WA: Gallop will not be bullied into state tax cuts

AAP General News (Australia)
04-17-2005
WA: Gallop will not be bullied into state tax cuts

PERTH, April 17 AAP - Western Australia is at a distinct disadvantage over the abolition
of state taxes because without poker machines it does not have access to revenues enjoyed
by other states, says Premier Geoff Gallop.

Dr Gallop said today the federal government has failed to take into account the fact
that receives less gambling revenue than any other state.

He wants Western Australia compensated rather than being penalised with the federal
government threatening to withhold GST revenue if Dr Gallop's government does not abolish
a number of state taxes.

Dr Gallop said Victoria gave in to the demand last week and at the same time increased
its poker machine levy to raise an extra $45 million in revenue.

But he was adamant Western Australia would not follow suit.

"It makes me extremely angry when John Howard and Peter Costello turn around and try
to bully Western Australia over business tax cuts," Dr Gallop said.

"They have breached the GST agreement and in turn, want to penalise us millions of
dollars," he said.

"I call on the Federal Government to stop its strong arm tactics and compensate Western
Australia for our 'no pokies' policy to an adequate level."

He said the proliferation of poker machines in the other states gave them greater access
to revenue streams, placing WA at a clear disadvantage.

Federal opposition leader Kim Beazley agreed.

"You know Geoff Gallop could to a degree overcome his problem by allowing pokies to
spread through all the hotels in Western Australia," he said today.

"(But) West Australians would take umbrage at that.

AAP ajm/it/de

KEYWORD: TAX WA

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