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Dawkins wrong on business investment



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DEPLTTY LEADER of the OPPOSITION SHADOW TREASURER

DEPUTY LEADER of the OPPOSITION PRE S S RELEASE SHADOW TREASURER

DAWKINS WRONG ON BUSINESS INVESTMENT

Today in Parliamentary Question Time, Treasurer Dawkins claimed that Fightback! offered nothing for business investment and this compared badly to the Government's One Nation/One Job proposals to introduce new depreciation allowances.

Poor John Dawkins tried to claim that Fightback! would add $7 billion to taxes on business.

He is wrong, and he should know he is wrong because the Treasury has advised the Government, in writing, to the direct contrary.

Indeed in a minute dated 27 November 1991 from Dr Alan Preston, Deputy Secretary, Treasury to the then Treasurer states that Treasury has calculated that Fightback! would remove $1.9 billion from business investment and $2.0 billion from exports (page 14, Attachment 5).

This is in complete contrast to the $360 million by 1994-95 the Government "claims" in the One Nation/One Job statement would be spent in additional depreciation allowances.

And it is informative to note another piece of briefing from Treasury.

In a Treasury minute dated 25 November 1991 from John Larum, Assistant Secretary, Treasury to the Treasurer's own economic adviser Dr Martin Parkinson, it states that:

"...investment has fallen to its lowest level for the past thirty years. "

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24 March 1992 Canberra

Contact: David Turnbull (06) 277 4277 D43/92

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