Laura Smyth (La Trobe, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Treasurer, why is it critical that savings measures in the budget are supported, and are there any threats to their passage through the parliament?

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

I thank the member for La Trobe for that very important question, because bringing the budget back to surplus in 2012-13 is critical. You cannot actually return a budget to surplus unless you put in place savings measures, which of course is what the government did in our last budget. In this year's budget we have restricted real spending growth to one per cent a year. That stands in very stark contrast to 3.7 per cent per year in the last five years of the coalition government. We have put in place savings measures totalling $22 billion. These savings are very important because they will fund vital initiatives such as our new initiatives in mental health but also more broadly in education and hospitals. And they deliver a net benefit to the budget bottom line of $5 billion.

Mr Chester interjecting—

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

The member for Gippsland is now warned!

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

This will be a very important thing in the parliament because we will see five key savings measures in the parliament totalling $4 billion in savings. This will be a very big test for those opposite, because you cannot say that you believe in coming back to surplus if you do not support the savings.

Of course, there has been a lot commentary from those opposite as to where they may or may not stand on this matter, but I think the final word from Senator Minchin is one that is quite disturbing. He made this point:

Too many Parties ... err on the side of populism ... That is ultimately self-defeating because you end up standing for nothing...

Those remarks are directed at the shadow Treasurer and, of course, at the shadow finance spokesman. They are now so negative that they are now opposing their own policies. They decided in their party room last week that they would not be supporting the alternative fuels measures, which were a product of the Howard government and go back as far as 2004. They have now become so negative that they are opposing even policies they supported over a long period of time. What this demonstrates is what the opposition leader said in the party room last week when he said that he will take opportunism any time—opportunism over good policy.

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

Order! The Treasurer will bring his remarks to a conclusion. He is to round up.

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

I certainly will, Mr Speaker. On the weekend a coalition MP, who will remain nameless, made this comment in the newspaper. He said:

We can’t keep agreeing with government spending measures opposing savings and ... keep our financial credibility intact.

He is dead right.

Government members interjecting—

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

Order! Those who are getting the Leader of the House excited should contain themselves and wait. The Leader of the Nationals has the call.