Deborah O'Neill (Robertson, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. How is returning to surplus vital to managing the economy in the interests of working people? What would be the consequences of not returning the budget to surplus?

Opposition Members:

Opposition members interjecting—

Peter Slipper (Speaker) Share this | Link to this | Hansard source

When honourable members return to order, I will give the Prime Minister the call, which she now has.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Robertson for her question. It is an important question because she is inviting me to explain why it is important to working people that we return the budget to surplus, why that is important to our economy and to jobs and growth.

Opposition Members:

Opposition members interjecting—

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

To the opposition, which obviously is yelling about all of this at the moment because they have got no economic plans so all they can do is scream abuse, maybe they might learn something if they listened. Why is it important to working people that we return the budget to surplus? First and foremost, events in Europe basically prove to us and prove to the world that there has never been a more important time to stick to your fiscal plans and to stick to fiscal discipline. That is a clear lesson out of Europe. Secondly, having strong public finances is important to our banks, it is important to underwriting and underpinning our banking system, and our banking system being there to provide loans and to enable investment means jobs. Thirdly, our economy is growing solidly, and when your economy is growing solidly it is the right thing to do to retreat the footprint of government and to allow the private sector to do more. Fourthly, a disciplined budget creates the space for the Reserve Bank should it choose to move on monetary policy, that is, should it choose to lower interest rates. That is why it is important for working people that the government return a surplus. The government has a clear determination to do so, and we will do so in 2012-13, as promised.

It is not easy to return to surplus. It means you have to work hard, contain spending and make savings. And we have worked hard to keep spending at 1.5 per cent in terms of—

Wyatt Roy (Longman, Liberal Party) Share this | Link to this | Hansard source

I rise on a point of order. When was the last time the Labor Party actually delivered a budget surplus?

Opposition members interjecting—

Peter Slipper (Speaker) Share this | Link to this | Hansard source

Order! The honourable member for Longman will remove himself from the chamber, under the provisions of standing order 94(a), for that abuse of process of the standing orders with respect to points of order. The Prime Minister has the call and she will be heard in silence.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

You have to contain spending, and we are doing that. You have to match spending with savings, and we are doing that. Compare that to where the opposition's—

Honourable members interjecting—

Peter Slipper (Speaker) Share this | Link to this | Hansard source

Order! When the House has come to order the Prime Minister will be able to continue answering the question. The Prime Minister.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Compare that to the opposition's approach. They started with a commitment to surplus from the Leader of the Opposition. That has gone down to doing it 'as quickly as possible' from the leader. Then, 'as soon as possible' from the shadow Treasurer. Then it is an 'aim' from the deputy leader. Then it is a 'hope' from the Leader of the Opposition. Then it is an 'aspiration' from the Leader of the Opposition. Then it is 'let's wait and see' from the deputy leader. Then it is 'well, it just depends' from the shadow finance minister. Then it is 'we have to be measured' from the shadow Treasurer. Then it is 'we have to see the books' from the Manager of Opposition Business. Then, today, from Senator Abetz, an 'extravagant promise'. That is the sinking commitment to any form of surplus by the opposition. Unlike their shambles, we are very clear about a return to surplus and we will deliver it. (Time expired)