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PRIME MINISTER

FOR MEDIA S UNDAY, 12 SEPTEMBER 1982

ELECTORATE TALK

It was my G o vernment, with the previous Liberal Government  in Victoria, which set up the Costigan Royal Commission, and  the Commission's findings have validated that decision  a thousand fold. We set the Commission up because we were

determined to get to the bottom of the stories about evil and

crime associated with the notorious Painters and Dockers' Union,  and my Government is now totally determined to eradicate the  criminality and fraud that is exposed.

Australians everywhere are disturbed that corruption and  organised crime on such a scale exists in our community. Eradicating it will in many cases call for new techniques,  drawing upon the computer applications Mr Costigan has pione e r e d ,

and matching the sophistication of modern cheats and criminals. The critics of this Royal Commmission - and there were some - have

been silenced. Mr Cain, for example, can no longer label the

Commission a "political stunt" as he did earlier this year,  and I only hope his new-found enthusiasm for the Commission's  work will be matched by effective practical action under state  law, and in relation to the Painters and Dockers' affiliation  with the Labor Party. -

My Government is taking immediate action on several fronts, legislation  enabling the appointment of a special prosecutor for bottom of the harbour  tax evasion schemes was passed through the House of Representatives  last week, and a task force of police, taxation officers and

lawyers to assist the special prosecutor is already established.  Further task forces will be established as required for specific  areas of criminal activity. The inaction within the Deputy  Crown Solicitor's Perth Office on prosecutions has led to the

suspension and charging of three officers. Mr Tony Smith has  been nominated by the President of the Law Council of Australia  to conduct an examination of the Perth Office and *the staffing  needs of the Crown Solicitor's Division are being investigated.

At the Government's request, Mr Costigan consented to the  publication of an important chapter of the confidential part of  the Report. That chapter was immediately made public last  week, and it shows the extent of organised crime in Australia. Mr Costigan has asked that the rest of the Report should not

be made public at this stage, partly because doing so could damage  the Commission's current investigations, and partly because  publication now would make it impossible for people who will  be charged with offences to get a fair trial.

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My Government accepts Mr Costigan's requests unreservedly. Anyone who believes in fairness, and in the importance of  Mr Costigan's work, would obviously accept the need for  confidentiality at this stage. This is why I have condemned

absolutely the deliberate way Mr Hayden has been dropping hints  about who is named in the r e p o r t s , and smearing groups within  the Australian community. Because of Mr Hayden's tactic, the  entire Australian community has a right to know that Mr Costigan  wrote to me about the speculation on the confidential parts

of his reports and said: "It would be quite inaccurate to draw

a n y .specific inference as to what names might appear in those  volumes, or whether they come from any particular state or  territory or country or have associations with any political  organisation or g r o u p " .

I also want to say something about the recovery of unpaid  taxation, because Mr Costigan's findings have highlighted this  issue, although the Government had already announced action before the  budget, and before theÃ¢ÂÂ  Ã¢ÂÂ Report was published. The tax avoidance" industry has been  effectively attacked by earlier legislation, we will continue to  be vigilant and act against new schemes, and the main question

now is to recoup taxes avoided by those who have used the

bottom of the harbour sche m e s . The Government will legislate  to recover taxes that were unpaid as a result of bottom of the

harbour schemes. It is important for people to know how

bottom of the harbour schemes worked, because I do not believe  anyone could have taken part without knowing they were w r o n g .

Let me try and explain it in these terms. If there is a company

with say $100 worth of assets, plus $10 tax due to be paid

to the Commonwealth, and somebody comes* along and says, look, "I can buy that company off you, ail you will have to do is

give me the company papers, and then you will be able to keep

for yourselves the $100 for the assets and the $10 of tax,

you won't have to pay the tax, all you will have to do is

pay me a commission of $2 for the deal." The promotor, having

got his commission, then dumped the papers in the bottom of the  haijbour. But how could the seller have failed to know he

was doing something wrong by getting out of the tax liability  in this way? The Government had decided to legislate to recover  this unpaid tax because of our determination that people should  not escape or avoid their fair share of taxes. I

I know some people have concerns about retrospectivity, no  Liberal likes retrospectivity. But I believe it is even more  important to demonstrate our total commitment to a tax system  which operates in a fair way, because any loss of confidence  by average Australians in the fairness of the system would

undermine the way of life we believe in. The principle of fairness is absolutely fundamental for  Liberals, it is more fundamental than any other principle,  certainly more fundamental than any element of retrospectivity

in the proposed legislation. The Liberal Party

was founded to govern fairly in the interests of all

Australians, and fairness is a principle basic to Liberals  and support for this principle is absolutely fundamental to  Liberal thinking, and I would not want to lead or be part of

any party which failed to stand by that principle.

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There is another issue Mr Costigan raised, the need to "have  available a prosecuting arm charaed with the responsibility  of immediately attending to any prosecutions that may arise

in the course of the Commission" (10.59). The Government  has already established a special prosecutor and this goes  a long way to satisfying Mr C o s t i g a n 1s a i m s .  However, in the

long term, it is fundamental that there be established a body  which both has an investigative and prosecuting role and it  is with this objective that my Government has proposed the  establishment of a National Crimes Commission. Only a  body invested with such powers will have the capacity to deal

effectively with modern crime.

Mr C o stigan1s findings clearly emphasise that traditional  law enforcement methods have failed.. .  This is most evident  in New South Wales as reports of Royal Commissions and task  forces over recent years have demonstrated. .  ..I believe that  the seriousness of Mr Co s t i g a n 1s findings, the apparent depth  and strength of organised crime in Australia, demonstrates the  need for a properly structured National Crimes Commission,

and I very much hope that the states will be willing to join

with the Commonwealth in this. Australia needs law enforcement  agencies which are adequate to understand and root out modern  crime, and my Government is determined to do everything in  its power to achieve these objectives. The positive action

we are taking and proposing all leads in this direction, and it

is all totally consistent with Mr C o s t i g a n 1s proposals.

My Government's record on the Costigan findings is one of  positive action and resolve. It stands in stark contrast  with the barren and baseless politicking of our opponents. Mr Hayden is to be congratulated on his move to disaffiliate

the Painters and Dockers' Union from the ALP. But Parliament  will be degraded if Mr Hayden continues to heap blame on

categories of people who are not even named in the Report. I will condemn that tactic whether it is practised by Mr Hayden,  or by any member of any party, including my o w n .

So far as my Government is concerned, we will be getting on

witdi the j o b , taking positive action in the light of the  Commission's findings, and along the lines it soundly proposes.

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