Ian Goodenough (Moore, Liberal Party) Share this | Hansard source

In speaking to the appropriation bills, may I say that the moneys required to be appropriated from the consolidated revenue fund as part of the 2014-15 federal budget are part of the government's Economic Action Strategy to build a strong, prosperous economy, boost productivity and create thousands of new jobs. In addition to funding the day-to-day operations of the Commonwealth, the bills provide for the government's hallmark $50 billion infrastructure plan.

This budget was not framed in isolation but rather in the context of an increasingly competitive international environment with emerging economies in our region gaining prominence in the global marketplace. This is characterised by unprecedented competition for resources, energy and commodities. Never before in history has there been such a fluid flow of goods, services, trade and investment capital across international borders. Merit based economic performance increasingly defines a nation's strength. Our nation must adapt to this new paradigm through increased productivity in order to secure its long-term economic standing and maintain the standard of living for all Australians. The government's Infrastructure Investment program will provide economic benefits for all Australians.

Increased workforce participation is a key tenet of the budget. Currently, it is estimated that one in five Australians rely on welfare payments by government as their main source of income. Each year the government spends more on welfare than we spend on the education of our children, the health of our people or the defence of our nation. With an ageing population, this statistic has been projected to reach one in three people in the community reliant on government payments as their main source of income in the future. Clearly, it is unsustainable to have every two people working to support a third. Those of working age who are able to work must be expected by society to be engaged in productive employment. I do acknowledge that at times it may take time to find employment. However, I believe that there are many people who could work but are not currently engaged in employment.

From 1 July 2014, employers who hire mature age job seekers aged 50 and over who have been recipients of income support for at least six months will be paid a subsidy of $10,000 over 24 months. Employers who hire mature age job seekers on a part-time basis of between 12-29 hours per week will also be eligible for a pro rata subsidy.

The budget provides adequate opportunity for young people and mature age people alike to study at university, complete vocational education, training and apprenticeships through student loans schemes. The sum of $820 million has been allocated to expand access to higher education. For the first time, the government has extended direct financial support to include diplomas, advanced diplomas and associate degree courses as eligible courses under the loans scheme. This is an extension of the scheme that has been available to university students for many years.

Apprentices are also able to access concessional trade support loans of $20,000 to assist them with their courses over a four-year apprenticeship. In my electorate, access to this new assistance program will benefit students attending vocational training facilities, including the West Coast Institute, Trades North Campus in Clarkson, the Motor Industry Training Association automotive training centre and the Electrical Group Training facility operated by the National Electrical Contractors Association. In doing this, the government is investing in a skilled workforce of the future to drive economic development.

Education is never completely free. The taxpayers of Australia ultimately bear the cost. Failure to exercise prudent management of the higher education loans scheme has seen billions of dollars written-off in potentially unrecoverable debts that ordinary taxpayers will ultimately have to bear. Through better management of the student loans system the government is exercising responsible stewardship of taxpayers' funds.

The budget delivers significant infrastructure spending at a national level as well as for my home state of Western Australia. Over the next seven years, $50 billion will be invested, including $11.6 billion of new funding through an infrastructure growth package which includes $5 billion under the asset recycling initiative and $6.6 billion in new infrastructure investments. Western Australia will benefit from a record $4.7 billion in funding between 2013-14 to 2018-19 which will build the infrastructure of the 21st century.

Congestion in our towns and cities costs the economy billions of dollars every year in lost productivity. Better roads mean less congestion, faster travel times and lower fuel costs. The government's investment in Western Australia will improve freight transport linkages to key domestic and export markets which will promote economic development for the benefit all Australians, including those living in my electorate. For example, there are future plans to connect the Neerabup industrial area to the Swan Valley bypass, which is a new $615 million highway extending from the intersection of the Reid and Tonkin highways in Malaga to the Great Northern Highway in Muchea. Construction is expected to start in late 2016. This will provide heavy vehicle access, linking the local industrial area to the mining industry in the Pilbara and Kimberley region and practically all the way to Darwin.

Similarly, the Gateway WA project is a major upgrade of the roads around Perth airport, in particular around the southern access to the airport which includes the widening and new upgraded interchanges at the Tonkin and Leach highways. The government is also committed to the $1.6 billion Perth freight link project to provide a high standard road freight connection to Fremantle port and will work with the Western Australian government to attract private sector investment in the project. The government will provide a further $350 million per annum in funding to local government authorities to assist with the upgrade and maintenance of local roads as part of the Roads to Recovery Programme, with a total investment of $2.1 billion over the five years to 2018-19. In addition, the budget provides for Black Spot funding of $500 million over the five years, targeting dangerous sections of local roads through safety improvements such as traffic signals and roundabouts. The cities of Wanneroo and Joondalup within my electorate will share in the $280.9 million in Financial Assistance Grants to local governments. These grants are untied, allowing local councils to spend the grants according to local priorities. They consist of two components: a general purpose component distributed according to population on a per capita basis, and an identified local road component distributed according to fixed historical shares.

The budget provides for an increase in defence spending to safeguard our nation's security and to secure our economic assets in a region where neighbouring nations are also increasing military spending. The budget brings forward $1.5 billion in spending from 2017-18 into earlier years, with a plan to increase defence spending to two percent of GDP.

The cost of health care is rising due to advances in medical treatment and care, as well as an ageing population with greater longevity and lifestyle factors. The recent Commission of Audit report has projected that over the next decade, Pharmaceutical Benefits Scheme costs will grow by 5.4 per cent per year; Medicare Benefits Schedule costs will grow by 7.1 per cent per year, and hospital costs will grow by 10.4 per cent per year. It is therefore important that the government ensures that the public health system is sustainable in the long term. The introduction of a copayment is intended to moderate the number of visits, by acting as a reminder that each bulk-billed visit costs the taxpayer $36.30. It is important to note that the budget does not change the current safety nets that are in place for those in need who hold concession cards. The funds generated from these reforms will be used to establish a $20-billion Medical Research Future Fund to increase investment into medical research to find more effective treatments for cancer, heart disease, diabetes and other chronic diseases. Unfortunately, the resources only stretch so far, and the public health system is under a great deal of cost pressure. Therefore it is essential to take responsible measures to keep the health system sustainable.

An increase in life expectancy by 25 years and an ageing Australian population mean that, without policy change, the cost of the age pension is projected to increase by 70 per cent over the next decade. There are no proposed changes to the age pension in this term of government. The budget provides for the existing six-monthly indexation increases to continue as normal. However, it is proposed that from September 2017 the six-monthly increases in the age pension will be linked to inflation rather than wages.

Only through responsible fiscal management and effective monetary policy can the government build a strong economy and maintain our nation's AAA credit rating. It is important to maintain a low inflation environment and to keep interest rates low. Households with mortgages and consumers with debts will be adversely affected by rises in interest rates, which will increase the cost of living and dramatically reduce disposable income. In contrast to the Howard government's record of delivering ten consecutive budget surpluses, the Rudd and Gillard governments burdened the nation with five cumulative budget deficits of $123 billion—the largest deficits in Australian history. Peak government debt is projected to reach $667 billion within a decade. This equates to $25,000 for every man, woman and child. Servicing the interest on that debt is estimated at $1 billion per month, growing up to an estimated $3 billion per month if remedial action is not taken.

Based on data from the International Monetary Fund, without policy change Australia would record the fastest spending growth of the top 17 surveyed advanced economies and the third largest increase in net debt as a share of the economy between 2012 and 2018. As a result of the coalition's strategy, debt in 2023-24 is projected to be nearly $300 billion lower—$389 billion as opposed to $667 billion. This debt reduction will reduce our interest bill by around $16 billion a year in 10 years time, meaning more money for health, education, roads and support for families and seniors. The Australian economy is to a great extent reliant on mining, energy and commodity exports. These markets can be volatile, leaving our economy exposed and vulnerable to external shocks. It is therefore prudent to limit our national exposure to foreign debt. Currently it is estimated that $700 million a month is spent in servicing foreign debt.

In summary, these appropriation bills are part of a fiscally responsible budget which is linked to the government's overall economic action strategy to build a strong, prosperous economy, boost productivity and create thousands of new jobs. It is a budget which is framed for the long-term needs and challenges for the Australian nation.

See this speech in context