Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann. Last week in this chamber I asked about the emergency relief for young people who will be left without income support for six months under the 'earn or learn' measure. The Assistant Minister for Social Services said that this government makes no apologies for directing $229 million to ER, because it is adding to the social security safety net. Then, this government has cut $240 million out of the discretionary grants program in social security, not because of clear duplication, but because it was 'a decision of government'. Is it correct that the program savings, which are now largely being redirected to ER to offset the government's cruel budget measures, were found by simply pulling the existing funding and cutting an arbitrary amount from those discretionary grants? And how does the minister justify cutting this discretionary grants program, and with it a wide range of preventative programs, that would in fact help young people get a better start in life.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Siewert for her question. The first thing I would say is that when we came into government we inherited from the Labor/Greens administration that preceded us a debt and deficit disaster that needed fixing. When we went to the last election we said we would fix the budget mess left behind by the Labor/Greens administration, and we are doing exactly that. Labor and the Greens left behind $191 billion of cumulative deficits after their first five budgets, and they left behind another $123 billion in projected deficits in their last budget. They were taking us to a government debt of $667 billion within the decade and rising beyond that. They left a situation where we have to pay $1 billion a month just in interest to service the debt that Labor and the Greens accumulated over six years in government.

What we have done is transparently there for all to see in the budget. We have ensured that our spending growth trajectory is more sustainable, more affordable and more realistic—

Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

I have left it until half-way through the minister's answer to see if he was going to get to my question, and he has not. Mr President, could you please remind the minister that the question I asked was specifically about the discretionary grants program.

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

I draw the minister's attention to the question. The minister has 56 seconds remaining.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

As always with these questions it is important to provide appropriate context for the answer. The context of course is that we inherited from Labor and the Greens a debt and deficit disaster that in the national interest needs to be fixed.

When it comes to young people under 30, we unashamedly have a policy position that it is not appropriate for young people who are able to work, are capable of working and are healthy and fit, to walk straight out of school onto the dole. We happen to think that if you are able and fit and you are capable of working you should work, you should earn or learn. Our policies in the budget provide for that. We have put appropriate safety nets around that to ensure that people in genuine need of support continue to have that support.

In relation to the specific question that was asked about grants programs, as always this government is committed to ensuring that all government spending is as efficient, as effective and as well targeted as possible. (Time expired)

Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. The Australia Institute today has released a new report highlighting the billions of dollars worth of state government subsidies going to the mining industry. This is on top of the very significant billions of dollars that are handed over to the mining industry from this government. When is this government going to end welfare to the corporate sector?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I completely reject the assertion about subsidies to the mining industry. What I would say, though, is that we on this side of the chamber understand the importance of a strong mining industry in order to generate the sort of jobs that we want young people under 30 to be able to get into. We on this side understand that we need to continue to build a stronger more prosperous economy where everyone has the opportunity to get ahead. We understand that a strong mining sector, with an appropriately competitive taxation arrangement to support economic growth across the whole economy, but also in relation to the mining industry, is in our national interest. I do not ever expect the Greens to understand this, but we actually want businesses across Australia to be successful so that young people and indeed all Australians have the opportunity to get fulfilling jobs where they are able to reach their full potential and make a productive contribution to a growing, more prosperous economy into the future.

Rachel Siewert (WA, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I notice that the minister did not answer my question about ending corporate welfare. The question is this: when are you going to end the billions of dollars worth of subsidies you are handing out to the mining industry—that you are cooperating with the states to hand out to the mining industry—and how can you not do that and justify dumping young people onto no income support for six months?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I very warmly welcome Senator Siewert into the family of those supporting and promoting the free market. Those of us on this side of the chamber understand that it is very important to ensure that in an economy like Australia's we continue to be an open, competitive economy—

Opposition Senators:

Opposition senators interjecting—

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

Put a price on carbon, then.

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

Senator Cormann, resume your seat. You are entitled to be heard in silence.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thought that this might get a rise out of Senator Cameron, and it is very good that he has risen to the occasion. On this side of the chamber we make absolutely no apology for the fact that, having inherited an economy growing below trend, having inherited an economy with rising unemployment and having inherited an economy with low consumer confidence and business investment that had plateaued, we will continue to pursue policies to build a stronger, more prosperous and more resilient economy where everyone across Australia has the opportunity to get ahead.