E&OE.............................................................................................
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It was a very constructive meeting and despite the fact that the Labor
States registered their in-principle objection to the GST there was
no evidence that any of them wanted to be excluded from the mechanism
to implement the plan. Queensland has some reservations about one
aspect of the transitional arrangements, New South Wales is against
horizontal fiscal equalisation but I am sure will be happy to participate.
Because under the plan after the transitional arrangements all States
will be better off, that is the bottom line and I hope a dropped copy
of this document is delivered to every Senator in Australia because
the Senate is meant to be the States' house isn't it, and
you have now got a document where the principles of the new arrangement
have been endorsed by the State Premiers and the two Chief Ministers
of the States.
So, the Treasurer and I regard this as an outstandingly successful
meeting, a meeting which is an important milestone along the path
towards a new and better and fairer and modern taxation system for
the next century. And we say again to those in the Senate who are
deaf to the wishes of the Australian people, you should heed the verdict
of the Australian people and participate in passing this legislation
into law as soon as possible.
JOURNALIST:
Prime Minister, ....(inaudible)...reservations, Premier Beattie
says he is very unhappy and unhappy to the tune of$465 million?
PRIME MINISTER:
Well, any suggestions that Queensland is losing $465 million is utterly
and completely wrong. We have delivered in full on our promise that
no State would be worse off during the transitional period. And according
to our figures, in the fourth year after introduction of the plan
Queensland is better off to the tune of over $400 million. Queensland
does extraordinary well after the transitional period. I don't
think any... any suggestion by Mr Beattie...I understand States
have got to go in hard for their constituents, I understand that and
I, you know, I have watched the advertisements. And the Treasurer
and I had the rare pleasure of sitting back today and watching exchanges
going like that rather than like that. It was quite an experience.
JOURNALIST:
Isn't the political reality that Mr Beattie will talk to Senator
Colston and Senator Colston seems to be indicating that he'll
side on that issue which means you can't get your tax through?
PRIME MINISTER:
I am not going to start anticipating debate in the Senate, I am just
responding to any suggestion that the people of Queensland have been
short-changed. The people of Queensland will benefit enormously from
this plan. On top of the very significant increase that they will
get after the transitional period the cuts in fuel tax are more, the
cost of fuel, are more beneficial to the people of Queensland than
the people of any other State because of the huge distances of that
State and the cost of transporting fuel....of goods and services.
JOURNALIST:
So as a low taxing State now, it's not the case that with the
introduction of a GST, taxes paid by Queenslanders would go to other
States?
PRIME MINISTER:
Look, what seems to be forgotten is that as well as a GST being introduced
is income taxes are getting cut, and Australians living in Queensland
will get the same benefit from that tax cut as Australians living
in New South Wales or Victoria.
JOURNALIST:
Mr Howard, could you explain how the transitional changes today have
changed and also the conveyancing taxes that the States were going
to abolish has that now been delayed or has that tax not been
abolished?
PRIME MINISTER:
Well, what we have said in the agreement is that from the 1st
of July 2001 the stamp duty on business conveyancing other than on
real property will be abolished, the timing of the abolition of the
tax on real property can be determined after we have more solid information
on the numbers involved in tax on real property. One of the difficulties,
it's not a difficulty but one of the inevitable elements of a
negotiation such as this is it's very hard to get precise figures
on many of these things. We did some calculations based on the data
that the States published, there's been further discussion about
the amount of money involved in each element of each of the individual
State taxes and we are going to have some further work done and we'll
have a much clearer picture when we come back to the Premiers conference
which will be held in, probably in April of next year.
JOURNALIST:
Were those initial calculations wrong Prime Minister?
PRIME MINISTER:
No, they weren't wrong because they were done on the basis of
the information the States had supplied.
JOURNALIST:
Was that also a problem with gambling taxes?
PRIME MINISTER:
No, there won't be any difficulty with gambling. We had a discussion
today which, I think, will resolve all of that.
JOURNALIST:
And what was the conclusion of that discussion, what have you decided?
PRIME MINISTER:
Well, we are going to have an arrangement that is mutually satisfactory
to both sides and there will be something further said about it later.
JOURNALIST:
Treasurer Costello, how much extra did it cost you to get the States
on side?
TREASURER:
Well, as the Prime Minister said, there were calculations in relation
to gambling and we have a proposal which ensures the punter payouts
will be the same and that the State taxes will be reduced to the extent
that the GST operates and that the Commonwealth will make up the difference.
In relation to the business conveyance material, as the Prime Minister
said, it will take some work by the States to disaggregate what relates
to real property and what relates to business intangibles. And once
that work is done then the States themselves agree that there will
be phased withdrawal. Because one of the reasons for the phased withdrawal,
the second reason was that the States want to ensure that they do
it in some kind of sync so that they maintain competitive positions
as amongst themselves.
JOURNALIST:
So, Mr Costello, that would seem to indicate that the States did have
a point after all in their objections to the impact on the gambling
tax by your concession?
TREASURER:
No. In relation to both of these issues what it indicates is that
more detailed data is required. In relation to the stamp duties on
business conveyances, of course, the Commonwealth doesn't know
how to disaggregate those between intangibles and tangibles and the
Commonwealth worked off figures which were supplied by one of the
States and the other States don't believe that they are necessarily
right. So, they are all going to do their own calculations in relation
to that and hopefully get to an agreed position. In relation to gambling
it's rather a circular transaction, once you apply GST and reduce
transactional taxes the money goes around the circle because the GST
comes back to the States in any event.
JOURNALIST:
Mr Howard, what's the sticking point in trying to agree with
the Senate on the shape of an inquiry?
PRIME MINISTER:
Well, there's no sticking point. We just want a situation where
there is adequate time for the issue to be debated and voted on before
the 30th of June. And I am, sort of, I have a sneaking
suspicion there are one or two Senators who don't want that to
happen and I can't understand why. But I think there are a few
who have that, sort of, wicked thought in mind and we are trying to
ensure that the votes of the Senate, the Senate has a cast on this
important legislation as soon as possible in accordance with the wishes
of the Australian people.
JOURNALIST:
So, what's the latest date that you'll accept ...?
PRIME MINISTER:
Well, I am not going to, sort of, lay down final dates, I am simply
saying the general principle, Michelle, is that we have said we would
have an inquiry, it should be a sensible inquiry but it should not
be an inquiry that burns up so much time that you don't have
proper time left for sensible debate and a vote to be taken before
the 30th of June.
JOURNALIST:
But you'd be willing to compromise on the wide terms of reference?
PRIME MINISTER:
I have laid down the principle, I am not getting into dates or precise
terms of reference. There are discussions to be held, there have been
discussions held, the Treasurer's been conducting those in conjunction
with the acting Leader of the Government in the Senate and the Manager
of Government Business in the Senate. I have full confidence in their
conduct of those negotiations. Our objective remains to get a situation
where we can have a sensible debate, an adequate debate but a vote
before the 30th of June. Now, there are some in the Senate
who want to frustrate that because they thumb their nose at the wishes
of the Australian people. We want a vote taken before the 30th
of June.
JOURNALIST:
Prime Minister, certainly Senator Harradine wouldn't be amongst
those Senators who....
PRIME MINISTER:
No, I wouldn't put Senator Harradine in that category at all.
I think Senator Harradine is an admirable and a constructive and co-operative
Senator. I have always found my dealings with him to be of a highly
positive kind and I am thinking more of people who belong to larger
aggregations, people who belong to the Labor Party, for example, and
people who belong to the Australian Democrats. I think they have this,
sort of, wicked notion that the whole thing should be delayed. I think
once you have had an election and the people have said yes you ought
to get on with the job and that's what the Australian public
wants.
JOURNALIST:
Senator Harradine is still talking about not just food and education
but also what he calls the necessities of life, like shelter. Would
you be prepared to engage him on that?
PRIME MINISTER:
When the....if and when the time comes for me to have a discussion
with Senator Harradine about this issue I will as always that matches
my courtesy to him, conduct it in private on a personal basis and
without the glare of publicity.
JOURNALIST:
Mr Costello, did you receive the Foss report today and what does it
say?
TREASURER:
I haven't actually physically received it today but I believe
I will receive it today, so I am told. But I am sitting in my office
waiting for it. I'll be putting out a statement, I think, once
I do receive it just acknowledging its receipt.
JOURNALIST:
Will you release the report?
TREASURER:
Well, I am going to read it first. But let me see what's in it
before I answer that question.
JOURNALIST:
Mr Howard, you are going to Malaysia on Sunday, how confident are
you that the APEC meeting will achieve the kind of results that you
hope from it?
PRIME MINISTER:
Well, it's going to take place in a difficult environment, that's
true. It's not as propitious as the environment in which the
last APEC meeting took place but there are a lot of people going to
that meeting, such as myself, who are committed to making it work.
And I am hopeful that it will be a successful meeting, we'll
certainly be trying very hard to keep APEC true to the principles
on which it was established and for the meeting to try and send some
kind of signal to the region that, despite recent difficulties, it
ought to plough ahead. I mean, one of the great strengths that I will
take to that meeting is that I will go as the Prime Minister of the
country whose economy has performed outstandingly well in very difficult
circumstances. And I don't think that one can, you know, be reluctant
in emphasising just how strong the Australian economy is in very difficult
times. The statements made by the Reserve Bank and the Treasury recently,
the job numbers yesterday, although they are only one month's
figure and I don't engage in any phoney triumphalism about them
but they are nonetheless very good figures, the very solid growth,
the very solid business investment, the rise in consumer confidence.
All of these things speak of an economy that is still going ahead
very, very powerfully and is obviously weathering the Asian storm
better than most thought and our critics dared to imagine. So that
will give Australia a lot of strength and a lot of clout and a lot
of authority but we need others to agree with us and co-operate with
us and I hope that we can get that co-operation.
JOURNALIST:
Have you had any communication with President Clinton about the Iraq
situation?
PRIME MINISTER:
We've had some communication at a minister Defence Minister
level. I've not personally spoken to President Clinton but my
office has been in quite regular contact with the White House and
I'll no doubt discuss the matter with him in Kuala Lumpur but
I understand that the Defence Secretary has been in contact with Mr
Moore...
JOURNALIST:
But you're sure he'll go - that he'll be there?
PRIME MINISTER:
My latest information is that he'll be there but that can always
change. I've got no indication that it will change, but circumstances
can always arise. I think I was due to play a bilateral visit to Malaysia
earlier this year and at the last moment I had to cancel that because
of the imminence of the decision that the Australian government took
on Australian forces going to the Gulf. I know on that subject probably
no more than you do. I expect to see President Clinton there, but
the question of whether some event intervenes to prevent his going,
well, we'll just have to wait and see.
JOURNALIST:
Are you confident the RAAF jet will get you there?
PRIME MINISTER:
Well, let me assure you that according to the best advice I have from
the Defence department, your Prime Minister is safe and of equal importance,
your Press Gallery will be safe too.
JOURNALIST:
Prime Minister you've made some complimentary remarks about Senator
Harradine a few minutes ago. Would you extend the same sort of compliments
to Senator Colston and his new role?
PRIME MINISTER:
Well, my relationship with Senator Colston is different from my relationship
with Senator Harradine, but more interestingly is the relationship
of the most recently, or one of the most recently elected Labor Premiers.
I mean, I suppose you would have to say that the second most powerful
Labor politician in Australia thinks it is perfectly legitimate to
deal directly with Senator Colston, to speak of his long 25 year friendship
with Senator Colston and to seek the support of the Senator to advance
the interests of the State that they have in common. In other words,
Peter Beattie doesn't mind dealing with Mal Colston, it really
does make Kim Beazley's attitude and the unnecessarily acrimonious
and vituperative language that continues to be used against Senator
Colston by Senator Faulkner and others look very poor and rather tawdry.
I mean to read that language again in the cold light of day it really
is completely over the top. It is belittling of the men who utter
the language and I just don't think anybody deserves that kind
of calumny. He's been charged with certain offences. That's
a matter for the processes of the courts and I have got nothing more
to say about that.
JOURNALIST:
Prime Minister, do you think that you'll meet Anwar's wife
in Kuala Lumpur. There was a report today that she was interested
in meeting you. Do you think that would be overly provocative or do
you think it might be informative about some of the legal machinations
behind Anwar's arrest...?
PRIME MINISTER:
Well, I don't at this stage have any intention, any plan to meet
her, but it's not impossible that she may meet some other Australian
or some other Australian representative. I don't know, that's
a matter to be looked at. I will, of course, have a large number of
bilateral meetings. She has written to me, I have responded to that
letter, well, I have acknowledged receipt of that letter. It's
a difficult issue, you are aware of the concerns that I have expressed
and I don't retreat from those concerns. On the other hand, there
is a bilateral relationship to be looked after and it's important
that the state of that bilateral relationship be uppermost in people's
minds because that will survive and the need for it will survive way
beyond the occupancy of current offices by current leaders. That's
in the nature of political leadership and I just think that it is
very important that we understand that Australia does have a special
relationship with Malaysia and what might be appropriate in the dealings
between an American President or a Canadian Prime Minister and a Malaysian
Prime Minister don't automatically apply in relations...to
relations between an Australian Prime Minister and a Malaysian Prime
Minister.
JOURNALIST:
Is that meeting bedded down now, Mr Howard?
PRIME MINISTER:
Which one?
JOURNALIST:
The one with Dr Mahathir?
PRIME MINISTER:
I am so advised. As far as I am concerned I will be making time available.
JOURNALIST:
But in terms of....?
PRIME MINISTER:
Yes, we have an arrangement, yes. Have you heard something else? You
never know, I like to check! Now, I think we have just about exhausted
it have we? Thank you very much. I'll see you on the plane, those
of you who are coming.
[ends]