Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. Yesterday in this House the Treasurer, in relation to the Queensland reconstruction, said:

There is no way of funding it without a levy …

I refer the Treasurer to the Prime Minister’s statement at the National Press Club on 27 January, in which she said—and effectively repeated today in the parliament—that if more money was needed:

The money will come from cuts somewhere else.

How does the Treasurer explain the contradiction in these statements?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

It is because there is no contradiction. Bringing the budget back to surplus, keeping our public finances strong—particularly when there are capacity constraints in the economy—is the rock of good economic management. We have to preserve our fiscal firepower if there are more events down the track. These are the basics of very strict fiscal discipline and the basics of sending a message to markets that this economy is strong, that our public finances are strong and that we can handle adverse events. Of course there is no contradiction. Those opposite are simply embarrassed. It was good enough for them when they were in government to introduce six levies. For the leader of this opposition to come into this House and stand up year after year after year—

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

Mr Speaker, I take a point of order on direct relevance: the Treasurer was asked a very specific question. He was not asked anything about other matters before the current flood tax that we are debating.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Treasurer will directly relate his comments to the question.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I was asked about the need for a levy—why we needed to put this levy in place. I am explaining. It is to keep our budget in surplus, to keep our public finances strong and, importantly, to rebuild Queensland because, unlike those opposite, we will not put political interests before the national interests.

I do not doubt that bringing in a levy like this can be unpopular, but I can tell you this: it is the right thing to do by Queensland and it is the right thing to do by Australia. Those opposite are taking the opportunistic path that they took during the last election campaign: putting their political interests before the national interest. All of those members over there from Queensland are acutely embarrassed by the stance of those opposite. They are going to feel the heat from their electorates because putting this levy in place to rebuild Queensland—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Treasurer will return to the question.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

to rebuild Far North Queensland and to rebuild North Queensland is absolutely in the national interest. If it was good enough for the Leader of the Opposition to go around Australia during the last election campaign and argue the case for a permanent levy then surely it is good enough for the opposition to support a temporary levy to rebuild Queensland and parts of Victoria. This just shows they are putting their political interests ahead of the national interest.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Treasurer will relate his remarks to the question.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

As I said in this House yesterday, it is all opposition and no leadership.