Senate debates

Thursday, 10 February 2011

Social Security Amendment (Income Support for Regional Students) Bill 2010

Second Reading

10:25 am

Photo of Jacinta CollinsJacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Hansard source

Senator Nash says that we are digging a hole. Well, in her very short-term view, if she thinks responsible government is about using devices such as this and trying to skirt the Constitution on what are appropriation bills she is highlighting my very point about the problems that the coalition faces today. This is completely fiscally irresponsible. Indeed, Senator Mason knew that last time we debated this—hence his sheepish response to the debate in the Senate on the last occasion, and indeed today. Today Senator Mason is not able to assure the Senate that these measures were properly costed in the coalition’s policy at the last election, because he cannot. These measures were part of that more than $10 billion black hole that the coalition took to the last election.

So I go back to reinforce the points that Senator Cameron made that the constitutionality issues here are very serious. They are serious not only in this bill but also in other bills that may move forward in debates such as this. I reinforce particularly to the Greens on that issue that, if we are to move forward with these new arrangements for private senators’ bills, the arrangements around how we deal with appropriation matters are very serious policy considerations that need to be looked at very carefully.

I want to spend more time on the fiscal recklessness issue. This bill is only one example of the coalition’s approach here. The change to youth allowance that we are debating here today has a cost of $317 million over four years. The Nationals will say, ‘But there’s not a clause in the bill appropriating money; therefore, it is not an appropriation bill.’ Well, again, you cannot have it both ways: either this is fiscally irresponsible or it is constitutional vandalism.

The spending proposal also wipes out half of Mr Abbott’s $600 million cut to the water buybacks. What further measures will he cut to make up for this shortfall? Will we see further cuts to foreign aid? Is that what the coalition is going to come up with next? This is just the tip of the iceberg. Another opposition bill introduced today, the Defence Force Retirement and Death Benefits Amendment (Fair Indexation) Bill 2010, would have a fiscal cost of $1.7 billion—yes, billion, not million—over four years and an underlying cash cost of $175 million over four years. It would increase Commonwealth unfunded liabilities by $6.2 billion—yes, Barnaby, not million—

Comments

No comments