NO.042

Simon Crean on AM – 7 June 2001

That GST Is Overheating the Economy Again!

AM:

The Treasurer said yesterday that, if it – I think actually it was the Prime

Minister who said that, if the GST has mugged the economy, then wouldn’t you

expect to see an impact in the services sector where there’s been actually a

big jump in economic growth? You’re in a sector there that had no indirect taxes

before which now has a 10 per cent GST. Wouldn’t you expect to see a sign there

if it is mugging the economy?

SIMON CREAN:

And don’t you think that, if people are forced to pay 10 per cent more to the

Government that growth should happen in it? I mean a sector that had no tax

in it and people having to pay 10 per cent additional on everything, you’d expect

it to grow, wouldn’t you?

CANBERRA

7 June 2001