Tasmania’s fair share of the GST

JULIE COLLINS, SHADOW MINISTER FOR AGEING AND MENTAL HEALTH: This Productivity Commission inquiry today shouldn’t be happening at all. If the Tasmanian Liberal Senators had stood up for Tasmania this inquiry would not be happening at all. But at least given it is happening they’re actually having a hearing in Tasmania. And the only reason we’re having a hearing in Tasmania is because Tasmanians stood up and said we want to have our say, if this is going affect us we want to have our say. But what I’m really disappointed in, and what Tasmanians will be really disappointed in, is that the Federal Liberal Senators have not stood up for Tasmania. They have not said this shouldn’t happen. No matter what happens with this GST review, Tasmania is going to be worse off. Tasmanians shouldn’t stand for this and this inquiry should not be happening at all.

JOURNALIST: If there are any changes, do you have any preferred model that may help Tasmania in some way?

COLLINS: The Labor Party is on the record that we support horizontal fiscal equalisation. That is that Tasmanians should be treated and have access to the same services as every other Australian. The Labor Party has put in a submission saying that. The Liberal Government has not committed to that and the Tasmanian Liberal Senators have not committed to that. What we have not seen is Liberal Senators come out and talk about this issue. Eric Abetz is happy to talk about every other issue under the sun, but he’s not happy to stand here and defend Tasmania’s GST and he should be.

 

JOURNALIST: How could he have influenced the decision that the Productivity Commission will take?

 

COLLINS: If the Tasmanian Liberal Senators had stood up the Prime Minister may never have called this inquiry. The Prime Minister’s doing a lot of backflips lately, perhaps he could backflip on this inquiry as well. Tasmania does not deserve to be worse off. Tasmanians should not be treated worse than other Australians.

 

JOURNALIST: Do you think there needs to be more scrutinisation of the spending of GST revenue in Tasmania rather than as currently applies?

 

COLLINS: Well obviously it’s up to the states how they spend their GST requirements and revenue. It is up to every state. What’s happened of course is that Western Australia under the former Liberal Government spent everything they had in the mining boom and that’s why Western Australia does have a legitimate issue at the moment about their services and Labor is the only party that has fronted up to Western Australia and said ‘we’ve got a plan, we will help you out, because we understand the former Liberal State Government really duded you.’

 

JOURNALIST: Critics say the current system encourages states and territories to under-tax and under develop, do agree that there could be some improvement made?

COLLINS: Well if this inquiry is serious about looking at improvements then that’s fine –look at improvements. What we should not step away from is HFE. And that is the horizontal fiscal equalisation -treating all Australians the same no matter where they live and the access to services no matter where they live. The whole bottom line is that with the Productivity Commission’s draft review Tasmania could be at least a billion dollars a year worse off. That is a billion dollar cut to health and education and other services that our state cannot take.

 

JOURNALIST: You’ve acknowledged that Western Australia is in a lot of trouble at the moment and Tasmania stands to be in a lot of trouble, where do you see the answer lying?

COLLINS: Well I think the answer lies with horizontal fiscal equalisation – making sure that all Australians no matter where you live get access to the same services. That is the point of being a federation. Why are we a federation if you’re going to treat states differently? That shouldn’t be happening and it’s not what the federation was created for. All Australians should be treated the same.

 

JOURNALIST: So the Prime Minister could give a handout to Western Australia is that what you’re suggesting?

 

COLLINS: Well the Prime Minister could go over to Western Australia and be honest about what he’s doing with the Productivity Commission and this inquiry. He could come to Tasmania and be honest about what he’s doing with the GST, but what we haven’t seen from this Prime Minister is some real leadership to actually address WA’s issues and to leave the GST with HFE as it should be.