Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

May I truly extend my congratulations to you, Mr President, on your election to the presidency today and to Senator Ferguson as the Deputy President. My question is to Senator Conroy, the Minister representing the Treasurer. Is the minister aware of threats to block key budget measures? Can the minister outline to the Senate the impact of these plans on the budget strategy of fighting inflation and putting downward pressure on interest rates?

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

I have been intrigued by the line of argument being developed by those opposite, because the Rudd government is implementing responsible economic policies to address the economic challenges that we face. We inherited, as I have already said, domestic inflation rates at 16-year highs—this the result of the reckless spending by those opposite—and now global uncertainty and market turmoil are creating considerable uncertainty in the global economy. As IMF managing director Lipsky warned on just Saturday, ‘This turmoil is not going away quickly and will require serious efforts to overcome it.’ That is why the Rudd government brought down a budget with a strong surplus of $22 billion. At a time of global economic uncertainty, and after inheriting inflation at 16-year highs, we need a strong surplus. We need to provide a buffer against uncertain global economic conditions. We need to fight inflation today, to take pressure off the Reserve Bank on monetary policy and to finance critical nation-building investments for the future. Despite these clear economic imperatives, those opposite are intent on opposing key budget measures. Their plans would blow a $6.2 billion hole in the budget surplus. This is the height of economic irresponsibility—vandalising the budget at a time of increased international global uncertainty. No responsible economic manager would choose to increase uncertainty at home when we face significant uncertainties from abroad. No responsible economic manager would choose to vandalise the surplus, making it harder for the Reserve Bank to cut interest rates.

It has become readily apparent, if it was not already, that the opposition have no understanding of the economic challenges that we face. It has been nine months now, and the opposition’s only economic policy is to irresponsibly blow a $6.2 billion hole in the surplus that Australia needs. We have had an opposition member, Senator Fifield, who has already asked a question on this very matter, on Sky News just yesterday arguing that their budget-blocking policies should simply be absorbed into a lower budget surplus—the ‘magic pudding’. A time of heightened global economic uncertainty is not the time to be vandalising the budget surplus. It is not the time to be putting our economy at risk, including the vital investments in nation-building infrastructure that will guarantee the future economic growth of this country. When the Australian economy was crying out for responsible economic management, the Liberal Party offered irresponsible, knee-jerk, politically motivated spending. That is the legacy of those opposite, from ‘Dr Yes’ to their entire cabinet. They are at fault. (Time expired)