Ms O’DWYER (9:51 AM) —As expected, the budget announced by Treasurer Wayne Swan is a budget that demonstrates a government out of its depth and out of control when it comes to our nation’s finances. It is a government that has focused on growing government and sucking life out of the Australian economy rather than on taking the necessary and tough decisions to reduce spending, continuing the Labor Party’s tradition of deficits and spending and no real reform. Labor’s debt of $93.7 billion represents $4,260 for every man, woman and child, which will eventually have to be repaid. The government will need to borrow $700 million a week to fund this. Labor’s debt is over $542 million for the people of Higgins alone—that is seven times the amount of BER spending in the electorate. I am deeply concerned that we are not seeing value for money for all this borrowing and spending.

This continued big spending will only put further pressure on the Reserve Bank to continue to increase interest rates, putting further pressure on the people in my electorate of Higgins. What is this budget predicated on? It is predicated on a great big new tax, a super big tax. Labor’s resource rent tax is a desperate response by a panicked government to get revenue to pay for its increased spending and cost blow-outs. In attempting to cover for its policy failures, the government is wilfully putting this country’s jobs and prosperity on the line.

Amazingly, not only has the government gone so far as to say that the new tax will have no effect on the resources sector; it has claimed that investment will grow as a result. Only in muddled ‘Ruddled’ economics can this logic be understood. These brazen claims by the Rudd government are completely at odds with the market’s view. The global credit ratings agency Moody’s has already said that the new tax will have a negative impact on access to credit by mining companies, as well as creating uncertainty for future investment. Resource stocks fell by seven per cent last week, since the new tax was announced. This equates to a $50,000 drop in a typical superannuation balance. On top of this, numerous companies have been forced to postpone new projects and expansions and are now taking a hard look at their investment in Australia. The government has tied the future of the Australian economy to a single industry that is prone to large cyclical fluctuations. The government thinks it will be able to fund its debt and spending into the future. This is not smart economic management.

But do not take my word for it. The views of commentators and business are probably best summed up by Katie Lahey, CEO of the Business Council of Australia, who said:

Australians have a real choice at this upcoming election: a government addicted to spending, spin and deficits or a government led by Tony Abbott which will safeguard our nation’s finances, reduce spending, stop the waste and mismanagement of taxpayer money and deliver real action that will protect and secure Australia’s economic future.