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Legislative Assembly for the ACT: 2000 Week 7 Hansard (27 June) . . Page.. 2062 ..


MS TUCKER (continuing):

Seventy per cent of the benefit will go to the mining industry. Woodchips will be $1 per tonne cheaper to transport. The new fuel tax cuts are additional to existing diesel fuel rebates of over $2 billion per annum which will be preserved by the Democrat-Liberal package.

The Democrats have made much of their so-called success in getting around $230 million allocated for environmental programs partially to reduce the pollution caused by the massive fuel price cuts, but this amount is 14 times less than the pollution incentives. GST will also be charged on public transport, installation of energy efficiency measures, green power, renewable energy equipment and environment group subscriptions and fundraising.

The Greens believe that tax reform should be based on ensuring that taxes are progressive, that tax avoidance loopholes are eliminated and that taxes are targeted at environmentally destructive industries. For example, the Greens support having a carbon tax to reduce greenhouse gas pollution, with the proceeds being used to abolish anti-employment payroll taxes. From our perspective, the federal government's new tax package will do little to progress Australia towards ecological sustainability and social equity.

I think the onus is on the ACT government to try to compensate in some way for the regressive taxation measures of the federal government. That is why I am doubly concerned that this year's budget of this government has failed once again to address these issues. The pressure on equity has increased significantly over the last few years as a result of the federal government's policies.

It is not good enough for the ACT government or any other state or territory government to say that it is not their fault. The point is that citizens of the ACT will be suffering as a result of the federal government's policies, the disadvantaged members of our community in particular. A responsible government would take that into account and try to compensate in some way for the federal government's policies.

MR STANHOPE (Leader of the Opposition) (8.27): Mr Speaker, I will speak briefly to these bills as well in endorsing the comments made by my colleague Mr Quinlan and by Ms Tucker from the Greens.

Mr Speaker, the government says that these bills signify the Carnell government's intention to comply with the intergovernmental agreement on the reform of Commonwealth-state financial relations. Indeed, the agreement is a schedule to the Financial Relations Agreement Bill. These bills, as the previous two speakers have said, are the last step in putting into place the GST, the goods and services tax, as they signify this government's commitment to the GST.

According to Mrs Carnell and Mr Humphries, the GST is the answer to all our prayers: it will be a growth tax, giving the territory access to increasing sources of revenue; it will remove the burden of onerous local taxes and charges; the tax cuts that go with the package mean that we can all pay the higher prices; and, of course, we can rest easy in the Prime Minister's assurance that the Commonwealth will make good any temporary shortfall the territory might suffer. While the Liberals trumpet the new tax, Labor is concerned, among other things, about its inevitable impact on the ordinary person in the


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