In response to the question from the Leader of the Opposition this morning, the Chief Minister said that it was too early to know the exact detail of the final package that was hammered out by the Federal Government in consultation with the Democrats. However, Territory ALP Senator, Trish Crossin, has been quick to jump into the media predicting dire consequences from the GST package particularly as it relates to tourism. Can the Treasurer comment on these assertions made by Senator Crossin?

ANSWER

Mr Speaker, I think one of the positive aspects of the negotiations that did go on between the Democrats and the government was that we will have tax reform; albeit not in the form or to the extent that the government or the Prime Minister initially intended. But it is a welcome sign that we will bring ourselves up to date and to a better world standard as far as the taxation regime in this country is concerned.

Most of us are aware of the benefits that will flow to the broader community and also to business as a result of getting rid of some very cumbersome taxes, reducing the tax on incomes - I think most Australians will welcome that - and also providing some stimulus for the economy generally.

It’s a great shame, though, from a tourism industry point of view that we have the likes of Senator Crossin and the member for the Northern Territory, Mr Snowdon, criticising the package in relation to what the benefits might be, and in fact being very negative about it.

We only have to go back yesterday to Trish Crossin’s remarks. She has now stooped to criticising those people who had the temerity to put their point of view. I speak of course of the remarks made by Mrs Penny Tastula, well known in the tourism industry, yesterday on ABC Radio. Of course, she was branded subsequently by Senator Crossin as a member of the CLP - and I don’t think she is - and a CLP sympathiser. Mrs Tastula is a very competent performer in the tourism industry with a huge awareness of what happens in the tourism industry and how this taxation package will positively impact on it.

For Senator Crossin to denigrate Mrs Tastula simply because she put her point of view is a sad reflection on them, particularly when the Labor Party has been in the wilderness over tax reform. And they’re hurting because of their irrelevance, bearing in mind that had one single senator from either Queensland, New South Wales or Tasmania supported the premiers of those states and put in their support in the Senate for the tax reform, the issue would be one that was a lot clearer.

For Senator Crossin yesterday to suggest that the tourism industry is going to be impacted upon, to completely disregard the fact that there are a range of value added taxes or GST’s around the world, and when international visitors continue to visit Australia because it’s a well promoted and well sought after destination …

Mr Stirling interjecting.

Mr REED: You’re being good little children, just listen, you might learn something. You’ve been good little children up until now, you’ve been behaving yourselves. Just see if you can keep it up for an hour.

Mr Bailey: Just send me the video.

Mr SPEAKER: Order!

Mr REED: There are taxes applied around the world, and if you look at France 20.6% general VAT or a GST rate, Greece 18%, Ireland 21%, Italy 19%, Spain 16%, Sweden 25%, you’ll then come to understand that when visitors from international countries who have been living under a GST for many years, and of course ...

Mr Bailey interjecting.

Mr REED: ... their countries are now economies of not only – there are people listening to this broadcast, Mr Speaker ...

Mr Bailey: They will realise you’re a joke! International visitors will ...

Mr SPEAKER: Order! The member for Wanguri is going a little over the top this morning.

Mr REED: They will understand the point that I’m making, and that is that when they come to Australia on holidays, they will find that the taxation burden here isn’t anything like it is in the countries in which they live. And whilst the honourable member for Wanguri might think it mirthful, our tourism industry is a bit more attuned to the realities of the new taxation package and the benefits that it’s going to deliver to Australians, including the tourism industry. I look forward to the recent changes to the package being resolved quickly.

The Under Treasurer is in Canberra today speaking with federal Treasury officers and, of course, the under treasurers from all other jurisdictions in Australia, and they will have some advice to us, I hope, by midday today or a little bit later, and that will enable us, perhaps, to progress the situation and to determine, as the Chief Minister said, the position that we will adopt in relation to the changes that have resulted from the negotiations between the Democrats and the federal government.