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Thursday, 23 May 1996
Page: 1277


Mr GARETH EVANS —My question is addressed to the Minister for Finance and Acting Treasurer. Are you aware of continuing concerns being expressed by miners and farmers about possible changes to the diesel fuel rebate scheme? Do you acknowledge that, as the NFF, among others, has been claiming and as your colleague Senator Hill across the way appears to concede, any reduction of the rebate would constitute an increase in the tax burden on mining and agriculture? Do you rule out any such change?


Mr FAHEY —The shadow Treasurer continues to try to express some concern about the deficit that Labor left this government—the legacy that we inherited—and he attempts to express that concern on the basis of various speculation about what may or may not happen in the next budget.

But, of course, his leader went round Australia before the election telling everybody that there was a budget surplus, there was no deficit. It was only a couple of days ago that the shadow Treasurer finally came clean when he said, `The deficit was no accident. It was a deliberate policy choice.'


Mr Allan Morris —Mr Speaker, on a point of order: the question did not contain the word `deficit' whatsoever. I draw your attention to the point of relevance we raised the other day.


Mr SPEAKER —Order! There is no point of order. Resume your seat.


Mr FAHEY —The government has the unenviable task of fixing up the mess that was left to us by Labor. Let me just touch on one of those little areas of that mess. In 1990, Commonwealth debt under Labor was $16 billion—4.3 per cent of GDP. On 30 June 1995, Commonwealth debt under Labor was $83 billion—18.4 per cent of GDP. The course that the economy was set on by Labor before 2 March would have added a further $30 billion to the Commonwealth debt.

So let's not listen to any of this bankcard mentality that is going on here from Labor where the shadow Treasurer suggests to us that we should not be concerned about deficit, we should not look at the cost of running this country and we should not go through the process of reducing the deficit. We will act responsibly. We will act with regard to all sectors of the Australian community. And we will deliver a responsible budget on 20 August.