. Also, bearing in mind that the more we see of Mr Abbott, the more we see someone who has neither the experience nor the temperament to become the prime minister of the country.

FRAN KELLY: Is Julia Gillard doing a good job of running the country?

KEVIN RUDD: The Prime Minister has been elected in very difficult circumstances in June of last year and has acquitted herself to a very difficult task.

And therefore, given all that's been thrown at the government, it's obviously – obvious that we were going to have some paint removed from us during the course of this year. But I believe, given all those challenges, the government has come through as effectively as possible.

As I said, the number one challenge, putting everything else to one side – politics, policy and the rest – is the economy.

And the economy is fundamental, making sure that we continue to generate positive economic growth in the face of global economic challenges, keeping people in jobs and to make sure that we therefore support Australian families under financial pressure. That's the beginning of it all.

FRAN KELLY: Kevin Rudd, thank you very much for joining us.

KEVIN RUDD: Thanks for having me on the program, Fran.

END

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