PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
22/02/2000
Release Type:
Interview
Transcript ID:
11491
Released by:
  • Howard, John Winston
TRANSCRIPT OF THE PRIME MINISTER THE HON JOHN HOWARD MP RADIO INTERVIEW WITH SALLY SARA, AM PROGRAMME

Subjects: tax reform, GST, private health insurance rebate.

E&OE..........................................................................................

SALLY SARA:

Mr Howard why should Kim Beazley have to make his promises now when it

was only two weeks before the last election when you spelt out the detail

of your entire tax package?

PRIME MINISTER:

Sally all this started when Mr Beazley made a promise to the state Labor

leaders. The great weakness in Mr Beazleys' position is that he says

I can't say this about income tax, I can't say that about the

health insurance rebate but I can promise the state Labor leaders that

the roll back of the GST won't leave the states with less money.

In other words he allowed himself to be bullied by Mr Bracks, Mr Beattie

and Mr Bacon down in Burnie and he has only got himself to blame because

you can't promise to roll back the GST, guarantee the states they

will be no worse off, keep the budget in balance and not in some way lift

income tax. It's just impossible and Mr Beazley has now become the

victim of his own strategy of being all things to all men. He has tried

to quieten down interest groups criticising aspects of the GST, then he

has turned around and promised the state Labor leaders there will be no

problem for them. And now he is saying look don't ask me to go into

detail about anything else it's too far out from the next election.

Well if it was too far out from the next election in relation to the deficit

and all these other things, why wasn't it too far out from the next

election in relation to the promise on the roll back. Mr Beazley will

have no alternative but to lift income tax if he is to roll back the GST

and leave the states no worse off.

SALLY SARA:

Mr Howard on the issue of the health insurance rebate. Can you promise

at this stage that that is an initiative the Government is planning to

keep forever? Isn't that a short term measure?

PRIME MINISTER:

No, it's not a short term measure. We have always believed in it.

Always. And it's a very good measure. And I challenge Mr Beazley

this morning to guarantee to the 32 percent of Australians who have private

health insurance, many of them retired people, many of them self-funded

retirees, many of them pensioners who regard private health insurance

as a very important area of comfort for them if they get sick and they

welcome that rebate. And can I just point out to your listeners Sally

that taking away the private health insurance rebate is a tax increase,

because it's a tax rebate. And because after the first of July 80

percent of Australian tax payers will be on a top marginal rate of no

more than thirty cents in the dollar, which is the value of the rebate,

it would represent taking away full tax deductibility of private health

insurance for 80 percent of the people who now have it. Now that is a

tax increase however you describe it and I have no doubt that people like

Jenny Macklin and others inside the Labor party are very keen on the idea

of axing it. They have never believed in it because they don't believe

in private provision for health. They have bled the private health insurances

dry when they were in office, even Graham Richardson appealed to them

to stop the haemorrhaging when he was Health Minister but they ran it

down and we have patiently built it up and we are very proud of what we

have done and for the first time in a decade, you are seeing a turn around,

you are actually seeing people going back into private health insurance.

SALLY SARA:

Mr Howard, lets get back to this key issue of what is being ruled in

and ruled out. Are we getting into dangerous territory here? Yesterday

you were asked whether there would be additional tax cuts, post the first

of July and you said after the first of July that's something the

Government will consider the situation. Aren't you left open to questions

too about whether things are being ruled in or out.

PRIME MINISTER:

Not at all Sally. We went to the last election with a plan. We went through

a lot of political pain to win that election. We were courageous enough

to lay out all our plans. The popular bits, the not so popular bits. The

people re-elected us. You know what happens after the first of July the

average Australian family will get a tax cut, a personal tax cut of forty-seven

dollars a week after allowing for the GST. Forty-seven dollars a week.

Now that is what happens after the first of July and it's the value

of that tax cut which is at risk as a result of Mr Beazley's conduct

over the last few days if the Labor Government were to be elected. Now

that is what happens after the first of July. I mean we have had the courage

to lay out a plan. We've been criticised for taking on what is something

that you know you can easily run a scare campaign about. But we believe

that tax reform was good in the long-term interest of Australia.

SALLY SARA:

But you layed out that plan two weeks prior to the election. Kim Beazley

is what eighteen months out from an election. Why should he have to spell

out the detail now?

PRIME MINISTER:

Sally, he started it. He was the one who spelt out the detail to the

Labor Premiers in Burnie. I mean he was the person who was bullied by

them into undertaking not to leave the states any worse off. In other

words he knew enough about the budget in two years time to give that promise.

But he is now pretending to you and the rest of the Australian community

that he doesn't know enough about the budget situation to give a

commitment about the private health insurance rebate. Now you can't

have it both ways. You can't say I know enough about the economic

situation of the country to guarantee the states they will be no worse

off but I don't know enough about the economic situation of the country

to guarantee there will be no lift in income tax. I mean he is cornered

by his own weakness. If he had not been bullied then maybe the situation

would have been different. But having said that the states will be no

worse off as a result of the roll back then he has no alternative but

to go the extra distance and answer all the questions that are now being

raised because he cant have it both ways. You cant say on the one hand

I know nothing about the budget therefore I can't give any undertakings.

But then say to the Labor premiers oh don't worry you will be all

right. I mean it just is absolutely unacceptable and he has displayed

monumental weakness on this.

SALLY SARA:

Mr Howard thanks for joining us this morning.

[ends]

11491