Mr BALCH - 1999-04-20
I, and I’m sure all members on this side of the House, would like to congratulate the Chief Minister and the Treasurer for their efforts on behalf of all Territorians in Canberra on 9 April at the Premiers’ Conference.
Could the Chief Minister inform honourable members what role the Commonwealth Grants Commission will play under the new Commonwealth State and Territories financial arrangements?
ANSWER
Thank you, Mr Speaker. The simple answer to the question is this. The very important role that the Grants Commission has at the moment, ensuring horizontal fiscal equalisation, the way money is distributed to each state and territory according to its needs, and according to principles that have held this country together since the war years, will remain. The Grants Commission role will remain. The big difference that has come through is that, previously, the Commonwealth Government said: ‘This is the amount of money that we will disburse to the states and territories’. The Grants Commission then figured out how much of that finite bucket was distributed in which way. Then the fight was on. Premiers and chief ministers went to Canberra and argued that the bucket wasn’t big enough, and because it wasn’t big enough, their share of the bucket was even worse. That was the standard at the Premiers’ Conference that has gone on for many, many years.
The big change is this. The size of the bucket is no longer in the hands of the federal government. The size of the bucket is in the hands of the revenue that is generated through the GST. All the trend lines have been done in terms of the size of the bucket, and I can tell you that all the premiers and chief ministers are delighted. If you could see the grin on Premier Beatty, Premier Bacon and Premier Carr’s faces when they gleefully signed up to the GST and were talking about how they could put pressure on their own senators to get this legislation through, it makes one realise what a laughable position we are in where the Senate can be blocked by the attitude of the ALP and the Democrats and the requirement to fill the pockets of Senator Harradine.
That’s one issue. The second issue is this. I come back from the Premiers’ Conference and I read the NT News. I pick up the NT News and it says: ‘NT picks up $57m boost’. I quote: ‘The NT will get more than $1300m in Commonwealth payments in the coming financial year’. That’s correct. ‘This is about $57m more in general revenue’. That’s correct. It goes on: ‘Mr Burke said: “For the first time in Australian history, the states and territories have a predictable share of Commonwealth tax revenue, allowing for far greater long-term planning and consistencies”’. That is correct. Then we read this: ‘NT Opposition Leader, Clare Martin, said yesterday that the GST package put future grants to the Territory at risk. Ms Martin said: “Without the independence of the Grants Commission, money will be dished out by Canberra according to politics, not need.”’
The Labor leader opposite has, I understand, Barry Jones coming up to give some advice about how you are going to put policies together. I suggest you seek a bit of counsel because it’s important ...
Ms Martin interjecting.
Mr SPEAKER: Order!
Mr BURKE: Look, I’m not into criticism when it’s not necessary, but if the Labor leader runs out and makes statements to the media to put fear in Territorians’ minds as to how this GST operates, let’s all understand how little she knows about the way it works.
The reality is that the Commonwealth Grants Commission is the independent umpire, and the Commonwealth’s Grants Commission’s decisions will remain. More than that, the Commonwealth government can’t decide what the size of the bucket is, the GST will decide the size of the bucket. To suggest that the Grants Commission funding will be dished out according to Canberra’s directions is an absolute falsehood, and the Leader of the Opposition should admit that. She doesn’t understand the way it works. It’s as simple as that. I told her she had taken on too many portfolios. She is the shadow treasurer, and she doesn’t even understand the very basics of how the GST and the Commonwealth Grants Commission works.
In the last statement she said: ‘There’s a real risk we’ll be duded’. Well, if she ever becomes chief minister of this place, you can guarantee we’ll be dudded.
Could the Chief Minister inform honourable members what role the Commonwealth Grants Commission will play under the new Commonwealth State and Territories financial arrangements?
ANSWER
Thank you, Mr Speaker. The simple answer to the question is this. The very important role that the Grants Commission has at the moment, ensuring horizontal fiscal equalisation, the way money is distributed to each state and territory according to its needs, and according to principles that have held this country together since the war years, will remain. The Grants Commission role will remain. The big difference that has come through is that, previously, the Commonwealth Government said: ‘This is the amount of money that we will disburse to the states and territories’. The Grants Commission then figured out how much of that finite bucket was distributed in which way. Then the fight was on. Premiers and chief ministers went to Canberra and argued that the bucket wasn’t big enough, and because it wasn’t big enough, their share of the bucket was even worse. That was the standard at the Premiers’ Conference that has gone on for many, many years.
The big change is this. The size of the bucket is no longer in the hands of the federal government. The size of the bucket is in the hands of the revenue that is generated through the GST. All the trend lines have been done in terms of the size of the bucket, and I can tell you that all the premiers and chief ministers are delighted. If you could see the grin on Premier Beatty, Premier Bacon and Premier Carr’s faces when they gleefully signed up to the GST and were talking about how they could put pressure on their own senators to get this legislation through, it makes one realise what a laughable position we are in where the Senate can be blocked by the attitude of the ALP and the Democrats and the requirement to fill the pockets of Senator Harradine.
That’s one issue. The second issue is this. I come back from the Premiers’ Conference and I read the NT News. I pick up the NT News and it says: ‘NT picks up $57m boost’. I quote: ‘The NT will get more than $1300m in Commonwealth payments in the coming financial year’. That’s correct. ‘This is about $57m more in general revenue’. That’s correct. It goes on: ‘Mr Burke said: “For the first time in Australian history, the states and territories have a predictable share of Commonwealth tax revenue, allowing for far greater long-term planning and consistencies”’. That is correct. Then we read this: ‘NT Opposition Leader, Clare Martin, said yesterday that the GST package put future grants to the Territory at risk. Ms Martin said: “Without the independence of the Grants Commission, money will be dished out by Canberra according to politics, not need.”’
The Labor leader opposite has, I understand, Barry Jones coming up to give some advice about how you are going to put policies together. I suggest you seek a bit of counsel because it’s important ...
Ms Martin interjecting.
Mr SPEAKER: Order!
Mr BURKE: Look, I’m not into criticism when it’s not necessary, but if the Labor leader runs out and makes statements to the media to put fear in Territorians’ minds as to how this GST operates, let’s all understand how little she knows about the way it works.
The reality is that the Commonwealth Grants Commission is the independent umpire, and the Commonwealth’s Grants Commission’s decisions will remain. More than that, the Commonwealth government can’t decide what the size of the bucket is, the GST will decide the size of the bucket. To suggest that the Grants Commission funding will be dished out according to Canberra’s directions is an absolute falsehood, and the Leader of the Opposition should admit that. She doesn’t understand the way it works. It’s as simple as that. I told her she had taken on too many portfolios. She is the shadow treasurer, and she doesn’t even understand the very basics of how the GST and the Commonwealth Grants Commission works.
In the last statement she said: ‘There’s a real risk we’ll be duded’. Well, if she ever becomes chief minister of this place, you can guarantee we’ll be dudded.
Last updated: 09 Aug 2016