Territory Stories

Parliamentary record : Part I debates (11 October 1983)



Parliamentary record : Part I debates (11 October 1983)


Debates for 3rd Assembly 1980 - 1983; ParliamentNT; Parliamentary Record; 3rd Assembly 1980 - 1983




Made available by the Legislative Assembly of the Northern Territory





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Northern Territory Legislative Assembly

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Attribution International 4.0 (CC BY 4.0)

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Legislative Assembly of the Northern Territory



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DEBATES - Tuesday 11 October 1983 The initial promise was just to go through the subdivision of Sadadeen. Now we have virtually a highway. That will be most welcome to those people who will live in the Mt John subdivision. There will be bitumen road access from that side of town, through the powerhouse grounds and across the bridge to the other side of town. One thing that the people in Alice Springs are somewhat concerned about is the loss of the archives building. I believe that the archives building should be built here in Darwin or at Palmers ton. One would be very parochial to say otherwise. However, I would like some consideration to be given to a possible replacement project, particularly as it is affecting the construction industry in central Australia. If I might be so bold as to put forward a suggestion, one thing which I am sure would be helpful to the town of Alice Springs would be to complete the last stage of the Alice Springs Town Council development: the Town Hall. The construction industry would certainly welcome it. I am sure it would be a very useful addition to the town. I would ask that it be given consideration by the Cabinet. What pleases me most in this budget is the fact that there are no increases in Northern Territory taxes. I would be even more pleased if the government could reduce taxation, particularly in such areas as payroll tax. I find it very difficult for any government to cry about unemployment but then levy a payroll tax. A 0.5% reduction in payroll tax would not allow every employer to put on ano.rtrher employee but that extra money would allow people to spend a little more. Through the multiplier effect, more jobs would be created. This would be an opposite tack to the s ocialis t gove rnments, as the honourab 1e Chief Minister mentioned. In South Australia, the big promise this time last year was that there would be no increases in taxation; that lasted until Mr Bannon was elected. Victoria and WA and even the federal government gave people something to hope for in the way of reduced taxation. Those promises have not been honoured. They gave people something to hope for and then dashed their hopes to the ground. The real concern I have with taxation can be best illustrated by tmda:standing what is known as the Laffer curve. I would love to have a blackboard behind me so I could draw up a graph. I will try to describe it. Imagine on the vertical axis a line for percentage taxation and along the horizontal axis a line for government revenue. If no tax is levied then there is no government revenue. On the other hand, if 100% taxation is imposed, nobody in his right mind would work so the curve would have another intercept at 100% on the vertical axis. Somewhere in between, the curve goes around in a parabolic manner joining up those 2 particular points. The role of government ideally should be to try to find the percentage taxation which gives a maximisation of government revenue. I believe that we are well and truly on the top side. Our percentage of taxation is on the top side. Government revenue is reduced simply because it is such a disincentive for people to put their best foot forward when they do not see much hope of reaping a reward. The temptation is for governments to then increase taxation. Instead of actually increasing the total government revenue, it is likely to bring it down, put more people out of work and increase the demands upon government to grab more taxation. According to the Australian, the government is reaping 43% of the gross domestic product. I am sure that we are well and truly over that. The other thing which concerns me is red tape. the Victorian Opposition Leader, Mr Kennett, who said wanted to ban red tape from the states, territory and because it was acting as a brake on development. The 1128 I applaud the efforts of the other day that he federal parliaments 2 things that I believe

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