Malcolm Turnbull (Wentworth, Liberal Party, Leader of the Opposition) Share this | Hansard source

Last Thursday the Secretary of the Treasury, Dr Henry, gave a speech which included this insight:

Government spending that does not pass an appropriately defined cost-benefit test necessarily detracts from Australia’s wellbeing.

Sadly, barely a day goes by without fresh evidence of reckless spending by this government that fails any plausible cost-benefit test. Billions of borrowed dollars are being squandered in ways that are doing nothing for our nation. In his determination to put government at the centre of the Australian economy, the Prime Minister is presiding over the largest expansion of the public sector in our history. Commonwealth spending in 2009 is forecast to be a staggering $65 billion higher than in 2007—a rise of 24 per cent since Labor was elected less than two years ago. For every $4 that was being spent under the coalition, Labor is now spending $5. The question we must ask is: how much of this vast increase in expenditure, almost entirely funded by borrowing, fails the test set out by Dr Henry? How much of this spree represents a wasteful diversion of resources that detracts from the nation’s wellbeing? Regrettably, a great deal of it fits that description.

Consider some of the recent examples of this government’s fiscal recklessness and inability to deliver value for money to taxpayers: Julia Gillard memorial libraries, assembly halls and gymnasiums are being thrust upon primary schools across the nation, including, as we have discovered, a number that are slated to be closed down—and a $250,000 assembly hall for a school with a single, lucky student! More than $40 million is being outlaid on an Indigenous housing program that is yet to deliver a single house, that is yet to involve the laying of a single brick, and hundreds of millions of dollars is being spent on imported pink batts. Cheques for $900 are being sent across the country and, as we have learnt, across the world, including to the deceased, to pensioners living abroad and, according to the press, to a number of pets. More than $215 million has been spent on government advertising and a further $49 million on government spin doctors and on community infrastructure grants that appear to be astutely targeted at marginal Labor electorates. The justification for all this was given by the Minister for Finance and Deregulation today, and I am delighted that he has come into the chamber.

See this speech in context