Mr GARETH EVANS —I ask the Prime Minister to take a trip down memory lane and ask does he recall saying on the Alan Jones program last August:

It is aggravating in the extreme if you are a PAYE tax battler . . . when you hear of people, through all sorts of dodges . . . not paying their fair share.

Are tax dodges of the kind involved in Senator Parer's family trust and his $2 million worth of mining shares the kind that you were referring to? If not, why not? Will your tax package crack down hard on the use of discretionary trusts for tax avoidance?

Mr HOWARD (Prime Minister) —One of my colleagues said, `Will you crack down hard on Mark Latham?' There is one thing I will say about the member for Werriwa: at least he has the honestly to identify something you will never identify, that is, the Australian taxation system is badly in need of overhaul and reform.

I want to say to the Deputy Leader of the Opposition and I say to the Australian people that one of the central elements of our tax reform package will be the elimination of tax avoidance practices, whether they occur in relation to family trusts or in relation to other aspects of the taxation system.

Having said that and having declared what will be central elements of our taxation policy, I want to know why it is that the Labor Party spent 13 years doing nothing about the abuse of the taxation system. I want to know why the Australian Labor Party has finally discovered that there may be some tax avoidance—

Mr SPEAKER —The Leader of the Opposition!

Mr Beazley —That's a lie.

Mr HOWARD —That is a lie, is it?

Mr Beazley —Yes.

Mr HOWARD —Are you going to withdraw that?

Mr Beazley —I withdraw.

Mr SPEAKER —Withdraw it properly.

Mr Reith —Get up and withdraw.

Mr Beazley —I withdraw, Mr Speaker.

Mr SPEAKER —Stand up and dot it properly.

Government members interjecting—

Mr SPEAKER —No, come on. The House will come to order. The Leader of the Opposi tion should withdraw that remark but do it in the proper way. You stand, at least.

Mr Beazley —I withdraw it for little diddums here.

Mr SPEAKER —I suggest that the Leader of the Opposition recognises the respect he should give this place. The House will come to order.

Mr HOWARD —I have a very good idea what people in the public gallery thought of that little immature performance.

Opposition members interjecting—

Mr SPEAKER —Honourable members of the opposition will remain silent.

Mr HOWARD —What a childish performance that is. It was a very instructive little exercise. I remind the Australian people that the Australian Labor Party had 13 years to fix the Australian taxation system. All they ever did during that 13-year period was to allow the system to steadily deteriorate. You had 13 years to discover, through the use of trusts, the abuses which led to a haemorrhaging of the revenue. You discovered those abuses; you did nothing about them. You had 13 years to make it easier for the PAYE taxpayer; you did nothing about it. You had 13 years to ensure that not only were welfare cheats dealt with but also that the big end of town paid its fair share.

Once again, it has been left to an incoming coalition government, it has been left to a Liberal and National Party government, to take up the cudgels in the interests of the average Australian. I can assure the battlers of the Australian community that we will do what Labor was unwilling to do—we will give you a fair taxation system. We will eliminate the rorts at both ends of the argument.

Mr Crean —Parer! Parer!

Mr SPEAKER —The honourable member for Hotham will remain silent.

Mr HOWARD —We will ensure that Australia goes into the 21st century with a modern competitive taxation system that encourages manufacturing exporters, encourages work, encourages saving and delivers incentives to those who are prepared to take risks and who are prepared to contribute their fair share. You had 13 years to fix the system, and you did nothing.

Mr Crean —Rubbish! Untrue!

Mr SPEAKER —The honourable member for Hotham will remain silent.

Mr HOWARD —You have no credibility when you attack us.