House debates

Wednesday, 3 December 2014

Matters of Public Importance

Budget

3:15 pm

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

I have received a letter from the honourable member for McMahon proposing that a definite matter of public importance be submitted to the House for discussion, namely:

The adverse impact of the budget on jobs and the economy.

I call upon those honourable members who approve of the proposed discussion to rise in their places.

More than the number of members required by the standing orders having risen in their places—

Photo of Chris BowenChris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | | Hansard source

It has been quite a week in this chamber. It has been quite a week in Australian politics. But the overriding impression left, by this government—for the Australian people—by their behaviour in this chamber and outside it, is their level of delusion, their level of denial and their level of misunderstanding of the impacts of their own actions. They just do not get it.

Perhaps the most spectacular example has been the rather special performance of the Minister for Education over the last 24 hours—but he does not have the prize all to himself. In no area is their level of delusion and denial more worrying, more concerning, than when it comes to the management of our economy. One of the most important responsibilities given to a government is the management of the national economy, to ensure strong growth of our economy and to ensure that our finances are in good shape.

We have seen the impact of their denial over the last 48 hours. We had the Prime Minister hold a press conference, where he said: 'Confidence is returning to our economy.' There is only one little problem with that—it is not. The figures are very clear. We saw it with the Treasurer today. He denied that the previous Labor government had achieved three AAA ratings from the three major ratings agencies. He just denied it had happened. I have news for him: it did, I am sorry to inform the Treasurer. He also made a mistake when it came to the unemployment rate, but we are not going to quibble over details. That would be unfair to the Treasurer, because he is not very good at details when it comes to the Australian economy.

They thought it would all be easy. That is the fundamental dynamic we are seeing played out in their management of the economy. We know that because they told us. The Prime Minister, when he was Leader of the Opposition, said: 'There will be an instantaneous adrenaline charge in our economy.' If only it were that easy. Let's have a look at how that adrenaline charge is going. We have seen Westpac's consumer confidence index show a 13 per cent reduction since the election. We see the Treasurer clinging onto a bit of hope in the ANZ index. He said, 'Don't worry about the Westpac index. What would Westpac know about consumer confidence? Let's have a look at the ANZ index.'

There is a little problem for the Treasurer in the ANZ index as well. If you look at the ANZ index, the annual average on that index is 111.4. But 111.4 for this year is not a great result, I have to break it to the Treasurer. In fact, it has not been lower since 1993. It is the equal-worst result since 1993, if you put aside the global financial crisis that saw consumer confidence impacted by world events.

We saw the Treasurer valiantly deny any of this today. 'Nothing to see here,' he said. 'Move along; there is nothing to see in the economy. There's no problem.' He said, 'Look at jobs. We're creating jobs twice as fast.' A couple of months ago he said it was five times as fast, but it is a moving feast for the Treasurer when it comes to figures. Even on this level, his record is a very poor one.

If you look at job creation since the budget, it is a very poor story indeed. We have seen unemployment increase. We have seen 42,000 more people on Australia's unemployment queues since he stood at that dispatch box and brought down his unfair budget, which smashed confidence. We have seen jobs growth slow to about a third the level it was before he brought down his budget. And we have seen youth unemployment increase dramatically—to its highest level in 13 years—on this Treasurer's watch. They are the facts.

When you look at full-time jobs growth, as a total since the budget, it comes out at close to zero. Effectively, there were no full-time jobs created. It has gone up and down over the months, but if you look at the record since the budget it is a very poor one indeed. Today we have had two bits of news for the Treasurer, which he likes to ignore. He stood at the dispatch box and talked about the importance of services—and he is right. Services are 70 per cent of our economy. Services are vital. Confidence in services is very important in our services sector. Today we had the latest update. We have had several updates on the services sector.

Those updates have shown the impact of this Treasurer's budget. The organisation which conducts those surveys, the Australian Industry Group, has made clear and explicit what is going on here and what is impacting on confidence in the services sector. It is this government's budget. They said it clearly. They said it in black and white. Again today AIG said that the services sector 'remained disturbingly weak in November, reflecting fragile consumer and business sentiment …'. The Australian economy remains stuck in the slow lane. This Treasurer, if you listened to him, would not think that. He does not appear to know it or recognise it.

Then we had the national accounts, which showed a growth of 0.3 per cent. The Treasurer thinks that is a fantastic result. The fact that it is less than half of market expectation seems to have escaped him. I then asked him a very simple and basic question. But there was one word that could not pass his lips—there are two words that cannot pass this government's lips. There is a 'W' word—wrong—and there is an 'R' word—recession. There is a fact: Australia is in an income recession.

The AustralianFinancial Review said that income recession is confirmed as GDP growth slows, from just a couple of hours ago. It is very clear, but the Treasurer seems to not acknowledge it. What he has done by his words and his actions is damage the Australian economy. He has brought down an unfair budget—that is true. He has attacked the cost of living of ordinary Australians—that is true. He has brought down a budget which is regressive and fundamentally unfair. He stands accused and he is guilty of it. But he also stands accused of bringing down a budget which is bad for the economy, because he fundamentally does not understand it. He fundamentally does not understand his job. He fundamentally does not understand that when a Treasurer speaks it has an impact. When a Treasurer talks about confidence it has an impact.

The Australian people look to a Treasurer to understand what is going on with the Australian economy. When the Treasurer engaged in his irresponsible and ill-thought-out rhetoric in the lead up to the budget, he had an impact, because when a Treasurer speaks the nation listens. When a Treasurer says something, it has an impact, and this Treasurer could not resist playing politics. He just could not resist because he loves opposition. He could not make the transition to government, and the transition to government means there is a responsibility on him to talk about the strength of the economy and the strength of the budget, and he could not bring himself to do it. We saw confidence starting to be smashed just as he started to talk about the budget. We did not have an adrenaline rush; we had a Mogadon rush from this Treasurer as he started with his rhetoric, and it got worse with his actions. He has acted irresponsibly, he has acted immaturely and he has shown he is just not up to the job of being Treasurer. He is just not up to the task that has been entrusted to him by the Australian people and by the Prime Minister. He is just not up to it. That is why we see speculation that he is not going to make it to election day as the Treasurer, because he just does not understand his role.

He does not understand the insult that he provides to the Australian people, and particularly to the people of Adelaide and Port Adelaide, when he says, 'We needed to get rid of the car industry for the free trade agreements. We needed to do that. I just didn't tell you at the time.' He did not say that, but he was goading Holden to leave Australia. He did not say, 'We need you to go so we can conduct a free trade negotiation with China and other countries.' He said that after the event. He does not understand the insult when he inaccurately says, 'We don't have time for something as outrageous as an open and transparent tender for a minor government procurement like the next generation of Australia's submarines. We couldn't possibly have time for that.' He knows he is wrong. He has been told he is wrong. We have again seen Australian Industry Group nail him for his error, and they are not the only ones. When it comes to this Treasurer, he just does not get it. He does not get it that he has an impact when he says that poor people do not drive cars. He does not get it that he has an impact when he says, 'Don't worry about the car industry, because we need a free trade agreement.' He does not get it that he has an impact when he says, 'We don't have time for such luxuries as an open and transparent tender. We wouldn't want to do that!' It is no wonder that people are speculating that he will not make the next election, because he is just not up to the job. (Time expired)

3:25 pm

Photo of Michael McCormackMichael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | | Hansard source

Labor is committed to jobs—I appreciate that. They were committed to their own jobs and their own jobs only prior to the last election, but they were not committed enough, because they lost quite a few of those jobs and that is why they are on that side of the House now and why we on this side of the House. They were not able to look after their own jobs, let alone anybody else's. The member for McMahon, that was a great audition for the top job over the other side—the opposition leader's job. It was not a really good rehearsal, but he will have to keep trying and I am sure that he will in 2015.

The member for McMahon mentioned two words beginning with 'W' and 'R'. I would put it to him that he was wrong about the two words that he used. 'W', when it comes to Labor, tells me of waste, and 'R' tells me of regional. I will get onto that in a little bit.

Mr Fitzgibbon interjecting

I hope the member for Hunter stays and listens. There is the famous proverb: 'There are none so blind as those who will not see. The most deluded people are those who choose to ignore what they already know.' Surely that applies to the Australian Labor Party. There is a big difference between promise and performance. There is a big difference between what is needed and what is actually delivered. There is a big difference between Labor and the coalition, let me tell you.

It has been a year of achievement. The member for Hunter would acknowledge that. We began with budget repair—reducing projected debt by $300 billion. There was the largest infrastructure package ever—committed $50 billion; leveraging $125 billion. We facilitated significant state reforms; repealed the insidious minerals resource rent tax and the carbon tax, ultimately leading to the largest falls in electricity prices on record; privatised Medibank Private—the third-largest initial public offering globally this year, with over $1 billion above what we initially expected; removed around $2 billion worth of red tape; and repealed 57,000 pages of legislation. There was the end of the age of entitlement for industry. And there was more: agreement on three key preferential trade agreements—South Korea, Japan and China. We delivered smaller government, abolished 76 agencies, authorities and boards. There was $1 trillion of environmental approvals and 300 major projects were approved. It goes on and on, including rebuilding employee share schemes and dealing with the Labor tax backlog—almost 100 unenacted tax measures were taken care of. There was international leadership on cracking down on tax cheats. There was a 15-point Organisation for Economic Cooperation and Development action plan. There is still more to come. Next year we have the Federation white paper and the taxation white paper. They will be key papers which are going to help the economic reform of this nation. And there will be further progress on budget reform and further preferential trade agreements.

In question time today, when the member for Berowra and the very well respected father of the House talked about the year of achievement, all we heard from the other side—

Mr Husic interjecting

Mr Fitzgibbon interjecting

The member for Chifley was one of them and the member for Hunter was another. I am not quite sure about the member for Fraser. I think he was concentrating on his Eureka debate tonight. There was nothing but jeers and mocking laughter by Labor. Ignorance, ineptitude, irresponsibility, incompetence and absolutely incapable of seeing reason. That is Labor. It is writ large.

We compare our record of achievement, our year of achievement, with what Labor left this country: $123 billion worth of cumulative deficits, $667 billion worth of debt if nothing more was done, if nothing was set out to be achieved by the coalition. That has left this nation, the taxpayers of this nation—the mums, the dads, the families—with a $1 billion interest bill each and every month. That will increase to $3 billion if we choose to do nothing. Labor are opposed to $28 billion of savings including $5 billion of their own. This includes $9.6 billion of remaining welfare changes. We all know how rusted Labor is onto welfare. Labor want an additional $15 billion of spending restored which will worsen the budget bottom line by $43 billion.

We are looking forward to a stronger economy in 2015-16. Economic growth is projected to improve next year from 2.5 per cent to three per cent. Employment growth is anticipated to grow by 1.5 per cent. Stable unemployment will be around 6.25 per cent. It is too high, but it is certainly not as high as that which was recorded under Labor, and we are working towards reducing it all the time. Exports of goods and services are forecast to improve in volume with a seven per cent growth in 2015-16.

Mr Husic interjecting

These are important, Member for Chifley. Interest rates are at a historical low. Big infrastructure is starting to roll out.

Mr Fitzgibbon interjecting

Member for Hunter, I actually, kind of, heard you cheering today when the agriculture minister, Barnaby Joyce, stood up and talked about the 39,000 agricultural jobs created since we came to government. He is cheering now, as he should be. From our farmers, Labor took away their water and took away their hope. The member for New England is getting on with the job of rolling out a drought package. He is getting on with the job of giving farmers back water, with the help of Senator Simon Birmingham, as well as giving them hope.

This coalition have succeeded in achieving a number of avenues, after only a year in government, following the debt and deficit legacy that we inherited from Labor after their six disastrous, miserable years in office. They were chaotic and dysfunctional years. We are getting on with the job of cleaning up after the disaster left by Labor. Labor presided over the most vast Australian debt position in modern history.

Interestingly, in The Australian, that reputable newspaper, on Tuesday this week there was an article titled, 'Money for marginals sees Labor exposed', which said:

… Labor funnelled money to projects in marginal electorates that were not deemed appropriate,

This is under the RDAF funding. The article continued.

The Australian can reveal that a wide range of worthy projects missed out.

Honourable members interjecting

You should read the report from the Australian National Audit Office, Member for Hunter, which states:

… there was not a strong degree of alignment between the Minister's—

This is the member for 'Ballarort'—Ballarat, pardon me—

funding decisions and the panel's recommendations. On 40 occasions, the decision made by the Minister diverged from that recommended by the panel in round three.

Amongst those was a really important one, as The Australian reported:

… a program for disadvantaged, homeless and drug dependent youth was set to receive $500,000 in round four of the project, but the decision of the panel was also ignored.

That was in Narrandera, a town which really needed that funding and was really looking forward to it, but it was overlooked by Labor. Even though Catherine King came into my electorate in the lead-up to the election and said that it was going to happen. But, of course, it was never going to happen because Labor, firstly, overspent the money from the mining tax by $17 billion or thereabouts, and, secondly, they had no intention of funding these very good programs, as the ANAO recorded. The ANAO report said:

A feature of the Minister's decision making was the lack of strong alignment between the funding decisions taken and the panel's recommendations—nearly half of the funding awarded (48 per cent) went to applications that had been categorised as other than 'Recommended for Funding'. In total, 74 decisions were taken by the Minister over rounds three and four that diverged from the advice of the panel.

The report continued:

It is difficult to see such a result as being consistent with the competitive merit-based selection process outlined in the published program guidelines.

What a disgrace. What an absolute rort and typical of Labor. But the member for McMahon certainly benefited. He benefited from a multimillion dollar program, and I hardly think that the member for McMahon's electorate is regional. But, be that as it may, what an absolute disgrace.

The legacy that Labor has left Australians is 200,000 more unemployed. It is a shame that, amongst those 200,000, there were not actually more Labor people running for parliament at the September election last year. Gross debt, as I said earlier, is projected to rise to $667 billion. We are paying far too much in interest each and every month. That money could be used to help irrigate Australia, to help regional programs, to help fund the program at Narrandera for Outreach, for the unemployed and for drug dependent people. But, no, they laugh and they continue to pour scorn upon these very good programs that they should have funded. They promised that they would, but they actually failed to.

There is a big difference, as I said before, between actual performance and promise. That is why there is a big, big difference, also, between the coalition and Labor. We get on with the job of doing things, of creating jobs and restoring this country to the levels that it should be. All Labor does is wreck and ruin.

3:35 pm

Photo of Andrew LeighAndrew Leigh (Fraser, Australian Labor Party, Shadow Assistant Treasurer) Share this | | Hansard source

In this annus horribilis for the Abbott government: they have given Australia back knights and dames; they have taught us that the name of our North American friend is pronounced 'Canadia'; they have suggested that the US is at risk of default—and I am sure the member for Riverina would not have made a mistake like that. They have shown their common touch by smoking cigars just before handing down the most unfair budget in living memory; enlightened us about the link between breast cancer and abortion; taken to the barricades to defend the rights of bigots; told us that poor people do not drive cars; said that the Australian Submarine Corporation, despite being headed by Sophie Mirabella, still cannot build a canoe; and shown us that demon dialling is the way to every crossbenchers heart.

What they have not done is deliver a budget that will grow the Australian economy, improve egalitarianism and create jobs. In fact, just like one of the member for Sturt's text partners, they have run screaming in the opposite direction. This budget is Robin Hood in reverse. It gives billions to multinationals and hundreds of thousands of dollars to people with more than $2 million in their superannuation accounts but it takes one dollar in every 10 from the wallets and purses of Australia's poorest single parents. This is not a meritocracy; this is a budget for a mate-ocracy.

This government has attempted to bring in a GP tax. They have attempted to take one dollar in five of student funding from Australian universities. They have cut pensions and, in breach of their pre-election promises, they are attempting to cut into the ABC to turn it into a 'Very Small Business'. They have 'Shaun the Sheep'. They have told porkies about 'Peppa Pig'. In 'The Health Report' they are soon going to be asking, 'Doctor Who?' The'Hollowmen' are on their 'Media Watch'.

When he was swearing in the Governor-General, the Prime Minister told Australians that the reason we have a Governor-General is to visit 'places that aren't important enough for Prime Ministers'. Right now that is a pretty long list. It includes universities, because you need a small SWAT team to get a member of this front bench to visit them. It includes hospitals. It includes childcare centres and it includes the entire state of Victoria.

The Prime Minister is about as popular in Victoria as a fruit fly invasion. He is about as useful as a porthole on a submarine. That is why they started their campaign for Victorians by sneaking in a fuel tax through backdoor means and ended up sticking to the GP tax like a captain going down on a barnacle-ridden ship. The Prime Minister shirt fronted his Victorian colleagues and he is shirt-fronting Australians with his unfair budget.

Today is the 160th anniversary of the Eureka uprising. As Gough Whitlam put it in his 1973 Eureka lecture, 'Egalitarianism—by whatever name we call it—is at the heart of the Australian tradition.' But now, with inequality at a 75-year high, we have a government that wants to take from the vulnerable to give to the affluent—a government which is, literally, governing for the knights and the dames.

We, on this side, have a proud legacy. We kept Australia out of the biggest downturn since the Great Depression. We put in place a carbon price that saw the biggest drop in emissions in 24 years—a great economic reform that allowed us to lower the taxes on work while we were putting a price on pollution, and which boosted egalitarianism, because it is the poorest who will be hurt by unchecked climate change.

We made $180 billion in responsible savings, including means-testing the private health insurance rebate, reforming the PBS, and getting rid of the dependent spouse tax offset. Those opposite claimed last year that they would deliver a surplus in their first year and every year after that. They said there was no revenue problem and that there would be an 'adrenaline charge'. Instead of the adrenaline charge, we have had a government that looks like a dose of valium. We have had more tantrums than a daycare centre at nap time. They are blaming the opposition for opposing, blaming the media for reporting, and blaming the business community for failing to sell their budget.

The problem is not the sales job, it is their very budget. We do not know what cuts will be in the mini-budget when it comes, but we know that what they are selling stinks. It is not the barnacles; it is the ship and the captain that should be sent back out to sea.

3:41 pm

Photo of Louise MarkusLouise Markus (Macquarie, Liberal Party) Share this | | Hansard source

I would like to begin by reminding members opposite, and the Australian people, of the reason the government was changed on 7 September 2014. In 2007, Labor inherited a $20 billion surplus with zero net debt and $45 billion in the bank. Labor delivered deficits totalling $191 billion between 2008-09 and 2012-13.

Opposition Members:

Opposition members interjecting

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

The member for Moreton!

Photo of Louise MarkusLouise Markus (Macquarie, Liberal Party) Share this | | Hansard source

In addition to this, Labor left additional projected deficits of $123 billion over the next four years, from 2013-14 to 2016-17. These are the facts.

In addition to this, over its six budgets while in government, Labor increased spending by an additional 50 per cent, totalling $137 billion. Labor's legacy on jobs was 200,000 more unemployed. More waste and more mismanagement was demonstrated through Labor's handling of the national broadband network, with an estimated blow out of $29 billion. Further blow-outs include $11 billion in border protection costs, $6.8 billion due to the overpriced cost of school halls, and $2.8 billion spent on the failed pink batts scheme.

It is important for us to remind members opposite of the reasons the government changed hands last year. This year alone, the debt Labor created will cost $12 billion in interest. If we do not take urgent action and initiate policy change now our debt will continue to grow to an estimated $667 billion. Each Australian's share of Labor's debt is currently $13,500. Unless we take action this will grow by $1,100 annually and could potentially reach $24,500 in a decade. This is a debt that Labor left for each Australian.

The coalition government is determined and focused on building a strong and prosperous economy for a secure and safe future for every Australian. Since taking government the coalition has been active in commencing budget repair. The coalition has reduced projected debt by $300 billion so far, with 75 per cent of our budget measures having now been passed—contrary to what members opposite say. The Abbott government has committed $50 billion to establish the largest infrastructure package ever. This package will deliver critical infrastructure and create jobs and activity-boosting, long-term productivity for all Australians. Next year the $1 billion National Stronger Regions Fund will be rolled out, giving local communities the opportunity and ability to receive the infrastructure that their people, families and businesses need desperately—creating local jobs and building local economies.

This year the coalition government successfully repealed the carbon tax, saving the average household $550 a year. The carbon tax placed direct pressure on over 75,000 businesses, costing over $700 million. Following the abolition of the carbon tax, the coalition government ensured that all savings would be passed on to business, giving the ACCC new powers. These powers guaranteed a reduction in operating costs for many businesses, easing the cost for many business owners.

The coalition government has successfully agreed on three free trade agreements with South Korea, Japan and China. Our free trade agreement with China means more jobs, creating greater investment in Australia and a higher standard of living for all Australians. Once our free trade agreement is fully implemented, our agricultural produce, resources and manufactured goods will be well placed to compete in China's dynamic marketplace. It will mean access for our banks, universities and tourism operators—the heartbeat of the Blue Mountains and the Hawkesbury. They will all receive better, more guaranteed access to the Chinese market. The concessions we have given to China will lead to increased investment in Australia, strengthening our economy, particularly increasing tourism, one of our largest exports, and providing cheaper goods for Australian consumers.

In an opinion piece in The Australian Andrew Robb wrote:

Its win-win-win. Jobs generated and protected by this FTA are not just in one location or one sector; they are across the economy—

(Time expired)

3:46 pm

Photo of Ed HusicEd Husic (Chifley, Australian Labor Party, Shadow Parliamentary Secretary to the Shadow Treasurer) Share this | | Hansard source

I have one question: does this Treasurer get anything right? He gets nothing right. Let's go through a roll call. Let's do a quick rundown. He told us that there would be an adrenaline surge in confidence. Wrong! It is 13 per cent lower than at the election. He told us there would be a million jobs, but unemployment is worse than it was in the GFC. He told us, 'We will achieve a surplus in our first year in office.' He said that. Where did that one go? Here is another one. He said budgets would be better under them. He said, 'I can promise that the coalition will deliver a better budget bottom line.' In MYEFO, in one budget statement, it went worse than ever. It will be interesting to see how MYEFO delivers in the next few weeks.

I love these quotes. Joe Hockey is like a quote vending machine: you just have to hit him and he comes out with another one. Here is another one—'We must return stable, predictable, honest government to Australia.' That is beautiful! He said, 'The objective of the coalition over time is to reduce the overall tax burden on business and taxpayers, not to increase it.' What about this one? He said, 'The government does not have a revenue collection problem; it has a revenue forecasting problem.' That is what he said. What happened when iron ore started moving? We suddenly started getting the excuses. We also got this whopper—'Poor people don't drive.' There was that one as well. Does he get anything right?

I do not, we do not and the Hockey enthusiasts do not need to answer the question, 'Does the Treasurer get anything right?' Do you know why? It is because the answer was on the front page of the Sydney Morning Herald on Monday in an article headed 'PM's man to focus on economy' when Peter Hartcher wrote:

The anxious Abbott government is hoping it will be revived by the new head of the Prime Minister's Department, who starts work on Monday with a brief to concentrate on the government's economic agenda.

In an implicit acknowledgement that the government has lost much confidence in the Treasurer …

There you go! Does he get anything right? We do not have to answer that question because those opposite have answered it for us. When Joe goes poorly, they roll out Thawley. That is what they do. They are bringing in Thawley to help out because they have no confidence left in the Treasurer.

I wonder if the Treasurer even knew, because he has not had a good week of being told what is going on with his own budget strategy. Last week he had to find out through the bush telegraph that runs through the press gallery that they were about to announce that the GP tax was going. Whoops! When did he find out about that? He did not find out through the proper cabinet process that we were promised would occur by that side. He found out because it was running through the press gallery like wildfire. Then what happened? The Treasurer stood his ground and said, 'The GP tax will stay.' Will it stay or will it go? We do not know. This is the stable government we were promised by those opposite! Look at the way they are operating.

The biggest economic challenge facing the economy right now is confidence. But how do you get confidence if the coalition does not even have confidence in its own Treasurer? We want the economy to be able to grow because of confidence. However, it has been thugged. Confidence has been thugged by the coalition. If you are a single-income family or a family that is on $65,000, you have had $6,000 taken out by this budget. Wages growth is hardly growing. It is probably the worst the RBA has seen since it began keeping records. Confidence has been further mugged because of the fact that the Treasurer has his hand in every wallet and purse, taking out money by the thousands through a horror budget where pensions were cut, family payments were cut, support for young unemployed people was cut, a GP tax was brought in and petrol taxes went up.

I end on this quote from the Treasurer. This was said by the Treasurer when he was the shadow Treasurer. He said:

The government—

he was talking about us—

wants to blame anything and anyone else for the budget mess.

(Time expired)

3:51 pm

Photo of Dennis JensenDennis Jensen (Tangney, Liberal Party) Share this | | Hansard source

Oh, dear, Member for Chifley! If that was a job application to be a stand-up comedian, I do not think you pass. No-one of sound mind or judgement can or should trust Labor. Labor's lies and incompetence have saddled this nation with a huge debt burden. Filling in such a massive hole will not happen overnight. When we last held office, the budget was in surplus. We were $50 billion in the black. We were earning interest, not paying interest. The interest on their debt alone is $1 billion per month or $45 per month for every man, woman and child in Australia. Two months of that interest would be enough to build the Fiona Stanley Hospital in my electorate of Tangney. That hospital is the most modern in the Southern Hemisphere. Just think what not paying the mortgage on the credit card would mean for infrastructure around the country. Think of what that extra money would do for people stuck in traffic on the Bruce or Hume highways, or in Sydney, Melbourne or even Perth. In short, responsible budgeting means living within our means.

The key message is this: only the Abbott coalition government has an Economic Action Strategy that will grow the economy and fix Labor's debt and deficit disaster. Without ameliorative action, the country was on track for $667 billion of debt—$30,000-odd for every man, woman and child in Australia. One of Labor's biggest failures has been our biggest success—border protection. Stopping the boats was a key plank in our policy platform at the last election. We said that we would stop the boats, and we did. Not only have we restored integrity to our immigration system but we have stopped the needless tragedy of mass drownings at sea. Critically for this debate, it means that we have also stopped the haemorrhaging of public money. Under Labor, we bled money at every turn in this policy space. Search and rescue is expensive, administration is expensive and lifetime welfare payments are more expensive still. Many genuine refugees were left waiting, as queuejumpers risked paying people smugglers to make the journey to Australia. This injustice has stopped.

The list of achievements is long, and my time short. This first Abbott administration is committed to action. We have scrapped the carbon tax, saving the average household $550 per annum. We have scrapped the mining tax so that this vital sector can create more jobs. We have handed down a $50 billion infrastructure package—the single largest infrastructure package in this country's history. We have delivered free trade agreements with Japan, with China and with Korea, and this means more jobs for Australians. We are putting in place long-term structural reforms to fix the budget.

To quote Ronald Reagan:

The nine most terrifying words … are, 'I'm from the government and I'm here to help.'

At the last election, the Australian people said: 'Stop helping. We are dying of regulation suffocation.' We will heat the economic engine with economic bonfires of bureaucracy. The globally-interconnected competitive marketplace scares the pants off lazy Labor layabouts. How lazy? So lazy that your leader did not even bother to check that the petition was compliant when he presented it in this place recently. If they cannot run their own house, why would you let them run your house?

Labor have no plan for our country. Our government have a clear vision: free trade and a higher value-added strategy of sustainable growth. I am pleased that a can-do government that understands business is now back in charge. My constituents in Tangney have been waiting for years to see work commence on the Roe Highway stage 8 extension. I welcome the $675 million to finish the Gateway WA project in Perth. Unlike Labor, we do cost-benefit analyses. You promised surpluses and delivered deficits. You promised conservative fiscal policy and delivered more and higher taxes. You promised stability and delivered two coups and much chaos. Let us get back to building hope, reward and opportunity. (Time expired)

3:56 pm

Photo of Warren SnowdonWarren Snowdon (Lingiari, Australian Labor Party, Shadow Parliamentary Secretary for External Territories) Share this | | Hansard source

We have been hearing over the last 36 hours that this has been a great year of achievement by the government. The Prime Minister has been on about it, the Minister for Education has been on about it and the Treasurer has been on about it. Let us ask ourselves about some of those achievements. What have they done? They have gutted the auto industry in this country. They have created huge lines of unemployment in the manufacturing sector and done it deliberately. They have doubled the deficit; almost within three months of coming into government, they doubled the deficit to $120 billion over the forward estimates. That is a mighty achievement! Yet they come into this place and bang on about how, somehow, the deficit is a Labor problem. The deficit is not a Labor problem. The deficit has been doubled by these clowns.

Who else have they successfully worked with? Well, of course, Australian families! Every Australian family feels grateful for this government! They feel really grateful because of what this government has done! I think not. We heard just a moment ago about the impact on working families of changes to the tax concessions for families. That is a direct impost on those families—something that you have done proudly. You know that in your electorates the Prime Minister and the Treasurer are toxic.

Government Members:

Government members interjecting

Photo of Warren SnowdonWarren Snowdon (Lingiari, Australian Labor Party, Shadow Parliamentary Secretary for External Territories) Share this | | Hansard source

You know it. I know what happens in your party room: you are all yapping like this, 'What are we going to do next?' Well, we know what you are going to do next. It will not be too long before the Treasurer is out of a job; I guarantee it.

What else have they done? Well, they have hit health and education. They have cut $80 billion out of health and education. That is a very positive outcome for the people of Australia! I am sure that we are all very pleased and clapping the government 'Thank you' for cutting $80 billion out of health and education! They have tried to introduce a co-payment for Medicare treatments. I live in the Northern Territory, and I know people who would say to me, 'How the hell would I ever go to a doctor if I had to pay a co-payment of any description?' You know this to be the case in your own electorates. You know people in your own electorates who will say to you, 'We will not have a co-payment, because we can't afford what it will mean to us and our families.'

Let me come to one of the most insidious things: the fuel tax. We know that the Prime Minister is noted for telling the truth! We note that before the last election he promised that there would be no cuts to health, no cuts to education and no cuts to pensions.

Just read the budget papers! The other group of people they have chosen to target are veterans, veterans' families and Australian Defence Force members. The member for Solomon is sitting here. What does she say to her Defence Force constituents when they ask her: 'Why are you cutting our real wages?' You know what they say to you. They say: 'We don't forgive you for that. We are concerned about this government. You lied to us before the last election and you continue to lie.' You are just liars! We know you lie and the community knows that you lie.

Government members interjecting

Photo of Bruce ScottBruce Scott (Maranoa, Deputy-Speaker) Share this | | Hansard source

The member for Lingiari will address his comments through the chair, but not at the chair.

Photo of Warren SnowdonWarren Snowdon (Lingiari, Australian Labor Party, Shadow Parliamentary Secretary for External Territories) Share this | | Hansard source

With great respect to you, Mr Deputy Speaker, I would hardly accuse you of lying—

Photo of Bruce ScottBruce Scott (Maranoa, Deputy-Speaker) Share this | | Hansard source

You will not accuse anyone of lying.

Photo of Warren SnowdonWarren Snowdon (Lingiari, Australian Labor Party, Shadow Parliamentary Secretary for External Territories) Share this | | Hansard source

A collective 'liars' is allowed. We heard that yesterday. They are liars!

Photo of Bob BaldwinBob Baldwin (Paterson, Liberal Party, Parliamentary Secretary to the Minister for the Environment) Share this | | Hansard source

Mr Deputy Speaker, I would ask him to withdraw that remark. It is undignified and unparliamentary.

Photo of Bruce ScottBruce Scott (Maranoa, Deputy-Speaker) Share this | | Hansard source

The member for Lingiari will return to the matter before the House, which is the MPI, and I will ask him to direct his comments through the chair and not at the chair.

Photo of Warren SnowdonWarren Snowdon (Lingiari, Australian Labor Party, Shadow Parliamentary Secretary for External Territories) Share this | | Hansard source

On 20 November 2012 the Prime Minister said:

We are about reducing taxes, not increasing taxes. We are about getting rid of taxes, not imposing new taxes.

How does he explain to people of my electorate that they pay a marginal increase in their taxes—a disproportionate increase in their taxes—as a direct result of changes to the fuel excise? (Time expired)

4:01 pm

Photo of Natasha GriggsNatasha Griggs (Solomon, Country Liberal Party) Share this | | Hansard source

) ( ): We just heard from the member from Lingiari, and I have to say he was going on about the co-payment but he has such a bad memory that he forgot that he voted for the co-payment years ago when it was first introduced. He does not put that on the record.

I welcome the opportunity to stand here today and speak on this MPI and talk about the tough reforms this government has had to introduce to fill the path of destruction the previous Labor government created during their six years in charge of Australia's finances. The Treasurer really does have his work cut out for him in trying to clean up the mess that the Labor Party left behind. I have to say that he is doing a mighty fine job, given the state of the books when he took over after the election.

Labor's legacy to our children is 200,000 more unemployed, gross debt projected to rise to $667 billion, with $123 billion in cumulative deficits, more than 50,000 illegal arrivals by boat and the world's biggest carbon tax. That is Labor's legacy.

I am proud to say that we have commenced work on fixing all of those problems, and the Australian economy is well on the road to recovery. We have scrapped the carbon tax, saving the average household $550 a year; we have stopped the boats, preventing deaths at sea and saving the budget billions of dollars; we have scrapped the mining tax so this vital sector can create more jobs; we have handed down a $50 billion infrastructure package, the single largest infrastructure package in Australia's history.

Projects worth $1 trillion have been given environmental approval; we have cut around $2 billion in red tape; we have delivered three free trade agreements with Japan, Korea and China, which mean more jobs for Australians. We are putting in place the long-term structural reforms necessary to fix the budget. This government has provided an additional $630 million to our police and security services and updated our national security laws to address the most pressing gaps in their ability to combat the growing threat of home-grown extremism.

I think that is a pretty good track record so far. In in the face of all this progress and reform, the Labor Party have stood in the way and stomped their feet like little children. There is a clear difference between the Labor Party and the coalition: we have a plan, they do not. We have a vision; they do not. We care about small business; they do not. We care about jobs; they do not. We have a plan for budget repair, when they have a plan for budget sabotage. Our plan is the only plan, and we will continue to deliver on our economic action strategy, which I believe is the mandate given to us by the Australian people.

The Labor Party cannot seem to accept that the Australian people have given this government a mandate—a mandate to fix the mess. And we are doing exactly that. The Labor Party needs to get out of the way and let us do the job we were elected to do. The Rudd-Gillard-Rudd governments were six years of chaos, waste and mismanagement, which turned nearly $50 billion in the bank into a projected net debt worth well over $200 billion. This is the fastest deterioration in debt, in dollar terms and as a share of GDP, in modern Australian history. Australians are already paying $1 billion a month in interest payments and that is not even our money—it is borrowed. No country can continue to pay the mortgage payments on the credit card.

However, thanks to the coalition, the foundations for a stronger budget and a stronger economy are now in place. Even though it was the Labor Party that left us in this mess of debt and deficit, they are still trying to sabotage our tough but necessary budget. They have voted against $28 billion worth of savings, including $5 billion they handed down themselves.

We must work together to achieve a budget surplus again; it is necessary for this country and necessary for jobs and growth. Over six budgets, Labor increased spending by over 50 per cent—that is $137 billion. The adults are in charge now, and we are cleaning up the mess the children made. The children are the Labor Party and they should get out of the way of—(Time expired)

4:06 pm

Photo of Melissa ParkeMelissa Parke (Fremantle, Australian Labor Party, Shadow Assistant Minister for Health) Share this | | Hansard source

The first budget of the Abbott government was not just unfair; it was also mean-spirited, short-sighted and incredibly counterproductive. It was a budget that gave tax breaks to big business and put money back in the pocket of big polluters. It was a budget that took money from families and pensioners and that cut funds to renewable energy innovators, the CSIRO, and the Climate Change Commission. It was a budget that hammered the young unemployed, denying them any support for a period of six months, while seeking to gift six months' salary in parental leave to people on $100,000 a year. It was a budget that Cassandra Goldie, the CEO of ACOSS, described by saying:

The real pain of this budget - crushing and permanent - will be felt by people on low incomes, young people, single parents, those with illness or disability, and those struggling to keep a roof over their heads. These are the groups doing the heavy lifting …

It was a budget that Jennifer Westacott of the Business Council of Australia described by saying:

We are very concerned about the risk that savings are falling too heavily on some families and young people trying to find work.

And it was a budget that has directly and indirectly cost jobs in areas that Australians hold precious: 1,000 jobs in science and innovation from the CSIRO, which invented wi-fi, Aerogard, plastic banknotes, the world's first effective influenza treatment, 100 varieties of cotton and the hendra virus vaccine, among many other things; 500 jobs from the most trusted source of news and current affairs in the country, the ABC; more than 10,000 jobs across the Commonwealth Public Service; and tens of thousands of jobs in manufacturing, the renewable energy sector, the automobile industry and ship building and maintenance. In August, Australia reached its highest level of unemployment in 12 years and for the first time since 2007 unemployment was higher in Australia than in the United States. The Prime Minister promised to create one million jobs within five years. Unfortunately, we know how much promises are worth from this Prime Minister.

The Abbott-Hockey Budget is a remarkable failure. It has cost jobs and deepened the deficit. It has only succeeded in its aim of directing punitive measures against those who can least afford it and in cutting funds to health, education, science, pensioners, Indigenous affairs, the environment, the ABC and the SBS. As Crikey's Bernard Keane wrote earlier this week:

The political difficulties that face Hockey spring of course from that disastrous budget in May. The problem about that document wasn't merely the perceived unfairness of its measures, or the government's cack-handed attempts to alternately insist it was fair and explain its toughness was justified by the budget situation. It was that Hockey managed to produce a sadistic budget that didn't actually significantly advance the timetable for a return to surplus. The government was thereby left with the opprobrium of pursuing measures universally recognised as punitive, without the political benefit of being able to point to a fiscal light at the end of the tunnel. Worse, it's clear now that the tunnel is getting longer.

The damage and chaos of this budget have been visited upon so many Australians that it is only fair that responsibility for its harm be shared by those opposite. Responsibility belongs not just with the Prime Minister, but also with the Treasurer and the Minister for Foreign Affairs. The Minister for Foreign Affairs has presided over the biggest cuts to the Australian aid program in history—$7.6 billion has been stripped away in the name of Australia's political, economic and trade interests rather than continue the previous Labor government's focus on saving lives and reducing poverty. The foreign minister has not acted to stop the savage cuts in her portfolio that have seen hundreds of dedicated former AusAID staff lose the jobs they were passionate about and that have significantly reduced the critical work that Australia does to stop disease, to lower infant and maternal mortality, to provide medicine, clean water and sanitation and to build resilience and capacity. In fact the government is now threatening a further pillaging of the aid budget as a consequence of its own parlous economic performance.

UK Prime Minister David Cameron spoke with courage and he acted with honour when he said that the budget of the United Kingdom would not be balanced on the backs of the poor. The Abbott government has not acted with honour or courage. It has not balanced the budget; it has made the deficit worse. It has laid the burden of its economic incompetence on the backs of the poor and the disadvantaged, both here in Australia and across the world. It has presided over a sharp jump in unemployment to the worst level in more than a decade. It has cut jobs and, what is worse, it has sought to crush the source of future jobs in the knowledge economy, in renewable energy innovation and through education and training. We talk about good policy and administration as future-proofing. Unfortunately, this government is busy punching holes in that future, and the jobs and wellbeing of thousands of Australians are right now pouring through those holes.

4:11 pm

Photo of Keith PittKeith Pitt (Hinkler, National Party) Share this | | Hansard source

Some of the contributions to this MPI simply cannot go unanswered. I note the contributions from the member for Fraser and the member for Lingiari in particular. The member for Fraser spoke about the ABC. At a parliamentary committee meeting this week with Mark Scott, I was advised that the number of employees at the ABC is currently just over 4,000. Do you know how many of those are employed in regional areas, Mr Deputy Speaker Scott? I know this affects you. There are just 400. There are only 400 employees in the ABC in regional areas right now. It is Sydney-centric. It is not helping the bush. It is traditional radio, which we rely on. It is something that is exceptionally important to the people in my electorate. I note that the member for Fraser talked about the indexation of fuel. He said there would be a $20 increase for the average family. The member for Fraser should go out and buy some fuel. I suggest he gets a car. The price of fuel is down 14 cents a litre, right now, simply because of market changes. The member for Lingiari spoke about defence. What a hypocrite. In the 2012-13 budget, those opposite cut defence spending by 10½ per cent. It is the biggest decrease in the defence budget since the Korean War.

We all know why we are in this position. It is because those opposite spent all the money. They did not spend just our money, they spent my children's money. How did they do it? They did it as quickly as humanly possible. It was an incredible waste of taxpayers' money. They started off like they had received an inheritance from the maiden aunt. Aunt Johnny left behind a $20 billion surplus, no net debt and $45 billion in the bank. What did those opposite do with it? I am sure they had a meeting, put some notes on the back of a drinks coaster, perhaps, or maybe a napkin, and blew the lot. They spent it all. What happened then? They got addicted to spending and then they went looking for more money. Where do you find more money? The first place you find it is your credit card. Obviously, the credit card came in the mail and they filled it. It did not matter what the interest rate was, that was fine—they needed to spend some more money, another 16 per cent. When we have filled the credit card, what do we do? We look for another one, because someone will send us another one in the mail, and we will fill that one too. When we have spent the inheritance and we have filled up the credit card what do we do? We go to the bank and borrow more money. The bank would not give them any more money, so they had to go overseas. So now they had overseas money, and they spent all of that. What to do once we have spent all of that? We get rid of the Visa cards because they are all empty. We spent the inheritance—it is gone. We can kick down the neighbour's door—maybe they will give us half a cup of sugar. That might help us out. But, no, those opposite went for our children. As the father of three children, I am appalled that they have been left with $13½ thousand each. That is $13½ thousand of debt to my three kids, who are completely innocent. Those opposite should hang their heads in shame. It is an absolute disgrace.

But moving on, it is important that we note some of the things they are talking about with country areas. The member for Mallee, my good friend here, knows all about country areas. He grew up in the bush. We keep hearing about Country Labor. It is a shame that the member for Hunter, the shadow agricultural minister, has gone. It is important to note what they did for country areas: they took away their money. In RDA rounds 3 and 4, money should gone to the member for Parkes and it should have gone to people in Gippsland. What did they do with it? They sent it to Sydney. Sydney is exceptionally important for the bush!

I can tell you that the people in my electorate, the people of Hinkler, are very keen to see the Labor Party come up. The baseball bats are smoking hot still. They remember what happened in the live cattle trade industry. They remember what happened to them. They know they had to go into the paddocks and put their stock down because they had absolutely nowhere to go. What happened to the people of this nation in the bush is an absolute disgrace. It should never of happened and it will never happen again under this government. I am absolutely hopeful that I never live to ever see the people on the opposite side in charge of the Treasury again. They should never be put in charge of the people's Treasury ever again in my living memory. I never want to see it. They have absolutely squandered our inheritance. It is a disgrace.

But this government will get on with this business. The National Stronger Regions Fund will grow the economy and will grow regional economies. We will make sure that we get them over the line, because they are good projects that will produce jobs and jobs for the people in our electorates.