NO.104

The Morgan and Banks survey reported in the Sunday Telegraph today was in fact released

on Tuesday last week embargoed for Wednesday’s papers and reported at that time.

Accompanying the release on profitability were three other press releases. They were as

follows:

(i) “Australia Wins Gold Again” finding that a record number of businesses

will be hiring permanent staff in the next quarter

(ii) “No Worries for November GST Payments” indicating only 12 per cent of

employers were worried about cashflow in meeting GST payments

(iii) “GST Rollback Not Appropriate” showing a resounding 90.5 per cent of

businesses oppose Labor’s rollback policy.

What these surveys show is that overwhelmingly businesses are coping with the

introduction of GST – they are not worried about cashflow and employment is booming.

They also confirm that business may well have absorbed profit margins to keep prices

down for consumers. This is good news for consumers and consistent with the lower than

expected September quarter CPI result. Since overall company profits are at record highs,

businesses may have taken the opportunity to preserve market share and consumer goodwill.

Labor’s claim that business viability is threatened is completely false. As the survey

itself shows employment intentions are booming.

The most revealing part of the survey was the near total opposition to Labor’s rollback

– a massive 90.5 per cent – making rollback one of the most unpopular policies in Federal

political history.

No wonder Labor keeps it hidden.

If Labor had any intention of rollback on GST it should announce it now so people can

assess it, and in particular assess Labor’s plan for higher tax and higher interest rates

to pay for it.

Labor’s shame and embarrassment over rollback is proven by the fact that it is going to

such extreme lengths to cover up its policies.

5 November 2000