Mr MITCHELL - 2000-06-15
Honourable members may recall one of the recommendations of the Territory Food Prices Committee last year was that quarterly price surveys be undertaken. Can the Treasurer tell us if he has given any thought as to how this survey could be used to assess the impact of the Commonwealth’s new tax system and to inform people?
ANSWER
The member for Millner is following a long tradition of members of the CLP government sticking up for the rights of Territorians and ensuring that they are protected from any unnecessary impost, in this case by possible increases in prices through the application of the new taxation system. This government is concerned to ensure that Territorians’ best position can be followed and maintained and from that point of view we will be, on a one-off basis, changing the quarterly grocery price survey that the government implemented as a result of the parliamentary inquiry into grocery prices, and conducting a grocery price survey before the GST is introduced on 1 July to be followed by another grocery price survey afterwards.
Mr Toyne: So they can see how much the prices go up.
Mr REED: So that we have some factual data to be able to assess what the precise position is to ensure that embedded tax savings that will accrue to businesses are passed onto consumers; that an advantage is not taken off Territory consumers; and that the benefits that should accrue to them do accrue to them. We will not be sitting idly by and running the risk of Territorians experiencing an increase in price if, for example, Labor’s wholesale sales tax is not fully removed and the impost, for example, that is on freight at the moment remains in terms of high fuel prices. With the reduction in diesel fuel prices to the transport industry, we would expect that there will be a reduction in the freight charges, and that, too, in turn should flow through to items on the grocery shelves.
We won’t be shy about lobbying the Commonwealth if their new system unfairly impacts on Territorians. This government has a long history of fighting for the rights of Territorians. We have fought for the 13 years when the Labor government was in power federally to ensure that the rights of Territorians were protected. We fought on a daily basis to try and minimise the cuts that the federal Labor government imposed on the Northern Territory in relation to federal funding to the Northern Territory, and which they reduced by very substantial amounts over the time that they were in government. We fought them in relation to the reduction in housing funding to the Northern Territory, which was in the order of $60m a year, and is now down to a pittance, a few million dollars a year, we fought them every inch of the way, and we fought them with the Territory Labor Party supporting their federal colleagues, not supporting Territorians.
It is on that basis, fighting for the rights of Territorians, that we will be implementing this grocery price survey before and after the GST so that we have some factual information, as opposed to the scaremongering and inappropriate attitude that the Labor Party has adopted in creating a circumstance where people are unnecessarily concerned, over and above their obvious concerns as to how they will themselves adjust to a new tax system because it is a big change in this country.
I assure Territorians that, following on a suggestion from the Chief Minister that this might be an opportunity for us to stand up for the rights of Territorians and ensure they are not disadvantaged, after discussing the option with Treasury, they have made the suggestion and put in the arrangements to undertake those two price surveys. I look forward to being able to report back to the House and Territorians the outcome and the factual information that we will have to assess what action, if any, will be required in the future after the GST is introduced.
ANSWER
The member for Millner is following a long tradition of members of the CLP government sticking up for the rights of Territorians and ensuring that they are protected from any unnecessary impost, in this case by possible increases in prices through the application of the new taxation system. This government is concerned to ensure that Territorians’ best position can be followed and maintained and from that point of view we will be, on a one-off basis, changing the quarterly grocery price survey that the government implemented as a result of the parliamentary inquiry into grocery prices, and conducting a grocery price survey before the GST is introduced on 1 July to be followed by another grocery price survey afterwards.
Mr Toyne: So they can see how much the prices go up.
Mr REED: So that we have some factual data to be able to assess what the precise position is to ensure that embedded tax savings that will accrue to businesses are passed onto consumers; that an advantage is not taken off Territory consumers; and that the benefits that should accrue to them do accrue to them. We will not be sitting idly by and running the risk of Territorians experiencing an increase in price if, for example, Labor’s wholesale sales tax is not fully removed and the impost, for example, that is on freight at the moment remains in terms of high fuel prices. With the reduction in diesel fuel prices to the transport industry, we would expect that there will be a reduction in the freight charges, and that, too, in turn should flow through to items on the grocery shelves.
We won’t be shy about lobbying the Commonwealth if their new system unfairly impacts on Territorians. This government has a long history of fighting for the rights of Territorians. We have fought for the 13 years when the Labor government was in power federally to ensure that the rights of Territorians were protected. We fought on a daily basis to try and minimise the cuts that the federal Labor government imposed on the Northern Territory in relation to federal funding to the Northern Territory, and which they reduced by very substantial amounts over the time that they were in government. We fought them in relation to the reduction in housing funding to the Northern Territory, which was in the order of $60m a year, and is now down to a pittance, a few million dollars a year, we fought them every inch of the way, and we fought them with the Territory Labor Party supporting their federal colleagues, not supporting Territorians.
It is on that basis, fighting for the rights of Territorians, that we will be implementing this grocery price survey before and after the GST so that we have some factual information, as opposed to the scaremongering and inappropriate attitude that the Labor Party has adopted in creating a circumstance where people are unnecessarily concerned, over and above their obvious concerns as to how they will themselves adjust to a new tax system because it is a big change in this country.
I assure Territorians that, following on a suggestion from the Chief Minister that this might be an opportunity for us to stand up for the rights of Territorians and ensure they are not disadvantaged, after discussing the option with Treasury, they have made the suggestion and put in the arrangements to undertake those two price surveys. I look forward to being able to report back to the House and Territorians the outcome and the factual information that we will have to assess what action, if any, will be required in the future after the GST is introduced.
Last updated: 09 Aug 2016