Fed: PM rejects Vic GST complaints

AAP General News (Australia)
02-11-2000
Fed: PM rejects Vic GST complaints

Prime Minister JOHN HOWARD has denied reports that hospital funding will be cut by
millions as a result of the GST.

He's rejected a warning by the Victorian government that it will have to cut hospital
funding because of the new tax.

Mr HOWARD says that when the GST is introduced, the scrapping of a lot of indirect
taxes and lower fuel costs will reduce the operating costs of many businesses run by the
government.

He says allowances for that are being made in reducing payments made to the states.

Mr HOWARD says the Victorian government's wrong to claim there'll be cuts when states
will be better off under the GST.

AAP RTV lm/as/rt

KEYWORD: TAX HOSPITALS HOWARD (CANBERRA)

2000 AAP Information Services Pty Limited (AAP) or its Licensors.