Page 2 - Week 01 - Tuesday, 16 February 1993
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PAPER
MR HUMPHRIES: Madam Speaker, I seek leave to present a petition from interstate petitioners.
Leave granted.
MR HUMPHRIES: I present a petition from 17 residents of Dalby and Chinchilla, Queensland, requesting that the Assembly prohibit the availability of all X-rated material and the possession of child pornography.
QUESTIONS WITHOUT NOTICE
Payroll Tax
MR KAINE: I direct a question to the Chief Minister and Treasurer. Chief Minister, given the benefits, such as increased business activity, increased investment and increased employment opportunities, that would flow to the ACT economy from an amount of approximately $90m remaining in the hands of Canberra businesses each year, will you accept the Hewson government's offer of compensation for the loss of revenue from payroll tax and repeal the Payroll Tax Act in the ACT?
MS FOLLETT: I thank Mr Kaine most sincerely for the question. It offers an opportunity to explain yet again what I believe are some grave difficulties with Dr Hewson's proposal - a proposal to which I understand Mr Kaine has given his endorsement. I want to make it very clear from the outset that in the remote event that Dr Hewson should gain government federally, and in the even more remote event, I believe, that other Liberal-led States, especially New South Wales, should agree to the abolition of their payroll tax, I believe that the ACT is certainly not in a position to stand alone. We must remain competitive and we would do so. I want to put that on the public record, but that is not the beginning and the end of the matter.
Part of the reason why I say that the ACT must follow suit is that, of course, as a territorial government we would not be in a position to protect our local businesses from the drastic effect of the goods and services tax. We would not be in a position to say to those businesses, "We can offer you some protection from this 15 per cent impost on all of the goods you utilise and all of the services you utilise". Every time a Canberra business orders paper or ink, has its laundry done, employs people or has some services delivered to it, it would have to pay 15 per cent, under Dr Hewson's proposals. That is a compounding 15 per cent.
Mr Kaine: No, that is not true. You had better read it again. I will send you a copy and you can read it.
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