Mitch Fifield (Victoria, Liberal Party) Share this | Link to this | Hansard source

Mr President, my question is to the Minister representing the Treasurer, Senator Conroy. Minister, what is the forecast size of the budget surplus over the forward estimates?

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

Thank you for that question, Senator Fifield. As you know, the size of the deficit depends—

Mitch Fifield (Victoria, Liberal Party) Share this | Link to this | Hansard source

Surplus!

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

The size of the surplus—

Opposition Senators:

Opposition senators interjecting—

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

It will be a deficit if you vandals get in charge of it! That will entirely depend on whether or not this chamber decides to accept that this government was elected to tackle the target of inflation. It absolutely depends on whether or not—

John Faulkner (NSW, Australian Labor Party, Cabinet Secretary) Share this | Link to this | Hansard source

It’s in your hands, George!

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

Exactly! As Senator Faulkner says, it is entirely in the hands of those opposite and this chamber. It is entirely in the hands of those opposite whether or not these surpluses that are forecast are achieved. This is entirely dependent on whether those opposite want to—

Mitch Fifield (Victoria, Liberal Party) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on relevance. It was a very specific question to the minister. The question was what the government’s own forecast is over the forward estimates for the budget surplus.

John Hogg (President) Share this | Link to this | Hansard source

Senator Fifield, Senator Conroy is less than one minute into the answer to your question. He is developing an answer and I am sure that he will get to the question that you have asked. There is no point of order.

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

Thank you, Mr President. I know those opposite do not want to accept that they left this country with the highest level of inflation in 16 years. That is why this government introduced a budget in May that was able to attack inflation, that fought inflation. Let us be clear: the surpluses that are being forecast were about—

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. Senator Ludwig can slip the bit of paper—

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Abetz, resume your seat. Your own colleagues are drowning you out.

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My point of order was simply to get Senator Conroy out of his deep embarrassment and to allow Senator Ludwig to slip him the note with the figure on it. I would think it should not take him too long to tell us what the figure is now; it should only take him five seconds.

John Hogg (President) Share this | Link to this | Hansard source

Senator Abetz, there is no point of order.

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

Those opposite might want to try and play games about their intentions about various pieces of legislation, but they have one simple choice to make: are they going to assist Australians and help take pressure off interest rates and inflation by passing the government’s budget, or are they going to continue to play the role of spoilers? That is the choice that they have to make a decision on. I appreciate that this is caught up in a whole range of leadership debates on the other side. Who can take a shot—whether Mr Turnbull or Mr Nelson can win the battle, that is what this debate has turned into on their side. No thought for all of those Australians who have been struggling because of rising interest rates, rising petrol prices, rising grocery prices—all because of an electoral binge and a burst in government spending by those on the other side.

Let us be clear: those on the other side have caused this in no uncertain terms. Now they do not want to face up to some of the tough choices. This is a government that is prepared to face up to those tough choices, Mr President. It is not going to squib, it is not going to play cheap political games, it is not going to spend its time undermining—

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary Assisting the Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on relevance. Senator Conroy was asked for a figure. He did not have it. We saw it was passed to him. All he has to do to answer the question that was asked of him is to now give us the figure. Mr President, if question time is going to be at all meaningful or relevant, ministers must attempt to answer the question, not go off on a frolic of their own.

John Hogg (President) Share this | Link to this | Hansard source

There is no point of order.

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

The size of the budget surplus, as I said, is dependent on the responsibility of those opposite.

Mitch Fifield (Victoria, Liberal Party) Share this | Link to this | Hansard source

Here it comes!

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

It is forecast to be 1.8 per cent—much higher—

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Senator Abetz interjecting—

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

I will get to the rest of them! I appreciate how keen you are, Senator Abetz, but I will get there.

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, address your comments to the chair!

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

The projections out to 2011-12 are 1.8 per cent, 1.5 per cent, 1.4 per cent and 1.3 per cent. That is the potential damage that those opposite are capable of inflicting. They are not going to be interested in keeping the pressure off Australian families who are suffering because of their fiscal vandalism before the last election. (Time expired)

Mitch Fifield (Victoria, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask Senator Conroy a supplementary question. I thank him for giving us the surpluses as a percentage of GDP, but I think the figure he was actually searching for, the dollar figure, is $96 billion. Minister, isn’t it a fact that, if the government’s unconscionable tax grabs on alcopops, gas and cars do not go ahead, the forecast budget surplus will still be almost $90 billion?

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

There were unconscionable tax grabs from those opposite, who had the highest taxing government in Australian history. We had the former minister for finance, known as Dr Yes, who had to fiddle the figures to exclude the GST, just to hide the fact that that government outspent Gough Whitlam’s government. You made Jim Barnard look responsible! That is what you lot did. You made Jim Barnard look responsible.

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! On my left, order! Senator Macdonald and others!

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Lance Cairns used to play cricket.

John Hogg (President) Share this | Link to this | Hansard source

Senator Abetz, the longer this proceeds—

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

Senator Conroy interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, there should not be banter across the chamber on these issues. Question time is question time and that is how it shall proceed. You should not refer to senators on the other side of the chamber. You should address your comments to the chair, otherwise it is only natural that people will respond.

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

I accept your admonishment, Mr President. As I was saying, I just morphed Lance Barnard and Jim Cairns together for the purpose of the whole government, but those opposite outspent them. You had the highest level of spending and taxation in 40 years—well beyond the Whitlam government—and the former minister for finance sits there and turns away because he knows the truth. (Time expired)

Claire Moore (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Mr President. I share in the congratulations to you and Senator Ferguson. My question is to the Minister for Innovation, Industry, Science and Research, Senator Carr. Can the minister inform the Senate how blocking the government budget measures will affect Australian industry?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Mr President, may I extend my congratulations to you and to Senator Ferguson on your election. The Labor Party makes no apology whatsoever for putting working families first. The centrepiece of our first budget, a budget which we now see those opposite seeking to destroy, was a $55 billion family package. We also have to recognise that one of the best ways of supporting Australian families is by laying a strong economic foundation for Australian industry. That is why we are so determined that the budget should be fiscally responsible. And that is why we have offset new spending measures with savings of $33 billion over four years. That is why we are ready to ensure that we do tackle the growing and glaring anomalies on the revenue side which are increasing the excise exemption on condensate, which has long outlived the purpose for which it was originally given. That is why we have lifted the luxury car tax—a measure which is expected to raise an additional $555 million over four years.

This budget demonstrates this government’s willingness to take tough decisions in the national interest. That is why we achieved the $22 billion surplus Australia needed to put downward pressure on inflation. The previous government—this is the legacy of those opposite—left this country with the great parting gift of an inflation rate running at some four per cent: a 16-year high. One can understand that they do not care about that, because they never look beyond tomorrow.

This is a government that does care. Our focus is on Australia’s long-term future. We understand that inflation is bad for Australian business. It makes costs unpredictable and planning for the future very difficult. It does increase risks. It also increases prices. It increases the price of capital. The point appeared to have been lost on the member for Higgins when he engineered 10 interest rate hikes in five years. High interest rates do not just hurt homebuyers and families; they also hurt business. They directly affect every firm’s bottom line and they put upward pressure on the Australian dollar, which makes our exporters less competitive.

The government has been making tackling inflation a policy priority because we want to give Australian families a fair go. We want to give Australian business a fair go and we want to give the Australian economy a fair go, too, in an uncertain international environment. We want to ensure that while allowing our businesses to prosper in these difficult times. And that is at the heart of this government’s budget strategy. What the opposition are trying to do is to destroy that strategy. They are displaying the same indifference to Australian industry in opposition that they showed in government. This is the time when we should stop trying to score short-term political points and start thinking about this country’s future.