ISSUES: Labour Force Statistics; ABC Learning Centres; Rio Tinto; Bradley Review
JULIA GILLARD: This morning the Australian Bureau of Statistics released the Labour Force figures for November. What they show is a very slight rise in unemployment to 4.4 per cent from 4.3 per cent. Obviously in these very difficult times these are welcome figures.
The global financial crisis is, of course, affecting the world—economies right around the globe, including our own. The Government’s always said that Australia won’t be immune from the global financial crisis and it will affect our lives here, including jobs here. But in this context, these are welcome figures.
The Government said to the Australian people that in these difficult times we do expect unemployment to rise—that’s why the Government has acted decisively to protect jobs and to create jobs. Our Economic Security Statement was a $10.4 billion investment in the economy in protecting jobs and creating jobs. Our new money for local government is about protecting jobs and creating jobs. Our $6 billion car plan is about protecting jobs and creating jobs in our car industry and the Government is intending to fast track an infrastructure announcement. The Prime Minister has made that clear and that infrastructure announcement will include infrastructure in higher education.
Given the global financial crisis and all of its consequences, including for this country, this unemployment rate of 4.4 per cent is welcome news.
JOURNALIST: (inaudible) It is only a slight rise. Is the Government fearful that it might rise further and if so, by how much?
JULIA GILLARD: The Government’s been very frank with the Australian people. In these difficult times with the global financial crisis, we do expect unemployment to rise. The Government’s forecasts published in our Mid-Year Economic and Fiscal Outlook was for unemployment to rise to 5 per cent by June next year and to 5.75 per cent by June 2010. These are difficult and unpredictable days, and because they’re difficult and unpredictable the Government’s taken decisive action to stay in front to invest in this economy and to protect and create jobs. That’s what the Economic Security Strategy was about. It’s what our actions since have been about - in investing in local government and our car industry - and it’s why we’re fast tracking an infrastructure announcement.
JOURNALIST: Will it reach 8 per cent, do you think?
JULIA GILLARD: Well, our published forecasts are for an increase to 5 per cent by the middle of next year and 5.75 per cent the year after. They’re the published official forecasts. Obviously these are difficult days and in those difficult days we have acted decisively to protect and create jobs.
JOURNALIST: What would you say about market forecasts that figures will go to about 6.5?
JULIA GILLARD: There are going to be various forecasts when it comes to economic data. There always are. There are the Government’s published official forecasts and then a number of agencies make their living out of publishing economic forecasts. You would expect there to be a number of figures out there. The Government’s figures are, as I’ve described them, for unemployment to increase to 5 per cent by June next year and 5.75 per cent by June 2010. But I want to be clear about this and I want to be frank about it: These are unpredictable days; these are difficult days and that’s why the Government has acted to protect jobs and invest in jobs. It’s why we’ve taken decisive action like our Economic Security Statement, like our car plan and why we will be fast tracking infrastructure.
JOURNALIST: Are you expecting more job losses in the resources sector on top of the Rio jobs?
JULIA GILLARD: Well, clearly we’ve seen the announcement by Rio Tinto about global job losses, including jobs losses in this country. Rio has been very clear that its need to reduce employment flows from the global financial crisis. Obviously for any Australian to lose their job, particularly in the lead-up to Christmas, is a very difficult thing for that person. (inaudible). I understand that. I understand many Rio workers will be very, very anxious today.
What the Government can do is it can keep investing in our economy to protect and create jobs. And I would note that one of our key investments has been in 56 000 new training places—that’s about training for jobs. It’s training with the skills that employers in sections of the economy are still crying out for, and those 56 000 training places form part of a government program to deliver more than 700 000 training places in total.
JOURNALIST: Does it make you shudder when you hear Rio Tinto talking in those numbers?
JULIA GILLARD: Obviously it is highly distressing for everyone to see those kinds of job losses. I understand the impact that’s going to have on the families of the people involved, so it’s bad news; it’s very difficult news for the people who work at Rio. The Government understands that the most important thing we can do in the days following the global financial crisis as this contagion flows around the world and touches our economy, is to be investing in our economy in a way that protects and creates jobs. That’s what we have been doing and we will continue to do.
JOURNALIST: Just on ABC Learning–why do you think Victoria has copped the brunt of all of closures? I mean, half of the closures are in Victoria.
JULIA GILLARD: These decisions have been taken by the receiver and the receiver has said 55 centres will close around the nation. The centres that are marked for closures are centres in areas where there are other ABC Learning providers nearby, or other child care centres nearby that have places available. So this decision hasn’t been taken on state-based lines. It’s been taken on the nature of each centre, the community it’s in, and the number of other child care centres and places available.
JOURNALIST: Once the government are funding until March next year, might that funding continue beyond March next year? Is there a blank cheque?
JULIA GILLARD: We’ve said that we will extend funding until the 31st of March and that’s to give us time to work through to look for a future for these centres. We’ve received expressions of interest during all of this from people right around the country, including community-based organisations and local councils who believe that they could play a role in running child care centres. We now want to work through the 241 centres and those expressions of interest, to work through to see what long term future we can create for these centres.
JOURNALIST: So might that funding continue beyond March?
JULIA GILLARD: Well, we are giving the funding until the 31st of March to give us time to work through that process. That process will be undertaken as quickly as it can be and we will make announcements as soon as we can. Throughout all of this mess with ABC Learning, and it has been a mess, the collapse of the biggest child care provider in this country has left the Government with a mess to fix; has left with the receiver of ABC Learning with a mess to fix. The receiver took over and was confronted by a shambolic set of accounts. The receiver has worked hard to clarify the situation of each child care centre.
I know this has been difficult for the mums and dads involved as they’ve wondered what’s going to happen with their child care centres; as much certainty has been provided as possible. In the early days of this collapse, we provided that by extending funding so all centres would stay open until the 31st of December. Now there’s been further clarity about centres, and for the 241, who we still need a further process for, there is certainty until the 31st of March.
JOURNALIST: One of the reasons that community-based and local government are able to work is that they often pay (inaudible) or pay no rent. Do you see place for the Government in not providing care itself, but maybe helping with initiatives such as commercial rent on those 241 places?
JULIA GILLARD: The Government subsidises child care. We subsidise child care to the tune of around $2.5 billion a year. This is a highly subsidised industry and we know that there are lots of community-based organisations that successfully run child care centres. I have some in my own electorate and they do a fabulous job.
What the receiver has said about these 241 centres is, in his view, they are not viable under the ABC Learning business model. That does not mean that in the hands of another operator, potentially a community-based organisation or a local council, that these child care centres couldn’t be perfectly viable for the long term. But that’s what we’re going to work through now.
JOURNALIST: Rent seems to be the major issue of that unviability rather than any cost of labour, etc, which is relatively equivalent amongst child care centres. I mean, what are you going to do about rent?
JULIA GILLARD: Well, we need to work this through centre by centre, circumstance by circumstance. ABC Learning Centres have different landlords. There’s not one owner of all centres; there’s not one rent that applies to all centres. One of the difficulties with working through all of the details about ABC Learning is it’s required the receiver to go through centre by centre and ascertain exactly what’s happening in each of them and they are not the same. We will now go through this further process with the 241.
JOURNALIST: Isn’t it an abrogation by the Federal Government to ask local government and communities to pick up the slack in the long term?
JULIA GILLARD: We’re talking about local councils and community organisations that have put their hands up and said, ‘We want to be involved’. We said that expressions of interest would be called for. The receiver has been collecting expressions of interests and they flooded in. So these are community-based organisations and local governments that have put their hands up because they want to be involved.
JOURNALIST: (inaudible) could have them suspended for a couple of weeks and would otherwise be eligible for the bonuses, won’t get them due to that temporary suspension. Is that something the Federal Government is willing to rectify?
JULIA GILLARD: Well, look, these are a matter for my colleague Jenny Macklin, who’s the relevant minister who is dealing with the circumstances of these kind of eligibility issues, and of course there are appeal mechanisms within our social security system as well.
JOURNALIST: Can you give a guarantee that places will be found for every child?
JULIA GILLARD: The receiver has indicated that for the 55 centres that will close, that the receiver will be communicating with parents about available child care within 2.5 kilometres of the centre that they have their child in now. I understand for a parent that’s got a child in child care, to hear your centre is closing is hard news, difficult news, it’s bound to cause anxiety. The receiver will be communicating with parents about opportunities in centres nearby and parents themselves can go to an Australian Government website, mychild.gov.au, and that enables them to search for centres in their locality too and to have a look at them. Last question and then I better go in.
JOURNALIST: The Bradley Review on higher education is due out tomorrow. There’s been high hopes that there’s going to be a substantial funding boost to the way universities are funded. Is that now going to be impossible in the wake of the Budget problems?
JULIA GILLARD: What I’ve said about the Bradley Review is that the Government will be releasing it in December. We’re keen to make sure that it’s out there for people to read and consider and reflect on. We know people in our universities particularly are anxiously awaiting the Bradley Review. So that will be released, it will be there for everyone to see and I will respond to its directions in February.
JOURNALIST: On the Budget situation though for the sector in terms of reassuring or determining how the land lies in terms of the available money?
JULIA GILLARD: Well, I think everybody is aware that these are difficult days as a result of the global financial crisis. But specifically on the Bradley review, it’ll be there for people to look at and I will respond to its directions in February. Last question.
JOURNALIST: Just quickly on another matter. Do you know why the Federal Government agreed to waive this super surcharge for former Governor-General Michael Jeffrey?
JULIA GILLARD: Look, I can’t help you with that I’m afraid. We can find out for you. Thank you.
ENDS