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

The shadow minister has asked me about the deficit or a possible deficit. It is interesting that the Leader of the Opposition has not raised this issue at all today given the dilemmas that he got into on ABC radio this morning. We have said that a deficit is not necessary now but that it is irresponsible to rule it out. That is the case because of the global financial crisis. We have said that we will take whatever action is necessary and responsible in the circumstances to strengthen our economy and to protect jobs. Those opposite have said the opposite. They have clearly said that they will not act to protect jobs—they have clearly said that. But we have said that we will act. We have never ruled a deficit out. We have also said that if there was a temporary deficit then it should be for the shortest time possible consistent with strengthening growth and jobs.

Australians can take heart that there is a federal government and a Reserve Bank doing everything they possibly can to strengthen our economy, given the threat to our economy from the global financial crisis. We expect in all of this for the banks to play their role in being part of the effort to strengthen the economy and should there be a cut in official interest rates to pass it on as responsibly and fully as possible. We have said all of those things to strengthen the economy.

But where is the opposition in the middle of that? They will not act to protect jobs. On the radio this morning, the Leader of the Opposition boxed himself into a corner on the issue of deficits. He only has two options now: to repudiate his position of last week and admit he was wrong or continue in the fantasy land that he was in this morning. This morning, he was asked four times on the radio whether he would run a deficit. Four times, he dodged that question—four times. When he finally got pinned down, he said, ‘Look, it’s the quality of the spending.’ Which spending have we announced that does not meet that benchmark? Perhaps he can answer that question. Is it the payments to pensioners and families? Is it the money that was spent in COAG? Is it money to be spent on infrastructure? What does not meet that standard?

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