Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

The government has taken early and decisive action to strengthen growth and support households during the global financial crisis. If global conditions continue to worsen, there will be a further slowing of growth and a further impact on budget revenues. We have said that, if that slowing occurs, the responsible thing to do will be to draw down on the surplus and if necessary use a temporary deficit to invest in growth. MYEFO was published just a few weeks ago and we stand by those forecasts. But any action to use a deficit would be temporary and consistent with the budget discipline of maintaining a surplus across the economic cycle. This action would support growth and jobs. Failing to act, as those opposite are now advocating, would be irresponsible and would sacrifice growth and jobs. There is not a single credible economist in this country who does not share that view.

It is because we have made the hard yards in the budget to build a strong surplus that we now have the flexibility to respond to the deterioration in global conditions. It means that fiscal policy is working in tandem with monetary policy to support growth during the global financial crisis. In times like these you need a decisive government staying ahead of the game, not an opposition who try to have it both ways. (Time expired)