Victoria Shadow Treasurer Kim Wells

BRUMBY BREAKS PROMISE ON GREATER GST TAKE

Victor P Taffa

Premier John Brumby has failed to use his cosy relationship with his Labor mates in Canberra to secure an increased Goods and Services Tax (GST) allocation for Victoria, Shadow Treasurer Kim Wells said today.

“John Brumby told Victorians three years ago that a Labor Government in Canberra would mean higher GST allocations for Victoria.” Mr Wells said.

“Today we learn that Victoria’s GST allocation has been cut by $1.7 Billion because John Brumby and his Treasurer arrogantly refused to listen to the head of the Commonwealth Grants Commission (CGC).”

“John Brumby and his Treasurer were highly critical of allocation of GST to the states under a Howard Coalition Government and claimed Kevin Rudd’s election would herald a bright new era of co-operation.”

“In August 2007, John Brumby told Victorians that ‘we look forward to a better deal in terms of GST funding’ if Kevin Rudd was elected (Source: Legislative Assembly Hansard, 8 August 2007).”

“But so far, all John Brumby and his Treasurer have done is whine and complain, when they should be taking action and negotiating with the other Labor states and Kevin Rudd to get a better financial outcome for Victorian families.”

“Today’s embarrassing revelation that Victoria will lose $1.7 Billion of Rudd Government Nation Building funding illustrates the extent of State Labor’s incompetence.”

The Treasurer’s claim ‘never at any stage did the Commonwealth say that some of the nation building funds would come out of our GST allocation’ is directly contradicted by the head of the CGC, who told the head of the Victorian State Treasury head ‘several times over the past six months’ that the nation building grants could affect GST allocations.

“As usual, Labor only has itself to blame for its failure to secure a better GST deal, and Victoria loses again under John Brumby.” Mr Wells said.

The Federal health finance reform measures could gut the States of valuable income that will place the very future of State Government’s at risk.