Arthur Sinodinos (NSW, Liberal Party) Share this | Hansard source

That is the challenge that we face. As a country we have to face up to it, because, if our debt-to-GDP ratio continues to rise, long before it gets to 50 or 60 per cent the ratings agencies and others will be asking: is this sustainable? Can we keep borrowing to fund the ordinary expenses of government? The fact is we cannot. We have to rein that spending in. We do have to do things on the revenue side as well—and that is where the tax discussion paper comes in. That is the proper context in which to have a look at the balance between the different types of taxes and the issue of the costs and benefits of the various tax concessions that are around. That debate will occur, and there is a structured process under this government for doing that. There is a structured process through the tax paper.

But what there will not be under this government is a denial of our responsibility in the face of an ageing population to make spending as sustainable as possible and, where possible, to increase the productivity of government spending and still deliver the service but in a more effective and efficient way, so that we are saving those resources and putting them to better use.

There is no point spending billions and billions on public debt interest which could ultimately go on better health, education and welfare. We cannot live in a fool's paradise. Labor want the fool's paradise to roll on. They think something will always bail us out. We are taking control of and managing our destiny so it does not fall into the hands of ratings agencies and others who would dictate much harsher terms. That is the point of what the government is doing—taking control of our destiny.