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News Release

NATIONAL FARMERS FEDERATION

19 May 1998

NR 44/98

NEW ZEALAND GST EXPERIENCE WORTH EXAMINATION

The National Farmers’ Federation says Australia should examine the success of the adoption of a broad based consumption tax in New Zealand.

Res ponding today to an address by the Executive Director of the New Zealand Business Roundtable, Roger Kerr, to NFF’s Annual General Meeting in Canberra, Senior Vice President John Watson said the New Zealand model had created little controversy.

“We strongly support Roger Kerr’s statement that the best consumption tax is a broad goods and services tax, with no avoidable exemptions and levied at a flat rate”, Mr Watson said.

"NFF will campaign strongly during this year’s election for the introduction of a broad based consumption tax to replace Wholesale Sales Tax and transaction taxes, but only if fuel excise is removed, and replaced with a lower road user charge”, he said.

“In addition, the Federal Government would do well to examine the New Zealand Business Roundtable’s proposals, which involve a strong case for getting Government spending down to 20 per cent of GDP or below, and the reduction of top personal and business income tax rates”.

“We also noted Mr Kerr’s suggestions relating to simplifying the Workplace Relations Act, in order to avoid a continuation of ‘dysfunctional workplaces, waterfront-style disputes and high unemployment’” Mr Watson said.

For further information:

John Watson

Chairman, Economic Committee, NFF

02 6270 8955 (AGM)