Mr WAKELIN —My question is addressed to the Minister for Agriculture, Fisheries and Forestry. Minister, can you advise the House of the benefits to Australia's primary producers as a result of the government's new tax package?

Mr VAILE (Trade) —I thank the honourable member for Grey for his question. As a representative of the majority of South Australia, he is obviously very interested in how this package is going to benefit all his constituents, and indeed it is. Our government's tax reform package delivers in full; in fact, it delivers more than what we committed to deliver at the election last year for Australia's primary producers. It should be noted that Australia's primary producers account for around three per cent of GDP, and that is worth over $25 billion in export income. For those primary producers we are going to remove around $4½ billion worth of embedded costs that they carry the burden of when they are exporting products out of Australia and earning much needed export income for Australia. Just remember, they are Labor's embedded wholesale sales tax rates.

Earlier this week there was an announcement made about the exports of food and agricultural products to Asia in the March quarter this year. They happened to be up 14 per cent on the March quarter last year. In the March quarter this year we saw a rise in the exports of meat to Asia of 27 per cent, of dairy products of 7.5 per cent, of grains of 25 per cent and seafood of five per cent. The most important point to make is that Australia's primary producers have done that whilst carrying the burden of Labor's embedded wholesale sales tax. Remember Labor's 12 per cent, Labor's 22 per cent, their 32 per cent, their 45 per cent?

Mr Beazley —On a point of order, Mr Speaker, as to relevance: how can he relevantly answer this question when he knows that primary producers get a WST exemption?

Mr SPEAKER —There is no point of order. As the Leader of the Opposition knows—

Mr VAILE —The wholesale sales tax system which you are supporting—

Mr SPEAKER —Minister, you will resume your seat. The point of order was not relevant to the question as it was framed and the minister did not have the call of the House.

Mr VAILE —I apologise, Mr Speaker, but it is important to make the point that those export achievements have been done whilst carrying the burden of that embedded taxation system. Imagine what Australia's primary producers can do when we wash it out of the system. They will be able to achieve a lot more and will be a lot more competitive on the international stage.

We will also deliver on our commitment to reduced transport costs to rural Australia. We have maintained that commitment in the revised taxation package. The diesel fuel rebate scheme that we promised Australia's primary producers we would deliver will be delivered. The abolition of fuel excise from the rail industry will deliver enormous benefits to primary producers.

Ms Kernot —It was not your idea.

Mr VAILE —The member for Dickson interjects; I should not respond. It is an indication of what can be done in Australia when the government of Australia and some political parties in Australia put the nation's interests first. We have achieved that with the assistance and the professional manner in which the Australian Democrats have participated in this discussion, to the detriment of the Labor Party, who have been left in the grandstand.

I will get back to the point about the fuel excise on the rail industry. In New South Wales alone, the saving by the abolition of that fuel excise is going to equate to a $2 a tonne reduction in freight, which is about $18 million off the bottom line of the grains industry in Australia; that is, straight back into the pockets of the producers. This is important policy reform for Australia's primary producers who desperately want it, and they are supporting the government in these measures.

The fishing and aquaculture industries in Australia—$1.9 billion worth of industry, $1½ billion worth of exports—will also have their costs reduced by around $100 million a year. This is because we are going to get rid of the embedded wholesale sales tax system which the Labor Party want to protect. They want to keep the 12 per cent, the 22 per cent, the 32 per cent and the 45 per cent, that clumsy, cumbersome system which they instigated in this country. Our commitment is that we will remove the wholesale sales tax system and we are going to achieve that on behalf of Australia's primary producers. We will do it with the mature and professional approach of the Australian Democrats, who are participating in a decision making process to benefit Australia, not just to benefit their political ends. It certainly is something that the Labor Party in Australia—the pink party in Australia, the pink Quik party in Australia—could never achieve.

Mr Howard —Mr Speaker, I think that is an appropriate note on which to ask that further questions be placed on the Notice Paper .