John Dardis (Progressive Democrats)

One would think 11 September never happened, that the foot and mouth outbreak never happened and that somehow we live in a cocoon. We have a competitive open economy and suddenly we want to live in this cocoon that insulates us from the world. That is not living in the real world. We have to accommodate ourselves to the conditions in the international marketplace.

Much reference has been made to inflation. The Minister, by virtue of increasing the price of tobacco, spirits and diesel, has acknowledged in his Budget Statement it will add 0.85% to the consumer price index. I am in favour of a greater increase in tobacco excise. However, I am aware that if one was to increase it to the level I think is right, it would have a profound effect on the consumer price index and inflation. There would then be howls from the other side of the House about what was being eroded through inflation. The correct balance has been achieved.

Another significant achievement of the budget was that it did not increase personal taxes. An increase in personal taxes would have been a facile way of dealing with many of the problems.