Transcripts

DOORSTOP INTERVIEW CANBERRA 8.10AM TUESDAY 9 MARCH 2010

9th March 2010

DOORSTOP INTERVIEW

CANBERRA

 8.10AM TUESDAY 9 MARCH 2010

 

 

 

Topics: Coalition’s paid parental leave

 

E&OE………………………………………………………………………………………..

 

JOE HOCKEY:

 

I want to say something about the Coalition’s proposal for paid maternity leave. 

 

If the government is fair dinkum about increasing productivity and increasing participation, we need Australia’s working women to remain in the workforce at the earliest available opportunity. 

 

Tony Abbott’s plan is a huge windfall for big business in particular because it ensures that those people who may have left the workforce after having a baby now have the opportunity to stay in the workforce and in particular, to receive superannuation during maternity leave.

 

There’s been a lot of rhetoric, rhetorical commentary surrounding this proposal.  It is a proposal that delivers for the economy over the long-term.  Importantly it is now an incentive for women who have had significant education, who are significant contributors to the economy, to come back into the workforce.

 

It is also the case that if you are living in Sydney or Melbourne, it is extremely hard to live on a single income and pay back what are significant mortgages. This initiative is about the economy as much as it is about the best interests of the total population.

 

JOURNALIST:

 

As Shadow Treasurer, you meet a lot with big business. Are you looking forward to selling it directly to them?

 

JOE HOCKEY:

 

Big business will be a major beneficiary because they are the ones that are first to complain about a shortage of workers. Big business is the first to complain about capacity problems. This actually delivers for big and small business because it is a real incentive for women to come back into the workforce. It’s a real incentive for people to continue to contribute to the economy.

 

I’d just say this, a lot of women, understandably, are pretty upset that their superannuation is diminished because they have to leave for maternity leave purposes.  Under the Tony Abbott plan their superannuation will continue to grow.  There won’t be gaps in their superannuation and sooner or later a future government …

 

JOURNALIST:

 

[inaudible] …a plan.  When does it become a policy?

 

JOE HOCKEY:

 

From our perspective, this is the plan that is going to deliver greater workforce participation.

 

JOURNALIST:

 

Is it a policy?

 

JOE HOCKEY:

 

It is a policy that will be delivered before the next election.

 

JOURNALIST:

 

Were you consulted on it before it was announced?

 

JOE HOCKEY:

 

Yes I was. This suggestion about consultation, let me just be very clear - we have talked a lot about the need to improve workforce participation and improve productivity. Some of the people that engage in this debate haven’t read the Intergenerational Report of the government. Some haven’t read the Productivity Commission report of the government.

 

If you are fair dinkum about improving productivity, you have to increase workforce participation.  It is essential for the economic growth of the country that we increase workforce participation. Kevin Rudd’s solution is a big Australia, 36 million people. What we say is that we want all Australians to have the opportunity to participate in the workforce without disadvantage. The greatest disadvantage is borne by working mothers who are not entitled to the same treatment as men who have ongoing contributions in the workforce.

 

JOURNALIST:

 

But Mr Hockey, your policy could actually create disadvantage because business is warning it would make it more difficult to hire women?

 

JOE HOCKEY:

 

Well that’s ridiculous because there is no disadvantage in the number of women you employ.

 

JOURNALIST:

 

But making it more expensive?

 

JOE HOCKEY:

 

It won’t be more expensive, because whether you employ 10 women or 100 women, you are not picking up the cost burden. The cost burden is picked up by the more than 3000 largest companies. So actually, it’s an incentive to employ more women.

 

Currently, the cost of maternity leave is left on the payroll of an individual business, which means it is a disincentive to employ more women now - because the more women you employ now, the greater your maternity leave bill. Under our proposal, the more women you employ - it has no impact at all on your maternity leave bill because your maternity leave bill is picked up under this fund.

 

JOURNALIST:

 

Joe, notwithstanding the fact that Barnarby Joyce has been dealing with [inaudible] …he’s the alternative finance minister and you’ve gone ahead with a proposal for a huge new tax and he hasn’t even been consulted…

 

JOE HOCKEY:

 

I’ve spoken to Barnaby about it.

 

JOURNALIST:

 

This morning he said he… [inaudible]

 

JOE HOCKEY:

 

That’s commentary for others.  From my perspective, I’ve been involved in this. We all accept responsibility for a policy that is going to deliver a stronger economy with greater workforce participation.

 

If the government or anyone else comes out and says that this is poor for the economy, they are dead wrong.  This is actually the best thing we could do for the economy.  It’s the best thing we could do for workforce participation.

 

It is a huge cost to the economy for a skilled, educated woman to give up on work when they have a baby. Now we all want the opportunity for our wives and mothers not to have to work, but if you’re living in the middle of Sydney or Melbourne or Brisbane, it is unbelievably hard to pay a mortgage with just one income and so many women go to work because they have to go to work.

 

Well they should not be disadvantaged because they have to go work.  Women are entitled to the same treatment as men and the same respect as men in the workplace. This is the very best example of a policy that not only provides an incentive to employ more women, and working mothers, but an incentive that delivers great outcomes for the economy.

 

JOURNALIST:

 

Do you regret the fact that [inaudible]?

 

JOE HOCKEY:

 

Let me just emphasise this - when the government pays off its debt, when the government is running surpluses, we will deliver personal income tax cuts with those surpluses and after that we will look to deliver a reduction in company tax that ensures that those companies are not worse off over the longer term.

 

JOURNALIST:

 

But they’re big ‘ifs’ Mr Hockey… [inaudible]

 

JOE HOCKEY:

 

Well because you’ll never pay off Labor’s debt under the current reckless spending of Labor. Under the current reckless spending of Labor, it will take years to pay off Labor’s debt.

 

Once upon a time when we used to have surpluses and no debt, you could fund this out of the budget.  But today, because of the reckless spending of Labor, there is no capacity to fund it out of the budget.  Therefore we all have to contribute and the biggest winners under Tony Abbott’s plan are in fact employers because they are going to have an opportunity to keep good and talented people in the workforce - something that they’ve been crying about for ages and something that is going to loom as a major challenge for the Australian economy going forward.

 

JOURNALIST:

 

But why should Mr Abbott be trusted when just in February he said that your policies would not include increased taxes or new taxes?

 

JOE HOCKEY:

 

Well what’s become patently clear is that the government is going on a reckless spending spree. From our perspective, everything needs to be funded.  We are being fair dinkum, honest and open with the Australian people about the cost of policies.  If you want to grow the Australian economy, you have to increase productivity. If you want to increase productivity, you have to increase participation. It is essential.  And if you want to increase participation, one of the most obvious ways to do it is to encourage women to stay in the workforce because currently there is a huge economic leakage from women leaving the workforce after they have a child and not having the opportunity to come back.

 

JOURNALIST:

 

[inaudible]…Tony Abbott’s kids and what he wants from his kids.  Do you have any endorsements from any other organisations.  Business doesn’t like it.

 

JOE HOCKEY:

 

Hang on, don’t say that all business doesn’t like it.  That is some business groups who have rolled and said that they don’t agree with it.  That’s fine, they will have their criticisms.  They think that working families should pay for this and of course we believe that business has the capacity to pay for this because they are major economic beneficiaries of this policy.

 

JOURNALIST:

 

Have you got any endorsements?

 

JOE HOCKEY:

 

There will be endorsements coming.  I have no doubt about that.  But the biggest endorsement will come from those working Mums who now have an opportunity not to be disadvantaged by a maternity leave scheme.

 

JOURNALIST:

So what comes first – paid parental leave or tax cuts?

 

JOE HOCKEY:

 

Paid parental leave is essential if we want to be able to grow the economy, build the government’s coffers and be able to afford to deliver tax cuts in the future.

Thanks very much.

 

[ends]