Goods and Services Tax

Mr MARSHALL (Dunstan—Leader of the Opposition) (14:38): Will the share of income tax to be paid to the states be distributed according to the principles of horizontal fiscal equalisation?

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:39): No, they won't, they will be distributed on a per capita basis because the equalisation has already occurred through the existing GST base. If those opposite understood commonwealth/state financial relations they would realise—

Members interjecting:

The Hon. J.W. WEATHERILL: And any increase in the GST would be increased on a per capita basis. You only equalise once, under the principles of horizontal fiscal equalisation. Any increase—

Ms Chapman interjecting:

The Hon. J.W. WEATHERILL: No. This is—

The SPEAKER: The deputy leader is living dangerously.

The Hon. J.W. WEATHERILL: This is why those opposite are actually not qualified to sit on the Treasury benches because they do not understand—

Members interjecting:

The Hon. J.W. WEATHERILL: No, this is—

Mr GARDNER: Point of order, sir: standing order 98. The Premier has descended well below debate again.

The SPEAKER: Listen very carefully to what the Premier has to say.

The Hon. J.W. WEATHERILL: It is a very important point. The fundamental supposition of the question is that somehow any increase in spending should be distributed according to—

Mr van Holst Pellekaan: You just asked.

The Hon. J.W. WEATHERILL: —a principle of—

Mr Marshall interjecting:

The Hon. J.W. WEATHERILL: No, well, the interjection has come back.

Mr Marshall interjecting:

The Hon. J.W. WEATHERILL: Well, they have given away the purpose of the question. They are saying that somehow we have been gotten to by Western Australia. Well, what that betrays is a complete misunderstanding of the principles of horizontal fiscal equalisation. Probably the most significant principle that underpins commonwealth/state financial relations, and those opposite do not understand how it operates. If that is the level of research and attention to detail and hard work they engage in and the preparation for questions about these topics, God help them.

Mr VAN HOLST PELLEKAAN: Point of order, sir—debate.

The SPEAKER: I uphold the point of order.