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AFCO statement predictable and without credibility



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Peter Reith

DEPUTY LEADER of the OPPOSITION PRESS RELEASE SHADOW TREASURER

15 November 1992

AFCO STATEMENT PREDICTABLE AND WITHOUT CREDIBILITY

Today's political attack on Fightback! via the Australian Federation of Consumer Organisations Inc (AFCO) is just a predictable rehash of discredited arguments presented daily by the ALP.

The AFCO attack claims to rely on the considered views of its member bodies such as the Australian Consumers Association (ACA). However, when the ACA did its hatchet job it openly relied upon government supplied material which has since been demonstrated to be wrong.

The brochure released today by AFCO is biased and misleading. For example:

1. It claims that different estimates by the Coalition and Treasury of the CPI impact leaves the question of compensation under a cloud, but fails to point out that on a comparable basis the Treasury estimate of the CPI impact is less than the Coalition's estimate of 4.4%.

2. It claims without any supporting data that the impact of the Fightback! package will be greatest on low income people whereas the package provides the greatest benefits to those in greatest need.

3. It asserts that interest rates will rise to absorb the GST cost on financial institutions but conspicuously fails to acknowledge the benefits to those institutions from the abolition of sales tax and payroll tax. It also conveniently ignores the benefits of Fightback! in reducing interest rates through a better balance of fiscal and monetary policy - a point even Treasury alluded to.

AFCO is partly financed by the Federal Labor Government and its attack on the Fightback package is totally without credibility.

The document should be withdrawn.

For further information contact Peter Reith on 059 - 77 8142

COMMONWEALTH PARLIAMENTARY LIBRARY MICAH