David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Conroy. Does the government intend to spend the budget surplus or save the budget surplus?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

Another day, another position on the surplus from those opposite. Before the budget they said there was no need to change the size of the surplus. Then they said that the budget did not cut it hard enough; that the surplus was not big enough. Now they are arguing for a smaller surplus. Make your mind up. Get your act together. Try and reach at least one position to attack us from. We have delivered a strong surplus of $22 billion.

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! Senator Conroy, resume your seat until we have order. Senator Conroy.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

Let us be clear: when those opposite keep interjecting, ‘They’ve inherited it from us,’ this is not the truth. What those opposite proposed was to loosen fiscal policy. They were advocating a policy position of 1.5 per cent of GDP for the surplus. What we delivered was 1.8 per cent. So, when they want to catchcry and interject that we inherited it from them, we actually delivered the surplus that this country needed. We needed responsible economic management, and that is why we delivered a strong surplus of $22 billion. This surplus will provide a buffer against uncertain global economic conditions. It will help the fight against inflation and it will give us the capacity to invest in Australia’s long-term future.

We made room for a substantial Working Family Support Package, including $47 billion in tax cuts. We laid the foundation for responsible investment in growth for the future, providing $40 billion for responsible investment in nation building. Our approach, which combines a big surplus with relief for families and investment in long-term growth, is the best way to meet the substantial global challenges that we face in this country. And it is an approach that has been endorsed by organisations like the IMF.

The Liberal Party’s irresponsible and reckless approach in the Senate is putting at risk the strong surplus we need in uncertain global times. Those opposite want to punch a $6.2 billion hole in the surplus. Those opposite have fallen from any pretence of being responsible economic managers to simply being economic vandals. They are yet to explain the impact on inflation and the interest rates paid by working families from the decisions they intend to take here in this chamber. Last week, as we know, Senator Fifield and the opposition’s leader in this chamber, ‘Dr Yes’, were arguing that we should have a lower surplus. That was their argument last week. They say we should simply absorb— (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask the Minister representing the Treasurer a supplementary question. If the surplus is now available for spending—and I note it is not particularly clear from your answer whether you are saying it is or not, but this is on the assumption that it is available—and no longer required to control inflation, why doesn’t the government simply abandon its proposed tax hikes and return the money to the people of Australia? Doesn’t this just prove that the government’s attacks on the opposition over our opposition to these tax hikes are just cynical spin?

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! I will not call Senator Conroy until there is order. This simply chews up the time of question time. Senator Conroy.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

Thank you, Mr President. This proposition put by those opposite—a further position today—is just the height of economic irresponsibility. We have delivered in this budget a balance between tough decisions needed to face up to the global economic challenges and, as I have already said, $47 billion worth of tax cuts. This is just further evidence that those opposite have no economic credibility left whatsoever. Given the challenges we face, both domestically and abroad, this is the time for responsible economic policy, not for irresponsible behaviour designed for short-term political ends simply about looking after their mates.