Senator CROSSIN —My question is to Senator Kemp, the Assistant Treasurer. Is the minister aware that there are more than 5,000 postgraduate students at Australian universities receiving tax free Commonwealth scholarships of around $15,000 a year? Given that these students do not pay tax and do not receive social security benefits, can the minister explain how this group will not be worse off when they are forced to pay more for their food, books, clothing, transport, software and even Internet usage under the GST?

Senator KEMP (Assistant Treasurer) —Thank you to Senator Crossin for the question. The tax package, as has been stated many times in this chamber, is of great benefit to Australia. The tax package has been modelled extensively, and under any reasonable assumptions—

Senator Carr —Why don't you answer the question, then? Here's your big chance.

The PRESIDENT —Order! Senator Carr, don't shout.

Senator KEMP —No-one has been able to point to any particular group which is worse off. On the education front, one of the big advantages of this tax package is that the education sector is largely GST free.

Opposition senators interjecting—

The PRESIDENT —Order! There are far too many people on my left shouting, and it is totally disorderly.

Senator KEMP —As I said, there will be significant savings to the education sector, very substantial savings which have been outlined in our tax package. I know this is a big problem for the Labor Party. After 52 weeks of Senate inquiries, after large amounts of modelling carried out by a wide range of experts, in the models that were prepared, under any reasonable assumptions no-one was able to point to any group which was worse off as a result of this package.

I find it extraordinary that this question is being raised by the Labor Party. If I remember rightly, in 1993 there was a huge rise in wholesale sales taxes and excise taxes, with not a cent of compensation offered. In fact, it was quite the reverse. As we on this side of the chamber can all remember, the l-a-w tax cuts were effectively abolished by the Labor Party after being promised in the election. This package is good for Australians. It is very good for the education sector. I suggest that the attitude of the Labor Party to say no to everything should be dropped immediately and they should adopt a more constructive attitude, as most of your colleagues in your state branches are saying to you. Most of your Labor Party premiers are saying to you to get this package through.

Senator Alston —Della Bosca and Hogg.

Senator KEMP —Indeed. As my colleague Senator Alston has pointed out, various Labor Party personalities such as Mr Della Bosca have urged that this package go through the Senate. Mr Bob Hogg has urged that this package go through the Senate. I would urge Senator Crossin to listen to her state colleagues and to make sure that this is passed through the Senate.

Senator CROSSIN —Madam President, my supplementary question is: will these students not be worse off?

Senator KEMP (Assistant Treasurer) —Senator, I have explained to you—

Opposition senators interjecting—

The PRESIDENT —Order! Senator Kemp, just a moment, please. There are far too many people shouting out and disrupting what is going on. The standing orders are quite clear on the matter of behaviour and I would draw your attention to standing order 203.

Senator Ian Campbell —I rise on a point of order, Madam President. Is it appropriate for Senator Conroy to call Bob Hogg a `Liberal Party stooge' and `a paid flunkey of the Business Council'? If not, could he please withdraw those remarks?

The PRESIDENT —I did not hear the comments; there was so much noise going on at the time. There is no point of order.

Senator KEMP —It was an exceedingly general question: will students be better off? Many students of course are in part-time jobs; many students receive Austudy. There are many sources of support, and let me assure you, Senator, that I have no doubt in my own mind that the vast proportion of people that you are referring to where they have a relationship with the tax system and the social security system, will certainly benefit. There is no argument.