10 November 1997

Senate Rejects Charter of Budget Honesty Bill

The Senate tonight failed to pass the Charter of Budget Honesty Bill for the second time by insisting on amendments previously rejected by the House of Representatives.

These amendments make aspects of the Charter unworkable.

A number of amendments relate to the arrangement for costing Opposition policies during the caretaker period. They would make the process non-transparent by allowing the costing of unannounced policies. They would also risk turning the bureaucracy into a research centre for the Opposition, funding their policy development, inconsistent with the conventions of Westminster Government.

Another amendment insisted on by the Senate would require a detailed report on threats to the tax system and specific means necessary to counter these threats. This would draw the attention of tax planners to opportunities for tax avoidance, risking larger revenue losses than would otherwise be the case.

Other amendments to the Charter unnecessarily complicate the Bill and its operation.

Labors approach to the Bill continues their long-standing record of avoiding budget scrutiny and honesty.

Labors record on budget honesty in Government is legendary. Mr Beazley and his colleagues consistently maintained before the 1996 Election that the Budget was in surplus when in fact it was in deficit of over $10 billion.

Labor tonight signalled to the Australian public that they want this sort of deceit to continue.

In accordance with the Constitution, the Bill will be represented in three months time.

CANBERRA
10 November 1997

Contact:
ssistant Treasurers Office
Richard King (02) 6277 7360 or mobile 0419 683 586