Mr GARETH EVANS —My question is directed to the Prime Minister. Did the Prime Minister receive correspondence in late April or the first week in May from the South Australian Premier, Mr Olsen, notifying him that the South Australian government was opposed to the new 15 per cent superannuation tax and would not cooperate in passing complementary legislation to enable it to be collected in respect of South Australian government employees? If so, why did the Prime Minister allow his Assistant Treasurer, Senator Kemp, to misinform the other place on at least three occasions, including on 12 May, by saying that the government expected the states to move on the legislation? Why didn't the Prime Minister inform the Assistant Treasurer of the Olsen letter? Or was it the case that he did inform the Assistant Treasurer and Senator Kemp chose to deliberately mislead the Senate?

Mr HOWARD —It is very interesting: they are still against the surcharge on high income earners. Take out all of this—nobody has misled the Senate, I have not misled anybody, there has been no misleading—but it gives me an opportunity to remind the parliament that a measure in last year's budget that delivered fairness to Australian battlers is still being opposed almost a year later by the Australian Labor Party. They have not learnt the lesson of the Lindsay by-election; they have not learnt the lesson of the last election. They do not understand how much they are on the nose with the Australian public, particularly with the people who used to regard yourselves—

Mr Gareth Evans —Mr Speaker, I take a point of order on relevance. The Prime Minister was simply asked whether he had received this letter and, if so, whether he had told the Assistant Treasurer about it. Nothing he is saying is addressing those questions.

Mr SPEAKER —The Deputy Leader of the Opposition will resume his seat.

Mr HOWARD —Mr Speaker, I was asked a question about the superannuation surcharge, and I am taking the opportunity to vigorously defend the fairness of that measure. I am taking the opportunity of reminding the Australian people that the party—

Mr Beazley —Mr Speaker, I take a point of order.

Mr Costello interjecting—

Mr Beazley —I really couldn't care less about it, old son. What I do care about is misleading the Senate.

Mr SPEAKER —The Leader of the Opposition will address his point of order.

Mr Beazley —Mr Speaker, these were very specific questions. There was nothing inviting an opinion on the superannuation legislation. It dealt specifically with the receipt of letters and the state of conversations between the Prime Minister and the representative in the Senate.

Mr SPEAKER —I have listened to the question carefully. I am also listening carefully to the Prime Minister's response. The question is in order and so far the Prime Minister's response is in order.

Mr Reith —Mr Speaker, I take a point of order. In your statement yesterday, you made quite clear the way in which people are required to put points of order. The point of order just put by the Leader of the Opposition was a defence of his position. It was clearly in breach of the statement and the guidelines you established yesterday. You ought to make it clear to him so that we can have some adherence to the statements you made.

Mr Beazley —Mr Speaker, on the point of order: my point of order was manifestly not that. My point of order went very specifically to the requirements of that question which the Prime Minister will not address.

Mr SPEAKER —We are not going to debate the points of order. Resume your seat.

Mr HOWARD —As I was saying, the Labor Party is against the superannuation surcharge. The Labor Party has been trying for 10 months to torpedo a measure that was regarded by the working people of Australia as an essential element of the fairness of the first Howard government budget. Can I say that it delights me no end that the Leader of the Opposition and the Deputy Leader of the Opposition continue to remind the parliament and the Australian public of how tenaciously the Labor Party will oppose the measure.

Mr Beazley —Mr Speaker, I raise a point of order. Either the interpretation means something or it does not. This is a very specific set of questions and I have got them here in front of me. Did he receive any correspondence? It cites the potential date of the correspondence. And, if so, why did the Prime Minister allow his Assistant Treasurer to misinform and so on.

Mr SPEAKER —I have listened to the points of order. The question revolved around the Premier of South Australia, the surcharge for superannuation and time. At the moment the response of the Prime Minister is within the guide of the question.

Mr HOWARD —The reality of the superannuation surcharge is that the Labor Party is trying to have it both ways. They try to pretend in a sort of sneaky way that they are actually in favour of it, but when it comes to the crunch they try to destroy it. I can only say to the Leader of the Opposition that if you think it is fair to try to stop a measure that underpins—

Mr Beazley —On a point of order, Mr Speaker: the question was—and I cannot for the life of me see how it can be interpreted that the Prime Minister is in order—whether he received any correspondence in either late April or the first week of May from the South Australian Premier notifying him that the South Australian government was opposed to the new 15 per cent super tax and would not cooperate in passing the complementary legislation.

Mr SPEAKER —It was a multifaceted question. As I mentioned in my preamble—

Opposition members interjecting—

Mr SPEAKER —Order! It revolved around the Premier of South Australia, the interest rate surcharge, and time, and a letter. The Prime Minister is responding to the question.

Mr HOWARD —Bluster from the Leader of the Opposition cannot relieve him from the heavy burden that he has tried to undermine a measure that was an essential element of the fairness—

Mr Beazley —Mr Speaker, I raise a point of order.

Mr SPEAKER —The Leader of the Opposition is very much testing my patience.

Mr Beazley —I am trying to test the standing orders which we are trying to conform to. This is a very specific set of questions which does not go to an opinion on the superannuation tax at all.

Mr SPEAKER —The Prime Minister is getting in five or six words in response to each of your points of order. I want the Prime Minister to have an opportunity to address the question.

Mr Reith —Mr Speaker, on a point of order: these repeated points of order by the Leader of the Opposition are clearly attempting to defy the first ruling that you gave, which was that the Prime Minister's answer was in order. The fact of the matter is that the Prime Minister could not be more relevant in his response and, on that basis, I refer you to the guidelines that you issued at the start of this week about the taking of points of order. The Leader of the Opposition is clearly in breach and he ought to be warned that if he continues to be in breach he will dealt with under the standing order.

Mr SPEAKER —I thank the Leader of the House. You would recognise, I am sure, that the Leader of the Opposition and the Prime Minister occupy very special positions within this place and they have latitude that is appropriate to no other member. The Leader of the Opposition has very much tested my good will.

Mr O'Connor —Did you get the letter?

Mr SPEAKER —The Prime Minister is responding to the question and, as I have said numerous times already, it revolves around the Premier of South Australia, the superannuation surcharge, and time, and a letter. The Prime Minister will address the substance, as he has been doing, of the question.

Mr Adams —What about the letter?

Mr HOWARD —I can only repeat that the Leader of the Opposition has served to underscore the fact that the Labor Party opposes a measure designed to improve the fairness of the Australian taxation system.

Mr Adams —What about the letter?

Mr SPEAKER —I warn the member for Lyons.

Mr HOWARD —The more he interjects, the more he blusters, the more he reveals his political sensitivity on that issue. You had 13 years to fix the superannuation system and you left it in a mess. What you tried to do was undermine a measure that was designed to put fairness into the Australian tax system.

Mr GARETH EVANS —I have a supplementary question, Mr Speaker. Very simply, did the Prime Minister receive the letter from Mr Olsen to which this question refers?

Mr SPEAKER —The question has already been asked.

Opposition members interjecting—

Mr SPEAKER —Order! Order! I call the member for Robertson.

Mr O'Keefe interjecting—

Mr SPEAKER —I warn the member for Burke.