Assistant Treasurer Senator Helen Coonan today called on State and Territory Governments to stand by their 1997 agreement on tobacco franchise fees.
Senator Coonan said Federal Labor had been trying to score political points on the issue of the tobacco business franchise fees (BFFs) collected by States and Territories but found to be unconstitutional by the High Court on 5 August 1997.
"Clause eight of the 1997 safety net agreement between the Commonwealth and the States and territories clearly places the responsibility of pursuing the matter of monies which were already collected by tobacco companies with the States and Territories," Senator Coonan said.
The agreement states:
"Because of constitutional constraints, the Commonwealth would not be able to legislate to force taxpayers to pay BFFs which became due prior to 5 August but were not paid. The recovery of such amounts, where possible, would be the sole responsibility of the States and Territories."
"At the time of making the agreement the States and Territories undertook to recover this money themselves," Senator Coonan said.
"Labor proposals to make Commonwealth legislation retrospective to 1997 are simply a cover-up for inaction by the States and Territories."