ABC 891

SUBJECTS: Paid parental leave scheme; Carbon tax

E&OE…………

David Bevan: Minister Wong, can we begin with you?  Has your department been crunching the numbers on Tony Abbott’s parental leave scheme?  There’s been a suggestion that it’ll actually end up costing more than your carbon tax. 

Penny Wong: What we know is this is a scheme that privileges high income families.  We know this is a scheme that will require a new tax across the economy and we know that even Libera Party members don’t support it.  It’s practically friendless in Shadow Cabinet as one Liberal member described. 

Bevan: But what’s the department telling you in terms of numbers? 

Wong: I don’t have those costings in front of me.  What I can say is Tony Abbott himself has said it’ll be another one and a half per cent on the company tax rate and on a day when it appears the Liberal Party are lining up to vote against a tax cut for small business and a tax cut for the rest of the economy it seems bizarre that they’re proceeding with a policy where they actually want to put company tax up.  This is a Liberal Party that is supposed to be the party of business that is going to vote against tax cuts and impose a tax hike on the economy. 

Matthew Abraham: Chris Pyne is it going to be a bit hard for Tony Abbott to sell a big fat new tax when he’s spent a lot of his time in Opposition raging against big fat new taxes. 

Christopher Pyne: The paid parental leave scheme from the Coalition is a workplace entitlement.  It’s not a welfare measure.  The Labor Party sees it as a welfare measure.  That’s why they’ve funded it the way they have.  We don’t.  We see it as a workplace entitlement for working women.  It is fully funded and fully costed and we won’t have any difficulty selling that policy because I think the women of Australia think it’s high time that their real wages were recognised in a paid parental leave scheme.  I think the bigger problem for the current polity is how the Government is going to sell a carbon tax, which is a massive hit to the economy, a massive hit to cost of living and increases taxes.  The Coalition will scrap the carbon tax delivering an immediate tax cut to every Australian when we get into Government. 

Abraham: Chris Pyne, it’s easy to fully cost and fully fund something when you introduce a new tax is it not?  What is the impact of that tax on the economy? 

Pyne: There won’t be any impact of the paid parental leave scheme on the economy other than a positive one because it’s actually a productivity measure. 

Wong: Oh, come on Chris. 

Pyne: It’s a productivity measure, and I let you talk Penny without interrupting you and the truth is it will be a positive thing for the economy because it will keep women in the workforce and they won’t be disadvantaged in their career progression.  It won’t be a hit to the economy; far from it, whereas the carbon tax we know from a report released only yesterday shows that business will spend $30 billion more because of the carbon tax. 

Bevan: The tax on big business to pay for the parental scheme that will be of similar, if not great proportions than the carbon tax. 

Pyne: No, that’s completely wrong.  There’s no figures of any reliability that would suggest that at all.  That is spin from the Labor Party.  It doesn’t stack up at all whereas we know that a carbon tax is a massive hit on the economy.  It’s already costing jobs.  Treasury modelling in South Australia, the State Government’s own treasury modelling indicates that – someone is playing with the sound here and I can no longer hear, but nevertheless I’ll keep talking – treasury modelling in South Australia shows that it will cost 15,000 jobs here in South Australia; modelling that was hidden by the South Australian Labor Government from the public in South Australia. 

Abraham: Penny on that specific statement…

Wong: Well yes can I just make comment, its interesting, Christopher seems to have come up with… the Liberal party has seemed to come up with a tax that is magical, it doesn’t have any effect on the economy.

Pyne: It’s not a tax.

Wong: Well it is a tax (inaudible)

Pyne: It’s a levy on the biggest businesses in Australia to pay for…..

Abraham: I think you need to let Penny Wong speak uninterrupted.  Penny Wong.

Wong: So, magically if Tony Abbott calls something a levy it is no longer a tax and it magically has no effect on the economy and magically, the coalition can increase the company tax rate and that won’t have any effect on the economy at all.  I mean it’s just ridiculous. But one thing Christopher hasn’t done today…

Pyne: What about the South Australian Treasury model?

Wong: I’m happy to talk about that and I regularly talk about matters about climate change. One thing that is very current that Christopher hasn’t answered is whether or not the coalition will proceed with their blocking, of a tax cut for small business and a tax cut for the broader economy.

Pyne: Well you asked about the modelling in South Australia which shows 1500 jobs going next year in South Australia because of the carbon tax.

Wong: And I stand behind the treasury modelling, the same people who advised Peter Costello, who

Pyne: (inaudible)

Abraham: Hang on, Please.  Penny Wong.

Wong: Thank you.  The largest modelling exercise in Australia’s history which shows we can grow jobs, including in South Australia, we can grow our economy and we can grow incomes with the carbon price.  So I’m happy to talk about that, but today’s issue is the small business tax cuts.

Abraham: And those small business tax cuts as you refer to them, is this part of the package of measures…

Pyne: …this is because of the mining tax

Abraham: (inaudible)

Pyne: We wont support the mining tax, we don’t believe you can make the slow lane faster by slowing down the fast lane. In a state like South Australia where we have got to be relying on our resources boom in the future. The last thing we need is a mining tax.

Wong: But are you going to oppose the small business tax cut?

Pyne: We will not support any measures associated with the mining tax.

Wong: … Liberal party coming in to parliament, a Liberal party, that is a party for small business, they will come in to parliament and they will vote against a tax cut…

Pyne: … the tax cut is a con, not a tax cut.

Bevan: Minister Penny Wong, can I just ask you, are the Greens going to succeed in directing the mining tax away from corporate tax cuts to spending on health and education?

Wong: This is the issue that I think Christopher should respond on, because the ball is very much in the opposition’s court.  The government in moving forward legislation and will release an exposure draft today which has a tax cut for small business starting the 1^st of July this year and a tax cut for the broader economy starting next year.  That is what we want to fund out of the MRT.  The greens have said they will support small business tax cut.  At this stage the coalition is saying they will vote against both of them. Now if the coalition want to support tax cuts for the broader economy, for the company tax sector which is one of the things that business consistently say is important, then they need to vote for it, because that is how business will get a tax cut.

Abraham: And Chris Pyne just finally.

Pyne: A tax cut funded out of a tax rise, is a tax con. 

Wong: (inaudible)

Pyne: The coalition will not fall for the con and neither will Australians.  The mining tax has already been dissolved because of the borrowing from the labour party in the last three months alone.

Bevan: Thank you Christopher Pyne, thank your for time and Penny Wong the minister for finance.

ENDS