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Wine industry a winner under fightback

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ΐ?*,ο,meo”?°on „ M edia R elease

Sunday 8 December 1991 27 7/91


The wine industry will be a significant winner under the Liberal and National Parties' Fightback package of economic reforms.

As a major source of potential export income in the future, reductions in the costs facing the wine industry will boost jobs, investment and income for the entire nation.

Our Fightback policy package will provide for the wine industry to reap its full growth capacity by getting government out of the way and, most particularly, out of the industry's pocket.

At present, the industry is hamstrung by government taxes on its inputs and exports, rigidities in industrial relations and the costly inefficiencies of our transport and communications infrastructure, including the waterfront.

The range of reforms announced in Fightback will provide significant benefits to the wine industry. For example:

. abolition of the 20 per cent wholesale sales tax on wine and the full rebate of the Goods and Services Tax (GST) on business inputs will dramatically reduce the costs of the wine industry.

. under the GST, exports will not be taxed providing significant benefits to the growth in wine exports

. abolition of payroll tax, which raises almost $6 billion in government revenue and suppresses jobs, will benefit larger wine producers directly and will also lower costs to small producers by reducing the costs of production of other goods and services which they use.

. reduction in the price of diesel and petrol fuels by 26 cents per litre for business users will be of considerable benefit to wine makers in the transportation of wine to their markets.

. in addition, the reduction in the price of petrol for private motorists (the cost of filling the average tank will fall by about $11) will boost tourist access to the wine making areas of Australia.

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Moreover, the Coalition's industrial relations policy will free up the labour market by encouraging enterprise bargaining based on improvements in productivity. Under new enterprise agreements, costly penalty rates and annual leave loadings can be dispensed with so that both employers and employees can benefit.

The Coalition's rock-solid commitment to the implementation of a genuine program of microeconomic reform will lower the costs of production to the industry by achieving:

- an efficient, reliable waterfront;

- competitive land, sea and air transport;

- and cheaper communications services.

The Coalition's Fightback program will clearly make Australia's wine industry a big winner under the next Liberal- National Party Government.