John Williams (NSW, National Party) Share this | Link to this | Hansard source

My question is to the Assistant Treasurer, Senator Sinodinos. Will he outline to the Senate the parlous state of the economy left behind by the former Labor government?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

I thank the honourable senator for the question, for his interest in the economy and for his own substantial interest in the agricultural economy. I begin by saying that the economic policy debate of the last three years in this country was dominated by the fact that Labor failed to realise, the present opposition failed to realise, that outside the mining sector large parts of the Australian economy were not feeling any benefit from the substantial growth. They looked at the aggregates and at the three per cent trend growth and thought the economy was going well, yet when we were on the streets of Australia, as opposed to in the halls of Canberra, people were saying that small businesses were falling over, retail was not doing well and people were facing rising costs and rising regulation. This was at a time when we had the highest terms of trade in our history and the biggest increase in national income we have seen in many generations.

We do not have that anymore. The economy we have been bequeathed is one in which our commodity prices have been falling and our terms of trade are falling. To retain our incomes at the levels we are talking about we will have to double our productivity growth over the forthcoming period. This is in the context where we have been bequeathed a budget that is in deficit and going further into deficit as a result of actions of the previous government. That is the situation we have inherited. So we have to reduce costs in the economy, improve productivity, reduce the rising tide of regulation and manage the transition from mining-led growth into nonmining investment—housing, construction and other sectors. That is the challenge we are facing as a nation. Doubling our productivity growth will not be easy, but that will be what we need to do to increase our income per head.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I thank the Assistant Treasurer for his answer. Assistant Treasurer, is it a fact that the former government delivered the biggest government deficits in Australia's history?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

I have to agree with you. The facts are that they did. Indeed, on the watch of the former finance minister the previous government racked up $107 billion worth of debt. On 2 July 2013 Chris Bowen, when he became Treasurer—

A government senator interjecting —

107 billion.

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

That's Mr Bowen to you.

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

When Mr Bowen became Treasurer, he said he stood by the budget delivered by Mr Swan in May. Exactly a month later Mr Bowen released the economic statement that showed a $33.3 billion deterioration in Labor's budget bottom line.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

In one month?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

In one month a $33 billion deterioration.

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

How much under you?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

Australia will have a yearly interest bill of $12 billion over the next four years.

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

How much under you?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

Out from the Iron Curtain, Kim Il Carr has resigned since the—

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

Order! You need to refer to senators by their correct titles.

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

Senator Carr, for your edification: since the PEFO, the fiscal outlook has deteriorated further and trends suggest— (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Assistant Treasurer, what steps does the Abbott-Truss coalition government need to take to bring stability back to the Australian economy?

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

The coalition government are making the tough decisions so that we can make Australia stronger. We will clean up the state of the budget. We have instituted a Commission of Audit—

Opposition Senators:

Opposition senators interjecting—

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Tell them what you are doing to people in the Blue Mountains.

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

Order!

Senator Cameron interjecting—

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I rise on a point of order: I am trying to listen to the answer of the Assistant Treasurer, and all I can hear is the waffle screamed across the chamber by Senator Cameron. Could you please bring him to order?

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

Order! There is no point of order. Senators on both sides know that calling across the chamber is disorderly and that the minister is entitled to be heard in silence.

Arthur Sinodinos (NSW, Liberal Party, Assistant Treasurer) Share this | Link to this | Hansard source

We will institute a Commission of Audit. We are removing the carbon tax, saving families $550 next year alone. The previous government's own modelling showed that GDP would be one-quarter of a per cent lower than otherwise without the carbon tax. The coalition government will remove the mining tax—remember the mining tax? It was going to raise $49.5 billion as the resources super profits tax? Revisions in PEFO, $4.4 billion. What has it raised to date? It is $400 million net. And you were going to have billions of dollars of spending—Mr President, through you—off the back of the rapidly receding resources super profits tax! That was another legacy you bequeathed the Australian people. And we have removed the fringe benefit tax on cars. (Time expired)