Page 2031 - Week 10 - Wednesday, 25 October 1989
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MR SPEAKER: Order! Minister, would you please remain relevant.
MR WHALAN: Yes, Mr Speaker. The motion that was carried on 24 August in its original form said that the Abolish Self Government Coalition increase its funding and that it be able to use the staff budget to hire a consultancy. We know that what came out in that debate was evidence of the manner in which Mr Stevenson used his funds, and that was to evade tax. The evidence was that the staff that were employed were the clerical staff, the typists - - -
MR SPEAKER: Order! Minister, I really think that is pushing the line. I request you to withdraw that imputation about Mr Stevenson.
MR WHALAN: I withdraw that, but I go on to state the facts. The facts were that there were three people being employed as clerical staff in the same way as all members of the Assembly have clerical staff. Those clerical staff are employed under the normal conditions of employment that apply both within the public service and within private enterprise. They come to work at nine o'clock and they go home at five. I know that all of our staff do not go home at five. They work for longer hours than lots of people are expected to work, both in the public service and in the private sector, but in general terms they are under the control of the employing authority; they get appropriate remuneration; they enjoy certain conditions of employment; and they pay tax under the PAYE system of tax collection.
Some techniques have been employed outside this Assembly to avoid taxation. Those techniques have involved setting up companies or so-called "consultancies" whereby these people who do this normal, straightforward work are disguised. Their relationship with their employer is disguised by suggesting that it is not an individual who is doing the work but it is a company or a consultancy doing this routine work. Then you do not pay them in the same way as people are paid almost universally, which is that they are paid a weekly rate, a salary, and then the tax is taken out. Instead, what is set in place is a scheme whereby you pay them the full salary remuneration and you do not deduct the tax. Invariably, the opportunity is then available for minimising the amount of tax which is paid by various mechanisms, some of which may be legal, but I suggest that in all cases they are contrary to the spirit of our taxation system. It would be totally unconscionable for us in this Assembly to encourage, permit or allow that sort of process to be applied.
Notwithstanding the validity of those arguments, those facts were very clearly put before the Assembly on the previous occasion but, because of the grasping nature of the leader of the Residents Rally party and his determination to secure the support of Mr Stevenson in his push to control this Assembly and the government of the
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