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Order of the Day read for the adjourned debate on the motion of the Minister for Industry, Technology and Commerce (Senator Button)-That these Bills be now read a second time-And on the amendment moved thereto by Senator Michael Baume, viz: At end of motion, add "", but the Senate-

(a) expresses its concern over the excessive delay in the introduction of the legislation, relating as it does to measures announced as long ago as 19 September 1985;

(b) deplores the creation of uncertainty and confusion among taxpayers and in the business community due to the failure of the Government to present these and other measures to the Parliament within a reasonable time after their announcement;

(c) condemns the Government for imposing an excessive tax burden on business, thus inhibiting new investment in productive enterprises; and

(d) further condemns the Government for its mismanagement of the Australian economy which has resulted in:

(i) huge increases in food prices, which have increased by 8.6 per cent for the 12 months to December 1986,

(ii) large increases in the average home loan repayment as a proportion of medium family incomes which proportion, for the September quarter 1986, was 26.7 per cent,

(iii) falling disposable incomes for the majority of Australians caused by higher taxes as a consequence of taxpayers moving into higher Keating tax brackets,

(iv) low employment growth and continuing high levels of unemployment,

(v) continuing high current account deficits, averaging in excess of $1b. per month on our balance of payments, and

(vi) a record level of foreign debt, which has trebled since 1983, is currently approximately $100b., and is estimated to increase by a further 50 per cent over the next 3 years unless Government policies are changed.''.

Debate resumed.

Question-That the words proposed to be added be added-put.

The Senate divided

AYES, 36

Senators- Alston Archer Baume, Michael Baume, Peter Bjelke-Petersen Boswell Brownhill Carrick, Sir John Collard Crichton-Browne Evans Guilfoyle, Dame Margaret Haines Hamer Hill Jessop Kilgariff (Teller) Knowles Lewis MacGibbon Macklin Messner Newman Parer Powell Puplick Reid Sanders Short Teague Townley Vanstone Vigor Walters Watson Withers

NOES, 30

Senators- Aulich Black Bolkus Childs Coates Colston Cook Cooney Crowley Devlin Elstob Foreman Georges Gietzelt Giles Grimes Jones McIntosh (Teller) McKiernan Maguire Morris Ray Reynolds Richardson Robertson Ryan Tate Walsh West Zakharov

And so it was resolved in the affirmative.

Main Question, as amended, put and passed.

Bills read a second time.

On the motion of the Leader of the Australian Democrats (Senator Haines) the following motion, pursuant to Standing Order 196a, was agreed to:

That the Taxation Laws Amendment Bill (No. 5) 1986 be referred to the Standing Committee on Finance and Government Operations for report by 4 May 1987 on the following matters:

(a) whether the provisions of the Bill relating to short-term redeemable preference shares extend beyond the terms of the Treasurer's announcement of 7 April 1986;

(b) whether any parties relying on the clear wording of the Treasurer's 7 April 1986 announcement will find their legal rights retrospectively affected by passage of the Bill in its present form;

(c) the form of amendment, if any, necessary for the Bill to conform to the limits of the Treasurer's announcement; and

(d) whether the provisions relating to quarterly payment of provisional tax will be unduly onerous on provisional taxpayers whose income is subject to fluctuation throughout the course of a year and, if so, whether amendment of the Bill to provide election of payment of provisional tax in full at 31 March can achieve relief for those taxpayers only.

Ordered-That consideration in Committee of the Whole of the Income Tax Amendment Bill 1986 be an Order of the Day for the next day of sitting.