Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. I refer the Treasurer to the promise he made in this year's budget speech that a surplus will be delivered in 2012-13, a commitment that has been described by others in the government as an objective, an expectation, a determination, a plan and a guiding principle. Then this morning the Treasurer said he would give it his best shot. Given that the Treasurer stated just two days ago, 'we are bringing our budget back to surplus in 2012-13', what has changed in the past 48 hours that makes a rock-solid commitment now just an aspiration?

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

I thank the shadow Treasurer for that question.

Honourable Members:

Honourable members interjecting—

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

Order! Those on my right are not assisting.

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

The government is determined to bring the budget back to surplus in 2012-13. We have put in place the fastest fiscal consolidation ever seen in the history of this country. This has been supported very strongly by reputable international bodies such as the International Monetary Fund and the World Bank. It has been observed upon by the Governor of the Reserve Bank. We do understand the importance of a clear, consistent and credible fiscal policy; and, when you look around the world and look at the sovereign debt problems we are seeing in Europe and other parts of the global economy, nothing could be more important than a clear, consistent fiscal policy. The government is determined to bring the budget back to surplus in 2012-13.

I have been making a commonsense observation: because we are seeing a slowing in the global economy, it will have an impact on growth in this country and it will have an impact on our budget. I have made the commonsense observation that that makes our task more difficult. That is a commonsense observation. I know those opposite do not understand the importance of all this—they have a $70 billion crater in their budget estimates, and this comes on top of an $11 billion black hole in their estimates for the last election.

So being lectured by those incompetents on fiscal policy is beyond the pale.

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

The Treasurer will not debate the question.

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order that goes to relevance. Simply tell us whether he is going to deliver a surplus or not.

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

Order! The member for North Sydney will resume his seat. I remind members that the standing order is direct relevance. The Treasurer has the call but he will not overly debate the question.

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

Those opposite are simply disappointed that Australia has done well—

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

Order! The Treasurer will go back to the question.

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

that we have such a strong fiscal position. And we have such a strong fiscal position because this government put in place, when we moved to put stimulus in place, an exit strategy.

Luke Simpkins (Cowan, Liberal Party) Share this | Link to this | Hansard source

Go to an election. That's a better exit strategy!

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

The member for Cowan is warned.

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

We put it in place before any other advanced economies in the world and well before the G20 adopted its guidelines for advanced economies. But those opposite would rather see our country fail than this government succeed. They go around the place talking the economy down. Our economy has a great number of strengths, and one of them is a very strong fiscal policy, very strict fiscal rules, strong employment growth, very low public debt, very high investment—all of these things are good for Australia, and we should have confidence and celebrate those strengths for Australia.