TRANSCRIPT
THE HON PETER COSTELLO MP
Treasurer

Doorstop Interview

Treasury Place, Melbourne

Sunday 7 March 2004

12.00 Noon

SUBJECTS: Labor’s Tax Agenda, Leadership, NSW Funding

JOURNALIST:

I don’t know whether you saw the Sunday program on Channel Nine this

morning and the Latham interview (inaudible) but a few things have come out

of that (inaudible). First of all the Opposition Leader is refusing to rule

out tax increases if they go into power. What is your response to that?

TREASURER:

There is no doubt that if Mr Latham was elected to government, Labor would

increase taxes. They have to increase taxes because they have made so many unfunded

promises. We know from Mr Latham’s record that the first day on the job

as Shadow Treasurer he wanted to abolish negative gearing. In September of last

year he wrote a secret letter to Access Economics asking them to cost increases

to capital gains tax, and today he can’t rule out tax increases because

Labor’s program is to increase taxes. As sure as night follows day, Labor

wants to increase taxes. The only thing I say to Mr Latham is tell the public

now, don’t try to sneak in to office and do it afterwards.

JOURNALIST:

Given the cost of the Iraq and Solomons engagements, can you definitely rule

out that your Government won’t increase taxes to meet the cost of those?

TREASURER:

The Government will not be introducing new taxes, we will not be increasing

the existing taxes. In fact in the last Budget we cut tax, we introduced an

income tax cut for every Australian. But Labor has to increase taxes because

they are making promises they cannot afford. Their economic policy is a shambles.

We have a secret letter they have written to their consultant, asking the consultant

on options to increase capital gains taxes. Mr Latham himself said he wanted

to abolish negative gearing and as sure as night follows day Labor will increase

taxes if they ever get elected.

JOURNALIST:

Now the Opposition Leader says it should be relatively easy for you to rule

out an opposition challenge to Mr Howard. Will you?

TREASURER:

Well I noticed this morning that Mr Latham can’t rule out increasing

taxes. He has got all sorts of advice for everybody else. Let’s just focus

on what Mr Latham is about here. He was asked whether he would rule out increasing

taxes and he doesn’t. We have a secret letter showing that he’s

working on tax increases, and we know from his record he wants to abolish negative

gearing. Mr Latham wants to increase taxes and I say to him – tell the public

now, don’t try to slip into office and tell them afterwards.

JOURNALIST:

Is it basically none of his business that he should say that it’s relatively

easy for you to rule out an opposition to the Prime Minister?

TREASURER:

Mr Latham is full of advice on what should be ruled in or should be ruled

out, and yet he can’t rule out increasing taxes. He caught himself this

morning, he was caught by his own words. He can’t rule out increasing

taxes because he has got a secret plan. Come clean now, Mr Latham.

JOURNALIST:

(Inaudible) would you regard maybe as your greatest opponent in becoming Prime

Minister, Mr Howard or Mr Latham?

TREASURER:

We have got an election coming up and I can tell you this I will be working

as hard as possible for the return of the Liberal government.

JOURNALIST:

Now Mark Latham has also said that this morning that he has never told a lie

in politics. Do you believe this?

TREASURER:

Well let’s give him the benefit of the doubt – he changes his mind on

very frequent occasions.

JOURNALIST:

You know what the general public would say of course, is it really possible

for any politician to be in that job and I mean it’s part, it’s

part of the brief isn’t it, it’s part of the CV?

TREASURER:

Well let’s give Mr Latham the benefit of the doubt – he has said a lot

of things and he has contradicted himself later on. Let’s just say he

has changed his mind much more frequently than other people in politics.

JOURNALIST:

Just to State matters, Bob Carr has this morning said that, or branded John

Howard as a “serial burglar” because he is going back on his word,

according to the NSW Premier on the health care agreement with the States which

he says will cost NSW $100 million and if the Budget is in the red up there

it will be Mr Howard’s and your fault?

TREASURER:

Bob Carr is preparing a litany of excuses to say that everybody except that

Bob Carr is responsible for NSW and the only thing I would say to Mr Carr is

you have been the Premier for what, 8 or 9 or maybe more years, take responsibility,

don’t try and push your problems off onto somebody else. These things

are determined by independent commission, the Commonwealth Grants Commission.

NSW was happy to take advantage of this procedure when it delivered them a bonus.

Mr Carr wrote in his diary how pleased he was. When the independent commission

brings down the system the Commonwealth will abide by it. Mr Carr should abide

by it but he should take responsibility for his own government.

JOURNALIST:

So the Premier is basically looking for a scapegoat?

TREASURER:

Well I think that Mr Carr has been Premier of NSW long enough to start taking

responsibility for his own budget and he can’t try and pretend that somebody

else is responsible for his own budget. He’s the Premier, he’s the

Premier of NSW, he’s responsible for it.