Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

My question is for the Minister representing the Treasurer, Senator Gallagher. Minister, you consistently claim that the economy would be in recession if it were not for Labor's spending. Given your willingness to make such forecasts, would inflation and interest rates be lower if not for Labor's spending?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I just missed the end of the question. Sorry; I didn't hear it.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you. I'll ask—

Thank you, Senator Cash. I believe that I'm running the Senate and not you. Senator Hume, please just repeat the last part.

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Minister, you consistently claim that the economy would be in recession if it were not for Labor's spending. Given your willingness to make such forecasts, would inflation and interest rates be lower if not for Labor's spending?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I have repeatedly and consistently said that our investments are contributing to the economy continuing to grow, and you could see that from the national accounts. Anyone who has read the national accounts will have seen that public demand is a contributor to economic growth.

Now, on the point that Senator Hume makes around inflation, as I said, we inherited inflation with a six in front of it. It was increasing when we came to government. The decisions we have taken in every single budget to implement policies which actually put downward pressure on inflation, such as our investments in early education and care, our investments in rent, and our energy bill rebates, have all—and this comes from the ABS—put downward pressure on inflation. So the answer to that is no. The answer to the first question, 'Is public spending contributing to growth?' is: yes, it is. And I will continue to say that—

Sue Lines (President) Share this | Link to this | Hansard source

Senator Hume, you've asked the question.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

because your economic plan is nuts! It's nuts! Your policy—yes, nuts! It is so out there that you can't even get your head around it. You argue for a contraction of investment, and you want to see the economy go into recession because it would suit your political purposes. But it would be terrible for the economy; it would be terrible for households. So we have made decisions, based on what is in the interests of households around this country—of families sitting around, trying to make ends meet. That is why we've repaired the budget, delivered surpluses, invested in cost-of-living relief and put the future markers down for growth. And you, those opposite, oppose every single step.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Hume, first supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Given, Minister, you attribute Labor's spending to keeping the economy out of recession, can you advise if the economy would be in recession if net overseas migration were not at record levels?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Population growth has contributed to economic growth in this country for a long time. That is not unusual. As I said in my answer to Senator Birmingham, population growth and public demand are contributing to our economy growing, and it's important that our economy grows, because, if it weren't growing, it would mean households were doing it exceptionally tough and it would be a much harder job to get out of.

We are focused on supporting economic growth in this country, not only through our investments directly into households but through other measures: making sure that wages get moving again; supporting women getting back into work if they choose to do so; ensuring we're closing the gender pay gap; and ensuring we're building houses so essential workers can live close to where they work. All of these things are interconnected, and all of these things are things that you opposed, including, crazily, a future made in Australia. How could you be opposed to a future made in Australia? But you are.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Hume, second supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

Minister, aside from record levels of Labor spending, along with record levels of migration, is there anything else that's keeping the Australian economy out of recession after three Labor budgets?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

The biggest danger to the Australian economy at the moment is the federal opposition, because they're opposed to a future made in Australia and they're opposed to the net zero transition and all of the certainty that's required about the energy transition. They're opposed to that. You want all this uncertainty and all this division because you actually don't want the economy to go well. On top of all of that, you want to cut $315 billion, you want to cut pensions, you want to cut rent assistance and you want to cut the pensions of sole-parent families in this country. You want to cut all of that.

Jane Hume (Victoria, Liberal Party, Shadow Minister for the Public Service) Share this | Link to this | Hansard source

You're panicked, and you're making stuff up.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Hume, come to order.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Well, we've heard you, Senator Hume. We've heard you. It's $315 billion that the coalition would not have committed to and didn't commit to. That is the money that you want to cut from this budget, and what that means, for people on pensions, sole-parent pensions, indexation or Commonwealth rent assistance—all of that—is that the slash and burn that we know that you want and you're waiting to do will happen.

Opposition senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Just a moment, Senator Faruqi. Senator McKenzie, Senator Hughes and Senator Hume, I do not intend to spend the whole of question time calling you to order. You are being disrespectful; you are yelling louder than the minister, who was on her feet; and I'm asking you to listen in respectful silence.