SUBJECTS: Budget-in-Reply, tobacco excise increase
CHRIS BOWEN:
Well for months now Mr Turnbull and the Liberal Party have been engaging in tough talk on debt and deficits. Tonight Mr Turnbull offered up a plan which would see the debt exactly the same, or even greater, than under the current situation.
Mr Turnbull did not support any of Labor's savings measures tonight. He left the door open on all except one, which he opposed. The contrast is clear - on Tuesday night the Government provided a budget which was built around jobs and nation building; roads, ports, rail, broadband, green jobs, infrastructure.
Tonight, from Mr Turnbull, we got thirty minutes of negativity and a plan for two committees.
Australia deserves better than what Mr Turnbull gave it tonight.
Mr Turnbull had the opportunity tonight to get behind the Government's plan to put the budget on a structurally better footing going forward. He failed that plan miserably.
JOURNALIST:
Will you accept his proposal to raise the taxes on cigarettes instead of scrapping the private health care rebate?
BOWEN:
Mr Turnbull can't be taken seriously on this.
Twelve months ago to the day, Dr Nelson proposed a reduction in the petrol tax, which is still officially on the Liberal Party's books as policy. Now Mr Turnbull is proposing an increase on the cigarettes tax. Now it is interesting to hear Mr Turnbull tonight say that an increase in taxes can be a useful health measure.
If he wants to be taken seriously on that, get behind the Government's alcopops measure.
JOURNALIST:
If you would like to be taken seriously, won't you seriously consider his health measure of cracking down on tobacco?
BOWEN:
Look, all tax matters are currently before the Henry Review, and that matter is also before the Henry Review. But if Mr Turnbull wants to be taken seriously, get behind the Government's alcopops tax measure.
That's the only way he can be taken seriously.
JOURNALIST:
Argue the policy for a moment; tell us what is wrong with the raising cigarette taxes as opposed to a means test on private health insurance rebate? What is wrong with the plan?
BOWEN:
What is wrong with Mr Turnbull's plan is it can't be taken seriously, because he has said he doesn't believe that increases in taxes can be taken seriously as a health measure.
Tonight he says they can be.
Now we will consider this is in the light of all the recommendations of the Henry Review.
All tax matters are before the Henry review, now if Mr Turnbull thinks that tax increases can improve health outcomes lets see the action, let's see him support the Government's alcopops tax.
JOURNALIST:
...that doesn't answer my question as to what objections you have specifically with his plan, what is wrong with it?
BOWEN:
...we don't believe he is serious about it.
JOURNALIST:
[inaudible]
BOWEN:
Well all the tax matters are before the Henry Review. We will consider this proposal, as we will consider all other tax proposals in the light of the Henry Review.
JOURNALIST:
Will you consider it in context of the budget as well?
BOWEN:
We are considering it in light of the Henry Review.
JOURNALIST:
Are alcopops before the Henry Review sir? Alcopops before the Henry Review - all tax matters?
BOWEN:
Alcopops was a tax initiative from the last budget. It's still here now. Mr Turnbull's had plenty of opportunities to support it but he has blocked it on every occasion. Every opportunity.
Tonight all we saw was more opportunism from Mr Turnbull.
JOURNALIST:
Assistant Treasurer, does Mr Turnbull's speech tonight make it more tempting for the Prime Minister to write to Government House early?
BOWEN:
What we're just focussed on is getting this Budget through the Senate. That is the entire focus of this government. As the Treasurer said yesterday, we want certainty for the Australian people: an election wouldn't provide that. What we do want to provide is certainty by getting this Budget passed. Mr Turnbull has that opportunity.
JOURNALIST:
What does it mean for pensioners if the revenue measure goes down?
BOWEN:
Well, we're committed to our pension increase and that stands, but what we need to make sure is that the budget is put on a structurally sound footing going forward.
Mr Turnbull's failed to do that.
JOURNALIST:
But if the savings measure falls over you've then lost a foundation of being able to make the pensions sustainable?
BOWEN:
Well the pension increase is our policy and it stands.
JOURNALIST:
How does it strike you that Mr Turnbull chose not to name a satisfactory or acceptable debt figure in his address to Parliament?
BOWEN:
Well it just shows Mr Turnbull's opportunism.
Mr Turnbull's been banging on about debt for weeks; he's been saying that debt should be lower; he's been saying that the deficit should be lower.
He didn't nominate a figure tonight and not only that, he didn't nominate a plan to get a lower figure.
In fact, he left the door open for a higher figure. He indicated a lack of support – he certainly didn't indicate any support for Labor's savings measures. And he proposed new spending measures. It just doesn't add up.
If you want to be taken seriously about a lower deficit level then you have to provide a plan to get there. You have to provide concrete savings. Mr Turnbull did not do it.
JOURNALIST:
Yes he did.
BOWEN:
He proposed one saving to replace another.
JOURNALIST:
What's wrong with that? You asked him to provide savings and you've rejected the ones that he's put up.
BOWEN:
Mr Turnbull did not say he would support the government's savings measures, he said they would oppose one. He did not provide any indication...
JOURNALIST:
But your rhetorical position is to ask them to put up proposals on making savings, he's done that and you've crossed it out, you've rejected it out of hand.
BOWEN:
No, he's proposed a swap, he's said we'll oppose that savings measure and we'll replace it with this, that doesn't reduce the deficit, that doesn't reduce the debt.
JOURNALIST:
By your logic by waiting for the Ken Henry Review, you should postpone your private health insurance curbs pending the outcome of the Henry review.
BOWEN:
Private health is not a tax matter. Cigarettes are a tax matter. The Henry Review is a tax review.
JOURNALIST:
Can you just for a minute address the issue of whether or not you think it would be a good idea, in health terms, to increase the price of cigarettes? Forget the rest, just answer that question please.
BOWEN:
We certainly think there is a place for a discussion about the role of tax in health measures. That's why we proposed the alcopops tax. That's why we are open to the idea, if the Henry Review recommends it, of changes in the tax regime of cigarettes. Now this is a revelation for Mr Turnbull. We've been saying this for a year, that tax measures can have health impacts. Mr Turnbull has derided us; he's laughed at us, now he says it's true. I mean give us a break, we can't take him seriously.
JOURNALIST:
Mr Bowen I understand what you are saying about keeping it in perspective, the Henry Review, but can you rule out changing the tax rate on cigarettes as a budget measure tonight?
BOWEN:
Our position is that we will wait for the recommendation of the Henry Review, that's the government's position. Okay. Thanks very much.