Senator McGAURAN —My question is to the Minister for Regional Services, Territories and Local Government. Given the huge contribution by the rural and regional areas to the Australian economy, will the minister detail the advantages that tax reform will bring to those in rural and regional areas?

Senator IAN MACDONALD (Regional Services, Territories and Local Government) —I thank Senator McGauran for that question. I know that he, like many of my colleagues, has a real interest in rural and regional Australia. Senator McGauran is quite correct when he says that rural and regional Australia makes a disproportionately high contribution to Australia's welfare. The minerals and energy sector contributes almost 30 per cent of our exports, some $26.2 billion annually; and our agricultural industries, the agricultural sector, contributes some 28 per cent of total exports, or a total of some $25 billion.

Senator McGauran is quite correct when he says what a great contribution rural and regional Australia makes. That is why I am very pleased to say that the coalition's tax reform package will give real benefits to rural and regional Australia. It will give benefits to everybody. For example, a man and his wife and a couple of children on $30,000 a year will be better off by the package to the extent of $50.42 each week. That is, someone on $30,000 will be better off by $50.42 each week as a result of this tax reform package. That is what all Australians can look forward to.

Rural and regional Australians will share in that and, as well, they will share in many other ways. Our tax reform package will reduce the costs of agriculture by some $1.1 billion each year—that is, cutting down the costs on our farm production. That equates to some $7,500 of savings to every farmer every year. I just hope that the Democrats listen to that because they do, I think, try to have some interest in what happens in rural and regional Australia. The costs to the export industry will fall by some $4.5 billion annually as a result of our package.

I, and a lot of my colleagues, live in and understand rural and regional Australia. Very few in the Labor Party do, and they have no interest. Regrettably, no-one in the Democrats does, and the way that they are approaching the tax reform package seems to suggest—

Senator Herron —What about Cheryl?

Senator IAN MACDONALD —Cheryl does not live in rural and regional Australia, I am sorry, but she is no longer a Democrat either, Senator Herron. It is a pity that the Democrats do not understand rural and regional Australia a bit better. If they did, they would understand the enormous impact that the reduction in fuel prices, as part of the tax reform package, will have on rural and regional Australia. It will be tremendous. It will make a real difference to those who live outside the capital cities. Senator Woodley, whom I see nodding away there, will understand that for all those trucks, be they big or small, be they represented by the Transport Workers Union or not—we have all the truckies over there—if they are over 3.5 tonne gross weight the cost of diesel will fall by 25c per litre. Senator Woodley, you will understand what a huge benefit that will be to the people of rural and regional Australia. I plead for your support for the people of rural and regional Australia.

Unfortunately, the Democrats have a policy that wants to knock that back. They are talking about GST on food. They have not answered, as Senator Campbell raised earlier by interjection, the fact that those opposite increased sales tax on food by some two per cent. (Time expired)