JOURNALIST:
Are you disappointed Mr Carr actually won’t be coming to Canberra? You seemed quite excited about that prospect this morning.
TREASURER:
Look, Mr Carr’s still got a lot of work to do for Federal Labor. Whether he physically goes to Canberra or whether he doesn’t, he’s got to sort out their tax policy. Now, we’ve got two Labor tax policies. We’ve got the Beazley roll-back policy which is engulfing his leadership, and we’ve got the NSW Right policy which is run by Della Bosca. Now, the NSW Right either sends their man to Canberra to sort the policy out or they roll Kim Beazley without sending their man to Canberra. But one way or another it’s got to be done. See roll-back is now engulfing Kim Beazley’s leadership. It’s engulfing him. And it’s engulfing him because he was weak and opportunistic. For two years he thought he could get cheap votes out of opposing necessary tax reform, it’s now been done, the public knows it’s in the national interest. The only person who can’t get on board the cart is Kim Beazley.
JOURNALIST:
That’s a bizarre suggestion to make isn’t it though Treasurer to say that a State Premier should change a Federal policy, you would never suggest that Richard Court should come over and tell the Federal Liberals.
TREASURER:
Well, it’s not bizarre because Della Bosca, Della Bosca said it had to be done. Della Bosca didn’t just say it had to be done in the Bulletin. Remember this, Della Bosca went to Kim Beazley after the Federal election and told Kim Beazley then to give up his useless campaign against GST and then leaked it out to the press that he’d done it. Now, Della Bosca has got good judgment on these issues because at the last election when Kim Beazley said Labor’s policy was to rack up capital gains tax, it was Della Bosca who told him he was wrong, Della Bosca was right, and after the election Beazley agreed with him. Della Bosca was right on GST. And now it’s a question of how long is it going to take before Beazley agrees with him.
JOURNALIST:
Is this the issue that’s been taxing Federal Cabinet all day, whether Bob Carr’s going to Canberra?
TREASURER:
No, what the Federal Cabinet’s been working on all day is strategy to keep Australia strong, to keep our economy strong and to ensure that we create more jobs for Australians and we give homebuyers the opportunity to buy homes with historically low interest rates. But tax reform is a big part of that and we can’t for the life of us figure out why Beazley opposes tax reform. Now, and I make this point, if the Labor Party is really against GST, simple question, why won’t they repeal it? It can be done very easily. You know, back before the 30th June there were two countries in the world that had wholesale sales tax, they were Swaziland and Australia. And the ALP could take us back to Swaziland’s tax system. They could do it. It could be done very easily. But they won’t do it because they know tax reform is necessary for Australia, in their heart they know it was necessary for Australia, they can’t say it with their mouth. That’s the problem.
JOURNALIST:
Treasurer, would you support some of the revenues…..
TREASURER:
That’s the absolute problem. And so you get people like Della Bosca and Carr, who are, on these issues much better at understanding than Beazley and they’ve got to try and make the point. That’s what’s going on here. They’re trying to make the point to Beazley. There is no future in the Swaziland tax system. Get on board Kim. Get modern.
JOURNALIST:
Would you support some of the revenue from the GST or the further sale of Telstra going to a transport package to support things like the very fast train?
TREASURER:
All of the revenue from GST goes to the States. That’s another reason why Mr Carr supports the new tax system. And he made a comment the other day, it was a good point I thought, that with that revenue he could in the future have the option of reducing payroll tax. That’s what Bob Carr says. So let me make this point, if any roll-back went on, not only wouldn’t the States have the revenue and couldn’t abolish payroll taxes, but income taxes would rise. Bob Carr knows that. Because if any roll-back went on income taxes would rise. When you hear the word roll-back it means roll up income tax rates. It’s another reason why Bob Carr and Della Bosca are trying to sort out Beazley’s tax policy. Now, I think you can either sort out the policy or they can sort out the leadership, its got to be done one way or the other.
JOURNALIST:
Treasurer, was the decision made in Cabinet on the very fast train and Badgery’s Creek?
TREASURER:
We weren’t making decisions in Cabinet today, we were looking at long-term strategy.
JOURNALIST:
And did these issues rise at all?
TREASURER:
And in particular the long-term strategy of keeping the Australian economy strong, creating jobs and making sure we have a good tax system. And the long-term economic strategy is tax reform, keeping interest rates low, a strong economy and creating jobs. That’s what we were discussing today. Thanks.