Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Hansard source

I am pleased that the Leader of the Opposition has noticed that we have restored the allowances that were removed as part of the deal in question. No-one dislikes more than I do the fact that we have to have restraint at these times in questions of pay. No-one likes the necessity for restraint, particularly when it comes to Defence pay. But what is possible with $20 billion surpluses is not possible with $50 billion deficits.

I know that members of our armed forces would prefer to have a three per cent or above pay increase, but members of our armed forces are citizens as well as Defence Force personnel. They understand that the government does have to live within its means after six years of debt and deficit disaster from members opposite. They know that if Labor had not run the budget into such massive debt and deficit it would be much easier to pay them more than it currently does.

The other thing that members of the Defence forces well understand is that members opposite, when they were in government, cut $16 billion from Defence spending. Members opposite, when they were in government, reduced Defence spending as a percentage of GDP to the lowest since 1938. Members of the Defence forces know that Labor's cuts led to 119 Defence projects being delayed, 43 Defence projects being reduced in scale and eight projects being cancelled altogether.

So I think that members of our Defence forces think that the Leader of the Opposition has a bit of a hide asking questions like this. Members of our Defence forces know that, in terms of defending our country, it is very important that we get the economic defences right as well as the physical defences. That is what this government is doing. This government is giving us the economic strength which is necessary to ensure our country's defence strength and defence security as well.

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