This is a rush transcript from "On the Record," November 12, 2009. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: Get ready for a knockdown, drag-out fight. Former Hewlett Packard CEO Carly Fiorina wants to take on Senator Barbara Boxer. Carly Fiorina join us live. Nice to see you, Carly.

CARLY FIORINA, RUNNING FOR SENATE IN CALIFORNIA: Great to see, Greta, thanks for having me.

VAN SUSTEREN: All right Carly, I guess the question is why do you want to bump Barbara Boxer out of the Senate?

FIORINA: Well, first the work the U.S. Senate does affects every family and business in America. We can do better than Barbara Boxer who does not represent the interests of the people of California, as is crystal clear from her voting record and her lack of accomplishment.

And frankly I think we need someone in Washington show knows something about job creation, which should be our top priority, and someone who isn't afraid to take on out of control government spending.

VAN SUSTEREN: What would you do different on the economy? That is the one hitting everyone right between the eyes these days.

FIORINA: The first thing I would do is make it the top priority, make job creation the top priority.

VAN SUSTEREN: How? How do you fix it?

FIORINA: You have to start by going to the people who create jobs, and those are innovators, entrepreneurs, and small-business owners. And today all three of those groups are being crushed by taxes and by regulation.

The bill that Barbara Boxer is currently pushing, cap and trade, is an job killer. I ran into an innovator the other day who has invented really important technology for this clean green technology.

He can start a factory in the Ukraine in six months, but it's taken him two and a half years, and he does not have permission to build a manufacturing facility in California where the unemployment rate is way above the national average.

So we have to start trying to make it easier for small businesses who employ half the people in this country who create two-thirds of the new jobs, how do we make it easier for innovators and entrepreneurs?

VAN SUSTEREN: How about immigration in California, because we always hear stories that immigration is a huge issue in California, because, of course, you have a border with Mexico.

FIORINA: It is a huge issue, and it's a huge border because our borders are not secured. If we can't control our borders, then the government will not believe the government is capable of doing anything else.

But we also very important have to have a temporary worker program that works in California. Agricultural depends very heavily on temporary workers, and our agricultural community cannot be asked to be law enforcement on top of everything else.

VAN SUSTEREN: Health care. Everybody is talking about health care in Washington. In fact, you've just joined a rather exclusive club I'm sure you didn't want to join of having a battle with cancer. How is your health, and what do you think about the health-care system?

FIORINA: My health is terrific, thanks for asking. I have battled breast cancer all year, and that is why I have this kind of crazy hairdo now. I looked like a hardboiled eggs earlier this year. At least I have a little hair on top my head now.

VAN SUSTEREN: You look great.

FIORINA: Through that experience, I come out of that not only feeling great but also feeling very grateful, and I am really focused on giving back to the people in California. But I have seen the best and worst in our health-care system, and there are things that we must do.

For example, if we applied nationally the medical malpractice reform that has been accomplished here in California, we could save $54 billions of dollars.

For example, if we would allow, indeed, encourage health insurance companies to compete across state lines -- I run into lots of small business owners who say, "I would love for people to compete for my business." So let's let people buy health insurance from anywhere in the country they want from anybody they want

What I know absolutely will not work is the public option in the House bill today. The government cannot run a health insurance program adequately.

And if everyone doubts that all they need to do is go to the Veterans Administration and look at the kind of health care that our veterans get. We should focus on making sure our veterans get the best health care possible, focus on reforming the entitlement programs we already have before we create another huge entitlement program that we can't afford and that won't solve the problem.

VAN SUSTEREN: Another big issue for the American people is Afghanistan. Any thoughts on Afghanistan, because in the U.S. Senate you have to deal with these issues?

FIORINA: I think it is vitally important we are successful in Afghanistan. Our national self-interest is at stake there. We must make sure that Afghanistan and Pakistan are not safe havens for Al Qaeda.

I think we need to be realistic that people give their loyalty to those who provide opportunity and security, and so we must have a functioning government in Afghanistan for shirts and a reliable partner.

But, frankly, I think it's terrible that we have a general on the ground the President Obama put there. We have his senior commander, David Petraeus, who is an outstanding leader. They have made very clear recommendation, and I think the president should accept their recommendation.

VAN SUSTEREN: Carly nice to see you. I'm glad that stupid cancer thing is behind you, and congratulation on beating that.

And of course, I have to say Barbara Boxer is also equally welcome here to talk about these issues, and I hope you'll come back as well, Carly.

FIORINA: I will be happy to come back anytime, and I must say that after chemotherapy, Barbara Boxer is not very scary.

VAN SUSTEREN: Great line. Carly, thank you.

FIORINA: Thank you.

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