Subjects: Caravan GST; Dairy Industry
JOURNALIST:
Mr Howard, the conference is still continuing at Tweed Heads and apparently a few Nationals are still concerned about the caravan park issue.What's your response to that.
PRIME MINISTER:
Well the caravan park residents have been completely misled. They would not be better off if the half GST is not imposed because in those circumstances the caravan park owners would increase the rent to recoup for the fact that they can't get their input tax credits back. So this whole campaign fanned by the Labor Party is based on a misunderstanding. I'd say to the residents you will not be better off if we get rid of the park GST. You will be no better off because there will be an equivalent increase of rent due to the fact that the owners won't be able to recoup their input taxes.
JOURNALIST:
Does is mean the issue is off the table Mr Howard [inaudible] that there will be no change?
PRIME MINISTER:
Well the policy is staying because it's fair.
JOURNALIST:
There is a perception though that caravan park - people who live in caravan parks are going to be hit whereas people who live in normal structures won't be hit with the GST.
PRIME MINISTER:
They will be no worse off. I mean the bottom line is that if you pay the part, the half GST, you will be no worse off than if you don't pay it and you have your rent increased by an equivalent amount because the owner can't do otherwise than that in order to recoup the input tax that he's paid. So either way the outcome is essentially the same. So there's no discrimination. I mean we wouldn't have imposed this if there were discrimination. We're not in the business of discriminating against these people. But I say to them, you're being mislead by a quite dishonest campaign. Don't take any notice of it. Please believe that if we were to do what you ask and take off the half GST, you won't be any better off. And that's what really matters. They shouldn't feel they are being discriminated against because they're not. Why would we discriminate against them? All we've done is to provide an option and the practical outcome is the same, no matter which option is adopted.
JOURNALIST:
Well Prime Minister, how do you calm down the National Party and those members who are concerned that they will suffer a back lash? They are are talking about losing three seats.
PRIME MINISTER:
We obviously talk to people, but we say to them that the residents are being misled by the campaign and that if we were to do what the residents are asking for, they will be no better off. I will keep saying that and I am sure that that will be ultimately understood and accepted because it's the truth.
JOURNALIST:
But this appears to be causing a far bit of tension between you and the National Party.
PRIME MINISTER:
Oh,I have been in politics a long time.
JOURNALIST:
Prime Minister there's a story running on AAP, Queensland Premier Mr Beattie backing down on plans to convert Queensland's eight cents a litre fuel subsidy into registration discounts for motorists. What is your response to that?
PRIME MINISTER:
Well he ought to back down because it's an outrageous attempt to rort the motorists of Queensland and try and blame the GST and if it's blown up in his face he deserves every bit of the incendiary discomfort.
JOURNALIST:
ÔRorting' is a bit strong isn't it?
PRIME MINISTER:
Well,it is. I mean he's trying to cheat them.
JOURNALIST:
Mr Howard regarding the issue of dairy deregulation will the Federal Government consider intervening to stop the deregulation of the dairy industry?
PRIME MINISTER:
Well this has been asked for by the industry and all we are doing is providing a $1.7 billion dollar support package. We want to help dairy industry and the dairy industry has voted in favour of this package and ultimately we've done it because the States have told us that the dairy industries in their respective jurisdictions want it. We don't control diary industry regulation, the States do. But we said to the States if all of your members want it, we'll facilitate it. I mean we are the great facilitater. We're there to help them and they told us they wanted this.
Thank you.
[ends]