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Good afternoon. Welcome to the

program. It is too early to tell

whether this Budget will give Labor

the political boost that it so

desperately needs. In the last half

government come dangerously close an hour, we have seen the

to losing a vote on the floor of

Parliament over the Craig Thomson

issue. The Opposition wanted to

force them to explain himself over

the various findings that have been

found against him on the misuse of

union funds. The independence, Tony

Windsor and Rob Oakeshott, looked

like they would back the Opposition

but at the last moment, Craig

Thomson offered to give a 15

minutes explanation to Parliament

that he will not do that for a

couple of months. That was enough

to satisfy the independents. So we

will get an explanation from Craig

Thomson in a couple of weeks. Today

on the budget, the government was

able to fight on ground of its own

choosing. The Opposition's decision

or at least an inclination to

oppose the Schoolkids Bonus, the

cash handout that the government is

wanting to rush out the door before

July, is giving the government

plenty of ammunition today. That

means that Tony Abbott is planning

to stand in the way of money in the family's pockets. The government

says that means he does not get the

pressure that families are under.

We will be talking to Julia Gillard

and will also be talking to the Australian's editor at large, Paul

Kelly. We will talk to Scott

Morrison, the immigration Minister,

and we will hear an reaction to the

Budget from John Howard, the former

prime minister. Now we will check

in with top stories. Independent MP

Craig Thomson will respond to a

Fair Work investigation in the next

Parliamentary sitting week. The

embattled independent MP has been

facing criticism in relation to

allegations he misused his credit

card from the union. He denies that.

In the next sitting week I intend

to make a statement. There has been

a comprehensive report of 1000, 100

pages. It is appropriate that I

have time to go through that so

that I can make a comprehensive

statement to Parliament. This is a

week where families around

Australia are looking at what the

government can do. But I do

indicate to Parliament that I do

intend to make a statement. The

scandal forced the Prime Minister

to ask Mr Thompson to stand aside

from the ALPA until the matter is

resolved. Yesterday, the Opposition

attempted to suspend Mr Thompson

for 14 days but failed to get an

absolute majority of 76 votes. Julie Gillard says that suspending

him from the Parliament will set a

dangerous prints that back

President. Meanwhile, the Prime

Minister is turning up pressure on

Tony Abbott to support Budget

payments for families with school

kids. Tony Abbott says it has

nothing to do with education but is

rather a cash splash, hiding the

impact of the carbon tax. Julia

Gillard says he needs to get off

Sydney) North Shore. Apologies, we

are obviously having some audio

issues. We will have more on that

later. Jinnah Rinehart's children

can now share their multimillion

dollar trust. The bitter family

battle is set to continue. The

children can now share -- call for

their shares in their parents

company but it could involve tax

consequences. Last December, John

Hancock and Bianca Rinehart

launched court action against their

mother to oust her as Commissioner

of the trust. They alleged that she

has acted with gross dishonesty and

changed the vesting date of the

trust. The matter will be back in

front of the court on July 18.

Returning to the earlier story, the

Prime Minister is increasing

pressure on Tony Abbott to allow

through Budget payments. The Budget

has been delivered but the sales

pitch continues. Good morning. Good

morning on this brisk, Canberra

morning! The government has money

to spare by ditching the company

tax cut and is giving that too low

income earners. This is about

supporting families. The Opposition

supports much of it but will not

support the Schoolkids Bonus, a

payment set to start in June. The

problem with this measure is it is

called a Schoolkids Bonus but it

has nothing to do with education.

It is just another cash payment.

How is that any different to the

baby bonus? Well, look, they just

are. The prime minister is ramping

up the pressure. How can he wreck

getting more family money into the

Budget? Or he thinks it is just a

cash splash. He needs to get off

the North Shore and go into the

real world. That is exactly what he

did, morning tea with a group of

Canberra mothers. The families of

Australia know that suddenly

whacking an enormous amount onto

your credit card can get you into

trouble. The Greens and crossbench are largely supportive, meaning that the payments should get

through. We have said that we will

support the Supply Bill and look at

the ancillary measures. I am not

saying that I will support it or

not, I just need to be persuaded it

is good policy. A teenage student

has been stabbed north of Brisbane.

Her 16-year-old boyfriend has

turned himself in to police. A 16

boy handed himself into this police

station. It is alleged he stabbed a

14-year-old classmate at 730. The

crime happened inside the toilet

block. Paramedics treated the young

girl who was taken to the Royal Brisbane Hospital with

nonlifethreatening injuries. She

was stabbed across the neck and

back. The school was closed for the

day and parents have been asked to

collect their children. There is

assistance for those who could not

be collected. The 16-year-old boy

who handed himself in had a cut on

his hand. Paramedics are treating

him. After that he will be

questioned by detectives from the

child protection and investigation

unit. North Melbourne coach Brad

Scott has met with the AFL about

several umpiring decisions. Scott has met with the AFL about several umpiring decisions. West

Coast has been accused of tucking

into tackles in order to gather

penalties. They said that they will

attempt to stop it in the future.

We need to educate our players that

against certain players you need to

go really low. Lower than perhaps

normal so that they can an employer

that technique. Not Melbourne meet the Western Bulldogs on Sunday.

In our go back to David Speers.

After the break we will have a full

look at the wash-up of Budget 2012.

It looks like the Coalition will

block a key measure of the budget,

a hand out to parents of school

kids. We will have my interview

with the Prime Minister and will be talking to the Australian's Paul

Kelly and the Opposition's Scott

Morrison will be joining us. He is

worried about some of the Budget

measures in relation to immigration

and defence. Craig Thomson will

give a statement to Parliament when

it next sits in a couple of weeks,

what is he likely to say?

Good afternoon, you are watching PM

Agenda. If the aim of this budget

was to give Labor an Julia Gillard

a break from the relentless pressure over Craig Thomson,

Slipper and the carbon tax, it has

worked at least for now. The

government says this budget is

actually about spreading the

benefits of the boom and giving a

fair go to those hard-working

families, who feel they are not

getting much out of the mining boom.

On a political level, Labor needs

to move on from the scandals

surrounding broken promises. We saw

Craig Thomson confirm a little

while ago he will make a statement

to parliament in answer to all the

claims made against him in a couple

of weeks time. That is the first

time he will answer the criticisms

of him and the findings of the Fair

Work Australia report. The

government very narrowly saw off a

coalition motion to force him to do

that right now, this afternoon, in

Parliament. It was avoided when he

gave the commitment to make a

statement in a couple of weeks. So

a stay of execution, if you like.

It means the Craig Thomson affair

will come back to want the

government in a couple of weeks

time. Today, the budget coverage

was generally positive for the

government. The newspapers were

filled with headlines about cash

splashing and smashing the rich.

These were the sort of headlines

that Labor MPs were more than happy

to see. And as the Treasurer and

the Prime Minister blitzed the

airways, they used the time to

drive home the message. But it was

the Opposition opposing a key

element of the budget, the $2.1

million Schoolkids Bonus, the cash

handout for parents that has given

Labor some ammunition. This is the

thing that most -- were most

interested in talking about today.

They accused Tony Abbott of being

out of touch with working families

and the cost of living pressures

they are under. To counter that

attack, Tony Abbott went and

visited a mother's group meeting in

a local suburb here in Canberra

today. He talked arrest -- directly

about cost of living pressures.

Fortuitously for the Opposition

leader, none of the parents they

want at the handout. They thought

the Schoolkids Bonus was an

unproductive way of spending

taxpayers' money. They were

concerned about cost of living,

child-care fees and the looming

carbon tax. Here is a little of

Tony Abbott's morning tea with the

mums. What have you made of it all?

Who wants to give me a budget

comment? One of the things we have

been discussing for a little while

now is in relation to the increased

cost of living generally across the

board, groceries, delicacy,

petrol... My wages are going up. My

settling benefits are not going up,

but everything else is. I'm trying

every day to make my dollar stretch

further. I don't see any benefit

coming my way. That's right. And,

you know, this is where the carbon

tax is such an issue. We all want

to do the right thing by the

environment, but why make

everyone's cost of living more

expensive? They can throw carbon

tax compensation at people, but

then that looks like a giant

exercise in readers route --

redistribution with winners and

losers inevitably. Then people

wonder if they can trust the

government, how much money is being

siphoned off by bureaucracy and so

on? The Schoolkids Bonus doesn't

have to be spent on school. You can

blow it on the pokies if you like.

Tony Abbott with some others in

Canberra this morning. If Tony

Abbott is worried about this

Schoolkids Bonus being wasted on

the pokies, as he put it, what

about other government handouts

that don't have strings attached to

them like the bony -- baby bonus

for example? The problem with this

particular measure is that it is

called a Schoolkids Bonus, but particular measure is that it is called a Schoolkids Bonus, but it

has nothing to do with education.

It's just another cash payment. A

cash splash as you put it, being

spent on the pokies, no strings,

how is it any different to the baby

bonus for example? Look, they just

are. What is the difference between

this and the baby bonus? He

supported the boat -- baby bonus.

And in a masterstroke in politics,

his answer was, they just are. And then the Shadow Treasurer when

asked what the difference was said,

"Is there is a vast difference." Is

what, he was asked? You have to

have a baby to get the baby bonus.

Well, in case you didn't know,

babies grow into schoolchildren!

The Prime Minister relishing the

attack today. She cruised --

accused the Opposition leader of

being out of touch with working

families. She also said that Tony

Abbott needed to get his head out

of northern Sydney and re-engage

with families facing the pressures of with families facing the pressures

of living. The government did have

a better day in selling this budget

and putting pressure on to the

Opposition. But that is not to say there are vulnerabilities in this

budget. Businesses are outraged

that the tax so long promised --

taxbreaks are long promised has now

been scrapped. But first, my

interview with the Prime Minister

in office today. Prime Minister,

welcome. The centrepiece of this

budget is a $5 million boost for

families. Is this really about

winning back the Labor heartland,

worried about the carbon tax? It's

about getting money to families

because they are under pressure and

we want to assist them. The money

is going to them in two ways,

through the Schoolkids Bonus, so

that's a better way of helping

people get their kids to school

than the education tax refund and

it means people will see some money

before 30 June and then January and

June each year afterwards. Before the June each year afterwards. Before

the carbon tax comes in, they are

getting a hit of tax, how much is

this about easing those concerns?

It's about getting money to

families in a better way. I remind

you the Ken Henry tax review

recommended changing the tax refund.

We created the education tax refund

to help families with the cost of

getting kids to school. And what we

now know, because the system has

operated for a few years, is of the

1.3 million families eligible 1

million of them aren't getting

their entitlement at all or not in

full. This is proving to hardfought

-- for people to get receipts,

maybe they don't know about it.

Maybe if your accountant does your

tax, you make the claim, but if you

do the tax yourself, you don't. We

want to do this in a fairer way to

make people -- make sure people get

the money. Tony Abbott wanted to

extend that rebate to cover private

school fees at the last election

and you were critical of that at

the time. Now there are no strings

attached and parents can spend it

as they like. We wanted to be clear

about the purpose of the fund's and

Mr Abbott talked about that at the

last election. But isn't it odd,

David, at the last election, a

Labor idea helping kids get to

school was something is Abbott

wanted to build them, -- build on,

but now he wants to take his

reckless negativity and stop

families from getting the money

they need for the end of this year.

How can he wrecked something even

as needed as getting money into a

families budget? His criticism is

it is a cashback -- cashback --

cash splash. He needs to get

himself off the North Shore, get

himself into the real world... Have

you met anyone, you know a lot of

people with young kids, have you

met anyone who said to you, I sent

my young child to primary school

all of this year and I spent less

than $410 doing it? No, you have

met lots of people in Canberra and

around the nation who have spoken

to you about the thousands it has

cost them to get their kids to

school. So let's not have any of

this nonsense that somehow the

money isn't going to support

families or paying for their kids

education, people do spend more

than that. I've also spoken to

people who are concerned about the

plight of the school system and you

have talked about this over the

last couple of years. The constant

review that you launched, the call

for the $5 billion needed, why

couldn't you have put this $2

million not just into the hands of

parents, but to get it at the

school system? Because we are

capable of doing more than one

thing at a time. We have almost

doubled the amount of money going

to education. There are things

happening today as a result of our

reforms that never happened in the

past. No one in the former Howard

government of which Mr Abbott was a

part, they never bothered to think about disadvantaged kids and

education. We have made a huge difference, national curriculum,

quality teaching, the transparency

of My School, the education

revolution, computers, trade

training centres and that work will

go on. But at the same time, we can

help families in a practical way as

they puzzle over whether or not

they can afford to pay for the

school excursion for their child.

That's why we want to get this

money to them and Mr Abbott is so

negative, so negative and so

destructive. He wants parents, who

need that money in their family

budget, not to have it and he has

this ridiculous argument about cash

splash. Well, $410 for a primary

school student. $820 for a

secondary school student. Everybody

who knows anything about families

knows that getting kids to school

costs more than that. What we are

trying to do is get some help along

the way. Prime Minister, this is

are doing it tough at the moment.

These are the wealth generators in

our economy. They are struggling

with the high dollar, carbon tax is

coming in, now the tax rate is not

coming for them. There is not much

in this budget for them is there?

On the company tax cut specifically,

I want to deliver aid tax cut, I

want to use the proceeds of the

minerals resource tax to deliver it.

It became abundantly clear that the

legislation would not get through

the Parliament, once again a cost

of Mr Abbott's negativity.

Something you would have thought

the Liberal Party always believed

in, he said no. If it was really

part of the mining tax package, why

didn't you attach it to the

legislation? Like you did with some

of the other mining tax goodies,

the superannuation increase, why

wasn't this demanded as part of the

overall legislation to deliver a

company tax cut? I don't know what

difference you think it would have

made. The Greens and the

independents had to vote either for

or against... I think you are wishing away practical things like

the ability of people in Parliament

to move amendments to legislation

to delete sections, so I don't

think you can say it would have

made any difference. The process is

what would have mattered. The

outcome is Mr Abbott is so negative

that even though the Liberal Party

has always believed in reduced

company tax, he said no. I have

accepted we can't get the --

company tax legislation through the

Parliament, but I still want to

reduce company tax, which is why we

will keep working with the business

tax working group. You will have

noticed in this budget some of the

savings that have been talked about

in that group haven't been taken.

They are available for the business

community to work with us to get a consensus package, a revenue

neutral package, which means we do

business tax in a better way and we

cut the company tax rate. Revenue

neutral... Yes. That's always been

clear with the business group work.

So if they take the company tax,

they have to give something as well.

That has always been clear, revenue

neutral is a productive way forward

for businesses that want to achieve

a company tax cut. I want to

achieve a company tax cut, I

couldn't do it this way, I'm going

to look and find another way to do

it and in the meantime, I will not

let Mr Abbott's negativity stop me

spreading the benefits of the

mining boom around the nation so

families will benefit. But you did

say there is not much for business

in this budget, can I just quickly

pick you up on that? Businesses,

small businesses from 1 July will

see the benefit of the $6500

instant asset write-off. That has

in part been funded why the

minerals resources tax. You buy new

equipment for your business and

reduce your taxable income as you

do so. And they will see the

efforts of the loss carryback

arrangements. 110,000 businesses

according to your figures will

access that. 710,000 would have gotten the company tax break.

110,000, we think, but they will be

businesses trying to change as our

economy changes because of the high

Australian dollar. Can I also say

too, retail has had problems because of the cautious consumer,

so what we do to support families

flows through to exchanges at the

checkout in businesses, so it's

good for businesses to. For this

current year that we are in, the

forecast was originally a $23

billion deficit, it has now blown

out to $44 billion, for the coming

financial year, you forecast a

narrow surplus of $1.5 billion.

Will you do whatever it takes to

protect that surplus even if

conditions worsen? We will

certainly protect that surplus and

to give you an idea of how much we

are willing to protect that surplus,

in this coming financial year, we

budgeted a $1.5 billion surplus. In

the last budget to now, revenues

for that financial year have gone

down by almost $10 billion. So even

with revenues going down, we have

worked to find the savings to

protect the surplus. That's how

determined we are. That is savings

of $34 billion and that builds on

top of $100 billion of savings in

the past, $11.5 billion at the

midyear update... And if you have

to, you will look at more spending

cuts... The budget is there for all

to see... But you are committed to

this? Proof of the pudding. We had

people including Mr Abbott and

others charging at us for months

and months and months that it will

never happen, it won't be in the

budget, but there it is. Now, they

turn their negativity in a

different direction. What should be

said is that this is a remarkable

achievement for the Australian

nation, and so quickly after the

global financial crisis and in

these days where there is still

global economic uncertainty. As a

nation, we should be proud of this.

Just the same as we should be proud

of our track record of working

together during the global

financial crisis to keep people in

jobs. On foreign aid, we have a

world leading economy, but we are

not going ahead with the promised

increase in foreign aid as

scheduled. Does that mean our bid

for the UN Security Council seat is

dead in the water? We need to be a

bit clear about people wandering

around saying, cuts to foreign aid,

I invite you to get out the budget

papers and you will see the foreign

aid goes like that across the board.

Every year. More money is spent on

foreign aid than the year before

every year. So foreign aid

expenditure will continue to go up.

Just not as much as you promised.

We moved the end goal of the

millennium development goals by one

year, let's be clear, compared with

when we came to the office, foreign

aid is already $2 billion more. It

will continue to go up and so we

are nation generous by the

standards of the world, we can hold

our heads up high. We are already

number 10 for generosity in the

OECD and we are moving to number

six. Finally, away from the budget,

Tony Windsor and Rob Oakeshott are now saying they are really

concerned about this and

considering the options when it

comes to Craig Thomson's presence

in Parliament, does that worry you?

Well, we are getting on with the

job of delivering the budget and

I'm confident we will deliver the

budget legislation. On Mr Thomson,

I made the decision that he should

sit on the cross bench and he is

now doing that. He is no longer

participating in the Labor Party.

But his vote is still propping up

the Labor government, it is crucial

to keeping you in power. Should he

still be in government? Let me

remind you of the following things.

In the nation's history, we have

never excluded someone from voting

the cause they are the subject of

allegations they deny. Mr Abbott

has never applied that standard to

himself. Indeed, in this parliament,

the one we are sitting on right now,

in the 2010 election, he accepted a

vote from someone who was charged

and found guilty of theft and

assault. Let's be clear, this is a

standard Vista Abbott has never

believed in in the past and he is

on a track record of probes --

quotes of how much he doesn't

believe in this and how much people

should be given the presumption of

evidence. But Craig Thomson, you

keep telling us to wait for the

Independent compare, -- independent

umpire, fair work has now

discovered -- found that he did spend money on escort services,

what more do you need? For me, the

appropriate decision was for Mr

Thomson to no longer participate in

the Labor Party. He said that was

his decision. Certainly, I made

that decision and spoke to Mr

Thomson. That decision has been

done. He no longer sits with the

Labor Party in part -- Labor Party

in Parliament and that is

appropriate. Secondly, Fair Work

Australia and its enquiry, as a

Labor Party and someone who has

worked all of their adult lives in

promoting decency in workplaces, I

don't want to see one dollar

misused. Have you read the report?

Of course I am deeply disturbed by

it. I don't want to see workers

unions -- workers money misused. We

have a trade workers union that is

doing the right thing by their

members, but to the extent that one

dollar is ever misused, then that

is a great wrong and should not

have happened. For Mr Thomson, he

continues to deny the allegations.

A process will now move to giving

him a day in court. He is entitled

to that day in court. For the

parliament, David, are we really

going to move to a system where

someone who can get a majority on

the floor can kick out another

member and stop them voting because

they are the subject of allegations

they deny? Can you imagine in this

parliament in the past, when we have had majority governments,

sometimes with big majorities like

the Howard government after the

1996 election, are you really

saying that we should have a system

where the Howard government with

its big majority should have been

able to expel 20 or 30 Labor

members? Is that we were going? It

doesn't work. It can't possibly

happen like that. Members are

elected to Parliament and there are

proper processes for dealing with allegations. Those processes go

through to the rent. Mr Abbott

should knock off the hypocrisy of

trying to apply a standard to us

that he has never applied to

himself. Prime Minister Julia

Gillard. After the break, we will

have more on the budget with Paul Kelly from the Australian. Stay with us.

Welcome back. With one day to day

just the Budget and suggest what it

is going to mean for the nation at

large, I am joined by Paul Kelly.

Will this Budget be enough to

improve Labor's stocks? Any Budget

is a great platform for a

government. That is when the government rolls out its agenda.

That is what Wayne Swan and Julia

Gillard have done with this Budget.

They want to target the labour-

based vote, they have put a lot of

money into doing that. Their

problem is that the Labor vote at

this stage is so low and the public

are so sceptical and cynical about

the government that it may well be

that no amount of money can change

public opinion. Welders working

families, the battlers, who have

walked away from Labor for various

reasons, will they see the money in

their pockets and go back to Labor

and be cynical about it and see it

as a desperate handout? It is hard

to imagine that they will change

their mind. Julia Gillard talks

about this being a Budget of Labor

values and that is correct but the

question is what the public feel

about the particular Labor Budget -

- Labor values of this Budget.

There are two teams one is getting

back to surplus if the forecast is

realised and if they get the

surplus that will be a significant

achievement. That would give the

government a great deal of kudos in

which to run. A strong story on the

economy? I think a very strong

story. I think the Opposition is

nervous about this. If the

parliament is not one full term and

Labor is able to say that we have a

big fiscal stimulus, we stop the recession during the global

financial crisis and now we are

back in surplus, we have completed

the cycle, that gives the Prime

Minister and the Treasurer a very

powerful argument and it undermines

the Opposition. It is most

interesting that the Opposition

keep saying that they cannot do it

but what happens if Labor can do

it? Wayne Swan was very clear that

they will do whatever it takes to

get the surplus? That is right. If

they have got to do more down the

track, I am certain that they will

do more. This is a tight budget, it

is a firm Budget but it is not a

horror Budget. The total safety is

about $33 billion but the net

savings are only about $16 billion.

Is it a reforming budget, do you

think? The return to surplus is

important but is there much in

there that will make the economy

work better? This is one of the

critiques from the business group

is. They are arguing that this

Budget will not actually doing a

lot for the economy. As far as

Labor is concerned, Labor sees this

very much as a reforming Budget.

They have introduced new reforms in

terms of disability, in terms of

dental and aged care. This again

goes to the credentials and values

of the Budget. I think there is a

point here with the business groups,

they point to the corporate tax cut.

That is now lost. And the Labor

values their says instead of giving

a corporate tax cut, but goes as

cash to households. What about the

opposition, Tony Abbott has

initially opposed the handout to

school kids in the Schoolkids Bonus

but he is supporting other family

bonuses. Do you think this is a

smart move for the Coalition? What

is the challenge for Tony Abbott in

the Budget reply tomorrow night?

The main challenge will be his own

economic credentials. It will be

easy for Tony Abbott to critique

the Budget. We know what the

standard critique of this Budget is.

I think what people will start to

look for, as we go past the mid-

term of this Parliament, will be

Tony Abbott's own economic

credentials. He needs to think a

little bit about that. What he is

trying to do is look more

statesmanlike. He is looking

towards trying to be more

constructive when it comes to the

economy. I think that will be the

issue. When it comes to the budget,

I think the Opposition will let

most of the measures through. It

has a disposition not to let the

Schoolkids Bonus through but

overall I think they will give

passage to most of these measures.

Thank you. After the break, we will

get more from the Opposition on

this Budget and Craig Thomson as

well. We will be talking to Scott Morrison.

Welcome back to PM Agenda. I just

want to play you a couple of other

key moments today as the budget

wash out debate continues. The Prime Minister attacking Tony

Abbott for not supporting one of

the handouts that she is making,

the Schoolkids Bonus that she is

making to parents of primary and

high school kids, said that he

needed to get his head out of the

North Shore... It is only those who

are posited on the North Shore who

could fail to realise that working

families need relief, working

families faced the cost of getting

kids to school and we are intending

to help them with those costs

because we respect them and we want

to support them. There's been a bit

of commentary today that the Prime

Minister might have been a little

unkind to hard-working families on

the North Shore of Sydney. Also

want to show you exactly where the

Opposition stands on the Schoolkids

Bonus. A little difference in the

language between Joe Hockey and

Tony Abbott. We are not going to

support it. It may well get through,

they can do a deal with their mates,

the Greens, we are not going to be

reckless with people's money. We

will take this proposal through our

ordinary party room processes, we

will give it due diligence and then

we will give the government our

response, but we are going to

operate in accordance with what we

think is a reasonable timetable. We

will not be rushed. Joining me now,

Scott Morrison, shadow immigration

managed -- Shadow Immigration

Minister. Which is it? Joe Hockey

says we won't support it, Tony

Abbott says we will take it to the

party room. Joe has expressed his

concerns in full possible terms. We

have our processes, that it was

made clear in the discussions we

had last night that this was our

clear disposition and I think that

had a broad level of support, a

very broad level of support and I

think that is when it is -- where

it stands. Wenders go to the party

room? -- when does it go to the

party room? The leader will give

that answer, it will be a timetable. The legislation comes into

Parliament, measures I looked at

and decisions are taken through our

processes, Tony made that clear,

but both Joe Antoni have laid a

clear -- Joe and Tony have laid a

clear marker on that. They have

given this cash splash to ensure

that it is a sugar hit before the

carbon tax comes in. Does it worry

you that you are standing between

hard-working low and middle income

families and a bucket of money? It

worries me the state of disrepair

that this government has put the

budget end and their tendency to

splash the cash around every time

they want to pick up their fortunes

in the polls, that is what we are

seeing here. This has been funding

out of debt in a deficit year and I

think that context is very

important. But you don't think

families deserve that money? Well,

I don't think they deserve carbon

tax and that is our focus. I'm

asking about this, you don't think

they deserve it? They were getting

in large part this money under the

education tax rebate. That program

was already in place. The

government has decided to turn that

into the splash measure and brought

it forward. I think the government

has to be transparent about their

motives here. We are very clear

about our understanding of their

motives and I think for the

Australian people, this is a duty

payment. Julia Gillard is lying

there that she has used a couple of

times today -- Julia Gillard line

that she has used, you need to get

out of the North Shore... Tony

Abbott has walk it -- won out his

shoe leather talking to Australia's

all over the country. Her shoes are

intact after making the promise

that she would wear out her shoe

leather. He has visited 50,000

workers on factory floors and at

150 businesses, over 30 forums. If

the Prime Minister wants to make personal attacks on where Tony

Abbott and his family have brought

their family up, put them through

school, she was to make personal

comparisons about leaders, she has

invited those comparisons and

others can comment. Isn't she just

making a general point that the

North Shore of Sydney... It was a

cheap shot and at my lines other

Australians. I don't think the

Prime Minister -- it more lines

other Australians. The Prime

Minister and the Treasurer have no

idea about the cost of living

pressures especially in Sydney. But

you are the ones stopping money

going to... We asked -- we're going

to stop the carbon tax. Sugar hits

like this don't do any services --

don't do us any good service. This

is why we are looking at supporting

ongoing measures and the structure

of payments made to families today

and unemployment benefits, and

these are things that Joe indicated clearly last night deserve support.

But a sugar hit, a political quick

fix for the Prime Minister is not something that I think Australians

think is good policy. Let's look at

your own portfolio, immigration.

We've seen another increase in the

projected spend on border

protection issues, does that

surprise you? It doesn't surprise

me. We now have the highest number

of people arriving on illegal boats

this year. It occurred on Monday.

We had more people turn up in 24

hours then we saw with the Howard

government. The budget blowout

since last year, it's by $1.7

billion. Next year, Australian

taxpayers are going to pay $1.1

million extra every single day on

what they told people one year ago.

And yet the government could blame

you for this because you are not

supporting the Malaysia solution,

the offshore processing plant that

it says will slow down boat

arrivals. The government needs to

understand that blaming the

Opposition is not a policy. It is a

lame excuse for giving up. They

have a choice, they can adopt the

measures of the Coalition which

have support from the Parliament or

they can adopt the granny flat and

community support policies, which

has led to the massive surge of

arrivals since December last you.

It is the government's decision.

The Labor solution or nonsolution,

I should say, it was poorly

implemented and failed to achieve

any of the measures that it needed

to as a workable solution. It is

their mess. It failed. Now they

need to get serious about proper

measures. Craig Thomson in

Parliament this afternoon, we saw

the Opposition tried to force him

to give an answer to the findings

against him. He wouldn't do it. The

vote was narrowly lost. But only

after he promised to give a full

account to Parliament in a couple

of weeks. I just want to play that

for you. Thank you, Madam Speaker,

I seek the call on indulgence. You

have three seconds. I would like to

indicate to Parliament that I will

be seeking to make a statement

probably in excess of 10 minutes,

proper be close to 15 minutes. The

member for Der Bell has been given

as much indulgence as I can. I will

take the will of the house, but

under the standing orders... But I

will allow the indulgence for the

member for Der Bell. Thank you,

Madam Deputy Speaker. On the next

sitting week I intend to make a

statement. There has been a

comprehensive and long report of

some 1100 pages that we did not

have access to until late Monday

night. It is appropriate I have

time to go through that so I can

make a conference of statement in

Parliament, which is what I intend

to do. This week is an important

week in terms of being budget week.

It is a week when families are

looking at what this government can

do and that, quite frankly, is what

this week should be spent on. But I

indicate to Parliament that I do

intend to make a statement in the

next sitting week of Parliament. So,

Scott Morrison, are you happy we

will finally get an expedition? --

explanation? It took the Opposition

to force his hand. This is an explanation the Prime Minister

never required either before the at

-- before the last election when

she supported strongly. The Prime

Minister does not want to see the

sunset on the member for to Bell

being that member. It really took the Opposition to bring some integrity to this process and require this explanation. What

happens if you are not satisfied

with his explanation, does it

change anything? This is step one.

It's an opportunity for Mr Thomson

to explain what are the most appalling allegations that have

been found and investigated by the

fair work investigation -- Fair Work Australia investigation, which

went on for an entity is -- went on

for an eternity. When there are

things as serious as this, the

member should come and explain

himself. Mr Slipper try to make

similar statements earlier in the

week before the house. Mr Thomson

has two be dragged kicking and

screaming to make this explanation.

This is something the Prime

Minister should have required of

him. She refused to do so, even to

get him in her own office,

regardless of Parliament. Because

she needs his tainted vote to prop

up her Parliament. Thank you. We

will have full coverage of the

budget in reply, Tony Abbott is

budget in reply here tomorrow night

on Sky News at 7:30 PM Eastern

Standard Time. Do join us for that.

We will have full analysis

afterwards of the opposition's

response and where this leaves the

political argument over the budget