Goods and Services Tax

The Hon. I. PNEVMATIKOS (15:23): My question is to the Treasurer. Does the Treasurer agree that the South Australian budget could lose anywhere between $250 million and $2 billion as a result of the GST distribution changes which are currently under consideration by the commonwealth government and, further, what is the Treasurer doing to prevent this from occurring and what representations has the Treasurer made to his federal colleagues about this matter?

The Hon. R.I. LUCAS (Treasurer) (15:24): The evidence given by the Under Treasurer to the Budget and Finance Committee yesterday mapped out the various scenarios if various options that have been canvassed publicly were to eventually be agreed by the federal government, as to what the impact might be on South Australia. I think the most recent draft report—we haven't seen the final report of the Productivity Commission—will be recommending the per capita model, which is the one that has the most extreme impact on South Australia, which is the up to $2 billion figure. From recollection, I think the evidence the Under Treasurer gave was that the most recent draft report of the Productivity Commission talked about an impact, still significant, for South Australia of somewhere between $250 million and $500 million, rather than the $2 billion figure.

There are two points to make. One is that the Productivity Commission doesn't make the final decision. The Productivity Commission is a body that can only recommend to the federal government, and the federal government together, we would trust, with state governments would be the bodies that would make the final decision.

In terms of the second part of the member's question, I have said in this chamber on a number of occasions, and I have said publicly on a number of occasions, that the Marshall Liberal government won't be supporting any change to GST funding arrangements which disadvantages the interests of South Australia and South Australians. It doesn't matter whether it's a federal Liberal government or whether it's a federal Labor government, the Marshall Liberal government will be there fighting for the interests of South Australians, South Australian families and South Australian businesses.

We have been elected on that platform. The people of South Australia knew that that was the platform of the Marshall Liberal government, that we would always put the interests of South Australians first, and it was on that basis that the people of South Australia strongly endorsed Premier Marshall and strongly endorsed the Marshall Liberal government, and rejected the approach adopted by the former Labor government.

The people of South Australia have spoken. They accepted the position the Marshall Liberal government adopted and that is that the Marshall Liberal government will fight for South Australia and will put the interests of South Australians first, irrespective of whether there is a federal Labor government or a federal Liberal government. I would hope that the members of the Labor Party, rather than engaging in the internecine tribal warfare that they engage in within their party, would actually put those interests behind them and would actually join with the Marshall Liberal government in defending the interests of South Australia and South Australians, whether it be on the issue of GST funding or, indeed, on any other issue.

In relation to what representations I have made, I have spoken directly with the federal Treasurer. We have discussed this issue at federal meetings of state treasurers and the federal Treasurer, but I have also had a one-on-one meeting with the federal Treasurer, where I put on behalf of the people of South Australia, forcefully, the position that the Marshall Liberal government has adopted and will adopt in relation to the GST funding formula. I would hope that the honourable member will applaud the position of the Marshall Liberal government in being prepared to put the interests of South Australia first in defending South Australia's position in relation to the GST funding formula.