Mr BARRESI (2:50 PM) —My question is addressed to the Prime Minister. Prime Minister, I refer to the decision by the Bracks Labor government to refuse the $90 million grant offered by the federal government to assist in the upgrade of the MCG for the Commonwealth Games. What is the federal government's response to this decision?

Mr HOWARD (Prime Minister) —I thank the member for Deakin. My response on behalf of the federal government is to say that the weakness of the Bracks government in the face of union power has cost the state of Victoria $90 million. That is my answer. Let me make it very clear—and I will table this letter at the end of this answer—that what the federal government has sought to do on this occasion is to apply in relation to the Melbourne Cricket Ground refurbishment precisely the same conditions as were applied in relation to the investment of federal funds in the Darwin to Alice Springs railway, which is a project that was initially contributed to by the CLP government of the Northern Territory and also the Liberal government of South Australia but continued and was supported with great enthusiasm by the Labor administration now in power in Darwin and the Labor administration now in power in South Australia.

What we have sought to do in relation to the Melbourne Cricket Ground is to apply federal law, and federal guidelines made under that law, to the expenditure of federal money, and that is a wholly legitimate and proper thing to do. What the Bracks government have done, because they do not have the guts to stand up to the building unions in Melbourne, is cave in. The people of Victoria are going to be $90 million poorer as a result of this absolutely pusillanimous decision taken by the Bracks Labor government—this absolutely pathetic decision taken by the Bracks Labor government. There is a very, very simple principle involved. This is the practical, costly hard edge of the union's grip on the Labor Party all around Australia. This is the 60-40 rule which ripped $90 million from Victoria. Faced with a choice between agreeing to the stipulation of the Commonwealth government and standing up to the unions—

Mr Tanner —Didn't you used to stand for states rights? Weren't you the states rights party?

Mr HOWARD —I had several discussions with the Premier of Victoria—

Mr Tanner —What about states rights?

The SPEAKER —The member for Melbourne persistently interjects!

Mr HOWARD —and I made it perfectly clear that what we were seeking to do was to attach the same conditions to the refurbishment of the Melbourne Cricket Ground as we attached to the construction of the Darwin to Alice Springs railway.

It is also the case that the Victorian government has previously accepted application of the code and guidelines as well as the Workplace Relations Act. We were not endeavouring to impose any new unreasonable conditions; all the federal government were endeavouring to do was to say, `If you are going to spend federal money in Victoria, you spend it under federal rules and federal requirements and federal law.' It was as simple as that. But, no, when faced with a choice between standing up for the public interest and standing up to the trade union movement, the Labor Premier of Victoria has scuttled and run. He has caved in to the unions. He has sabotaged the $90 million contribution to the Melbourne Cricket Ground and, in the process, he has robbed the Victorian people of $90 million they otherwise would have got.