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Tuesday, 16 August 2011
Page: 4456

Economy

Senator MOORE (Queensland) (14:09): My question is to Senator Wong, the Minister for Finance and Deregulation. Can the minister outline to the Senate the importance of responsible economic and fiscal management, especially in this time of international economic uncertainty? How has this approach been received and what is our government's response?

Senator WONG (South Australia—Minister for Finance and Deregulation) (14:09): Thank you, Senator Moore, for the question. Certainly we have seen a lot of volatility in international markets in recent times. We have seen a concern, as people know, about those markets for a range of reasons, including what has occurred in the United States and in relation to Europe. The fact remains that Australia is better placed than just about any other nation to ride out the current global turbulence. Despite some difficult circumstances, Australians have good reasons to be confident. We have strong fundamentals and we are located in the fastest growing part of the global economy. One of the strengths to which we can point is an enviable fiscal position—one of the best in the developed world—and our highly credible fiscal strategy.

Senator Brandis: No debt left by the coalition, by John Howard!

Senator WONG: Those on this side have put forward a budget which has restricted real spending growth to just one per cent on average over the forward estimates.

Senator Brandis: Who paid off the debt?

The PRESIDENT: The time for arguing this issue is post question time.

Senator Cormann: Who left you with no government debt and a surplus?

The PRESIDENT: Senator Cormann, post question time!

Senator Sherry interjecting—

The PRESIDENT: Senator Sherry. When we have silence on both sides, we will proceed.

Senator WONG: In times like these, it is crucial to have a clear, achievable and disciplined plan for fiscal consolidation and the government does. That is why our fiscal strategy has received such a resounding endorsement by ratings agencies, by the international community and by the International Monetary Fund. We know what the opposition want to do. On the back of their $11 billion black hole from the election we now find another 70 billion reasons to worry about Mr Abbott. The opposition has finally started to understand that their decisions not to get their costings right during the election campaign, to continue to oppose savings measures, to continue to support spending measures have left us with an even bigger black hole. Mr Hockey's black hole has gone from $11 billion to $70 billion. What an achievement! (Time expired)

Senator MOORE (Queensland) (14:12): Mr President, I ask a supplementary question. Can the minister advise the Senate on any risk to delivering on the government's fiscal strategy?

Senator WONG (South Australia—Minister for Finance and Deregulation) (14:12): Self-evidently, the risk is those opposite—being unable to explain their $11 billion black hole. I noticed Mr Oakes appears to have been backgrounded by both Mr Hockey and Mr Robb anxiously blaming each other for the $11 million black hole, but now we see that Mr Hockey's outstanding contribution to the argument about economic credibility is to dig an even bigger hole, from $11 billion to $70 billion. That is the equiva­lent of stopping all Medicare payments for four years or stopping the family tax benefit for three years. And this opposition could not even cobble together $2 billion worth of savings in order to avoid imposing a flood levy. (Time expired)

Senator MOORE (Queensland) (14:14): Mr President, I ask a further supplementary question. Can the minister advise why it is important for the Australian economy that our government maintains a credible fiscal policy?

Senator WONG (South Australia—Minister for Finance and Deregulation) (14:14): Unlike those opposite, we are serious about fiscal responsibility. That is why the IMF have given us a tick. Instead, what we have from those opposite is an economic team that is simply a joke. Mr Abbott has described economics as boring. He said he does not care about the opinion of economists. The reality is actually worse. He does not care what he damages as long as he lands a punch. Mr Abbott is a risk to the Australian budget. Mr Abbott is a risk to the Australian economy. That is demonstrated by the fact that his shadow Treasurer has done nothing except dig a big black hole.

Now the opposition, because of all their decisions, just to get to the starting line have to find the equivalent of stopping Medicare payments for four years. (Time expired)