Julie Collins (Franklin, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline the risks of inflation from irresponsible budgeting?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the honourable member for her question, because the fight against inflation does require responsible budgeting. What it requires is a very strong surplus. What it requires is costed, funded and deliverable commitments, and of course what the last budget shows is that the only party in Australia that is in the cart for responsible economic management is the Labor Party, because those opposite have become utterly irresponsible. Their $22 billion smash-and-grab on the surplus can do nothing other than put up inflation and put up interest rates; it is completely irresponsible. And of course in the opposition leader’s reply the other night there was not one dollar of savings in that proposal to fund alternative proposals that he put forward. There was not one dollar of savings to fund his proposal on excise, for example. There was not one dollar of savings in a so-called budget-in-reply speech. And of course, when the Treasury spokesman got to the National Press Club the other day, he did not give the Treasurer’s budget-in-reply speech; he gave a Brendan-in-reply speech. There were no costed proposals that came from the shadow Treasurer—no costed proposals at all. So what this smash-and-grab on the surplus shows is that those opposite are the fiscal vandals of Australian politics. There is not a dollar being put forward to fund their commitments. They are opposed to increasing the Medicare levy surcharge thresholds in favour of higher tax on modest income earners. They are opposed to fixing fringe benefits tax loopholes. They are opposed to our measures on condensate, opposed to removing tax concessions for alcopops and, of course, opposed to the luxury car tax.

We on this side of the House will defend the integrity of our budget, because the future living standards of Australian families depend upon that. The Australian people are happy with our long-term plans for the nation against the short-term, irresponsible proposals of those opposite. What they want is sustainable growth, lower inflation and lower interest rates. We will defend the integrity of our budget. Those opposite have lost their way on the economy. What have we had from the shadow Treasurer? He says a means test of $150,000 is about right. Then he says he is in favour of welfare payments to millionaires. He says fuel tax excise cuts are bad policy and then he says he is in favour of them. He says one per cent growth is inflationary and then he refuses to admit that four per cent spending growth is inflationary. The Treasury spokesman is going so badly over there that even Alexander Downer thinks he can do a better job.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Treasurer will refer to members by their titles.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

It has taken the member for Wentworth six months to turn the Liberal Party’s economic credibility into a smoking ruin.