BENSON: Penny Wong, Tony Abbott says this gathering in Brisbane is just a talkfest, a publicity stunt, to boost the Governments economic credentials. Whats the clearest evidence you can provide to refute that, to show this meeting has real substance?
WONG: The first thing I would say is that Tony Abbott would say that because he appears to be incapable of saying anything positive. This is a forum which is all about Australia in a global economy. It brings together business people, people from the community, with government, to talk through what it is more that we need to do to ensure we can prosper in this, the Asian Century.
This is the critical economic issue facing Australia at the moment; how we secure prosperity today and in the decades ahead. Theres a lot of change in the global economy, a lot of change in the Australian economy. Its important we have this dialogue and we continue to reform our economy to ensure prosperity.
BENSON: Well that dialogue is continuing at all times, the talk of the Asian Century [audio break], what about todays gathering? Is there going to be any substance, any real result?
WONG: The day starts, for example, with a discussion with the Governor of the Reserve Bank which I think is a very useful place for us to start to have a discussion about what the patchwork economy means, what the high dollar means what are some of the policy settings, over and above what the Government is already doing, which are the ones we need. Can I just make the point, you said talk of the Asian Century is (inaudible) this is the biggest change in the global economy not just in our lifetime, but certainly beyond that.
BENSON: No one would disagree that discussion is important, but discussion is always going on the Asian economy. Will anything specific come out of today in terms of substance?
WONG: Well Marius, people made similar criticisms before the Tax Forum last year and the point Id make is in fact weve set up a good work stream out of that forum the Business Tax Working Group. And in fact a couple of propositions that that working group has been working on were picked up, including one in the last Budget, which was the loss carry-back. That is, the tax flexibility to recognise businesses in this time of change need a bit of tax flexibility. So I think before we just get cynical about these sorts of dialogues amongst senior business people, the Government and the community, we should remember we do have a track record of listening, of making sure we listen to what is proposed and to work out what we can take forward.
BENSON: One specific the Prime Minister has raised is the issue of a company tax cut. Now that tax cut fell off the agenda in recent weeks. Is there a tax cut being re-introduced in the life of this Government?
WONG: Certainly thats one of the discussions we should have today, whether or not a company tax cut should be an immediate priority. Im sure that will be a significant part of the discussion today.
BENSON: Itll be discussed, but is there any chance of re-introducing that proposal, or introducing a tax cut itself in the life of this Government?
WONG: Weve said we are absolutely open to a further move on a company tax cut, provided its... it obviously has to be funded, so it has to be revenue neutral; so we have to work out how we would fund it. And we also have to make sure we can get it through the Parliament. Because we had proposed company tax cuts in the Parliament, and they were opposed.
BENSON: Critics of the discussions like this, critics of the Government say there are too many things in the too hard basket. They say you should really be discussing... the Grattan Institute for example last week said this, extend the GST to cover food and other areas. You wont discuss that?
WONG: Weve said consistently as a Labor Government we dont believe that increasing the rate, nor extending the base, of the GST is a fair way to implement tax reform. I appreciate others have different views, but thats not the view of the Labor Government. I dont agree with the proposition were putting a lot in the too hard basket. In fact one of the reasons weve seen politics be so difficult nationally is because we have pressed on with reforms which have been bitterly opposed the minerals tax and the price on carbon. Both of these reforms are important reforms theyre about the future but they are certainly difficult reforms and so as a result weve seen a pretty hotly contested political debate in recent times.
ENDS