Mr TRUSS (Minister for Customs and Consumer Affairs)(10.50 a.m.) —The committee has worked very quickly. On behalf of committee appointed to draw up reasons for the House disagreeing to the amendments of the Senate. I present the reasons which are being circulated to honourable members.

The reasons read as follows—

The Senate amendments seek to impose the beer rate of excise to any product in the National Food Authority Standard P5. The House of Representatives considers that the effect of this amendment will be twofold on alcoholic beverages in the P5 category with an alcoholic content of less than 5 per cent:

(1)   the rate of excise on spirit based pre-mixed drinks in the P5 category will fall from $36.99 per litre of alcohol to $15.89 per litre of alcohol; and

(2)   for the first time, excise will be imposed on other alcoholic products in the P5 category not currently subject to excise.

The House of Representatives considers that it is the intention of the Senate amendment to reduce the disparity in the taxation of alcoholic products by reducing the excise payable on highly taxed spirit based products and impose for the first time excise on currently excise free beverages.

The House of Representatives remains of the view that the Bill as originally introduced is necessary as a result of a decision by the Administrative Appeals Tribunal, which may have had the effect of removing excise from previously excisable products.

The intention of the original Bill was to maintain the status quo in relation to the excise status of alcoholic beverages, by ensuring they continue to be taxed according to their alcoholic base.

Motion (by Mr Truss) agreed to:

That the committee's reasons be adopted.