Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Why did the Prime Minister take so long to discover that his cuts to Defence allowances were unfair? Given that funding for a real wage increase was included in the budget, will the Prime Minister now commit to providing a fair pay deal for our Defence men and women?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to 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.

Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

Madam Speaker, in light of the Prime Minister's answer I seek leave to table the document showing that a real wage increase was budgeted for in the budget.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

There is no point of order. The member will resume his seat. The member for Robertson has the call.

Lucy Wicks (Robertson, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on the efforts the government is making to target Labor's legacy of debt and deficit? How does this legacy affect the whole economy?

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

I thank the honourable member for Robertson for her question and recognise that, despite some of the challenges we have had in the budget, we have been able to set up an Australian Taxation Office in Gosford with up to 600 employees. That is hugely important for the Central Coast of New South Wales, which has very high unemployment. It is important that we actually focus on dealing with the legacy of debt and deficit left behind by Labor—$667 billion of debt, without any action, in 10 years time. As I said before, that equates to $25,000 for every man, woman and child in 10 years time.

It is only the coalition that has a plan to fix the mess that has been left behind by Labor. As Chris Richardson from Deloitte Access Economics said this morning:

Yet May’s Budget is the only roadmap to structural fiscal repair Australia has—the Opposition and minor parties washed their hands of setting out detailed alternatives, preferring populist posturing.

Preferring populist posturing—that is the Labor Party way. We know that. In fact, for some odd reason, I had a grand choice on the TV just before question time of Clive Palmer or Bill Shorten. I was channel surfing, looking for some sport or anything else, but I could not help but listen to the Leader of the Opposition, who said before question time words to the effect, 'If you want to fix the budget, get rid of the savings that are in the budget.' I thought: 'Hang on; how does that work?' He says, 'Dump the Medicare co-payment, dump the fuel excise and dump all the things that actually save money.' And do you know what? He reckons the budget would actually be in better shape. I have heard that before—when the Leader of the Opposition was out there, saying, 'Great news, Australia; we've delivered a budget surplus,' or when our old mate, up there in the back stall, the member for Lilley—you can look up now, Swanny, thank you—said at this dispatch box, 'The four surpluses I announce tonight'—

Jill Hall (Shortland, Australian Labor Party) Share this | Link to this | Hansard source

Madam Speaker, I rise on a point of order. I would ask you to remind the Treasurer to refer to members by the name of their electorates.

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

I tell you what: the member for Lilley is in great shape when he has to be rescued by the member for Shortland! You are in great shape. You are at the peak of your career right now. As a former minister, you stood at this dispatch box and said to the Australian people that you were going to deliver surpluses. Labor never delivered surpluses and Labor will never deliver surpluses. The only people with a plan for a stronger Australia are the coalition.

Mr Perrett interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Moreton will desist!

Dr Chalmers interjecting—

The member for Rankin will desist!

Honourable members interjecting—

We will have silence before the Leader of the Opposition is invited to have the call—and that includes those on my right.