Senator CONROY —My question is addressed to Senator Alston, the Acting Leader of the Government in the Senate. How does the Prime Minister's guarantee that no-one will be worse off under the GST fit with the evidence of the Deputy Secretary of Treasury, Greg Smith, to the Senate GST inquiry that those people who do not have a relationship with the federal government will not be able to access compensation? Isn't this in fact the case? How can these people possibly be compensated for the GST?

Senator ALSTON (Communications, Information Technology and the Arts) —Once again, if you are talking about a group in the community, there is no evidence that any single group will be worse off. In fact, they will be better off. If you want to run around finding what you think is an example of someone who will be somehow less better off than someone else, that is fine for you, but it simply won't wash. We are very much aware of what Treasury has said. The fact is that it does not, in any shape or form, contradict what has been said by the Prime Minister, the Treasurer or anyone else. You can go on as much as you like, but the politics of envy will simply not work.

Senator CONROY —Madam President, I ask a supplementary question. Minister, doesn't Mr Smith's evidence to the Senate inquiry mean that all those Australians not in a relationship with the government through tax or social security payments will be big losers, like people living off workers compensation benefits, recent migrants, youths up to the age of 21 living at home, and low income farmers? How can these people possibly be compensated for the GST? Who is telling the truth on this crucial issue—the Deputy Secretary of Treasury, in evidence to the parliamentary committee, or the Prime Minister?

Senator ALSTON (Communications, Information Technology and the Arts) —The short answer is: the Prime Minister. You simply need to look at the fact that there may be someone in the community who is living on a farm, who has no connection with the economy, who does not pay tax and does not earn any income, who grows all his or her own food, and who will therefore be untouched by the changes. They will be no worse off as a result of the changes. But in most respects, people like those on workers compensation payments are still deriving income, they are still paying tax, and they will be very significant beneficiaries from any reduction in the taxation structures. The short answer is that the Prime Minister was dead right.

Opposition senators interjecting—

The PRESIDENT —Order! The level of interjection is unacceptably high. It makes it extremely hard to hear what is going on. I draw senators' attention to the standing orders.