Dean Smith WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury
2:11 pm
My question is also to the Minister representing the Treasurer, Senator Gallagher. Minister, can you categorically rule out additional spending in the form of one-off payments prior to the next election, which would pour additional fuel on the inflationary fire and ensure Australian interest rates stay higher for longer?
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
I can tell you what we will rule out. We will rule out spending $600 billion on nuclear energy plants that are going to get established in, what, 20 to 30 years and deliver four per cent of Australia's energy requirements. I will definitely rule out that additional spending. That is quite a bit of additional spending, and one might think that $600 billion may have an effect on the government budget, maybe on the spending side.
Dean Smith WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury
You've broken the rule.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
So I can rule out that. That is the biggest threat to the budget. The biggest threat to the budget is this uncosted lack-of-detail plan from Mr Dutton to build nuclear energy plants that will at some time in future provide less than five per cent of Australia's energy needs. That is the biggest risk.
You asked me about spending on the budget and its impact on inflation. Well, I am ruling that out.
Sue Lines President
Minister, please resume your seat. Senator Birmingham, on a point of order?
Simon Birmingham SA, Liberal Party, Shadow Minister for Foreign Affairs
I rise on a point of order on direct relevance. Senator Smith asked a question very clearly about one-off payments. While it may be flattering the government is fixated with the coalition's policies, the reality is the minister has spent more than half of her answer now talking about opposition policies and going nowhere near answering the question asked by Senator Smith.
Sue Lines President
Senator Birmingham, the minister was asked to rule out additional payments. I believe she—
Simon Birmingham SA, Liberal Party, Shadow Minister for Foreign Affairs
One-off payments.
Sue Lines President
Yes, that is right. I believe that the minister is being relevant. I'm going to invite her to continue and I will listen carefully. Minister Gallagher.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
It might be a one-off $600 billion investment in nuclear energy. We don't know because you haven't told us. I can assure those opposite that our approach going forward will reflect the decisions that we have taken in previous budgets, which is to find savings where we can, to repair the budget where we can. Remember there is $80 billion less interest we're paying now because we repaired the budget. We have delivered two surpluses, which are helping with the fight against inflation. And where there are additional investments required, they will not add to the inflation challenge. As you have seen in the decisions we have already taken, it is a responsible approach that looks at the short term but doesn't take our eye off the longer term. That is the approach we've taken since October. It is the approach that we will continue with.
The:
Senator Dean Smith, first supplementary?
Dean Smith WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury
2:14 pm
Dr Jonathan Kearns, the chief economist at Challenger and former RBA executive, stated that 'any stimulus is going to add to aggregate demand' and 'Anything that's stimulating spending will make the Reserve Bank's job harder and slow the reduction in interest rates.' Minister, does the Albanese government support keeping rates higher for longer by increasing spending in the form of one-off vote-buying payments?
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
I'm sure that Senator Dean Smith is very interested to know that the latest inflation figures show that headline inflation is the lowest it has been in almost four years. When we came to office, it was much higher and it was rising, at 6.1 per cent. Now it's 2.8 per cent. We also know that inflation is now at half of what we inherited and about a third of its peak. All of us in this place should welcome that, because that means that the prices people are paying are less than what we inherited when we came to government, when inflation was rising under you and interest rates were rising as well.
Our budget strategy—and I know you continue to misquote the RBA in all of your questions, when they have said that our surplus budgeting is helping in the fight against inflation. We've delivered the first two surpluses—something that you were not able to do in your entire time in government—in 15 years. (Time expired)
Dean Smith WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury
2:16 pm
Murray Watt Queensland, Australian Labor Party, Minister for Employment and Workplace Relations
What are you going to cut?
Dean Smith WA, Liberal Party, Shadow Assistant Minister for Competition, Charities and Treasury
Minister, as rates stay higher for longer and insolvencies rise, real disposable income goes backwards and our standard of living diminishes— (Time expired)
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
I think I got the gist of that even though it was over time. I would remind those opposite as they demonise public demand, which is what they're doing, that it is an important component of the economy to make investments into public services. We believe in Medicare. We believe in the NDIS. We believe in aged care. We believe in aged-care wages. We believe in funding the community sector and healthcare workers properly.
Unidentified interjection - Hansard doesn't record who said this
Opposition Senators:
Opposition senators interjecting—
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
We know you don't. You demonise public demand, but we know your demonisation is our essential public services. That's what we think. So investments are needed in those essential public services.
Anne Ruston SA, Liberal Party, Shadow Minister for Health and Aged Care
Katy Gallagher scare campaign.
Sue Lines President
Senator Ruston, I have just sat the minister down, because, quite frankly, I'm over the interjections. When Senator Smith asked his question, I heard one interjection from the right-hand side. The rest of the question was given in absolute silence. The minute the minister stood, the interjections from you, Senator Smith, and other senators increased in volume the longer the minister spoke. I'm asking you to give the same courtesy you give to the person who's asking the question to the person who's answering the question.
Katy Gallagher ACT, Australian Labor Party, Minister for the Public Service
We see investment in public services as important, but I will remind those opposite that the Governor of the Reserve Bank has on a number of occasions said that public demand is not the main game, from her point of view. (Time expired)