Senate debates

Wednesday, 27 August 2014

Questions without Notice

Revenue

2:58 pm

Photo of Carol BrownCarol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | | Hansard source

My question is to the Minister representing the Minister for Infrastructure and Regional Development, Senator Johnston. I refer to the minister's comments on the GST earlier this month at the Western Australian Liberals' conference that:

… the destination of our hard-earned revenue to other states and territories is a scandal that only we really understand and are prepared to fight for.

Does the minister stand by his statement?

2:59 pm

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

I thank the senator for the question because, as usual, I need to put what I said into the context in which I said it. Our Premier had indicated earlier that day what our share of GST was broken up into in terms of percentages, which the beneficial states were and what the amounts were that they received. My response to that was to stand up and say to about 800 people at the Liberal Party of Western Australia state conference, 'If you are unhappy with Western Australia receiving 38c in the dollar as a return on your GST, what you need to do is make a detailed submission to the white paper inquiry on federalism and the white paper inquiry on tax reform.' That is what I said to the assembled forum of the Liberal Party in Western Australia.

I do not resile from the fact that I think 38c in the dollar for Western Australia is, firstly, not sustainable and, secondly, unfair. That is not to say that other states do not need more than 100 per cent of their GST revenue. But I must say from a Western Australian perspective that I think 38c in the dollar is very unfair. (Time expired)

3:00 pm

Photo of Carol BrownCarol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | | Hansard source

Mr President, I ask a supplementary question. I refer to the comments made by the Western Australian Treasurer, Dr Nahan, on 5 August this year. Does the minister agree with Dr Nahan that Tasmania's share of the federal tax revenue allows Tasmanians to live in a state with 'no jobs and no prospects'? And does the minister support Dr Nahan's view that Tasmanians should be moving to states such as Western Australia?

3:01 pm

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

I must say to the senator that we in Western Australia were extremely disappointed when we saw the state of Tasmania closed down and turned into a national park.

Opposition Senators:

Opposition senators interjecting

Government Senators:

Government senators interjecting

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Pause the clock. Order, on my right and my left!

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

I must say that when Western Australians saw the election of Premier Will Hodgman we were greatly relieved that a decent, hardworking, properly focused, good public-administrating government had been elected. I do not expect the fortunes of Tasmania to turn around overnight given what has gone before, but it is an enormous relief to at last see some decent governing in Tasmania. (Time expired)

3:03 pm

Photo of Carol BrownCarol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | | Hansard source

Mr President, I ask a further supplementary question. I refer to the Prime Minister's pre-election promise that the coalition had no plans whatsoever to change the GST. In light of the minister's statement, when did the plan change?

Senator Bernardi interjecting

Senator Carol Brown interjecting

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Senator Brown, you have asked your question. Senator Bernardi, order!

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

We had no plan to change the rules regarding the distribution of the GST or to increase the GST. What I said to my fellow Liberals in Western Australia was: 'If you are unhappy, if you are outraged and if you think it is a scandal, have your say.'

Let's come back to the problem. The problem is that for so long—

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

Sixteen years.

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

For 16 years Tasmania have been nothing more than a passenger. Tasmania have been a mendicant state. On their west coast, they have fabulous mineral reserves. Will they touch them? No! They want their state to be a national park. We do not agree with that, and we do not want to pay for it either.

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.