Mr FAHEY (Minister for Finance)(11.24 a.m.) —I thank the honourable member for Sydney (Mr Baldwin) for his very brief contribution. Nothing could be further from the truth in terms of the government's asset sale program. Effectively what these bills do is to maintain the status quo. Currently the taxes and charges, the self-insurance provisions, apply in respect of the Commonwealth's fleet. It is the intention of the government, as it was the intention of the former government, to dispose of that car fleet. Effectively, this legislation maintains the current position, despite the fact that the cars will be owned by the private sector and leased back to the Commonwealth.

In that regard, the member for Sydney indicated that the government sought to impose these taxes and charges—that is, the Commonwealth's taxes and charges in respect of motor vehicles, the stamp duty provisions, the sales tax provisions—on the states during the course of the special Premiers Conference last year. That was not the case. In that instance, the Commonwealth gave the option to the states to make their contribution to fiscal consolidation either by way of the financial assistance grants or by way of imposing a very transparent and very up-front process on such issues in respect of motor vehicles as sales tax.

The states chose—in my view, surprisingly—to maintain their advantage in respect of motor vehicles, particularly on the sales tax exemption, and to make their contribution by way of a reduction for 2½ years in respect of the financial assistance grants. So the member for Sydney has got it wrong. This particular bill will enable the Commonwealth to simply get out of the ownership of a very large fleet of some 18,000 vehicles. There is no need for the Commonwealth to be the owner of that. The provision of those vehicles can be supplied, as it is to many states and to many private companies, by the private sector, and the provisions that currently apply will apply in that regard. It does not give an advantage to the private sector in any shape or form. It simply maintains the provisions that are now there to the extent that there is a need to have that fleet and there always will be. I commend the bill to the House.

Question resolved in the affirmative.

Bill read a second time.

Bill—by leave—reported to the House without amendment.