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Tuesday, 22 June 1999
Page: 6981


Mr CREAN —My question is to the Treasurer. Treasurer, do you stand by your statement to the parliament that the Commonwealth will not be providing any additional funding to the states for the new public housing measure in your GST deal with the Democrats? If so, can you explain why Senator Newman told state housing ministers last week:

Additional funding . . . has been agreed between the Commonwealth and the States and Territories [and] I intend now to gazette the draft [housing] agreement which has been amended to reflect this additional funding.

Treasurer, precisely how much additional funding has Senator Newman agreed to provide to the states? How can you tell the House there is no more money while Senator Newman is on the other side signing the cheques?


Mr COSTELLO (Treasurer) —As the House saw yesterday, the Deputy Leader of the Opposition is quite good at misrepresenting the facts. One would not want to stand up here and take from him an account of what Senator Newman had to say, or indeed take from him an account of what anyone had to say. He is well known to be somebody who completely misrepresents the facts in this chamber on a regular basis.

In relation to the housing situation, I would have thought that even the Treasurer of the state of Tasmania—who feeds you most of these questions—would have known that, at a special Premiers Conference, the Commonwealth agreed to make available to the states what they claim would be the increased cost of building housing. That was agreed at the special Premiers Conference when six states, including the Treasurer of Tasmania, signed up for their share of the GST. He couldn't get his signature on the document fast enough—the old Treasurer of Tasmania—to get his share of the GST. I would surmise that that is what Senator Newman is talking about.

Since that time, we have had further claims from the states. I must say that to get a claim from a state Premier for more money is not an unusual event. Hardly a day would go by without an additional claim coming in. As this government has made clear, we are not engaging in additional claims in relation to housing because we consider that matter to have been settled at the special Premiers Conference and additionally settled by this fact: for the first time in decades, the Commonwealth will be giving the states a growth tax.

The states will be collecting 10 per cent of the goods and services produced in this country. As the goods and services produced in this country increase, the 10 per cent share of the goods and services produced by the Australian economy will flow to the states. It is a growth tax. The states are guaranteed not only to receive what they currently receive but to have revenues which grow in proportion to the economy—something that has not occurred outside of tax reform.

We in this parliament know who opposes a growth tax for the states: the Australian Labor Party. The Australian Labor Party opposes a growth tax for the states. It opposes the reorganisation of Commonwealth-state finances. It opposes modernising the indirect tax system. It opposes reducing personal income taxes. It opposes family assistance. The member for Werriwa goes to the paper and says, `Don't think that there aren't thinkers on the Labor side of politics. Just because we haven't had a policy for the last four years, don't think there aren't thinkers.' He says, `We write books.' And he names all these people who write books. Why? Because it is a substitute for policy advice. You will never get any policy advice out of the born to rule set of the leader and deputy leader of the Labor Party.


Mr Beazley —Mr Speaker, my point of order goes to relevance. This is fatuous ranting. He has not answered the question he was asked.


Mr SPEAKER —The chair was in fact monitoring the Treasurer for relevance. I presume that he has concluded his answer.


Mr COSTELLO —I have.


Mr Crean —I seek leave to table the letter from Senator Newman to the state housing ministers offering additional funding which the Treasurer says is not going to happen.


Mr SPEAKER —Is leave granted?


Mr Howard —No.


Mr SPEAKER —Leave is not granted.