Stewart McArthur (Corangamite, Liberal Party) Share this | Hansard source

I am delighted to speak in support of the Appropriation Bill (No. 1) 2007-2008 and the related budget bills. The 2007-08 budget is a good budget and has been well received by the community. It is a budget that builds on the Howard government’s reforms of the past to prepare for the future. It is economically responsible. It puts downward pressure on interest rates and delivers assistance for families through cuts in the tax burden and assistance for child care.

This budget delivers a surplus of $10.6 billion in 2007-08 with further surpluses projected for future years, providing a downward pressure on inflation and increasing national savings. This is a responsible result, the 10th budget surplus in 12 budgets, and puts Australia in a strong position for further sustained economic growth. By way of international comparison, the budget papers demonstrate that the average collective fiscal position amongst OECD nations has been 11 deficits in 12 years, with OECD nations expected on average to remain in deficit by almost two per cent of GDP in 2007-08. Australia is a stand-out example of good economic management. Surpluses do not just happen, no matter what the opposition would have you believe. It takes hard work and discipline to deliver budget surpluses, and the Howard government has a proven record in this regard.

There is an interesting graph in the budget papers, comparing general government sector net debt levels in selected nations over the 10 years from 1998 to 2008. OECD nations, the United Kingdom and the United States are maintaining net debt positions around 40 per cent of their GDP. Japan’s debt position is approaching 100 per cent of GDP. Australia stands out in stark contrast with these nations because we have eliminated government debt and are recording credit results. I seek leave to incorporate the graph in my speech.

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