3 May, 2013
ABC News Radio Mornings
With Marius Benson
3 May 2013
6:45am
E & OE
MARIUS BENSON:
Senator Fifield Good Morning.
MITCH FIFIELD:
Good Morning Marius.
MARIUS BENSON:
Do you think this scheme as outlined and understood now is what Australia wants? That there is public backing for it at this price tag?
MITCH FIFIELD:
Look there is strong public backing for the NDIS. Australians recognise that at the moment the level of support that you receive if you have a disability is determined not by your need, but by how you acquired your disability. It’s a lottery. That’s unfair and it’s got to change.
MARIUS BENSON:
And this is a Labor initiative specifically a Julia Gillard initiative; does Labor and the Prime Minister deserve a pat on the back for this?
MITCH FIFIELD:
Any government deserves credit when they do something that’s good and positive, but I think the lions share of the credit needs to go to Australians with disability who got together, who spoke with one voice and said, ‘look, this isn’t good enough and were not going to accept it anymore.
MARIUS BENSON:
Is it a done deal now or could it still fall over? Is there potential devil in the detail?
MITCH FIFIELD:
Well there is massive good will in the Parliament. For the Opposition’s part we’re not looking to put obstacles in the way of the NDIS being delivered. We’re looking for ways to make it happen. Which is why we’re prepared to consider the levy that part funds the NDIS. We don’t think it’s the optimal way of funding the NDIS, but given this government’s waste and mismanagement of the budget we don’t want that to see a situation where it’s people with a disability who are paying the price for that. We need to find a way to make this happen.
MARIUS BENSON:
Tony Abbott was pointing out yesterday there is still a lot of unanswered questions over things like exactly who is covered and for what but that’s not going to see the deal itself flounder?
MITCH FIFIELD:
Well, it’s important for the Prime Minister to outline how she is going to fund the balance of the scheme. The levy that she has proposed covers perhaps 40% of the cost of the full NDIS. And it’s also important that she releases the full eligibility criteria. Yes we’ve got a broad outline of that in the primary legislation, but the NDIS rules and the assessment tool also need to be released.
MARIUS BENSON:
Now some business leaders specifically in retail, the Myer store obviously expressed concern yesterday that the levy will flatten economic activity, it will stop money that might otherwise flow in their direction. Is that a legitimate concern?
MITCH FIFIELD:
I can understand there are some people, particularly households, who are doing it tough not being particularly excited about the prospect of a new tax. But I think we’ve got to keep sight of the ultimate objective here, that is to make sure we can deliver a better deal for Australians with disability.
MARIUS BENSON:
What about the overall economic cost, just a couple of days ago Joe Hockey was saying that the levy being introduced whilst the economy is rather fragile is not going to help the economy its going to hinder the economy. Will the levy hinder the economy?
MITCH FIFIELD:
Well I think the Parliament always has to be mindful and sensitive of the effects of any new proposed tax. But we have a higher purpose here, we’ve got a greater objective, and that is to make sure that Australians with disability get the new deal that they deserve. The Government did promise that there wouldn’t be a levy. The Government did promise that they would be able to fund the NDIS from consolidated revenue. But they spent money on just about everything else they could think of and then found that they hadn’t made provision for people with disability. I don’t think that people with disability should suffer as a result of decisions by a bad government.
MARIUS BENSON:
The Coalition always says it is the party of lower taxation, but you’ll be going to the next election with two of these levies. You’ve got three billion dollars plus here for the NDIS, 3.3 billion dollars I think is the price tag on the paid partal leave, that’s the impost on the biggest companies, that’s nearly 2% of government spending all up just in two levies that are additional.
MITCH FIFIELD:
The paid parental leave scheme is a productivity measure, that levy is being applied to a relatively small number of large businesses. The Medicare levy increase for the NDIS, it’s not something of our design. It’s not something that we wanted. It’s not something that the Prime Minister herself wanted. It’s not something that the Productivity Commission wanted. But the Government has put other spending priorities ahead of the NDIS, so that’s why we find ourselves in this situation where the Prime Minister has proposed a levy. But we are bringing a positive approach to bare because for us the ultimate objective here is to make sure the NDIS becomes a reality as soon as possible.
MARIUS BENSON:
And these are levies. The difference between a tax and a levy is temporary, can you say when either one of these levies the NDIS or the paid parental leave will be lifted?
MITCH FIFIELD:
Well we have indicated that the Medicare levy if it does pass through the Parliament, the increase for the NDIS, we would see that as a temporary increase until such time as the budget is strong surplus, until the budget is repaired.