Organization: FidoNet node 3:772/20 - IBM NZ Ltd Gate, Auckland
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Hi, Darren. Its nice meeting you. Concerning your question
Dl> Howdie Andrew.... how about a discussion about your
Dl> Goods and Consumptions Tax (GST). As you are probably
Dl> aware the Federal Opposition to the Australian
Dl> government is currently pushing for a GST similar to
Dl> New Zealand's. Do you think the GST is working in NZ
Dl> and do you see any problems for it working in Australia?
Weeell, this is really a matter of debate. Generally, most people including economists have pretty well come to terms with GST now. Whether it is working or not rather depends upon what one is or was expecting it to do. I t has certainly become a significant earner for our Government here, which was why it was introduced. IN fact politically I would say that the GST has been very successful, in that it has enabled the Government to increase it s revenue, which almost all economists would agree needed to be
done, without causing so much annoyance to the community at large that the Government loses votes.
However, I am not saying that the introduction of GST was necessarily a good thing. It is just not obviously a bad thing.
I do think that in hindsight the way that the tax was introduced here was rather clever or maybe just lucky for Roger Douglas. As youmay be aware Douglas introduced the tax along with a host of far more obviously radical measures such as eliminating farm subsidies, and all this was done very quickly. As a result the community never really had a chance to think about whether it wanted the tax or not before it became a fait accompli.
You over in Australia have had much more time to focus upon the desirability of the tax before its introduction.
Anyway, keep in touch Darren. My strength really lies wrt Consumer protection law and the impact this has had upon the commercial community.
