Ms MACKLIN —My question is to the Minister for Health and Aged Care. Can the minister explain why he did not agree to the Democrats' proposal that vitamins and minerals retain their tax-free status? Was it because, as the Sydney Morning Herald reported, the minister thought that the big losses in tax revenue were not justified by the health benefits? Minister, why do you think that iron tablets for a pregnant woman should be used to raise revenue through the GST?

Dr WOOLDRIDGE (Health and Aged Care) —As the honourable member would know, health will be a big winner out of the GST. We are removing most of Labor's taxes that are already on health products through the cascading nature of the wholesale sales tax system. In my negotiations with the Democrats I was attempting to meet their needs and get the best possible deal for the budget bottom line.