Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Hansard source

My government's national economic plan is setting Australia up to take advantage of the enormous opportunities on offer in this dynamic global environment of the 21st century. A strong budget is a critical part of that plan.

If we want to support jobs and growth in the 21st century—strong growth for all Australians; great jobs for our children and grandchildren, in the years ahead—if we want to have the room to make smart investments in our future prosperity, we need to make sure we have our finances under control. It is vital that plans be credible and that we get those calls right.

Labor made the wrong calls. The budget under Labor was in structural deficit every year. They accumulated more than $190 billion in deficits during office. We went from having negative net debt—that is, cash in the bank—to net debt of billions of dollars. As if that wasn't bad enough, the Labor Party implemented a mining tax that raised no money. They spent the proceeds anyway, increasing the burden of deficits and debt. Labor has learned nothing from its failures in government.

Yesterday, Australians learned that Labor has got its sums disastrously wrong again—a nearly $20 billion costing hole in its tobacco excise revenue. I know that some honourable members opposite have described $20 billion as a rounding error. I can assure honourable members that on this side of the House we regard that as an enormous amount of money. There are a few things it could buy. It could buy more than a full year of federal hospitals' funding or more than a full year of schools' funding. It could finish the duplication of the Pacific Highway.

The member for McMahon, the shadow Treasurer—the man who would be the Treasurer again—knew his sums were wrong. After the PBO warned him their costings were prepared before updated figures were represented in MYEFO, he said, in February, in line with a prudent and conservative, fiscal approach, 'Labor resubmits its policies for costing following budget updates.' He ignored those warnings. Indeed, he kept on talking about the $47.7 billion that the increase in tobacco excise would raise. He has abandoned any semblance of fiscal responsibility.

Unlike those opposite, we know a sustainable budget is absolutely critical: jobs and growth, economic growth, a 21st century economy. That is what we are building with the budget tonight.

See this speech in context