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Fightback-setting the record straight



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4 I l e °e" , M edia R elease 268/91 27 November 1991

FIGHTBACK - SETTING THE RECORD STRAIGHT

While the Opposition is mostly prevented from telling the truth, the Government is using the forms of Parliament to tell lies about the Fightback Program. Some of today's examples include:

Claim (by Mr Dawkins) - The Opposition's program would lead to an increase in unemployment.

Wrong. The Opposition's program would mean job shifts but not job losses. Indeed, our very conservative modelling suggests that our policies should produce at least 2 million new jobs by the end of the decade.

Claim (by Mr Dawkins) - The Opposition's program would result in an unemployment merry-go-round.

Wrong. Our AUSTRAIN program is only available to those

unemployed for six months or more and operates under the

supervision of local Employment Boards which will ensure that AUSTRAIN participants are additional to firm's normal labour requirements.

Claim (by Mr Dawkins) - AUSTRAIN involves no training

Wrong. AUSTRAIN contracts will specify training to be provided.

Claim (by Mr Dawkins and Mr Hawke) - The Opposition's

program would lead to a drop in real wages.

Wrong. AUSTRAIN participants must move onto normal wages within 18 months at the latest. In addition, the scenarios included in the Fightback supplementary papers were relative. The real lesson is that the "high road" scenario produces end of decade real wage outcomes that are higher than under the Government's existing policies - and trending up which real wages are trending down under the other scenarios.

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COMMONWEALTH PARLIAMENTARY LIBRARY MICAH

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Claim (by Mr Willis) - Fiscal policy will be substantially eased in 1994.

Wrong. Each year's budget will be tightened in relation to the Government's 1990-91 base. As the Government admits, Federal Government spending will be tightened over the three years of the Fightback Program. The Government can hardly accuse us of bashing the public sector and easing fiscal policy at one and the

same time.

Claim (by Mr Beazley) - International air fares will be zero rated.

Correct. This is standard international practice. GST is charged on goods and services to be consumed domestically which means that in-bound as well as out-bound international travel is zero rated.

Claim (by Mr Kerin) - One thing is certain, that people will by paying 15 per cent on nearly everything.

Wrong. The Opposition will win the next election and will

implement its reform program. But people will pay GST on a much lower price thanks to the abolition of seven major taxes. The total price effect will be just 4.4 per cent.

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