Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Hansard source

I might begin by talking about the Finance portfolio and the government's budget measures therein, and then I will answer the shadow minister's questions. Some of the answers are contained in this introduction. Without reining in spending now and in the future the budget would have remained in deficit for at east the next decade, and I am sure that the shadow minister would agree that that is the case. Leaving future generations to shoulder the burden of our spending decisions, as well as cope with the impact of an ageing population, is just not fair. It is not fair on current taxpayers and it is certainly not going to be fair on future generations. We need to start paying our way so that those future generations are able to enjoy the standard of living that we now take for granted.

With this budget, the government has made significant steps towards reducing the huge deficit left to us by Labor. The budget represents an overall $43.8 billion improvement in the budget bottom line at the 2013-14 MYEFO in the four years to 2017-18. It places spending on a manageable trajectory and provides a credible path back to surplus—and we all want that. With this budget, by the end of the decade Commonwealth debt is projected to be $389 billion—still a large sum but a significantly reduced amount on the $667 billion debt which we were projected to reach had we not taken any action. In this budget, we have taken important steps towards improving the efficiency of the public sector by reducing duplication. The savings realised through more efficient government operations will be redirected to repair the budget and fund policy priorities. For example, the government will achieve savings of $43.3 million, over four years, by moving to more efficient practices for public affairs and internal communications for Australian government agencies. To investigate where else we might be able to realise further efficiencies, the government is developing and implementing a contestability framework over a three-year program of work to review whether government functions should be open to competition and the appropriate means for this to occur. This work will complement the scoping study into future ownership options for four operations announced in the budget. The government will provide $11.7 million in 2014 for scoping studies into the future of Australian Hearing, Defence Housing Australia, the Royal Australian Mint and the registry function of the Australian Securities and Investments Commission.

We are also getting our house in order by embarking on the progressive sale of non-defence Commonwealth properties surplus to requirements. The Commonwealth owns a number of properties which reflect historical rather than current or projected future needs. The first tranche of properties will include around 40 surplus non-defence Commonwealth properties, including vacant blocks and facilities which are no longer in use. The details of specific properties to be offered for sale will be released over time as part of a coordinated sale process. The first tranche is expected to deliver savings to the budget of $22½ million over the forward estimates. Finance has been provided with a modest amount of funding to meet the costs of engaging private sector experts to support the sale process.

In the digital age, information technology plays a pivotal central role in how agencies undertake analysis, collect information and deliver services. The budget provides a modest amount of funding for Finance to perform gateway reviews which will provide quality assurance for three significant major capital projects: for the Bureau of Meteorology's replacement of its existing supercomputer which is used for the bureau's weather forecasts and warnings across Australia and will reach its expected end of life in mid-2016; for the Department of Social Services to develop a second pass business case to further scope options to replace its grants management platform with a more flexible and integrated system; and for the Immigration and Border Protection portfolio to strengthen and enhance Australia's border protection services.

We inherited a mess, and the shadow minister asks about health and education spending going forward. We are certainly committed to the four years of the forward estimates and we are going to actually increase what Labor would have done for both health and education in those very important portfolio areas. We did not commit to anything further beyond that. Labor made promises they knew they would never have to keep. They made those promises for the out years, years five and six, knowing full well that we had a debt and deficit crisis. They knew full well that they would not have to deliver on those promises. They made agreements in the education sphere without Western Australia, Queensland and the Northern Territory coming on board. We are a Commonwealth government; we make decisions based on good national priorities. When you do not have all states and territories signed up to a Commonwealth deal it just does not make sense.

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