Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Deregulation, Senator Wong, in her capacity as representing the Treasurer. I refer the minister to the government’s dismissive response last Thursday to an order of the Senate which ordered the production of any advice about the requirement that changes to the GST had to be agreed to unanimously by all parties to those arrangements. Isn’t it the case that the requirement for unanimous agreement is explicit in both the original 1999 GST deal and the 2008 replacement agreement negotiated with all states and territories by this government?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I thank the senator for the question. I do recall writing to the Senate on behalf of the Treasurer in relation to this issue and setting out what I thought at the time was quite a substantive answer. I know you asked, in particular, for details of legal advice. I think the Treasurer, through me, indicated why that was problematic but gave a response in relation to the substantive issue. I have to say that I think you are asking me to give you precisely what the Treasurer indicated was not possible: legal advice in relation to the agreement. I do not have the letter which was presented to the Senate to hand, but I would refer you to that letter and if there is any further information in relation to the question I will come back to you.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Why is the government ignoring clear Treasury advice contained in the brief to the incoming government that changing the GST arrangements to take about $50 billion in revenue off the states requires unanimous agreement?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I am not in a position to agree with every aspect of that question. I have responded on behalf of the Treasurer to the issue you raised in the letter that I have described. In relation to the incoming government briefs—and, from memory, we have traversed quite a bit of this in estimates with both Treasury and Finance—the departments released the incoming government briefs in quite a transparent and accountable way. There were a range of issues in them which comprised advice to government, briefs to government, but not necessarily government decisions. These briefs were not released under your government.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Why is the government pressing ahead with legislation to take GST revenue away from the states and territories before any of them have signed on the dotted line to hand over any of their GST revenue? Doesn’t this rushed approach demonstrate that this is just another grab for more cash by a government that is addicted to more and more spending and not health reforms?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Now I understand the issue more clearly: this is about Senator Cormann trying to explain why the opposition are yet again determined to wreck a critical reform for the country’s future. The reality is that health costs in this country are continuing to rise. The current estimates are that, by around 2045, health costs for each of the states will exceed their own source revenue. This is a critical issue for the nation’s future and you have no answer other than to wreck. On health reform—and the Minister Representing the Minister for Health and Ageing could articulate this in more detail—my recollection is that a COAG agreement, an intergovernmental agreement, is being negotiated. But the reality is—

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, on a point of order: the minister has just indicated that another minister—

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Senator Abetz interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Abetz, if I could just listen to Senator Cormann and not you as well, it would make it a little bit easier for me.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

The point of order is about which minister is responsible. Minister Wong has just indicated that another minister might be responsible. My question was about federal-state financial relations and taking GST revenue away from the states—it was not about health issues—so Minister Wong is the minister responsible in this chamber.

John Hogg (President) Share this | Link to this | Hansard source

Senator Cormann, that is a debating point which you are entitled to take up at the end of question time in taking note of answers.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The point I was making is that health reform is critical to the future of this nation, and your mindless opposition to everything is an economic—(Time expired)

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.