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

My question is to the Prime Minister. How is the budget good for the economy, good for jobs and good for helping families make ends meet?

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

Thank you very much, Madam Deputy Speaker, and I thank the member for Robertson for her question. I know that she is very concerned about the economic prospects of the families she represents in this parliament, that she understands the cost-of-living pressures they find themselves under, and I know that she is a person with a very deep attachment to our education system in making sure that kids get to school with all of the things they need for their education. So, I thank her for this question.

In answer to the member for Robertson's question there is no clearer sign of a strong economy than a budget surplus. It gives us a buffer for the future and it also gives the Reserve Bank the maximum room to move. So, delivering a budget surplus now is right for our economy. As we have delivered this budget we have continued our relentless focus on jobs. What has always driven this government, this Labor government, is a focus on job creation and giving people the benefits of the dignity that comes with work and the ability to help their families. There is no better way of assisting a family with all of the things it wants to do for its future than making sure that people have the benefits of work and work opportunities, which is why I am delighted that today's unemployment rate has fallen to 4.9 per cent in April. It is an achievement for the Australian nation, so soon after the global financial crisis, that we should all be proud of.

We know, as our economy is strong in its fundamentals, that there are many Australians who, at the same time, still face pressures trying to make ends meet. We know that there are many Australians who read about the mining boom but do not feel the benefits of that increased prosperity in their own lives, which is why we have been so determined in this budget, in this Labor budget, to assist low- and middle-income Australians, including through the Schoolkids Bonus that has gone through the parliament today in the teeth of opposition from the Liberal and National parties, who wanted to deny working Australians and their families this benefit. Despite their wrecking tactics we are providing that money to Australians because we know they need it for the costs of getting the kids to school.

A little bit later today the Leader of the Opposition will give his budget reply. When he does he should not mention the words 'cost of living' or anything to do with cost of living until he announces that he has reversed his position on the Schoolkids Bonus. Until he does that he cannot with any credibility talk about cost-of-living pressures on Australian families, because never has a Leader of the Opposition been more out of touch with the struggles of working families than the Leader of the Opposition sitting here. (Time expired)

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

My question is directed to the Treasurer. I refer the Treasurer to the fact that on the four occasions the government has increased the debt ceiling since it came to office it has fully utilised the increase. How could the Australian people be confident that yet another increase in the limit will not be abused in the same way and that, once again, our national credit card limit will be maxed out?

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

The opposition has a very small problem. The fact is the IMF, the credit rating agencies and all responsible bodies around this country and around the world happen to think that our financial situation is one of the best in the developed world. So, trying to maintain this argument that somehow there is a problem with the modest level of debt we have, which is one-tenth of what occurs in the major developed economies, is simply farcical and speaks very loudly about the opposition's economic incompetence. We have taken on a modest amount of debt to protect our economy. We are coming back to surplus and building those surpluses to pay that down. That is what we should be doing—accumulating surpluses when growth returns to trend and implementing our fiscal rules. That is what this budget does. It brings the budget back to surplus and builds the surpluses over the years to build up the buffer that we need, because our economy is strong. That is precisely what we are doing.

Of course, our actions have been endorsed by the three major global rating agencies. Those on the other side of the House want to pretend that there have been no revenue losses from the global financial crisis, no revenue losses from the global recession and that our revenues have not been reduced overall by $150 billion. Of course, if they want to pretend that, I would hate to think what our level of debt would be now if they did not take the actions or go anywhere near the actions we took during the global financial crisis, because it would be far higher. If action had not been taken, unemployment in this country would be far higher and deficits and debt would be far higher. Of course, we took the responsible action and, having taken the responsible action, we are doing the responsible things: bringing our budget back to surplus, building those surpluses and paying down debt over future years. That is classic economic policy, which has been endorsed by the global agencies and endorsed by the rating agencies, and all that those opposite are doing here today is turning their economic credentials into a complete farce.