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Legislative
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| Mike Elliott Leader Australian Democrats Member of the Legislative Council |
Parliament Index |
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Legislative
Council |
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| Mike Elliott Leader Australian Democrats Member of the Legislative Council |
Parliament Index |
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Adjourned debate on motion of Hon. P. Holloway:
That the Legislative Council—
I. Notes that—
to which the Hon. C. Zollo has moved the following amendment: Leave out paragraph II(b) and insert the following—(a) the Howard Liberal Government intends, through its proposed 29 per cent wine equalisation tax (WET) to—
(i) increase the rate of taxation on wine from the existing 41 per cent wholesale sales tax to the equivalent of a wholesale sales tax of 46 per cent;
(ii) raise an additional $147 million more in tax than the industry currently pays; and
(iii) tax cellar door sales;
(b) the increases in the price of wine that would be caused by the WET proposals of the Howard Government would break the Prime Minister's promise that prices would not rise by more than 1.9 per cent under the GST;
(c) industry estimates that the proposed tax would cost 500 jobs nationwide; and
(d) the tax would have disproportionate adverse effects in South Australia which accounts
II. Calls on the Howard Liberal Government to—
(a) reduce its wine equalisation tax proposal to the equivalent of revenue neutrality or 24.5 per cent; and
(b) provide exemption from the wine equalisation tax to the value of at least $100 000 per annum for cellar door sales, tastings and promotions.
(b) Provide exemption from the wine equalisation tax to the value of at least $300 000 per annum for cellar door sales, tasting and promotions, with costs to be met by the Commonwealth.
The Hon. M.J. ELLIOTT: This is one of those rare occasions when I agree with the Treasurer, so I hope he relishes the moment.
Members interjecting: The Hon. M.J. ELLIOTT: Just calm down! I also agree with substantial parts of the motion. However, I must begin by suggesting that this is clever dick politics at its absolute epitome, and I will explain why. I lived in the Riverland during the late 1970s and early 1980s. I remember the Labor Government introducing the first wine tax. Not only do I remember it introducing the first wine tax but also I remember when it increased it again in the late 1980s. During the 1980s, the wine industry was on its knees and the Labor Party started taxing it. It was not happy with that. When it got further on its knees it increased the damn tax. When the Democrats in the Senate moved that that tax be struck out, it was opposed. When the Democrats moved that at least the tax should be phased in to ease the impact, it was opposed. That is why I say that this stuff today is nothing more or less than clever dick politics. That is all it is about: nothing more, nothing less. Members of the Labor Party are a bunch of hypocrites. These are the people who introduced the wine tax and increased the wine tax when the wine industry was in desperate trouble. What hypocrites! The Hon. G. Weatherill: There's no doubting that you've got a good memory. The Hon. M.J. ELLIOTT: My memory is very good. And I remind the honourable member that the second increase occurred while he was in this place. My memory is very good. I presume this is being done for David Cox; it has his fingers prints all over it. I guess he handed it to Paul and said, `Paul, would you do this for me, because it might be worth two votes in McLaren Vale, if I am lucky, on a good day?' People in the wine industry have very long memories, and they will remember that, while the vine pull was going on, wine taxes were going up. The wine people will remember that very clearly. They are not silly. I have not been intimately involved in this debate over the past couple of months, and obviously over the past six weeks when our own Parliament has been sitting. I am under the clear impression that there is supposed to be a cellar door exemption of $300 000. In fact, it is interesting to note that the Labor Party proposed $100 000, while the Democrats have struck an agreement with the Government that it be $300 000, and the Labor Party then panics and moves an amendment to take it to where it was going. Not bad stuff. Labor members are going for $100 000 when the agreement has already been struck for $300 000. Members interjecting: The PRESIDENT: Order!The Hon. M.J. ELLIOTT: That is another lot of clever dick stuff. Really, members of the Labor Party are opportunists—nothing more and nothing less—and they are exposed.
