Anne Ruston (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann. Can the minister inform the Senate about the current pressures on the expenditure side of the budget?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Ruston for that question. The biggest pressure on the budget is the bad and reckless approach to budget management by the Labor Party. They were bad enough over six chaotic, dysfunctional and reckless years in government, but they are even worse now in opposition. We saw that Labor was bad under the leadership of Mr Rudd and Ms Gillard. They are even worse under the leadership of Bill Shorten.

We inherited a budget in very bad shape, with a $30 billion deficit this year and deteriorating, $200 billion worth of government net debt and deteriorating, government gross debt heading for $400 billion and beyond. Who was one of the main culprits of the bad waste and mismanagement and reckless fiscal approach under the previous government? It was none other than Senator Wong. In Senator Wong's three short years as finance minister she presided over budget blow-outs of more than $107 billion. In fact, it is the $107 billion Wong black hole that we are dealing with today.

But that is not enough. Labor was not only happy to leave the budget in a mess with a $30 billion budget black hole; Senator Wong banked savings. Labor took a $2.33 billion cut to higher education. She banked the savings but did not implement them. She did not do the hard yards by legislating them through the parliament. She banked savings from not proceeding with income tax cuts linked to the carbon tax but again she did not do the hard yards. Now Labor recklessly and irresponsibly is standing in the way as this government works to clean up the mess that Senator Wong and Bill Shorten left behind. Senator Wong, you should get out of our way. Mr Shorten should get out of our way. You should let us clean up your mess— (Time expired)

Anne Ruston (SA, Liberal Party) Share this | Link to this | Hansard source

I ask a supplementary question, Mr President. Could the minister further elaborate for the Senate on how the decisions of the previous government have put pressure not only on the budget but on the economy as well?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

As a direct result of the bad decisions made by Labor in government, our economy is growing more slowly than it otherwise would have. The Labor Party year after year added more and more burdens into our economy. They imposed the carbon tax which we were never going to get. They imposed the job-destroying mining tax. They imposed more than 21,000 new pieces of costly red and green tape. And they scrubbed the Australian Building and Construction Commission—

Opposition Senators:

Opposition senators interjecting—

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

Order! Senator Cormann has the call and is entitled to be heard in silence. I remind those on my left that interruptions are disorderly. Senator Cormann.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

As a direct result of the bad decisions made by the Labor Party over six years in government, our economy is growing more slowly than it otherwise would have. That is bad for the prosperity of people across Australia but it is also bad for the government because it means that we are raising less revenue as a result of the bad decisions by Labor.

Opposition senators interjecting—

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

Order! If senators wish to debate it, the time to debate it is after question time, not during the answer that the minister is giving. Minister.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

To fix the budget to ensure we get back into the position we could be in— (Time expired)

Honourable senators interjecting —

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

Order! Senator Ruston, you will get the call when there is silence. It is as simple as that.

Anne Ruston (SA, Liberal Party) Share this | Link to this | Hansard source

Thank you, Mr President. I ask a second supplementary question. Could the minister advise the Senate of the challenges that the government faces as it proceeds to repair the budget and strengthen the economy?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Just to remind Senator Carr again, because I know that he is like the cat that swallowed the canary, because he has wronged Senator Wong—

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

The private meetings you were not invited to.

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

He is pointing at me!

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

Senator Cormann, resume your seat. Senators Carr and Conroy—

A government senator interjecting—

Order! On my right. I remind you that interjecting is disorderly; constant interjection is completely disorderly.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Senator Wong turned the promise of a surplus made in May 2012 into a $30 billion deficit by the time of the election. That is based on an assumption—

Honourable senators interjecting—

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

Senator Cormann, resume your seat.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Senator Wong, quite extraordinarily, turned a promise of a surplus for this financial year into a $30 billion deficit, and that is after she banked $2.3 billion worth of cuts to higher education, which Senator Carr has now stopped Senator Wong from implementing. So here we are. Senator Wong banked the cuts. She was too weak to get them through the parliament before the election. She is too weak now to get them enforced through her own caucus after the election. Labor should— (Time expired)