Government News Index
Treasurers jostle over funding cut
AAP
22mar02
FEDERAL Treasurer Peter Costello said no states or territories would be worse off after federal funding was distributed this year, despite protests by state treasurers yesterday.
The protests developed into physical jostling when New South Wales Treasurer Michael Egan walked from a doorstop he was giving to confront Mr Costello about a $166 million funding cut to the states.
"Hello Peter, how are you? Why did you break the GST agreement with the states?" Mr Egan asked.
"We were told, indeed we signed up to a solemn agreement ... don't be condescending," Mr Egan said as Mr Costello pushed his way in front of the cameras to take over the the doorstop.
Mr Costello said no agreement was broken.
"Every last dollar of GST revenue will go to the states, with increases this year of between something like seven per cent and 11 per cent in the amounts which are going to be distributed to the states," he told reporters.
"We're not breaking any agreement, let me make that clear."
He said the end of fuel excise indexation meant no extra excise was being collected for the states or the commonwealth.
State and territory treasurers accused Mr Costello of ambushing them when he wrote to them to say they would miss out on $166 million in funding because of the federal government's decision 12 months ago to end fuel excise indexation.
The states said they were being made to pay for a federal government promise.