Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Hansard source

To the opposition, which obviously is yelling about all of this at the moment because they have got no economic plans so all they can do is scream abuse, maybe they might learn something if they listened. Why is it important to working people that we return the budget to surplus? First and foremost, events in Europe basically prove to us and prove to the world that there has never been a more important time to stick to your fiscal plans and to stick to fiscal discipline. That is a clear lesson out of Europe. Secondly, having strong public finances is important to our banks, it is important to underwriting and underpinning our banking system, and our banking system being there to provide loans and to enable investment means jobs. Thirdly, our economy is growing solidly, and when your economy is growing solidly it is the right thing to do to retreat the footprint of government and to allow the private sector to do more. Fourthly, a disciplined budget creates the space for the Reserve Bank should it choose to move on monetary policy, that is, should it choose to lower interest rates. That is why it is important for working people that the government return a surplus. The government has a clear determination to do so, and we will do so in 2012-13, as promised.

It is not easy to return to surplus. It means you have to work hard, contain spending and make savings. And we have worked hard to keep spending at 1.5 per cent in terms of—

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