FED: Colston arrives in time for tax debate

AAP General News (Australia)
04-19-1999
FED: Colston arrives in time for tax debate

By Steve Connolly

CANBERRA, April 19 AAP - A key player in the fate of the GST turned up in federal
parliament for the first time this year today as the Senate completed its predictable inquiry
into the new tax.

Terminally ill independent senator Mal Colston had missed all four senate sittings this
year due to his battle with stomach cancer.

But his son David confirmed today that the former Labor senator was in Parliament House and
intended to be around for the two weeks of senate sittings.

Senator Colston, with fellow independent Brian Harradine, holds the balance of power in the
Senate and the government needs his support for the package to be passed.

His presence complicates the future of the GST legislation which the Senate started
debating tonight.

Senator Colston could effectively veto amendments to the tax package which the Australian
Democrats plan to outline tomorrow.

Labor and the Democrats today concluded in the 505 page report into the new tax system that
the GST was unfair.

"Up until now it has been said there are two eternal truths about life, you can't escape
death and taxes," said inquiry chairman, Labor frontbencher Peter Cook.

"A third truth can be added. You'll never be able to compensate all the people, all the
time under the John Howard GST package."

Government senators naturally dissented, and were critical of the conduct of the opposition
parties during the four-month, $1 million inquiry.

The Democrats, who want food exempt from the GST, concluded that almost five million people
would lose out under the new system.

Democrats leader Meg Lees said up to $6 billion in extra compensation was needed to make
the package fair.

"I think the message is very clear if you read right through the evidence .. that people
are worse off," she told reporters.

"For nearly five million Australians, this is a risk that isn't worth taking and we will
not be supporting this package in its current form.

"To make sure no-one's worse off we are looking at ... taking food out and putting a couple
of billion dollars - which we know the government's got in their back pocket."

Senator Lees said she would meet this week with senators Harradine and Colston, who did not
make any comment on the report.

Speaking to reporters ahead of the Senate's tax report, Liberal senator John Tierney said
the government was discussing the possibility of changes to its tax package to make it fairer
for low-income Australians.

"There has been indications that the government is looking at particularly the lower end of
the tax scale and we're still discussing and debating that and I think at the end of the day
we're going to end up with a much fairer package," he said.

Prime Minister John Howard maintained today the tax package was fair despite acknowledging
some fine-tuning may be needed.

Pressed on compensation issues, he said: "I've never ruled out fine-tuning. (But) you're
not going to start getting me speculating, hypothesising, musing, ruminating, or anything else
of that kind in any other way," Mr Howard told reporters.

The government wants to have the tax package dealt with before July 1 when the Democrats
regain the balance of power in the upper house.

Despite being totally opposed to the GST, Labor today agreed to an extra 5.5 hours of
debate on the tax bills.

"It gives you an indication that the Labor Party's going to make sure that the vote is held
before June 30," Senator Lees said.

AAP sc/bm/de

KEYWORD: TAX NIGHTLEAD

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