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Liberal's secret plan to fight inflation: GST on food!

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Liberal's Secret Plan To Fight Inflation - GST On Food! Media Statement - 6th November 2007 John Howard has refused to rule out a proposition put to him by one of his senior Ministers that it would be fair to apply the GST to

basic foods. Footage from ABC news tonight shows Jim Lloyd telling John Howard during a walk of a shopping centre:

Lloyd: "...he said the fairest thing you could do is reintroduce the GST on food" Howard: "Thank you....we once..."

It is clear from the footage that Mr Howard, clearly uncomfortable, stopped himself from commenting further and pointedly failed to repudiate the comments.

If John Howard thought the GST shouldn't be applied to basic foods he should have said so - there and then.

But he hesitated and then waved his Minister down.

The candid comments from Jim Lloyd should come as no surprise.

The Liberals have always wanted to put the GST on food. Peter Costello fought tooth and nail to get a GST on food through the Senate.

With inflation already hitting households hard extending the GST to basic foods would devastate family budgets.

Together with making Workchoices even more extreme they are things Mr Costello really believes in. If he ever becomes Prime Minister there will be no one to stop him.

Wayne Swan

Authorised by Tim Gartrell, 161 London Circuit, Canberra City, ACT 2600

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