Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

I move:

That the Senate take note of the answer given by the Minister for Finance (Senator Cormann) to a question without notice asked by Senator Farrell today relating to the distribution of GST revenue.

Twice this week this Leader of the Government in the Senate has been unwilling to rule out any changes to the GST distribution to Tasmania and to South Australia. I'll come back to that fact, because he's been given two opportunities over this week and he has failed to do so, but I want to go back to the beginning. I want to go back to the summer holidays, a time for beaches, barbecues—and, do you know what else? Burying, until after the elections in South Australia and Tasmania, the government's plans to slash hundreds of millions of dollars from state budgets. When did the government decide that the Productivity Commission magically needed more time to finalise its report on GST funding? On 3 January! And how much longer does the PC need to finalise this report? Until after the South Australian and Tasmanian elections! Oh, my goodness me! Knock me over with a feather! What a surprise! What a coincidence!

What is the backdrop to this? People might have forgotten that the backdrop to this was Prime Minister Turnbull talking about re-casting the GST, I think, in the context of the WA election—that's right—and positive comments made by Treasurer Morrison about changes to the GST. This isn't some esoteric argument because, earlier this week, we put to the government what the cuts, a change to the GST would mean to Tasmanians and to South Australians. It isn't an esoteric budget formula discussion; it's a discussion about nurses and teachers and police officers and infrastructure. It is a discussion about what happens to services and to real people. Let's remember: these cuts would be equivalent to South Australia cutting 5,340 teachers, over 4,000 frontline police, nearly 5,000 nurses, nearly 38,000 radiotherapy treatments, or 86 train carriages, just to name a few. These are real services to South Australians. A number of Labor Tasmanian senators have also asked questions about the cuts to Tasmania.

In the context of that, what have we had from the government? Twice this week, as I've said, Senator Cormann has refused to rule out changes to the GST. He keeps using weasel words: there's no proposal, there's no plan. Twice he's been asked to rule out any changes to the GST distribution to South Australia and Tasmania, and he refuses to. Meanwhile, Senator Birmingham says in the paper he'll fight any plan to change the GST. So which is it? Is it that there's no plan, or is there a plan Senator Birmingham's fighting? Maybe this is some weird Liberal example of shadow-boxing—you know: you fight a plan that doesn't really exist.

I can say this: there is only one party that will stand up for South Australia and Tasmania on the GST, and that's the Labor Party. Can I tell you why in South Australia the South Australian electorate can never trust Steven Marshall when it comes to standing up to Canberra? It is because he's Pyne's patsy. He's Christopher Pyne's patsy, and everyone in South Australia knows it. He owes his job to the very impressive number crunching Mr Pyne has engaged in and the influence of Mr Pyne in the South Australian Liberal Party, and so you never hear Steve say boo. He's Pyne's patsy. He'll be Pyne's patsy when it comes to the GST and he'll be Pyne's patsy on everything else, and that's why South Australians haven't flocked to him. That's the reason he's seen as a weak Liberal leader: he is controlled up here by Christopher Pyne, and everyone in South Australia knows it.

The reality is it takes more than a couple of headlines to show that the South Australian Liberal Party are actually prepared to stand up to their Western Australian and federal colleagues. We know a history of them rolling over, of them going quiet, of them not doing the right thing. It wasn't the South Australian Liberal Party who got the submarines back; let's remember that. It was the campaign run by the Labor Party and the Labor government in South Australia. The Liberals like to be lions in Adelaide, but they're cowards in Canberra. That's the reality, and I think every South Australian knows it.

I don't know who's following me after this. I hope it's Senator Birmingham, and I invite him to rule out the GST changes. I invite him to do what his leader wouldn't and rule out any changes to the GST for South Australia. If you don't, everyone will you know you're a coward. (Time expired)

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

You know Jay Weatherill is in trouble in South Australia when Senator Penny Wong comes in here and the best she's got is to throw around abuse and lies in her argument. That's the best South Australian Labor has to offer after 16 long years of driving the proud state of South Australia into the dust.

Frankly, South Australians rightly are fed up with a state Labor government that has overseen the slow and steady decline of the state. They're fed up with the many long months the state has suffered having the highest unemployment in the country. They're fed up with the circumstances of being in the state that has seen the lowest rate of employment growth across the country. They're fed up with the jokes that come from interstate because the state can't manage to keep the lights on. They're fed up with the fact that investment into the state dries up because people lack confidence after 16 years of Labor. They're fed up, of course, with the scandals that have beset Jay Weatherill's Labor government.

Jay Weatherill is a good factional ally of Senator Wong. No wonder she's here passionately standing up for him. But, of course, he's the Premier who has overseen the disgraceful circumstance of abuse of people in the care of the state—children in the care of the state, elderly citizens in the care of the state—and who has seen a train wreck of a disaster across the TAFE system in South Australia. It has been one disaster after another.

What I find incredible is that Senator Wong wants to come in here and talk about South Australia's GST funding. Jay Weatherill and his state government have been rolling in enormous revenue growth under the GST. It's up to some $6.3 billion flowing into South Australia. It's grown enormously—far ahead of all of their budget projections—and yet what has happened in that time? According to the Productivity Commission's assessment of state spending, investment in South Australian schools has gone backwards.

During that time, what else has happened? The state government has cut services out of South Australia's hospitals. We know that all of this GST largess that the Weatherill government has been receiving hasn't been spent on South Australian schools because funding's been cut. It hasn't been spent on South Australian hospitals because services have been cut. So where the hell has the money gone, Premier Weatherill? You've had 16 years of record revenues, and all we've seen is an endless decline in services. And what, of course, is the answer that we get from Senator Wong and the Labor Party? All we get is abuse of the member for Sturt, abuse of Mr Marshall, abuse of me and abuse of anybody that Senator Wong can think of because she has no defence of Jay. Senator Wong can't come in here and defend his school funding cuts or cuts to hospital services. She can't come in here and defend the disgrace that is the Oakden scandal—

Senator Wong interjecting—

Oh, here we go—bring it on, Senator Wong!

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

Senator Birmingham, resume your seat. Senator Wong.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

I know he's getting very emotional, but I'd like to point out that I actually said that Christopher Pyne—

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

Is this a point of order?

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

was 'a very impressive numbers manager'. That's why you have Xenophon—because Marshall is his patsy!

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

Senator Wong, that's not a point of order. Resume your comments, please, Senator Birmingham.

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

There you see again the desperation of Senator Wong as I'm highlighting the litany of failures that have beset South Australia under her mate's government—Jay Weatherill's government—like the Oakden aged-care scandal. Of course, there have been multiple child abuse scandals. As I've said before, there has been the TAFE training scandal lately. We've seen all of these problems bank up one after another after another after another. South Australian voters aren't going to be fooled by a few Labor Party questions during question time in the Senate or by a five-minute rant from Senator Wong into thinking, 'Actually, Jay Weatherill is doing okay,' because there was no defence of Jay in anything that Senator Wong actually said.

If Senator Wong wants to engage in a discussion about the South Australian election, let's have a discussion about the South Australian election. Let's do it on state terms. Let's talk about the state government's performance, because that's what voters are judging. Voters will be judging the performance of the state government and the alternative that's on offer. The alternative that's on offer is offering clear policies to reduce costs for South Australian households through a reduction in the emergency services levy, to encourage investment in South Australia through a cut to the payroll tax and to deliver policies to get the state moving again after 16 long years of Labor failure. (Time expired)

Helen Polley (Tasmania, Australian Labor Party, Shadow Assistant Minister to the Leader (Tasmania)) Share this | Link to this | Hansard source

It's obvious that Senator Birmingham has been caught out because what a performance! He is certainly never going to be a match for Senator Wong—not at all. If you want to talk about the real impacts of this government, you have had ample opportunity. Senator Wong challenged you, Senator Birmingham, to rule out any change to the GST, to rule out any cut to Tasmania or South Australia—but, no. Once again, along with Senator Cormann, you have failed to do it.

You did raise a very important issue: the Oakden scandal. It's very opportune for you to raise that, Senator Birmingham. You want to look at your own Department of Health and Ageing before you go pointing the finger at anyone else. You certainly should look at the accreditation agency and its failure to support and protect those most vulnerable South Australians, so be careful. Senator Duniam will come up and talk about the facts. The fact is, Senator Birmingham, that it was your government's department, your agency, that failed in Oakden.

Let's not be distracted from the real issues that are going to be affected by any cut of the GST to Tasmania and South Australia. We have a health system and a hospital system in my home state of Tasmania in crisis. It doesn't matter how many times that the Liberal senators come into this place and talk about previous Labor governments. It is this minister—the state Minister for Health, the Liberal minister, the Liberal government—and the Liberal Premier, who Senator Duniam used to work for, who were on the government benches when older Tasmanians were left on the floor in accident and emergency. Older Tasmanians have been left to wait for more than 48 hours for emergency surgery. One particular man was bleeding. It was a real emergency.

Senators come here from Tasmania and say: 'Well, you know, we haven't said there's going to be a cut. The Productivity Commission report, gee, golly, gosh,' as Senator Wong said, on 3 January—all of a sudden they need more time. Well, they have already highlighted that $168 million will be cut from Tasmania. Senator Duniam and the Liberal team: you need to say more than what you've been saying in Tasmania. You actually have to prove it. You have to actually stand up for Tasmanians. You have to actually put pressure on your government not to cut any funding. Why aren't you getting your colleagues, your ministerial colleagues, to actually rule out any cut to the GST? It is very simple. You keep saying that we're running a scare campaign. The reality is you can end any campaign by getting your Prime Minister, your Treasurer or your Minister for Finance to say there will be no cut.

Tasmanians don't believe you because they know that this Prime Minister has walked away from Tasmania. The Prime Minister has visited Tasmania fewer than five times since the last federal election. The reality is that all this huff and puff and talking about facts is all about trying to save a very weak Premier of Tasmania, a Premier who is only ever known as the 'good news Premier'. The reality is that, when it comes to health, hospitals and education and the lack of funding for home care packages for older Tasmanians, you have failed. The Tasmanian community understands that very well.

Health is a major issue at this coming state election. Minister Ferguson has a big red 'F' for 'failure'. If you're not prepared to rule out the GST once and for all—no cuts to South Australia or Tasmania—then the people of Tasmania will vote accordingly. They know that when it comes to health, education and looking after the welfare of all Tasmanians the only party that has a policy, a solution and a vision to restore the good health of Tasmanians and the health system is the Labor Party. So I am waiting with bated breath to hear once again those facts that Senator Duniam will roll out and roll out and roll out. The reality is we can't trust this government. (Time expired)

Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

It is always a pleasure to follow my good friend and colleague Senator Polley, who fills the air with more mistruths than I can count, honestly. I give her points for trying.

What this is reminiscent of is something from 2016. You know what it was? 'Mediscare'—the ridiculous lie that was told to Australian voters right across Australia, particularly in Tasmania. Three members of the Labor Party—now in the federal caucus here—won their seats on a lie. They were trying to tell people we were going to privatise Medicare. This is the kind of form of this group of people, the Australian Labor Party, the Labor Senate team, this dynamic group of people from Tasmania that they send up here every year; that's what they do. They run these scare campaigns and try and fool poor vulnerable Tasmanians into believing their rubbish.

Senator Polley has been asking me to reel off facts. Here's a fact: Senator Polley couldn't defend Ms White, the opposition leader in Tasmania, once. She didn't talk up her credentials once. She stood there talking about the Premier of Tasmania, Will Hodgman—an excellent Premier, I might add. I will come to those facts that Senator Polley is going to miss out on again as she leaves the chamber again, runs from this debate, to talk about the frontline services that we have restored in Tasmania.

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

A point of order, Senator Wong?

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

I realise Senator Duniam is in his first term. As a matter of courtesy, we recognise that senators on both sides often have other engagements and so we ought not to make comment about people leaving the chamber in a debate.

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

Thank you. Senator Duniam, please continue.

Jonathon Duniam (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Thank you very much, Madam Deputy President. Hopefully, Senator Polley will take note of the things that I have to say.

It is just like the case was with South Australia: 16 long years of Labor, where services have been cut and people on the ground are noticing how they're waiting longer to get into hospitals and how school standards are slipping, just like they were in Tasmania up to the year 2014. In Tasmania since 2014—in the last four years—we have restored the number of nurses.

Bec White, the opposition leader in Tasmania, says she wants to restore funding: $500 million. I don't know where it's coming from; she hasn't told Tasmanians where that money's coming from but it's what she cut. Her government, a government that she was part of, sat around the cabinet table between the years 2010 to 2014 and presided over a decision to cut health funding in Tasmania by $500 million. They cut over 250 nurses. Those numbers have been restored in Tasmania. We have an extra 120 hospital beds on offer in Tasmania. We have an extra 350 hospital staff on offer in Tasmania. We are seeing a massive increase in the number of elective surgeries, up from 15,000 per annum to 19,000 per annum. This is proof that we are addressing the things that Senator Polley, and Senator Wong, in her contribution, highlighted—that these things translate into frontline services.

But one point that Senator Cormann touched on in his answers is the salient point about unanimous consent by all the states, territories and the Commonwealth with regard to any of the changes that are being talked about around here in this scare campaign that's being run by Labor senators back in Tasmania, and, I gather, also in South Australia. There is this inconvenient fact that everyone has to agree to whatever happens down the track. I suspect that there are some concerns on the part of Labor in South Australia that Mr Weatherill will agree to something that's bad for South Australia. Hence, all the concern on the part of federal representatives from that state.

But it's clear: Senator Polley said in her question that we need to have people in the states standing up to Canberra. Well, as I said before, Ms White has proven that she can't stand up for our state. She presided over these massive cuts to frontline services. She's responsible for the suffering of many people, because she sat around that cabinet table in Tasmania and she agreed to these cuts, to the hundreds and hundreds of frontline service jobs that went and that have been restored under the Liberal government. This is the same individual in Tasmania who couldn't conduct a simple interview with radio show host Brian Carlton in Launceston without text messages from her staff. As a result, that radio show host has banned telephones from the studio. How can Tasmanians trust an individual like that, who can't run an interview, who presided over these massive cuts and who definitely won't be standing up for the best interests of the state that I represent proudly? The choice is clear: Will Hodgman has it; Bec White doesn't.

Jenny McAllister (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Today we've been having a discussion about the carve-up of the GST and how this government plans to approach that. There are some things that are agreed. The first thing agreed is that this is an issue referred by the Treasurer, Mr Morrison, to the Productivity Commission. The second thing that isn't disputed by anyone in this chamber is that when the Productivity Commission tabled its interim report, one of its recommendations was a change to the way we deal with this question, which would see in just one year South Australia lose $557 million and Tasmania lose $168 million relative to their current positions. That can't be disputed, because that's in black and white and it's in the report.

But what is under dispute now, of course, is what that means and what the government intends to do about it. And, waking up in the new year and realising that the Liberal Party had to fight elections in South Australia and Tasmania, its leadership has decided to try and make this go away, to kick this off into the long grass and to assert that there's nothing going on here. In today's paper we saw Mr Pyne dismissing it as just a government report:

"The Productivity Commission writes reports, the Government makes policy. There is no policy to change the GST mix," Mr Pyne said.

Senator Birmingham:

… right now there's no proposal for change and nothing for people to fight over.

That's actually not what the Treasurer said. It's very different to what Mr Morrison said. What Mr Morrison said was:

… the Commission's draft report—

this is the one that recommends a $557 million cut from the South Australian budget—

… demonstrated the system is broken and needs a real fix.

Those are the words of the Treasurer. Those are the words of the person responsible for the economic policies of this government.

So who's telling the truth? Is it Mr Pyne or Senator Birmingham, cowering as they face the voters of South Australia? Or is it the person responsible for delivering the coalition's economic policy? As someone who's enthusiastic about the wellbeing of the citizens of South Australia and Tasmania, I'd like to think that it's Mr Pyne. After all, he has only recently crowed that he is part of the winners circle. Mr Pyne is very confident that he's in the driving seat. But I actually fear that the person who's right on this question is Mr Morrison, and I have to say, judging from the reaction of other Liberal MPs, from other people in the coalition party room, they seem inclined to believe that in these circumstances it's Mr Morrison who's telling the truth. What did Mr Marshall, the South Australian opposition leader, say? He said they would:

… oppose any change to the GST carve-up which would leave SA worse off.

What does Ms Flint, the member for Boothby, say? She's out there saying:

… she would make sure there was a "fair deal for SA".

"As a proud South Australian I will be fighting to protect the state’s interests."

She seems to think there's some sort of problem, something to fight about. What does Tony Pasin say? He says that he would expect:

Any attempt to undermine this principle will be met with a fierce fight from me and … every other South Australian in Federal Parliament.

It sounds like he thinks there's a fight on. It sounds like he thinks there's a problem. These are all members of the coalition party room who seem to think there is a big issue. In this chamber, newly arrived in the Liberal Party room, Senator Gichuhi says:

She said if such a change was pursued there would need to be measures to "cushion" SA against a possible impact.

She's worried about it. Mr Ramsey, the member for Grey, is worried about it. Senator Fawcett's worried about it. They're all quoted in The Advertiser, deeply worried about the proposal by the Treasurer to change the arrangements and leave South Australians worse off.

The shameful thing is that they are not strong enough to bring on this fight, to resolve this fight prior to South Australians' going to the polls. This is a weak party in South Australia. Indeed, I will add in passing that it's the very weakness of the South Australian Liberal Party—

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

Senator Fawcett on a point of order.

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

A point of order: there's been a misrepresentation in that I was not quoted on that. I was quoted as saying—

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

That's a debating point.

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

that South Australia has mismanaged the GST funds that it has.

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

Senator Fawcett, please resume your seat. That's a debating point.

Jenny McAllister (NSW, Australian Labor Party) Share this | Link to this | Hansard source

This is a very weak party in South Australia, and there's no greater example of the weakness of the Liberals in South Australia than the success of the Nick Xenophon Team. His success is a direct result of the South Australian Liberals' failure to provide any effective opposition to what I will say is a very, very good Labor government. They are incapable of resolving this before the election. The best they can do is kick it off into the long grass. (Time expired)

Question agreed to.