Transcript No. 2000/20

TRANSCRIPT OF

TREASURER

SUBJECT: GST/Woolworths, Reconciliation, compliance costs

Treasurer, good morning.

Good morning, how are you?

Does Woolworths admission that clothes will initially go up by a full 10 per cent

damage your indication that that shouldn’t be the case?

Well, I welcome the fact that Woolworths have today announced price changes as a result

of GST, and they say that a basket of goods in their supermarket selling for $100 will

sell for $100.80. So that’s, what is that, 0.8 per cent change. This is the most

definitive and authoritative survey which has yet been done by one of Australia’s

major retailers. And they said, that in their price stores this is their figures, in

Woolworths price stores, if you’re paying $100 in a supermarket today, they think

under GST you’ll be paying $100.80, with the possibility of further price falls when

transport cost reductions are factored in. Now that is, of course, the most definitive and

authoritative statement yet from an actual retailer as to what that retailer intends to

charge post 1 July. And what they’re talking about, is if you’re paying $100

now, the bill could go to $100.80. A change of 80 cents in $100. Now, when you add in

together, the fact that for a family with two children on a salary of say $40,000

they’ll have additional spending power of $47 a week, that is, additional money in

their pockets to spend of $47 a week extra, on a Woolworths price increase of 80 cents per

$100, that is magnificent benefits for families and . . .

(inaudible) they’re still saying a full 10 per cent initially . . .

Well, well hang on. I think Labor now has egg all over their face. Absolute egg all

over their face. I think, you know, for Mr Crean, goes out and starts attacking Woolworths

today, I don’t, I don’t think I’ve seen a politician less controlled than

to, somebody to attack a major retailer. And why was he attacking a major retailer?

Attacking a major retailer because the retailer had good news. $100 went to $100.80,

that’s good news. Now the Labor Party, of course, has pledged to keep GST. And

let’s ask the Labor Party this question – are they going to give us a pledge

today to take GST off clothes? Is that their pledge, have they said that? No, they’re

just out there complaining about a tax that they intend to keep. And what they’re

really worried about today is good news. $100 goes to $100.80, and that’s not me

talking, that’s not the Australian Competition and Consumer Commission talking,

that’s Woolworths, Mr Corbett, who’s done an extensive study, and he says, in

his stores, if you’re paying $100 today, you’ll pay $100.80 with the possibility

of further price falls. And I welcome the fact that Woolworths has been so responsible in

its announcement this morning.

The Opposition says, the Prime Minister and the Government has an attitude problem when

it comes to Aboriginal reconciliation. Are you committed to reconciliation?

Yes, of course we are, and we’ve said that we will work hard on reconciliation.

There’s been a back down today . . .

There’s no question of an attitude . . .

. . . (inaudible).

There is no question of an attitude problem. The Government has been working hard on

reconciliation and we hope that it will be accomplished.

But there’s been no deadline set, or the deadline’s now been broken.

Well, you ask me, does the Government have an attitude problem? The answer is no, the

Government does not have an attitude problem. The Government is working on reconciliation

and I hope it will come to a productive conclusion. Thanks.

Are business compliance costs for the GST going to be higher than originally forecast?

Well, look I saw all of these sort of discussions in the Financial Review which was

based on Canada as far as I could tell, so I think the Fin will have to do a bit better

tomorrow. Thanks.