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3XY BROADCAST

SUNDAY, JLJ1Y 7 1985

V ;’"· ·; . > ?

(EMBARGO: 9.00 PM, 7 JULY 1985) ■ν>·Î½Î½ “ h

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The Prime Mi n i s t e r' s tax summit was a sham to start

w i t h ,

- AND T H I S WEEK IT TURNED INTO A SHAMBLES.

I T WAS A SHAM BECAUSE I T WAS CLEAR FROM THE START THAT

THE TRADE UNIO N MOVEMENT, BOTH IN NUMBERS AND IN F L U E N C E ,

WOULD DOMINATE I T , AND THAT THE GOVERNMENT WOULD NOT MAKE ANY

TAX CHANGES WITHOUT THE CONSENT OF THE A U ST R A L IA N C OUNCIL OF

Trade Un i o n s, .

And so it turned o u t.

It WAS ALSO A SHAM BECAUSE IT WAS EQUALLY CLEAR FROM

THE START THAT THE GOVERNMENT WOULD NOT TACKLE IN ANY WAY THE

B A SIC NEED IN REDUCING THE BURDEN OF TAXES ON THE AU STR ALIA N

PE O PLE ,

- AND THAT IS TO REDUCE GOVERNMENT SP E N D IN G .

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Inquiries: 0 6 2 - 7 2 6 9 9 4

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You CANNOT HAVE LOWER TAXES UNLESS GOVERNMENT SPENDING

IS LOWER,

And that is only one of the reasons that the s u m m it

WAS A SHAM, ,

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- BECAUSE NOT AT ANY TIME DID THE GOVERNMENT

ACKNOWLEDGE THIS FUNDAMENTAL FACT OF ECONOMIC LIFE.

There is another r e a s o n .

And that is that deals were done b e h in d closed doors,

IN HOTEL ROOMS, AND NOT IN THE FRANK AND OPEN FORUM THE

SUMMIT WAS SUPPOSED TO PROVIDE. ;

Be h i n d the p u b l i c f a c a d e , the Government and the unio n

MOVEMENT, COBBLED TOGETHER AN INCOHERENT MISH-MASH OF

MEASURES, FULL OF COMPROMISE, TO ENABLE MR HAWKE AND Η IS

Tr e a s u r e r , Mr Ke a t i n g , to emerge from the whole fraudulent

p r o c e s s ,

- HOPING NOT TO LOSE TOO MUCH FACE,

- HOPING TO RETAIN WHAT THEY REGARD AS SOME SORT OF

CREDIBILITY.

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The f a c t i s t h a t t h e i r c r e d i b i l i t y , both i n d i v i d u a l l y

AND JOINTLY, IS IN TATTERS.

They have been h u m i l i a t e d .

They have shown t h e m s e l v e s , once a g a i n , to be the

p u p p e t s of t ra d e u n i o n o f f i c i a l s . ,

They have shown t h e m s e l v e s once a g a i n , to be at the

MERCY OF THE LABOR PARTY'S FACTIONS,

- WHICH WILL BECOME INCREASINGLY NOISY AND D I V I S I V E

IN THE COMING WEEKS AS THEY PUSH FOR SPECIAL

SECTIONAL ADVANTAGE,

- AT THE EXPENSE OF THE AVERAGE.AUSTRAL I AN. TAXPAYER.

Not a t any t i m e d u r i n g the so- c a l l e d Su m m i t d i d

Mr Hawke and Mr Ke a t i n g acknowledge the f a c t t h a t t h i s· Labor

Governmen t i s the h i g h e s t - s p e n d i n g , h i g h e s t t a x i n g

a d m i n i s t r a t i o n i n Au s t r a l i a ' s h i s t o r y . .

They d i d not at any t i m e acknowledge the f a c t t h a t the

FUNDAMENTAL AIM OF TAX REFORM IS TO REDUCE THE TAX BURDEN,

NOT JUST SHUFFLE IT AROUND WITH. THE SAME SET OF CARDS.

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The Tr e a s u r e r , a d o p t in g the jargon used by e c o n o m i s t s ,

SAID AT THE BEGINNING OF THE EXERCISE THAT THE CHANGES WOULD

BE "REVENUE NEUTRAL".

What t h i s means in p l a i n words is that w e'l l a l l be

PAYING JUST AS MUCH TAX AS WE DID BEFORE, BUT IN DIFFERENT

WAYS.

Wh e r e , in the in coherent and uncosted proposals which

HAVE EMERGED THIS WEEK IS THERE ANY SIGN OF REAL RELIEF FOR

THE MAJORITY OF AUSTRALIAN TAXPAYERS.

Where is there any s i g n o f,

- RELIEF FOR THE FAMILY, ONE OF THE BASIC PRINCIPLES

of the Co a l i t i o n ' s tax reforms p r e s e n t e d at the

LAST ELECTION, EMBODIED IN OUR PLANS FOR INCOME

• SPLITTING, AND CHILD CARE REBATES.

What we have i n s t e a d ,

- JUST AS IN THE IMPOSITION OF THE ASSETS TEST, IS

- UNCERTAINTY AND ANXIETY IN THE WHOLE COMMUNITY.

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Ta xpa yers d o n't know how much tax t h e y ' l l be p a y in g

NEXT YEAR.

Small b u s in e s s p e o p l e , and the f a r m in g c o m m u n it y , know

THAT THEY'RE FACING A CAPITAL GAINS TAX, BUT THEY HAVE NO

IDEA HOW IT WILL APPLY.

Eld e r l y p e o p le have the same u n c e r t a i n t y , and deep

ANXIETY.

Af t e r SUFFERING THE cruel p e n a l t i e s of the a s s e t s

TEST, THEY NOW FACE WHAT IN EFFECT ARE,

- DEATH AND GIFT DUTIES,

- MEASURES WHICH ONCE AGAIN,

- STRIKE AT THE HEART OF AUSTRALIAN FAMILY L IF E .

Th i s w e e k' s e x e r c is e in co n f u s io n and f u t i l i t y has

ECHOES OF THE PAST,

- when Arthur Ca l w e l l ' s Labor Pa r t y , l a c k in g courage

AND FIRM LEADERSHIP, COULD ONLY MOVE AT THE

DICTATES OF THE 36 FACELESS MEN OF ITS EXECUTIVE.

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That e x e c u t i v e were not the e l e c t e d r e p r e s e n t a t iv e s of

the Au s t r a l i a n p e o p l e ,

- ANY MORE THAN A SMALL GROUP OF HIGHLY-PLACED TRADE

UNION OFFICIALS,

- ARE THE ELECTED REPRESENTATIVES OF THE AUSTRALIAN

PEOPLE.

And yet these are the p e o p le who d o m in a t e d the

Government in a l l the d i s c u s s i o n s l e a d i n g up to the s u m m i t ,

AND AT THE SUMMIT ITSELF.

These are the p e o p l e who told Mr Hawke and Mr Ke a t in g

what TO DO,

- ANOTHER example of d o in g w hat,

- " S imon Sa y s" .

We had Op t i o n A.

We had Op t i o n B, and Op t i o n C.

In e v i t a b l y ., what we f i n a l l y got was a d i f f e r e n t

ALPHABETICAL ARRANGEMENT,

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- o p t i o n A . C . T . U .

An OPTION IN WHICH THE AVERAGE AUSTRALIAN TAXPAYER,

FAMILIES, SMALL BUSINESS PEOPLE, THE FARMERS, THE ELDERLY AND

THE POOR, :

- DID NOT HAVE A VOICE.

And t hat i s why the su m m it was a sham,

AND A MOCKERY OF THE DEMOCRATIC PROCESS.