28 November 2003

Labor Proves it is Anti-Business and Bad for the Economy

Labor has today proven it is anti-business and would drag our economy backwards with its opposition to measures that will bolster the Australian economy and help Australian businesses compete on the world stage, Minister for Revenue and Assistant Treasurer, Senator Helen Coonan said today.

"Labor Senators today opposed Australia entering into a new tax treaty with the UK and Mexico and put at risk substantial benefits flowing from cross border trade, investment and employment.

"This treaty will produce significant positive economic benefits by contributing to a larger, faster-growing and more dynamic Australian economy. Australia is no longer a closed, isolated economy. We have major trading partners, international investments and recognise the opportunities for our businesses overseas and the expertise we can bring in.

"Labor's opposition was a political stunt not grounded in any kind of economic reality that Australians want to live in. Creating jobs, securing critical investment and trade for Australian exporters are all fundamental to our continuing economic prosperity.

"This Government is about getting the economic settings right and the UK tax treaty in particular continues this Government's commitment to modernise Australia's international tax agreements.

"Labor's baseless opposition to this treaty is blatant hypocrisy. Only last year the Shadow Treasurer supported the changes to the US tax treaty and said it was necessary to get 'Australian capital working productively'. What a difference a year makes in the Labor Party.

"When you combine this mindless opposition with Labor's obstruction of other crucial measures such as the Government's package of international tax reforms; removing tax disincentives for overseas workers (such as nurses and IT professionals) and measures to reduce wastage of company tax losses, it shows that the enemies of economic reform in Australia are Labor Senators.

"Labor continues its wanton economic vandalism and shows its deep disarray on tax reform. They can't sing from the same hymn sheet let alone the same balance sheet.

"Simon Crean says spend more and at the same time give tax cuts to everyone; Mark Latham wants a tax cut for the top tax bracket and increased capital gains tax; Anthony Albanese wants a wealth tax and a tax cut for low income earners and Wayne Swan only wants tax cuts for people moving from welfare to work.

"This really is the magic pudding party.

"By opposing necessary tax reforms to keep Australia internationally competitive the Labor Party has proven conclusively that they are parochial, economically illiterate and inward looking."