Subjects: GST, anti-discrimination, Michael Wooldridge, Ministerial reshuffle,
Mobil fuel crisis.
E&OE...........................................................................................
REYNOLDS:
Mr Howard, you have singled backbenchers, Trish Draper and Trish Worth,
out for praise in the past, now they are campaigning against your tampon
tax. Are you wrong?
PRIME MINISTER:
Can I just answer that by saying this, what we are talking about here
is a small element of the GST which is part of an overall, dramatic improvement
to our tax system. We are not talking about a tax on an item in isolation,
or a GST in isolation. We are talking about a tax change that is going
to make our exports cheaper, our business operating costs lower, our fuel
in the bush cheaper. And overall give Australians a $12 billion tax cut
and give us the most modern taxation system this country has seen in fifty
years, and also enable this country to be even more competitive in international
markets. Now it is important to see every aspect of the GST as part of
that whole. Now you can always mount an argument not to tax an individual
item, I understand that. And taken in isolation that argument can be compelling.
But you can't take things in isolation, you've got to look at
it, every little part as a section of the whole, and that is what I am
doing in relation to this. And if you take the GST off say tampons, within
a few days, I promise you, there will be a group of people mounting quite
a respectable argument in isolation to take it off children's clothing.
Everybody needs clothing and that argument can be mounted. I mean, our
original idea was that you had it on virtually everything and then because
of the need to get the support of the Democrats in order to get the legislation
through Parliament, we had to agree to take out certain food items. Now
we didn't want to do that. Not because we want to tax things in particular,
it is just the fewer exemptions you have, the better the system. The more
exemptions you have, the more pressure there is to have still more exemptions,
and the still more exemptions you have you then start to threaten the
existence of the whole system. Now that of course is what our political
opponents want, but I remind them and I remind your listeners that we
took this to the election in 1998, we won that election, we've got
it through the Parliament. It is now the law and I am opposed to any further
exemptions.
REYNOLDS:
Well, New South Wales Liberal Leader, Kerry Chikarovski also wants the
decision reversed. You're not going to listen to her?
PRIME MINISTER:
I have explained why I don't believe any change should be made.
REYNOLDS:
Well, the Tasmanian Government's received legal advice from the
State's Anti-discrimination Commissioner that women could pursue
a class action against the Commonwealth. Do you take that seriously?
PRIME MINISTER:
Well, I am quite certain that if people hunt around you can find somebody
who will express an opinion like that about just about every aspect of
government behaviour and government life. There is nothing in front of
me that suggests there is any form of discrimination involved of any kind.
Look, we haven't set out to discriminate against anybody, what we
have set out to do is to give this country a tax system for the 21st
century. And if we're going to spend all of our time debating in
isolation the minutiae of the taxes application or a particular item we
will lose sight of the overall national benefit. Because everytime you
exempt something, you open up pressure to exempt something more.
REYNOLDS:But Canada . . .
PRIME MINISTER:And once that happens, then the whole system begins
to unravel and I am not going to allow a change which will be of enormous
benefit to this country, I mean we are going to take billions of dollars
off the cost of Australia's exports, we are going to reduce the cost
of fuel in the bush by billions of dollars a year, we are going to have
80% of Australian taxpayers on a top marginal rate of no more than 30
cents in the dollar and if we start unravelling and unpicking and pulling
this thing apart, you are going to threaten that. And this reform, this
new system of which the GST is but one part, will be of enormous economic
benefit to Australia that is why I support it. And that is why I believe
in it so very strongly.
REYNOLDS:
But Canada saw its way clear to exclude women's
sanitary products from the GST.
PRIME MINISTER:
Canada would be about the worst example of any country
in recent years to follow in relation to the GST. If you want an example
that was far more successful, have a look at New Zealand.
REYNOLDS:
Well the AMA and gynaecologists also say that 10% of
women need to use tampons for a medical condition. Doesn't that .
.
PRIME MINISTER:
Well, as I said, Fiona . .
REYNOLDS:
. . . doesn't that undermine your argument?
PRIME MINISTER:
Fiona, as I said at the beginning of this interview, if you look at something
in isolation you can mount an argument. That is not the point. The point
is whether we want a new tax system for a new century. Whether we want
$12 billion of personal tax cuts. Whether we want 80% of Australians on
a top marginal rate of 30% or whether we want cheaper fuel in the bush
and billions of dollars taken off our exports. Now, if we want all of
those benefits the only way that you can achieve it is to have an essentially
comprehensive broad-based indirect tax replacing the existing ramshackle
wholesale tax system and that is what we are determined and resolved to
do. And I expect on a whole range of items over the next five months people
are going to put their hands up and say why don't you exempt x',
why don't you do this, why don't you do that. And looked at
in isolation all of those things can sound very respectable but whereas
the AMA and other groups may be able to look at things in isolation when
you are the Prime Minister of the whole country you have to look at the
national benefit. And essentially we are changing the tax system for Australia's
benefit, we are not living out some ideological commitment. I am doing
this because I believe it will make Australia stronger and better economically.
REYNOLDS:
Your Health Minister, Dr Michael Wooldridge, apologised yesterday for
causing offence by equating shaving cream with tampons, are you sorry
for causing offence?
PRIME MINISTER:
Well, Michael Wooldridge chose a particular remark. He's made a
subsequent observation about that, that is entirely a matter for him.
I don't believe that the Government's decision is in any way
offensive and the position that we are taking is in no way offensive.
Everybody has a different way of explaining and defending Government decisions
and I give great credit to Michael - great credit to Michael - for saying
what he has just said.
REYNOLDS:
Well, while you were on leave there was some speculation of a reshuffle
and Dr Michael Wooldridge was one who was named. Can you rule out a reshuffle?
PRIME MINISTER:
None of that speculation came from me and as far as Michael is concerned
I think he is a quite outstanding Health Minister and he has my total
confidence and total support.
REYNOLDS:
So no reshuffle this year?
PRIME MINISTER:
All of that speculation came from others.
REYNOLDS:
You are heading on a tour of regional communities next week, they are
now amongst the worst affected from the aviation fuel crisis. When will
planes be back in the air?
PRIME MINISTER:
Well, I find that hard to answer Fiona. This is, of course, something
that has come from out of the clear blue sky no pun intended. It is really
a very difficult issue. We are in the hands of the experts. The absolute
first priority is safety. You can't take risks going into the air
if there's any danger and we are in the hands of the experts. And
as far as we are concerned we are pressing the authorities, we are pressing
Mobil, we are encouraging the experts to come up with the necessary tests
and procedures and clearances as soon as possible. Now, I feel very deeply
for people who are dependent on the aviation industry. I feel deeply for
the pilots and the operators and all of those people associated and I
can understand that they would be looking to the appropriate people for
legal advice. John Anderson has, although he's meant to go on leave,
he's remained on the job to continue to pursue the matter as the
responsible Minister. I am concerned about it but it's one of those
things that really as a layman I can't override the views of the
experts. If an expert says to me it's not safe to fly I can't
override that and in the end we are in the hands of the experts.
REYNOLDS:
Prime Minister, thank you for your time.
PRIME MINISTER:
You're welcome.
[ends]