Nelson defends alcopops tax block
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Taking a stand: Opposition Leader Brendan Nelson (AAP)
Federal Opposition Leader Brendan Nelson has denied that the Coalition's plan to block several key pieces of Government legislation in the Senate is economically irresponsible.
The Opposition plans to oppose the lifting of the Medicare levy surcharge, which would raise over $600 million over four years, and the tax on pre-mixed drinks, which is expected to raise around $3 billion over four years.
Dr Nelson says the Opposition's move will not put further pressure on the Budget.
"I'm proposing that the price of petrol be cut by at least five cents a litre at the bowser - that is deflationary," he said.
"I am also opposed to the increase in tax on alcopops - [the tax] is inflationary.
"We're also opposed to the Medicare surcharge proposals which will have an inflationary impact on private health insurance premiums."
Dr Nelson says the Opposition's changes are affordable.
"Mr Rudd can reorder his priorities if he wants to keep the bottom line the same," he said.
"If the Government was fair dinkum about fighting inflation it wouldn't be increasing taxes on cars, computers, software, alcohol and a whole variety of other things that Australians consume."
However Dr Nelson said the Coalition is still considering its position on whether to support the luxury car tax.
The Federal Government wants to increase the tax from 25 to 33 per cent on new cars valued at more than $57,000.
Federal Treasurer Wayne Swan says the Coalition's actions are economically dangerous.
"I think the Liberal Party has simply lost the plot - they are so riven by internal divisions they are incapable by behaving in a responsible way," he said.
And Federal Health Minister Nicola Roxon is demanding the Opposition explain the health consequences if the tax increase on alcopops is blocked in the Senate.
Today the shadow Cabinet attended a forum on binge drinking in Canberra.
Dr Nelson says that while binge drinking is a problem, the tax on pre-mixed drinks is not a health measure and it may force drinkers onto harder spirits.
He says the Opposition will consider around 30 proposals given at the forum today on how to tackle binge drinking and will formulate a comprehensive policy in the coming months.
"Everything from our culture itself, to education, prevention, to pricing, advertising, labelling, the enforcement of existing laws and also I think the way in which we approach the issue of parenting," he said.
Dr Nelson said the Opposition may decide to introduce some measures into Parliament, but he did not specify what the measures might be.
He also believes that young people are being unfairly focused on in efforts to tackle binge drinking.
"This constant reference to young people binge drinking runs the risk of unfairly stereotyping young people as being at-risk drinkers when it is a problem that goes right across society," he said.
