Sky News with David Lipson

SUBJECTS: Electricity Prices; Education Funding; AWU Scandal

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

David Lipson: The Prime Minister says her plan will save households up to $250 a year. Should the States support it?

The Hon Christopher Pyne MP: Well David, this is a Prime Minister with a real sense of humour. First she introduces a carbon tax, pushing up electricity prices. In fact in the September quarter electricity prices rose by 15%. It was the highest rise in any recorded time in Australian history. Then she turns around and says it’s up to the States to reduce electricity prices and she comes up with a whole lot of ideas, most of them involve more regulation and more costs to consumers. The easiest way to reduce electricity prices would be to scrap the carbon tax which the Prime Minister promised she’d never introduce. And that is what Tony Abbott has promised, that at the next election if we are elected, we will scrap the carbon tax and the energy regulator in South Australia said that as soon as we do that it will immediately lead to a reduction in electricity prices.

Lipson: Sure but the rise in electricity prices this year, only 9% is attributable to the carbon tax and electricity prices have gone up 50% in four years as a result of obviously other factors. So why not help families out by addressing those other factors as well?

Pyne: Well the easiest way to reduce electricity prices, is to scrap the carbon tax, everyone knows that. The Prime Minister’s trying to create a distraction from the carbon tax by pretending that if we have smart meters and a new energy regulator this will somehow reduce electricity prices.

Lipson: But you don’t think that would help?

Pyne: Well smart meters have not proven to reduce electricity prices in Victoria, in fact for smart meters to work, David, every 15-30 minutes you need to go out and have a look at your smart meter. Now, I’m married with four children. The idea of every 15 to 30 minutes me saying ‘Hang on, I’ve just gotta go out and check the smart meter and see what’s going on with our electricity’ is just, it’s completely laughable. The Prime Minister thinks, well I’ll just raise that issue, just another thought bubble that will get the pressure off me and the AWU scandal, it’ll get the pressure off me on electricity prices. The facts are, the public know the Government introduced a carbon tax they promised they wouldn’t introduce, electricity prices rose, they’ll continue to rise. The Reserve Bank says they'll continue to rise in future quarters because of the carbon tax and the Prime Minister, if she wanted to reduce electricity prices, should scrap the carbon tax that she should never have introduced in the first place.

Lipson: The Grattan Institute has put out a report today and also said today that over-investment in poles and wires does have to be addressed. Other industry bodies are saying the same. What’s the justification for standing in the way of this reform of the industry?

Pyne: Neither I nor the Coalition are standing in the way of anybody who wants to reduce electricity prices. I think my comment is that the Prime Minister has the...

Lipson: On the issue of infrastructure, of poles and wires...

Pyne: Well no-one’s standing in the way of good changes, whatever good changes want to be made that will reduce electricity prices, we should make them. My point is, the Prime Minister has a real cheek to turn up, having increased the prices of electricity by introducing a carbon tax and then demand that everybody else change to try and reduce prices. If she wants to reduce prices of electricity, cut the carbon tax, get rid of it, scrap it, that’s what the Coalition will do.

Lipson: Okay also on Friday, education funding will be discussed at COAG we understand, the union, the education union is confident that a deal can be broken with the States if not on Friday, then perhaps early next year. What do you think? Can Julia Gillard get this reform through?

Pyne: Well I don’t know what the Prime Minister’s even offering. The point is that the government haven’t come up with any specifics. They’ve given honeyed words, long speeches, a 9 page bill that’s 1400 words of motherhood statements, there’s basically a press release masquerading as an Act of Parliament. There’s no money on the table. Both the Catholic and Independent sectors and all the States want to know, exactly what is the Government’s plan? The Government doesn’t have a plan, it’s a cruel hoax on parents. The danger of the Government’s position is that they will of course go into an election without an actual education policy. They expect the States to stump up for the money. Well where is the Commonwealth’s commitment? The Coalition has a commitment; we’ll increase spending in every single school by $4.2 billion in non-government schools, $1.8 billion in government schools, so 6% rise over the next 4 years every year. That’s our commitment, it’s guaranteed and it’s certain, whereas on the Government’s side we have only uncertainty.

Lipson: But the States are expected to provide at least initial advice on the structure of a funding system on Friday. It seems like they’re approaching these negotiations in good faith.

Pyne: Well I hope so. The government has had the Gonski Report for over 12 months. They’ve been faffing about for 12 months. They haven’t made any commitments to increasing spending, only the Coalition has. It’s basically another one of their hoaxes on the Australian public, parents know it, the education sector wants certainty. The Government just want to get political credit, without actually having to do the hard yards that are necessary, if they want a new funding model, introduce a new funding model. But the Coalition is very clear. Every school will get increased funding over the next 4 years. That is our commitment, at 6% and the Government won’t match it.

Lipson: Just on the Prime Minister’s links to the AWU affair, last week you said that her position was untenable and you’ve been criticized for overreaching. Did you overreach?

Pyne: I think the Prime Minister’s position is untenable. I think any objective fair commentator will assess that the Prime Minister is not telling the truth. The Australian public have made that assessment. Two out of three voters, according to the poll on the weekend, think she’s either a bald-faced liar or being economical with the truth. One in five, one in five believe she’s telling the truth. I think when a Prime Minister’s position is such that two out of three people think she’s either a bald-faced liar or economical with the truth, then her position is untenable and she should resign.

Lipson: Tony Abbott no longer bluntly claims that the Prime Minister has breached the law, he’s backed off somewhat but you still believe that she should resign.

Pyne: Whether the Prime Minister has broken the law or not, the Prime Minister is traducing our political system. People have lost faith in the Australian polity. One of the reasons is because they can’t believe what the Prime Minister says. Two out of three voters think she’s either a liar or economical with the truth. A simple fact is whether she’s broken a law or not broken a law, she’s not fit to be Prime Minister, she’s an unworthy person to be Prime Minister and she should resign for that reason alone.

Lipson: Well Tony Abbott says that her conduct is at the very least, unbecoming, but I imagine that probably every Prime Minister in history has been accused of conduct unbecoming, they weren’t called on to resign.

Pyne: I mean the simple nub of the truth here David is that the Prime Minister convinced the Western Australian Corporate Affairs Commission to register the AWU Workplace Reform Association. Because they were convinced to do that, the Workplace Reform Association was able to open bank accounts and defraud businesses of hundreds of thousands of dollars. The Prime Minister should resign simply because she’s embarrassed to be associated with this grotesque fraud. What the Prime Minister apparently requires is an ironclad case that she has broken the law, well that’s the threshold she’s set herself. Any self respecting Prime Minister would’ve resigned out of embarrassment weeks ago.

Lipson: Okay, well the parliamentary year has come to an end, a year in which Labor closed the gap in the polls and the Prime Minister is now significantly ahead of Tony Abbott as preferred Prime Minister. How would you describe the year for the Coalition?

Pyne: Well I hope the Government will call an election. If they’re so confident that they’re doing really well, why are they hiding from the people? The simple truth is that the only poll that shows any kind of narrowing is the Newspoll. Every other poll indicates that the Coalition is still a long way ahead of the government because it’s a very bad government, led by a very unworthy Prime Minister. But the Labor Party’s spin, which is what it is, is that they’re narrowing the gap, they’re coming back, the Prime Minister Julia Gillard is going to bring them home. Let’s have an election and see how confident they are.

Lipson: Christopher Pyne, thanks for your time.

Pyne: Pleasure.

ENDS