Malcolm Turnbull (Wentworth, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is addressed to the Treasurer. I refer the Treasurer to chapter 5, page 10, of Budget Paper No. 1, which lists $19.7 billion worth of new revenue measures including tax decisions which will increase the price of premixed spirits, increase the price of cars, increase the cost of travel and increase the cost of private health insurance. How does putting up so many prices by increasing taxes help to reduce inflation?

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

I thank the member for his question, because the truth is that in this budget we cut taxes as a share of the economy. We cut taxes and we reined in the reckless spending of those opposite. It was their reckless spending that put upward pressure on inflation and that produced eight interest rate rises in the last three years. And now they want to do it again. They want to raid the surplus. This afternoon in the Senate they are going to start that process of raiding the surplus. They are going to move against our initiatives that are so important to build a strong surplus, to combat inflation and to put downward pressure on interest rates.

I think it is pretty clear, going by the remarks of the member for Wentworth, that he must be the author of this strategy. He is the author of the strategy for the $284 million raid on the surplus that will take place if they delay all of these measures in the Senate at four o’clock this afternoon. We have had some advice on where the member for Wentworth is getting his advice.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order. The member for Wentworth asked a very specific question, and I might add that, if the Treasurer does not know how to answer it, then we can ask—

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

Order! The member for North Sydney cannot spoil his points of order by going into debate. If his point of order is relevance, I indicate to the member for North Sydney that I will be listening very carefully to the rest of the Treasurer’s response. The Treasurer.

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

We have built a strong surplus in this budget. The Rudd government has built a $22 billion surplus to put downward pressure on inflation and interest rates. This opposition irresponsibly and recklessly wants to raid that surplus in the Senate this afternoon at 4 pm. Of course, the member for Wentworth is the author of the strategy.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Speaker—

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

The member for North Sydney will resume his seat. I have indicated that I will listen carefully to the Treasurer’s response, and I am listening carefully to the Treasurer’s response.

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

We do have some advice as to where the member for Wentworth gets his positions from, and I think those opposite will be very interested. Last Wednesday, 11 July, at 140 Coppins Street, Richmond, there was a focus group.

Brendan Nelson (Bradfield, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order in relation to relevance. The question is about a $20 billion tax increase and its impact on inflation.

Government Members:

Government members interjecting—

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

Order! When those on my right come to order I will have to ask the Leader of the Opposition to state his point of order again.

Brendan Nelson (Bradfield, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, on relevance, the question is about the impact of the government’s $20 billion tax increase on inflation.

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

The honourable member will resume his seat. The Treasurer will respond to the question and the Treasurer has the call.

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

I am explaining where the member for Wentworth gets his advice to raid the surplus in the Senate at 4 pm this afternoon.

Scott Morrison (Cook, Liberal Party) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order on relevance. The Treasurer was not asked about—

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

The member for Cook will resume his seat. We have had the point of order on relevance. I am listening carefully to the Treasurer’s response. If he were not being interrupted, I would hope that he would get to the end of the response quicker. The Treasurer has the call.

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

This focus group was conducted by Millward Brown, who work with Crosby Textor. Either he is paying for research on himself or the Liberal Party is doing it, but either way the Leader of the Opposition does not know about it. These were the questions that were asked of the focus group.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Hockey interjecting

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

Order! The member for North Sydney is not assisting. I see that the Deputy Leader of the Opposition is rising on a point of order. If it is on relevance, I have ruled and I am listening to the Treasurer. The Treasurer will bring his response to a conclusion.

Ms Julie Bishop (Curtin, Liberal Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker—

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

If the point of order is on relevance—

Ms Julie Bishop (Curtin, Liberal Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

I have not answered that yet, Mr Speaker.

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

Is it a different point of order?

Ms Julie Bishop (Curtin, Liberal Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

It is further to the point of order on relevance.

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

I have ruled on the point of order. The Deputy Leader of the Opposition will resume her seat. There have been successive points of order on relevance. I am listening to the Treasurer and I hope that he is now bringing his response to a conclusion.

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

I am referring to the member for Wentworth’s budget-in-reply speech that he gave in this House. He managed to get a focus group organised to ask them what they thought of it. Do you know what the next question was? It was: what did they think of his website? The next question was: what did they think of his resume?

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

The Treasurer will bring his answer to a close. The member for North Sydney, who is rising, will resume his seat. The Treasurer will bring his response to a close.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

This is not a question; it is a point of order on relevance.

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

Order! The member for North Sydney will resume his seat. Has the Treasurer completed? If not, he will bring his response to a close.

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

Certainly. My point is this: the member for Wentworth thinks his resume and his website are more important than the fight against inflation

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

The Treasurer will resume his seat. The member for Wentworth will resume his seat.

Malcolm Turnbull (Wentworth, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Speaker, it’s on relevance.

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

The response has concluded.