Hawke, A.C.T.U. clash on tax

Press, 8 February 1983, Page 6

Hawke, A.C.T.U. clash on tax

NZPA Canberra A big. 5 policy difference between the Australian Labour Party and the Australian Council of Trade Unions emerged yesterday over the possible introduction of an excess profits tax? The Labour leader apparent. Mr Bob Hawke, and the A.C.T.U.'s president. Mr Cliff Dolan, clashed over the issue in their first public rift since the beginning of the March 5 election campaign.

Mr Dolan’s call for a Labour government to introduce the tax eventually, and Mr Hawke’s rejection of the suggestion, came only three days before Labour will announce its economic policy.

Mr Dolan said the union movement believed that excessive profits were still being made and were being disguised in various ways. Last evening. Mr Hawke dismissed the proposal as unrealistic.

Mr Dolan said that an excess profits tax, and more equitable taxing of professional incomes, were two things he was keen to see implemented. Excess profits, he said, were either the result of price mechanisms or because the industries involved were not meeting their full tax obligation.

Mr Hawke said that an excess profits tax had not been talked about in terms of the party’s prices and incomes policy, ' “In the current situation it is unrealistic to talk about an excess profits tax,” he said. The A.C.T.U. put the question of such a tax to the Federal Government last year as the central feature of a national employment fund. Mr' Hawke said that after this Thursday’s announcement of Labour’s prices and incomes package “there will be no problem on this at all.”