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GST compensation won't last: Carmody.

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The Hon Simon Crean MP

Deputy Leader of the Opposition and Shadow Treasurer



17 March 1999




Geoff Carmody from Access Economics, speaking on behalf of the Australian Food and Grocery Council, today t orpedoed the centrepiece of the GST compensation package, Shadow Treasurer Simon Crean said today.


The attached extracts from the Council’s submission to the Senate GST Inquiry speak for themselves.


“The bottom line is that, over a short period of time, with wages (MTAWE) continuing to rise faster than inflation, the pension will not be one cent more with the GST than it would have been without it ,” Mr Crean said.


“The GST compensation for pensioners is a mirage.


Most telling was the evidence given on behalf of the Council by Access Economics’ Geoff Carmody. Mr Carmody told the Committee that if an alternative package is not devised for pensions:


“... everyone who says the compensation package won’t last - is dead right.”


“This is the first time a pro-GST industry group has so comprehensively challenged the GST compensation package,” Mr Crean said.


“John Howard and his Treasurer are fond of dismissing evidence to the GST Committee as being uninformed or special pleading.


“They won’t find it so easy to dismiss this evidence.


“No wonder Mr Costello has sounded so shrill in his recent attacks on the Senate’s GST inquiry.”


Further information: Phillip Tardif (02) 6277 4045 (w), (0419) 491 166