Senator CONROY (2:39 PM) —My question is directed to Senator Coonan, the Assistant Treasurer and Minister for Revenue. Is it true that the minister rang the Tax Commissioner on the evening of Saturday, 25 May this year, shortly after she had attended a cosy Royal Perth Yacht Club gathering that same evening with 14 selected investors? As a result, did Mr Carmody, the following Monday, announce an extension of the deadline for settlement of mass marketed scheme debts?

Senator COONAN (Minister for Revenue and Assistant Treasurer) —Thank you, Senator Conroy, for the question. Unlike Senator Conroy and no doubt a lot of those on the other side, some ministers on this side actually work on weekends. As Senator Conroy well knows from extensive questioning at estimates, the commissioner, in fact, confirmed that on a Saturday evening, when I was in Perth, I telephoned the commissioner in relation to a number of concerns that had been raised by certain investors in Western Australia on the mass marketed schemes issue.

The PRESIDENT —Order! Senator Ray and other senators on my left will cease shouting.

Senator COONAN —I notice there is some suggestion that the location of this meeting was somehow or another generic to all of the meetings I had in Western Australia; I actually had meetings right throughout the city of Perth in various electorates to do with mass marketed schemes. Following certain matters having been brought to my attention, I rang the commissioner. There was a deadline for the existing offer that the commissioner had published and communicated to investors. The commissioner had, as I understand it, decided that offer would be extended until 21 June, which was last week. I am happy to say that some 70 per cent of investors have now taken up the offer.

But it ill behoves Senator Conroy to be casting aspersions on the efforts made on behalf of taxpayers. Of course, the Labor Party have absolutely no credibility on the issue of tax—not even amongst their own rank and file. We know from the Wran Report, prepared by their own party in New South Wales, that Labor has simply failed the tax policy test—failed it miserably. And what does the report have to say about tax? If you look at it, Madam President, the report is not that interested in mass marketed schemes. What it is interested in is the fact that Labor's rollback, which has only recently been dumped, was a dismal failure. It says, `We failed to realise that significant sections of the electorate had adapted to the GST.' Labor once again failed to listen to the people, just as they would do—and they failed to listen to anyone who even had a concern about the tax office. They spend far too much time listening to their majority shareholders at Trades Hall and far too little time listening to the people who actually elect them.

Senator CONROY —Madam President, I ask a supplementary question. Is the minister aware of the comments of Clive Ross, paid representative of the tax minimisers and one of the 14 selected investors at the yacht club function, that:

as reported in the Australian Financial Review on 28 May 2002. How is the Senate to have any confidence in the capacity of the tax commissioner to operate independently, if the minister acts in this way?

Senator COONAN —Thank you for the supplementary question, Senator Conroy. What happens in the Australian Financial Review and what, in fact, happened at a particular meeting to do with concerns of certain taxpayers do not necessarily coincide. The situation is that the commissioner has advised the Senate estimates committee that my phone call to him had absolutely no impact on his decision to extend the time for investors to take up the settlement offer and that he had already extended the offer. It is clear that that call had no impact at all on whether or not the extension was granted. But, even if it had, I am quite entitled to advocate on behalf of taxpayers a certain position that delivers a fair outcome to them. In fact, if the Labor Party only listened to the people who elected them and took a bit of care and trouble over people who have concerns, they would do very much better. (Time expired)