Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Hansard source

It is a big call. It is a very significant call. There has been a helluva lot of competition for bad policy over the last six years but the mining tax was right up there. It was originally forecast to raise $49.5 billion over 10 years, and after 18 months it raised $400 million. The problem was that Labor committed all this new expenditure against a tax that did not raise any money. To put it in perspective, it was like having a $75,000 yearly salary, spending all that money and more, but only getting $6,000 in salary in that year.

So where does that leave the budget? The Labor Party is so supportive of the mining tax that they are happy to see the budget $13 billion worse off. That means $13 billion of extra debt. The mining tax, as a matter of principle, is harmful for the economy because, as was clearly pointed out during its bungled introduction, it was going to have a negative impact on investor sentiment and it was going to affect the reputation of Australia as a safe and stable place to do business.

I am glad that the new member for Perth understands this. I am glad that the new member for Perth, previously a minister for planning and infrastructure in Western Australia, knows that the mining tax is bad for Australia. But I would suggest to the member for Perth that she just lean over to the person on her right and whisper into old Swanny's ear, 'What were you thinking, mate?' Go on, give it a shot—just whisper. You do not have to move your lips. Or write him a little handwritten note: 'What were you thinking of, Swanny, introducing a mining tax that raises no money, spending all that money against that tax, leaving Western Australia worse off and representing a threat to the sustainability of good finances?'

But the problem is that this is typical Labor. In South Australia we have just seen that Jay Weatherill, the Premier of South Australia, has had a story leaked that identifies a $212 million hole in the budget. That is almost Swanny-esque. Jay Weatherill, where did that go to—another $212 million missing in a Labor budget. That is the problem. Labor do not understand money and they certainly do not understand taxes.

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