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Legislative Assembly for the ACT: 2000 Week 8 Hansard (29 August) . . Page.. 2518 ..

MS TUCKER (continuing):

When you look at this report and what it will require to ensure there is a reasonable standard of fairness and accountability to do this properly, I think it will open up the discussion again. What are we winning and what are we losing here? What will be the costs to the taxpayer of ensuring that this is done in an accountable and fair way? When we have that information, we can make a decision about whether or not we want to continue the enthusiastic commitment to reducing the functions of government. I understand there is a protest today by the CSIRO about outsourcing of their IT.

We need to keep the bigger question in mind as well and not just these sorts of reports, important as they are to ensuring that this work is done properly. Let us also be prepared to look at whether or not it is worth it.

Question resolved in the affirmative.

Mr Humphries , by leave, presented the bill and its explanatory memorandum.

Title read by Clerk.

MR HUMPHRIES (Treasurer, Attorney-General and Minister for Justice and Community Safety) (11.49): I move:

This bill seeks to reintroduce the payment of subsidies to liquor wholesalers on the sale of low-alcohol beers and wine to licensees in the ACT. On 25 May 2000 this Assembly passed the Subsidies (Liquor and Diesel) Repeal Bill 2000 to remove the subsidies on diesel and low-alcohol products, with effect from 1 July this year.

The subsidy was removed as a consequence of the possible cross-border impacts of New South Wales removing its subsidy. However, on 4 July 2000 the New South Wales Treasurer, Mr Michael Egan, announced that New South Wales would continue to subsidise low-alcohol beer until 30 June 2001, in line with an agreement reached with the Commonwealth Treasurer, Mr Costello. For the information of members, the Commonwealth and the states and territories are to meet before 30 June 2001 and negotiate a uniform Commonwealth excise providing a concession for low-alcohol beer. As a result of the decision by New South Wales, the ACT has announced its intention to follow New South Wales and reintroduce subsidies for low-alcohol beer and wine in line with New South Wales subsidies scheme for 2000-01.

As in New South Wales, the subsidy for low-alcohol beer and wine products would be at the rate of 12 per cent of the wholesale value, including the new excise duty but excluding GST, for beer products 3.5 per cent alcohol per volume or less and for low-alcohol undiluted or unadulterated wine of 6.5 per cent alcohol per volume or less. The ACT Revenue Office will pay the subsidy to wholesalers who can demonstrate to the Commissioner for ACT Revenue that the amount of the subsidy has been passed on to retailers operating in the ACT.

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