Debate resumed from 31 May, on motion by Mr McGauran:

upon which Mr Tanner moved by way of amendment:

That all words after “That” be omitted with a view to substituting the following words:

“whilst not declining to give the Bill a second reading, the House expresses its concern that the Government:

(1) has cut Financial Assistance Grants (FAGs) to local government in real terms since coming to office;

(2) attempted to terminate the 25 year Commonwealth local government funding partnership by trying to transfer responsibility for local government FAGs funding to the states;

(3) promised to exempt local government services from the GST before the 1998 election only to renege on this commitment within months of regaining office;

(4) through the GST, has imposed a regressive and unfair tax on essential services provided by local government to communities in regional Australia; and

(5) has hit councils with major GST compliance costs with inadequate compensation or assistance”.