Senator TROETH (2:21 AM) —My question is to the Minister representing the Treasurer, Senator Conroy. Can the minister confirm that the cumulative budget deficit will be $118 billion over the next four years?

Senator CONROY (Minister for Broadband, Communications and the Digital Economy) —I thank Senator Troeth for that question. The government is working responsibly on the budget deficit. Let me be clear. When it comes to this issue, there are a number of private sector endorsements of the budget and the budget stimulus package—which goes to the heart of the question of what the appropriate size of the deficit is. Dr David de Garis, the senior economist at nabCapital, stated that it is ‘a sizeable fiscal stimulus and, I think, appropriate in the circumstances both in terms of the size of the stimulus and also its construction’. ANZ Economics said, ‘The moves have been decisive and pre-emptive, thus giving policy the best chance of minimising the damage to employment.’ Let us be clear about this. There is endorsement across the country of this package. The deficit for 2008-09 will be $22.5 billion—that is, 1.9 per cent of GDP. The government’s fiscal strategy aims to ensure fiscal sustainability. When you look at what is happening around the world, most major industrial countries will have deficits in 2009.

Those opposite, who are seeking to pin their hopes on avoiding a deficit or reducing a deficit, should understand exactly the state of the world economy. The US deficit will surge to 9.5 per cent of GDP in 2009. That is a $1.2 trillion deficit, and that is inclusive of President Obama’s fiscal stimulus. The European Commission projects the UK’s deficit will rise four percentage points, to 8.8 per cent of GDP. In Japan the deficit is forecast— (Time expired)

Senator TROETH —Mr President, I ask a supplementary question. Minister, you did not answer the question, so I will ask you: is it the case that the budget would in fact have remained in surplus at least for this financial year but for the government’s reckless cash splash?

Senator Chris Evans —Is that the one you voted for?

Senator Sherry —Do you mean the one you voted for?

Senator CONROY (Minister for Broadband, Communications and the Digital Economy) —I do recollect, as I think some of my colleagues are interjecting, that those opposite actually voted for it. But let us be clear about this. Let us be absolutely clear. As was revealed on Monday, the size of the collapse in revenue has driven us into deficit. On top of that, we have now put in place a stimulus package. What you have to decide is whether or not you are actually going to stand behind your leader or be like all of those, like Mr Costello, who went out last night and tried to pre-empt him on it and force him into this position. You have to get right behind Mr Turnbull on this—you have to stick by him on this—because this is going to cost Australians jobs. Let us be clear. Australians will lose their jobs because of what you are planning to do. (Time expired)

Senator TROETH —Mr President, I ask a supplementary question. To make my point further, I refer to the Prime Minister’s press conference of 2 February, where he claimed in relation to the $115 billion fall in tax receipts:

Why did the Prime Minister mislead the Australian people at least in relation to this financial year about the reasons for the deficit, when the deficit is actually a result of the cash splash?

Senator CONROY (Minister for Broadband, Communications and the Digital Economy) —That is a question based on a false premise. It is entirely incorrect in the assumptions that underpin it. Let me be very clear. We are being driven into the budget deficit position that Senator Troeth asked about—of minus $22 billion, minus $35 billion, minus $35 billion and minus $25 billion—by international circumstances, and we have responded in both the economic security package before Christmas and the new stimulus package announced in the last few days. Let us be clear. You have a very simple choice: are you going to stick with Mr Turnbull and his position and cost jobs and put Australian families on the unemployment queue? That is what you are faced with. You are going to have a very long weekend to think about this. Australians will lose their jobs because of the irresponsible, short-term politicking that those opposite are engaged in. (Time expired)