Senator FAULKNER (Leader of the Opposition in the Senate) (2:27 PM) —My question is directed to Senator Newman, the Minister for Family and Community Services. Can the minister confirm that she issued a press release just 24 hours after the McClure welfare review's interim report was released where she attacked aspects of that report, including recommendations for tax credits and better labour market assistance? Can the minister now confirm that these elements have been kept in the final McClure report? Is the minister embarrassed by the independent committee maintaining its positive view of Labor policies, notwithstanding her knee-jerk opposition to these policies when the committee released its interim report?

Senator NEWMAN (Minster for Family and Community Services and Minister Assisting the Prime Minister for the Status of Women) —In answer to Senator Faulkner, I have not bullied the reference group, like the Labor Party has obviously been determined to do. I welcomed the interim report enthusiastically, and it went out for consultation around the wider community. When it came back by way of a final report, there was not a recommendation for the earned income tax credits scheme. If Senator Faulkner had done his homework, he would have found that they canvassed that proposal and found that, under Australia's system, it would be very difficult to introduce because we have an existing system of tax benefits for families, particularly enhanced since 1 July under the new tax system. The ALP's suggestion, for example, would not fit well with that. In fact, I can quote in relation to this:

that is, EITCs and the like—

And that is the problem with the ALP's proposal. The OECD recently acknowledged that, in countries that have a comprehensive family support system, such as we do, the objectives of the EITC can be achieved through careful design of the family support system. That is what our government have done. If we need further steps to make work pay, we will make sure that they fit together properly, unlike the system that we inherited that had been just ad hoc from beginning to end with no focus on welfare reform whatsoever.

Senator FAULKNER —Madam President, I ask a supplementary question. Is the minister's embarrassment about this issue the reason why the press release dated Wednesday, 29 March 2000 does not now appear on her department's web site? Did the minister or her office bully the department to have this press release removed from the web site or did the department act on its own initiative to save the minister from the embarrassment of her negative views at the draft report stage being so comprehensively ignored by the McClure committee?

Senator NEWMAN (Minster for Family and Community Services and Minister Assisting the Prime Minister for the Status of Women) —I ask Senator Faulkner: do you really think that people think that I bully my officials? We know who the bully is in this place.