Page: 8887
[Questions without notice resumed.]
Mr BOB CARR: Before the interruption, I was spelling out to the House from page 3 of the Commonwealth's own budget document, which sets out the figures for the reductions in our grants between 2003-04 and 2004-05.
Mr SPEAKER: Order! I call the honourable member for Murrumbidgee to order.
Mr BOB CARR: On page 11 of its publication the Commonwealth defends the reduction and admits that:
New South Wales and Victoria receive less than equal per capita shares under the Horizontal Fiscal Equalisation arrangements because the CGC assessed their fiscal capacities to be relatively strong.
For example, the CGC assessed that New South Wales has a relatively stronger capacity to raise revenue from land tax and stamp duty on property transfers and payroll tax …
It went on to give a reason relating to Victoria. But the document says New South Wales will get less in Commonwealth funds because this State has the capacity, with property taxes, to raise more. It went on to say Victoria will get less than its per capita share because it has a cheaper public sector to run, given the scale of things in Victoria. So, not only does Commonwealth Budget Paper No. 3 spell out the reduction on page 3, but it also defends it on page 11. The fact is that, even if the Prime Minister's assertion, repeated by the Leader of the Opposition, were valid, any additional money would be a quarter of what Mr Costello slashed only two months ago, when he took $376 million a year out of grants to New South Wales. Our property tax package will raise $690 million. That, and our saving measures, will cover the Commonwealth Grants Commission cuts—that is, $376 million each and every year, for five years—and it will cover $396 million in teachers and nurses pay increase. It will also cover the $275 million that our first home buyer stamp duty exemptions provide.
Mr JOHN BROGDEN: I ask a supplementary question. Is the Premier aware of the statement made at page 13 of Commonwealth Budget Paper No. 3:
In 2004-05, all States will receive a windfall over the Guaranteed Minimum Amount. Including the compensation for annual payment of GST … the States will receive a total gain from tax reform of over $1.6 billion…
Mr SPEAKER: Order! I call the honourable member for Willoughby to order.
Mr BOB CARR: Here we go again! The Commonwealth Government's own budget paper spells out that other States do, but New South Wales does not. It is there: 2003-04, current financial year, GST payments to New South Wales—
Mr John Brogden: Point of order: I seek leave to table the documents relating to this matter.
Mr SPEAKER: Order! There is no point of order. The Leader of the Opposition will resume his seat.
Mr BOB CARR: We will beat you in that race: we will table it. Let me quote again the Commonwealth figures on page 3: 2003-04, the current financial year, the GST payments to New South Wales, $9.690 billion; but in 2004-05, $9.648 billion