Absence ofMinister 20 March 1986 ASSEMBLY 449 Thursday, 20 March 1986 The SPEAKER (the Hon. C. T. Edmunds) took the chair at 10.35 a.m. and read the prayer. ABSENCE OF MINISTER The SPEAKER-Order! I advise the House that the Minister for Transport is interstate and will be absent from this sitting of the House. QUESTIONS WITHOUT NOTICE STATE FRINGE BENEFIT TAX LIABILITY Mr DELZOPPO (Narracan)-In the absence of the Minister for Property and Services, I direct my question to the Treasurer. Will the Treasurer inform the House what will be the Victonan Government's 1986-87 Commonwealth fringe benefit tax liability in respect of State public sector employee housing, if tenants of these residences are not charged market rents? Mr JOLLY (Treasurer)-The calculation of the liability depends on the number of employees in the public sector who are in that position at the time the legislation is passed in Federal Parliament. The Government will make the appropriate calculations once the legislation is passed and will examine how many people are in that position. FRINGE BENEFIT TAX ON MOTOR VEHICLES Mr ROSS-EDWARDS (Leader of the National Party)-I refer the Treasurer to the recent discussions and negotiations that have taken place between the Federal Treasurer and the Premier of South Australia regarding the fringe benefit tax on motor vehicles that are used partly for private and business purposes and the effect that the fringe benefit tax will have on the motor industry in South Australia. Has the Treasurer had discussions with either the Federal Treasurer or other members of the Federal Government about the effect that the fringe benefit tax on motor vehicles will have on the Victorian motor industry? If the Treasurer has had discussions, could he advise the House of the outcome of those negotiations? Mr JOLLY (Treasurer)-As honourable members would be aware, when the new tax package was announced by the Federal Government, both the Premier and I expressed concern at the effects that it would have on the motor vehicle industry. The Premier and I indicated to the Prime Minister and the Federal Treasurer that our major concern about the package related to the motor vehicle industry. Wide-ranging discussions occurred with the Victorian Manufacturing Advisory Council on that issue, which also supported the view that the fringe benefit tax had the potential to have an effect on the Victorian economy. The Government is continuing to monitor that position. It indicated publicly to the Prime Minister and the Federal Treasurer that it would monitor the situation and that they should also do so to see whether the motor vehicle industry is suffering from any adverse impact. A number of factors could work to reduce the demand for motor vehicles in Victoria and throughout the nation, and one relates to changes in the investment allowance. Obviously it is a difficult task to separate the various components. The latest registration figures show a fairly healthy increase in Victoria. If the Government is given any hard 450 ASSEMBLY 20 March 1986 Questions without Notice evidence from the motor vehicle industry or other people in the State about any adverse effects on the industry, it will further take up the matter with the Prime Minister and/or the Federal Treasurer, but at this stage it has not received that evidence. I repeat that the Government will continue to rnonitor the situation and, if it is proved that there is an adverse effect, the matter will be taken up at a Federal level. TRAVEL ENT! fLEMENTS Mr ERNST (Bellarine)-Has the Minister for Industry, Technology and Resources investigated the allegations made in the HOHse yesterday by the honourable member for Bennettswood suggesting that Mr Faggetter visited Sydney last Friday to confer with Qantas Airways about the ticketing arrangements for his recent overseas trip? Mr FORDHAM (Minister for Industry, Technology and Resources)-I am disappointed that this question was l~Ot put to me by the Opposition in view of the nature of the issue raised yesterday, when I made it clear that I was not aware of the circumstances of Mr Faggetter's movements last Friday and would make inquiries into the matter. The facts of the matter are as follows: firstly, Mr Faggetter did not go to Sydney; in fact, he was in Canberra. Secondly, Mr Faggetter did not discuss the issue with Qantas Airways last Friday in Sydney, Canberra or Melbourne and has not discussed the issue with Qantas since the matter was raised by the honourable member for Bennettswood in the House last week. As a result of these facts, which I hope the Opposition has now accepted, it is clear that, although I do not expect an apology to myself from the honourable member for Bennettswood for making such an allegation, the honourable member certainly owes Mr Faggetter an apology for making such an outrageous allegation that had no basis in fact. Again I suggest he stop this nosing around and get back to some decent work. PUBLIC TRUSTEE Mr JOHN (Bendigo East)-Is the Treasurer able to confirm that he or the Department of Management and Budget asked the Public Trustee to transfer upwards of $150 million of trust funds to Government accounts to solve the State Budget crisis? Can he further confirm that the Public Trustee has since resigned or been appointed to another position? Mr JOLLY (Treasurer)-If the honourable member for Bendigo East cares to read the monthly financial statement that is issued every month, he will find that the State is in a sound financial position. When the Labor Party came into office, honourable members would be aware that it faced a massive forward deficit. It has turned that situation around to the point where strong revenue growth has been experienced in a number of areas. This means that at this stage in the Budget cycle Victoria has a small surplus. The Government has also stated that once the petrol price impact affects the 1985-86 year, the Government will be facing a petrol revenue loss of approximately $24 million, compared with what it had originally projected. In answer to the specific matter raised by the honourable member: I know of no such position because there is no need for the Government to utilize the funds in the way suggested by the honourable member for Bendigo East. It is absurd to suggest that the Budget is unsound; it is in a relatively strong position. The only weakness in the Budget arises from the oil price decision made by the Federal Government. Questions without Notice 20 March 1986 ASSEMBLY 451 VICTORIAN HIGH SCHOOL PRINCIPALS ASSOCIATION Mr HANN (Rodney)-Is it a fact that the Minister for Education has threatened to lay charges against the President of the Victorian High School Principals Association, Mr Schache, for publicly criticizing the shortage of teachers in Victoria's secondary schools? If so, will the Minister explain why similar charges were not laid last year against union officials who were equally critical of the Ministry of Education? Mr CATHIE (Minister for Education)-I have had some discussions with Mr Schache and with the Victorian High School Principals Association, particularly about their methods of procedure. I have suggested that they have direct access to the Minister and said that I should much prefer them to raise matters with me in that forum than have them go straight to the media. PALM SUNDAY PEACE RALLY Mr SIMPSON (Niddrie)-I preface my question to the Premier by making a short comment, and it has taken me exactly ten years to make this comment. I take this opportunity of congratulating the Premier, the Leader of the Opposition and other august honourable members who also are celebrating their tenth anniversary in this place. The SPEAKER-Order! Now, the question! Mr SIMPSON-Will the Premier give details of the Government's participation in the Palm Sunday peace rally? Mr CAIN (Premier)-The Government very strongly supports the Palm Sunday peace march at all times but more particularly in this, the International Year of Peace. The Government cannot think of a better cause to which all people can aspire with great enthusiasm than the cause of peace. I make no reservations about that. The peace march this Sunday will give the whole community an opportunity of demonstrating support for that great cause, and the Labor Party and many of my colleagues will be taking part in the rally. As usual, they will be to the fore. The Leader of the Opposition questioned the relevance of this and it will be interesting to note what part both the Liberal Party and the National Party will play in the march on Sunday. I am fortified by the report that I received only this morning in which a Liberal Party Senator was reported to have said that the Liberal Party would be marching in various rallies supporting peace, and I hope that is right. The cynics will say that comes strangely from a party that put Australia into the Vietnam war. Honourable members interjecting. Mr CAIN-Obviously there is some dissent from the Opposition on that score, and that is indicative of the turmoil that the Liberal Party is going through at present. It is not only on peace issues. I should like to know the attitude of the Liberal Party. While the march is taking place on Sunday, the Liberal Party State Council will be meeting at Bendigo and the subject of peace will be discussed to reaffirm Liberal Party policy of support for a Star Wars program and nuclear weapons.