Alex Gallacher (SA, Australian Labor Party) Share this | Hansard source

I too rise to make a contribution in this debate taking note of answers from Senator McKenzie and Senator Cormann. At the outset, I'd just like to say that, as a relatively infrequent visitor to Western Australia, I have been struck on at least two separate occasions, while listening to talkback radio, by the absolute virulence of the campaign to have GST and horizontal fiscal equalisation addressed in the west. There were talkback radio announcers exhorting listeners to march on the federal offices of their political representatives, Senator Cormann and Senator Smith. There were people ringing up and saying, 'Tell me which day and I'll be there to do it.' The issue of GST and horizontal fiscal equalisation in Western Australia is a huge electoral issue.

All governments, and the opposition, are attempting to work their way through this. We've seen infrastructure payments given to Western Australia to offset this horizontal fiscal equalisation problem, which has been delivered, in my view, by the largesse that was dispensed in their boom years. When you come back to South Australia and Tasmania, you see that there is a Productivity Commission recommendation that there be a cut of $557 million from South Australia and $168 million, I think, from Tasmania. People then say: 'What does that actually mean for this state?' What it means for the state of South Australia—and people are doing the work; there is an election in South Australia as we speak—is that it would be like cutting 5,340 teachers. A cut of $557 million means 5,340 teachers wouldn't be employed. It means 5,000 nurses wouldn't be employed, or 2,400 doctors, or, as in my question to Minister representing the Minister for Home Affairs, 4,422 frontline police.

Now, I'm getting representations, as I'm sure every senator in Tasmania and South Australia is, from all of the organisations that are concerned about this. A lot of those organisations are not traditional Labor supporters; they are on traditional Liberal ground, like the chamber of commerce and Business SA. All of these people know that if you take a whole swag of money out of a state that is struggling to balance a budget then there must be cuts to frontline services, or inefficient taxes are put in their place. This is a pressing issue. It is a really widespread issue in Western Australia, Tasmania and South Australia. The Hon. Malcolm Turnbull and his respective ministers need to be open, transparent and honest and on the front foot delivering clarity about this issue.

It is well recognised worldwide that horizontal fiscal equalisation is the only way a large and disparate country can deliver equality in services. An Australian in South Australia is entitled to the same police force, medical services and education as one in Sydney—unless you go to what may be an American-type system where, if you don't have the population, you don't have the taxes and you don't get the services, so either move out or put up with it. It's a really serious issue. It needs to be addressed transparently and coherently.

Just to touch on the issue of Senator Molan: one of the things that is really apparent when you come into the Senate is that everything you've ever done, everything you've ever posted and everything you've ever said will be scrutinised. It is no surprise that people have raised questions about some of his posts. I actually live in an area where there is high Muslim immigration. They run successful businesses, their children are successful at school, and they walk and talk and are as Australian as the rest of us—maybe they dress a little bit differently. But if I was to do anything on Facebook, I'd be celebrating that community and how they have come here, started businesses, employed people, gone to school and been successful. That's what I would be propagating. (Time expired)

Question agreed to.