Wyatt Roy (Longman, Liberal Party) Share this | Hansard source

I rise to speak in support of the shadow Treasurer's motion relating to the establishment of a parliamentary budget office, the Parliamentary Budget Office Bill 2011. The people in my community are fair minded people. When they make a decision about which policies are best for them and their families, they want to know that they are making those decisions based on the best possible information and advice. That is why the coalition has a history of supporting open, transparent and independent advice on the budget, the government's fiscal position and any financial implications of policy proposals. In fact, the coalition's policy for the establishment of a parliamentary budget office, together with the Charter of Budget Honesty Amendment Bill 2011, would establish an independent parliamentary budget office for the first time in Australia's history.

In 2009, the opposition called for an Australian parliamentary budget office modelled on the US Congressional Budget Office. The US CBO does not provide policy recommendations but it does independently analyse the revenue and spending implications of policy proposals. It also provides an analysis of the President's budget. In 2010, the Leader of the Opposition, Tony Abbott, called for the creation of a PBO, and a private member's bill was introduced into the Senate by Senator Barnett in June 2010. The Senate referred the establishment of the office to the Senate Finance and Public Administration Legislation Committee for inquiry. But the heart of the Labor government has never been in the establishment of a Parliamentary Budget Office. It was only at the insistence of the Independents and the Greens, whose support this Labor government needed in order to form government, that the government committed to the idea—the coalition's idea. It ended up being a promise the Labor party made to the Independents and the Greens as part of their much talked about agreement for a better parliament. The agreement provided that:

A Parliamentary Budget Office be established, based in the Parliamentary Library, to provide independent costings, fiscal analysis and research to all members of parliament, especially non-government members.

So why has the government been dragging its feet on this? What does it have to hide? Could it be that the Labor government's much promised surplus is looking shaky?

An opposition member: Yes.

Could be. This Labor government has finally been shamed into delivering on its commitment, at the coalition's insistence on action in this area. As the previous speaker, the member for Higgins, established, when the government has acted it has acted to establish a Parliamentary Budget Office in name only. The Joint Select Committee on the PBO tabled its recommendations on 23 May 2011—months ago. The 2011-12 budget provides funding of $24.9 million over four years, an appropriation welcomed by the coalition.

Again I ask: why did the government drag its heels on a reform designed to ensure the integrity and the sustainability of Commonwealth fiscal policy? The establishment of a Parliamentary Budget Office has been an important part of coalition policy for some time and is a key election commitment. Following the coalition's lead the Treasurer flagged in his economic note of 24 August 2011 that it was finally going to move on its promise to deliver the Parliamentary Budget Office. But now we are faced with a proposal that is inferior in many ways to the coalition's proposal. Instead of being a mechanism where the governance processes are improved, such as the case with the US Congressional Budget Office, it is yet another mechanism where Labor can perpetuate its political spin.

The coalition, unlike the government, would establish a new body accountable to the parliament not beholden to government departments. The Labor government, for example, does not offer a confidential costing service for all members and senators who are not members of the government during the election caretaker period, something the coalition would do. This is an essential component in ensuring that members of parliament and senators can have private discussions with the PBO about the financial implications of policy proposals, and this is a non-negotiable aspect of the coalition's bill. We fear that this Labor government is playing politics with the Independents on the Parliamentary Budget Office. The coalition provides an independent statutory body that has strong powers to request information in order to provide comprehensive advice. We look forward to the support of the Independents and the Greens for an office that will be able to provide truly independent advice and policy analysis.

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