This morning I had the great honour of giving the keynote address at the opening of the Commonwealth Heads of Government Meeting here in Antigua. The Commonwealth is an important institution of which Australia has played an important historical part. 56 countries representing one third of the world's population, 2.7 billion people. The combined economies will be pretty close to $30 trillion dollars next year. That represents a double of what it was just a decade ago. Today, I was able to engage as well in meetings and discussions talking about a number of issues. Firstly, the global economy. One in four Australian jobs depends upon trade, and when Australia is represented overseas, it's because we understand that that engagement makes a difference to how our economy works and makes a difference to living standards in Australia. Australia is a trading nation, and we need to be engaged with the world, particularly at these turbulent times. It's a matter of navigating the turbulent seas that are there around the world, whilst keeping our eye on the horizon. Can I say as well that this afternoon I'll be going on the Green Pioneer, which is the world's first ammonia vessel, established by Fortescue. Once again, Australia engaging in innovation and engaging very positively in the world and wanting to replicate that technology and that innovation. In addition to that, I will be meeting and having discussions in a formal meeting with Andy Burnham, the UK Prime Minister. That will include the relationship with AUKUS, as well as our trading relationship, as well as significant discussions that we want to have about immigration, in particular the backpacker issue I'll be raising with Prime Minister Burnham this afternoon and this evening. This is a real opportunity to engage with middle powers, to engage with people, and pursue as well Australia's bid for the UN Security Council. Happy to take questions.
JOURNALIST: PM, one of the issues here at CHOGM is slavery and reparations. That's a key issue for Andy Burnham, but it's an issue for every member of CHOGM. What's the Australian position that you are taking to these discussions here about whether there should be an apology for slavery, and whether there should be reparations paid by the UK.
PRIME MINISTER: We understand that the issue of slavery has had a historical impact, which is ongoing for many of the nations that are represented in the Commonwealth. We're not participants directly in those discussions, but we understand that it's important they be done in a transparent way and in a respectful way as well, which acknowledges the economic hardship that has been created, as well as the obvious circumstances of trafficking that occurred with slavery, and we understand why this is a major issue, so we will be not direct participants in those discussions but we want it to occur in a transparent way.
JOURNALIST: But do you think that, would you support Caribbean and African nations that are calling for financial reparations from the UK?
PRIME MINISTER: That is a matter for those respectful discussions between the UK and the countries that are directly involved. Australia isn't a direct participant in those discussions, but we want to see them take place transparently and in a constructive way.
JOURNALIST: Have any Pacific leaders raised the issue of the practice of blackbirding with you? Have they sought any reparations or reparatory justice from Australia?
PRIME MINISTER: No, they haven't raised that issue. I spoke with the Samoan Finance Minister this morning. She participated in the opening events that occurred. I'll be meeting with, a majority of the Pacific nations, of course, are represented here at CHOGM, including Tuvalu, Fiji, Samoa, Tonga, Solomon Islands, Nauru, Papua New Guinea, Vanuatu are all represented here, as well as of course Australia and New Zealand.
JOURNALIST: Prime Minister, what is your message to Australians ahead of a likely rate rise back home? And you said in your speech this morning that living standards would not start to increase again until wars in the Middle East and Ukraine are over. Are you abandoning agency that your government has to fix the cost of living situation?
PRIME MINISTER: Not at all, and we work each and every day on cost of living. What I recognise as well is that by engaging in the world, we can deal with our national security interests, but also make our economy stronger. That's why we need to engage in the world.
JOURNALIST: Okay but when you're saying that living standards can't increase until the wars end?
PRIME MINISTER: I didn't. You're paraphrasing. What I say is that the global conflicts are having an ongoing impact on the global economy. That's something that every single leader here would recognise.
JOURNALIST: No, you said that living standards won't improve until, your quote was: "Returning our nations and our world to the path of prosperity and rising living standards requires an end to those wars."
PRIME MINISTER: Well, it does. That's different from how you paraphrased it directly. Global inflation is having an impact because of the closure of the Strait of Hormuz. That is having an impact on the global economy.
JOURNALIST: So, what is your message to Australians about an interest rate rise?
PRIME MINISTER: My message to Australians is that we'll continue to work each and every day to keep our economy stronger, and that includes engaging in global trade and engaging in the world.
JOURNALIST: One of the remarks that has been picked up recently in Australia was that you talked about interest rate rises as being a blunt instrument. I think, if I've got the quote right or the phrase right -
PRIME MINISTER: It was the same phrase that was used by the Reserve Bank Governor herself.
JOURNALIST: Was it a criticism of the RBA when you used that phrase?
PRIME MINISTER: No, it was the same phrase that was used by the RBA Governor herself.
JOURNALIST: And if you accept that it's a blunt instrument, doesn't that mean it's more important for your government to be implementing immediate real spending cuts to actually take pressure off inflation so this blunt instrument doesn't need to be used? Isn't the other part of the instrument that is not so blunt, government?
PRIME MINISTER: My government has made savings in every single economic statement.
JOURNALIST: Not net savings though.
PRIME MINISTER: We have made if you include some of what has been included, it is things like pension increases and pension indexation. So my government has made savings each and every time, around about $180 billion dollars. Indeed, the budget earlier this year produced $60 billion dollars of savings. More savings than any budget that's been handed down.
JOURNALIST: Prime Minister, there has been criticism about the timing of this trip. Obviously, with today's rate decision and the general economic outlook. You've said the primary objective here is progressing Australia's campaign for a temporary spot on the UN Security Council -
PRIME MINISTER: No I haven't said that. I've said that the primary reason why I'm here is to pursue Australia's national interests. That has a number of facets to it. Immediately, Australia's national interests are served by a stronger global economy, by engaging in trade, by engaging with our economic partners, as well as our national security interests. AUKUS is important, and I'll be engaging with Prime Minister Burnham on that. But as well with middle powers, critical minerals, I'll be having a bilateral meeting with the Canadian Prime Minister, Mark Carney as well. These are all matters for our immediate national interests. The UN Security Council bid is there, that will be determined in June 2028, but it is an opportunity also while meeting people, because we don't have a budget outside of DFAT for that, asking people to give support to Australia, which is what I've done on three occasions already today, it's just an opportunity to engage with countries.
JOURNALIST: Just on the discussion with Andy Burnham later on the backpacker issue, what exactly is the problem there? I mean, don't we want young British workers to come in on their working holiday visas and go to work in Australian workplaces? I mean, they do fill a need in the labour force in Australia. So why is there a problem?
PRIME MINISTER: They do. The issue is whether they have any experience in regional Australia. That's a change that's been made, and that's something that we'll be discussing. We think that it is a very good interest for Australia to have backpackers, just like, it's a two-way exchange. It's in Australia's interest as well to have our young people have the experience of travelling to the UK to work.
JOURNALIST: You talk about budget savings, Prime Minister. Do you accept that, in net terms, policy decisions under this government have added $100 billion to the budget deficits? That in net terms, you've spent more than you've saved?
PRIME MINISTER: I accept that we've been a responsible manager of the budget. I accept as well that when we came to office, the last budget that we inherited had zero savings in it.
JOURNALIST: But you've been in for five years now -
PRIME MINISTER: Yes and we have had savings in every single budget.
JOURNALIST: But not net savings through Prime Minister, this is the issue isn't it, we need heat coming out of the economy don't we?
PRIME MINISTER: We have had savings in every budget.
JOURNALIST: On the issue of backpackers, in August, so a few months ago, you ruled out any possibility of changing the settings for UK backpackers. Why have you changed your mind on this?
PRIME MINISTER: Clearly, there's been very strong representation from regional employers, and particularly in the hospitality industry, but also in the agricultural industry as well. It is difficult. You can't impose changes once an FTA is in place. We're respectful of that process that was negotiated by the Morrison government, and so we are looking for a win-win here with the UK, and we'll have constructive discussions.
JOURNALIST: But to signpost this ahead of that meeting with Andy Burnham is not your typical style. Are you confident that he will agree to that reversal?
PRIME MINISTER: We'll have respectful discussions, and we're not after a full reversal. What we're after is putting forward the benefits that backpackers who travel to Australia have in having the full Australian experience, not just experiencing Coogee and Bondi, but also experiencing the wonders of regional Australia, and so that can be a major benefit for them as well as for Australia.
JOURNALIST: Will Australia be contributing new funding to the climate initiative?
PRIME MINISTER: We make announcements when we make them.
JOURNALIST: And just on middle power diplomacy, you just talked about obviously these meetings that you're having are clearly part of that strategy that you've got. Why is that so important in the modern geostrategic environment?
PRIME MINISTER: It's important because outside of the strategic competition between the major powers, middle powers are stepping up. Middle powers such as Australia, the United Kingdom, Canada. It's important in terms of diversification of our trade. That's why the EU Free Trade Agreement is important. That's why diversification of our trade is important as well. In the meeting I had with the Prime Minister of Antigua and Barbuda just a short while ago, he raised the possibility of increased trade to this region. We've had an increase in trade to the Middle East as a result of the Australia-UAE Free Trade Agreement, and it's important that we engage in the interests of our national security and the interests of our economy as well. What we know is that we need to be more resilient as a nation, and that's what we're determined to be.
JOURNALIST: Just on the same theme, Angus Taylor was quite critical in comments overnight of you coming on this trip. I think there is this criticism in Australia of you going overseas. So, I think just to cut to the heart of it, are you wasting time by being here? That's some of the prevailing commentary in in Australia, and I think-
PRIME MINISTER: It's not the commentary that John Howard made when he understood, and they often quote John Howard as their oracle, and on this John Howard is right. Australia is a participant in the Commonwealth, and at the personal invitation of King Charles, of His Majesty, I agreed to come to this meeting, and it's important that we engage in the world. The world is complicated, is complex, is turbulent, and in these uncertain times, it's important for Australia's national interests, both in the interests of our economic strength, but also our national security issues, that we engage. This is an opportunity to engage with the countries in our region, to show leadership on behalf of the Pacific, but also to engage with middle powers and to strengthen Australia's economic position. And it's never been more important to connect with the world because the world has never been more interconnected. So, on issues of trade, issues of the global economy, issues of artificial intelligence, and how we deal with making sure that humans are in control of that and shaping it rather than the other way around. On all of these issues, it is vital that we engage.
