Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

I thank the member for his question, because we do need a very strong surplus in these times of international economic turmoil. International uncertainty demands that we have a strong surplus as a buffer against that global turmoil and also to ensure that the Reserve Bank has room to move when it comes to interest rates and also to put in place critical investments for the future. Of course, the plans that those opposite have to blow a hole in the surplus of $6.2 billion are now well advanced with their actions in the Senate today.

We saw how confused they are on the economy yesterday when they could not even organise a raid on the surplus. They could not do that competently yesterday, but today they have rejected the increase in the luxury car tax. In so doing, they have indicated, as the Prime Minister said before, where their priorities lie. Their priorities lie in lower taxes for people who buy luxury cars. That is where their priorities lie. That is where the member for Wentworth’s priorities lie. Their priorities  do not lie in lower interest rates for working families. They lie with big oil and they lie with people buying luxury cars. They do not lie with those people who are suffering under the Medicare surcharge levy. They certainly do not lie with working families. They are doing their best to ensure that the rate cut that working families receive this week may not necessarily be put in place again. The Liberal Party’s determination to blow a hole in the surplus simply means that interest rates will be higher for longer. That is the consequence of their action in the Senate. Those people opposite stand for higher interest rates and slower growth and their actions in the Senate have demonstrated that.

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