Andrew Southcott (Boothby, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Treasurer. What is the government’s policy on wages and how to improve living standards? Are there any other policies?

Bob McMullan (Fraser, Australian Labor Party, Shadow Minister for Federal/State Relations) Share this | Link to this | Hansard source

I have a point of order, Mr Speaker. It is out of order for a question to ask for a description of government policy.

David Hawker (Speaker) Share this | Link to this | Hansard source

I have listened carefully to the question. I think the question is actually in order.

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I can tell the House pretty simply where the Liberal and National parties stand: we want more people in work and we want them in work at higher wages consistent with low inflation and a growing Australian economy. Here is the evidence. Since this government was elected, there have been two million new jobs created in Australia. Since this government was elected real wages in Australia—that is, over and above inflation—have grown 19.8 per cent. But it was not always that way in Australia. When the Labor Party was in office not only did people lose their jobs but people lost wages. Now remember this fact: under the coalition, real wages have gone up 19.8 per cent; under the previous Labor government, when Labor was in office, real wages did not go up at all—real wages declined by 1.8 per cent. The shadow Treasurer, the honourable member for Swan, was asked about this recently—

Opposition Members:

Opposition members interjecting—

Lindsay Tanner (Melbourne, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Mr Tanner interjecting

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

For Lilley, sorry. Thank you for correcting me, Member for Melbourne. You would not want this bullet to go off on anyone other than him, would you?

Lindsay Tanner (Melbourne, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

You are on your game today.

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

Just as the rifle is coming down the front bench, you will help me sight it, will you? Thank you very much. And keep asking questions on the Future Fund. That helps us sight that pretty well, too. When the honourable member for Lilley was interviewed by Fran Kelly on 8 March 2007, she said this:

... Treasurer Peter Costello made the point yesterday that under the current government real wages have increased 20 per cent in this country. He compares it to under Labor they went down 1.8 per cent ...

Answer:

... Look, there was wage restraint under a Labor government to make this economy internationally competitive ...

So there you have it. Under Labor declining wages was a good thing. It was a deliberate policy. That was their policy to make Australia internationally competitive. We had another idea about making Australia internationally competitive. How is this for an idea: balance the budget, repay $96 billion of debt, have an independent monetary policy, reform the waterfront, engage in industrial relations reform and set up a Future Fund? Then maybe the workers can get high wages and not have to suffer under real wage declines.

The recent tactic from the Leader of the Opposition has been to say his policy is coalition policy. He supports balanced budgets now, he supports paying off debt and he supports an independent monetary policy. Whatever the coalition is for, the Leader of the Opposition would now have you believe that he endorses it. But the first hurdle: can he stand up and can he protect the Future Fund?

Mr Speaker, he should not turn his back at this point and engage in conversation with the member for Lilley, as if he is not interested, because the Leader of the Opposition ought to get interested in some economic policy. I call on him to turn around and to listen to some economic policy. Ah, Mr Speaker, let us pretend to have a conversation about the Future Fund now! Then we will turn and pretend to have a conversation about education policy! The people of Australia need to know this: the Leader of the Opposition studiously turns his back in the parliament on a daily basis. Hooray! The Leader of the Opposition has just turned around to face the music. The people of Australia ought to know this: the Leader of the Opposition, if he wants to become Prime Minister, has got to face challenges front on and not with his back.

Opposition Members:

Opposition members interjecting—

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! The Treasurer will resume his seat.

Brendan O'Connor (Gorton, Australian Labor Party, Shadow Parliamentary Secretary for Industrial Relations) Share this | Link to this | Hansard source

Mr Brendan O’Connor interjecting

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! The member for Gorton will remove himself under standing order 94(a).

The member for Gorton then left the chamber.

Gavan O'Connor (Corio, Australian Labor Party) Share this | Link to this | Hansard source

Mr Gavan O’Connor interjecting

David Hawker (Speaker) Share this | Link to this | Hansard source

And so will the member for Corio. The member for Corio will remove himself under standing order 94(a).

The member for Corio then left the chamber.

The level of interjections is far too high.

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

This is the biggest thing you can do when you are facing the future for Australia. When you know our greatest economic challenge of the future is going to be the ageing of the population, you ought to face up to it and you ought to do something about it. You ought to free future generations from the obligations of today. Give the young people a chance. Start providing for them. Do not raid the Future Fund and steal from the future of Australia.