Senator CONROY —My question is addressed to Senator Kemp, the Assistant Treasurer. Minister, I refer to the recently announced Commonwealth Bank deal with the Australian Taxation Office regarding the CBA's $650 million share buyback. Are you aware that 70 per cent of CBA shareholders bought their shares for a minimum $10 per share and that, if all of them took part in the buyback, a minimum $300 million in artificial capital losses will be generated? What is the benefit of the creation of these artificial losses for Australian taxpayers? Will the proposed dividend distribution component of the buyback qualify for the savings rebate?

Senator KEMP —Senator Conroy raises the issue of the CBA buyback, which was extensively canvassed at the Senate estimates. Senator Conroy, after your performance at the Senate estimates and the difficulties you had with quite a range of figures, if you remember correctly, I would not accept your figures. I would naturally, as you would expect me to do—

Opposition senators interjecting—

Senator KEMP —One thing is that you would not know, Senator Conroy. I do not have that figure on hand but the tax office, as you are aware as it was carefully explained to you, had very close contact with the CBA. There were discussions with the CBA to ensure that any arrangements were in conformity with taxation law. That is the reason it happened. Of course, the Commonwealth Bank was one of those institutions that Labor privatised, if I remember correctly, Senator Conroy. Your party decided—

Senator Cook —Answer the question!

Senator KEMP —I have answered the question. Senator Conroy put up a figure of what he estimated the capital losses to be.

Senator Forshaw —What are you talking about?

Senator KEMP —You were not listening. I said that I do not propose to accept the figure by Senator Conroy until I can have that checked. There were discussions with the Australian Taxation Office. It is the government's concern and the Australian Taxation Office's concern that the tax law of this country be enforced.

Senator CONROY —Madam President, I ask a supplementary question. Minister, can you explain how the creation of these artificial losses for taxpayers is consistent with the Treasurer's statement on 20 June last year when he said, `I make it clear on behalf of this government that where anomalies and exemptions are being unfairly exploited they will be addressed'?

Senator KEMP —Senator Conroy, you have no particular evidence at all to sustain the assumption in your question. What I have said to you is that the Australian Taxation Office has had discussions with the CBA. You can go around making a whole host of quite wild statements, Senator Conroy. Noting how keen the Labor Party was to help us close down problems with the tax law, Senator Conroy, just think of your attitude to R&D syndicates and apologise.