ABC 891 Breakfast with Matthew Abraham and David Bevan - 14/03/2012

14 March 2012

JOURNALIST: Christopher Pyne, Opposition Manager of Business in the Federal House, joins us now from our Canberra studios. Good morning Penny Wong.
WONG: Good morning to you both.
JOURNALIST: And good morning Christopher Pyne.
PYNE: Good morning David and Matthew and Penny. Were sitting alongside each other having a lovely chat while we waited for your previous interview to finish.
JOURNALIST: Excellent. Minister Wong, could we begin with you. Has your Department been crunching the numbers on Tony Abbotts parental leave scheme? Theres been a suggestion that it will actually end up costing more than your carbon tax
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 Liberal party members dont support it. Its practically friendless in shadow cabinet, as one Liberal member described.
JOURNALIST: But whats your Department telling you in terms of numbers? What will it cost?
WONG: I dont have those costings in front of me. What I can say is Tony Abbott himself has said that itll be another 1.5 per cent on the company tax rate, and on a day where 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 theyre proceeding with a policy where they actually want to put company tax up.
I mean, this is a Liberal Party thats supposed to be the party of business thats going to vote against tax cuts and impose a tax hike on the economy.
JOURNALIST: Chris Pyne, is it going to be a bit hard for Tony Abbott to sell a big fat new tax when hes spent a lot of his time in Opposition raging against big fat new taxes?
PYNE: Well the paid parental leave scheme of the Coalition is a workplace entitlement, its not a welfare measure. The Labor party sees it as a welfare measure. Thats why theyve funded it the way they have. We dont: we see it as a workplace entitlement for working women. It is fully funded and fully costed and we wont have any difficulty selling that policy, because I think the women of Australia think its high time that their real wages were recognised in the 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 the 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.
JOURNALIST: Chris Pyne, its easy to fully cost and fully fund something when youre introducing a new tax, is it not? What were asking about is the effect of that tax on the economy.
PYNE: Well there wont be any impact of the paid parental leave scheme on the economy other than a positive one
WONG: Come on Chris, come on Chris.
PYNE: because its actually a productivity measure. Its a productivity measure 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 wont be disadvantaged in their career progression. It wont actually 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
JOURNALIST: But your tax on business, to pay for the parental scheme, that will be of similar if not greater proportions than the carbon tax.
PYNE: No, thats completely wrong. Theres no figures of any reliability that would suggest that at all. That is some spin from the Labor party. It doesnt stack up at all, whereas we know that the carbon tax is a massive hit on the economy. Its already costing jobs. Treasury modelling in South Australia the State Governments own Treasury modelling indicates that someones playing with the sound here, and I can no longer hear, but nevertheless Ill keep talking the Treasury modelling from South Australia shows that it will cost 1500 jobs just next year in South Australia, modelling that was hidden by the South Australian Labor government from the public in South Australia.
JOURNALIST: Penny Wong, on that specific state modelling
WONG: Can I just make one comment. Its interesting, Christopher and the Liberal Party seem to have come up with a tax that is magical, it doesnt have any effect on the economy
PYNE: Its not a tax.
WONG: It is a tax.
PYNE: Its a levy on 3200 of the biggest businesses in South Australia, to pay for
WONG: Youre calling it a levy instead
PYNE: In Australia, to pay for a workplace entitlements
JOURNALIST: And now 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 wont have any effect on the economy at all. I mean, its just ridiculous. One thing Christopher hasnt done today is
PYNE: What about the South Australian Treasury modelling?
WONG: Im happy to talk about that, I regularly talk about matters about climate change, but one thing that is very current that Christopher hasnt 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 were 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
PYNE: Thats the question you should answer.
WONG: And I stand behind the Treasury modelling, the same people who advised Peter Costello, who did the largest
PYNE: So you dont care about the jobs?
JOURNALIST: Hang on, hang on, please Penny Wong.
WONG: Thank you. The largest modelling exercise in Australias history, which shows we can grow jobs, including in South Australia, we can grow our economy and we can grow incomes with a carbon price. So Im happy to talk about that, but todays issue is the small business tax cut.
PYNE: You havent been asked about that.
JOURNALIST: And those small business tax cuts, as you refer to them, youre talking, is this part of the package of measures of
PYNE: This is because of the mining tax.
JOURNALIST: The mining tax. OK. Now Christopher Pyne are you going to
PYNE: Another tax. We wont support the mining tax. We dont believe that you can make the slow lane faster by slowing down the fast lane. In a state like South Australia, where were going to be relying on a 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 cuts?
PYNE: We do not support any measures associated with the mining tax.
JOURNALIST: Well, Penny Wong
WONG: Youre going to be a Liberal Party coming into Parliament, the Liberal Party that is the party of small business, will come into Parliament and vote against a tax cuts for small business
JOURNALIST: Penny Wong, can I just ask
PYNE: A tax cut that is funded out of a new tax is a con, not a tax cut.
JOURNALIST: Minister Penny Wong, can I just ask you
WONG: Im listening.
JOURNALIST: Are the Greens going to succeed in directing the mining tax away from corporate tax cuts to spend on health and education?
WONG: This is the issue that I think that Christopher should respond on, because the ball is very much in the Oppositions court. The Government will bring forward legislation, and well release an exposure draft today, which has a tax cut for small business starting on the first 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 MRRT.
The Greens have said they will support the small business tax cut at this stage. The Coalition are 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.
JOURNALIST: And Chris Pyne, just finally ...
PYNE: Well, a tax cut, sorry a tax cut funded out of a tax rise is a tax con. Nothing more.
WONG: A tax rise on wealthy miners.
PYNE: The Coalition does not
WONG: A tax rise on wealthy miners.
PYNE: A tax cut funded out of a tax rise
WONG: For wealthy miners.
PYNE: Is a tax con.
WONG: Oh come on, Chris.
PYNE: And the Coalition will not fall for the con
WONG: Come on, Chris.
PYNE: And neither will the Australian people. The Governments answer to everything
WONG: Come on, Chris, youre standing up for the highly profitable, wealthy miners against small business.
PYNE: The mining tax has already been dissolved because of the borrowings from the Labor Party in the last three months alone. Its completely obscene.
JOURNALIST: OK, Christopher Pyne, thank you for your time.
PYNE: Thank you.
JOURNALIST: And Penny Wong, Minister for Finance.
WONG: Thank you.
ENDS