John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Mr Speaker, could I correct one answer in one small particular and add to another?

David Hawker (Speaker) Share this | Link to this | Hansard source

The Prime Minister may proceed.

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

In answering a question from the member for Lilley, I did the Labor Party in government a great injustice. I said that real wages had fallen by three per cent—at one stage I said this. In reality, real wages fell during their 13 years in government by 0.2 per cent. It was nonetheless a fall, and I correct that error.

I was asked by the member for New England about the discussions regarding the groundwater. I have checked with my office and I am informed that discussions have taken place between my parliamentary secretary, the member for Wentworth, and the New South Wales minister, Mr Ian Macdonald. The New South Wales government is getting some legal advice on the taxation aspects of the matter and will then get back to us, and I confirm again that the Commonwealth, although it is under no legal obligation to do so, has offered to make payments matching any nominal terms made by the New South Wales government to help with structural adjustment. The issue revolves around the taxation treatment of the payments.

Our view—and I think the common-sense view—is that, however you might try and dress it up, the money being paid is compensation. And the difficulty is that the New South Wales government are pretending it is not, because they do not want a precedent to be established. Heavens above! If you snatch somebody’s right and you give them some money in return, that is compensation.