FED: GST book funding an inadequate bandaid measure: ALP

AAP General News (Australia)
08-20-1999
FED: GST book funding an inadequate bandaid measure: ALP

CANBERRA, Aug 20 AAP - A $240 million program to assist the book industry under the GST was
a Band-aid measure which would lead to an administrative nightmare for every bookstore, the
federal opposition said today.

The federal government is to provide an eight per cent subsidy for educational text books
under the program.

Details of the program were announced today by the Australian Democrats, who negotiated a
deal with the government on the new tax system.

But Labor industry spokesman Bob McMullan said the move would compound the problem for the
book industry, forcing them to administer a complex new rebate as well as the GST.

"This is another administrative nightmare for every bookshop in Australia," he told
reporters.

"We have someone who said: 'We have struck you a mortal blow and here is a minor Band-aid.'

"It's a very small and inadequate compensation for the industry ... for a tax that will be
a direct hit on what Australia needs to be - the knowledge nation."

However Mr McMullan said the opposition would not block the move in parliament, conceding
it was a "small improvement".

"If you're bleeding a Band-aid is better than nothing - but is a very small and inadequate
response," he said.

Mr McMullan stressed that the Democrats had it within their power to block the GST on books
when negotiating a tax deal with the government.

"(This) is really bad for book sellers and it is very poor compensation for consumers of
books and for the book industry," he said.

AAP ear/jnb/br

KEYWORD: TAX BOOKS LABOR

1999 AAP Information Services Pty Limited (AAP) or its Licensors.