Mrs GASH —My question is addressed to the Minister for Industry, Science and Tourism. Minister, over the last few days we have all been reading the alarming reports about the New South Wales government budget decision to implement a bed tax, commencing on 1 September. I ask the minister: what impact will the New South Wales government's bed tax have on the Australian tourism industry, what sectors does it affect and are there any exemptions?

Mr MOORE —This is another example of the Labor Party taxing a progressive industry, one of the best employers in Australia. Indeed, the new 10 per cent bed tax is a body blow to tourism and compares with the 1989 pilots strike. It is a blatant revenue raiser which discriminates against the tourism industry and, in particular, the accommodation sector. The taxation will have an overall effect of destroying jobs, destroying investment and affecting overall potential for tourist visitors for the Olympic year. The Carr government have not just targeted the wealthy tourists and businessmen who stay in five-star hotels; they have also targeted the ordinary Australians who stay in two-star and three-star hotels, holiday units and private guesthouses.

Let us not be fooled by the accusations of the government. They have not excluded guesthouses, they have not excluded the backpacker hotels and they have not excluded the high yield short-stay cruises. What they have done is to jeopardise the fastest growing industry in Australia and the best providers of jobs for young Australians. What they have done is to place at risk future investment in this industry. Just to demonstrate this, I quote from the ASX's tourism and leisure price index, which has dropped over 80 points since the 10 per cent bed tax came in. The New South Wales government will raise approximately $64 million by this action. It will be applied to consolidated revenue and to reducing their debt structure, not to promoting the tourist industry, which it should be doing. As a consequence of that lack of promotion for tourism in New South Wales and the extra tax which has been placed on it, the government should recant and reverse its position.