Scott Buchholz (Wright, Liberal Party) Share this | Hansard source

The previous speaker mentioned a long line of sensible economists making comments. Well, it's just fortuitous that I have a number of pages here from sensible economists—

A division having been called in the House of Representatives—

Sitting suspended from 12:45 to 12:50

The previous speaker spoke about sensible economists. I'm very fortunate in being able to follow the previous speaker, because I have three pages of comments from very diligent, gifted economists, and they are not flattering to the government's management, particularly around inflation.

Recently I was in this chamber and I spoke about the real effects of inflation on families. My mother is celebrating her 83rd birthday this year, and she has friends this winter who are struggling with the cost-of-living pressures and will choose to put another layer of clothing on rather than turn a heater on. The energy costs of trying to keep the house warm are now becoming so prohibitive for a sector of our community that they're choosing not to use the heating.

The government and the opposition should reflect upon that. We're a nation that should be better than that. Inflation is not our friend, and the guys on the other side of this chamber have fuelled inflation. The economists of our country know it. Michele Bullock, the Reserve Bank governor, was quoted recently in the Australian Financial Review as saying:

An important implication of this homegrown and demand-driven—

A division having been called in the House of Representatives—

Sitting suspended from 12:52 to 13:03

There is commonality in the comments from the economic commentators. They are all joined unanimously in their condemnation of the government's handling of the economy, particularly the inflationary pressures that it's having. Even the Reserve Bank governor herself has had a chop in the Australian Financial Review, saying: 'An important implication of this homegrown and demand-driven component to inflation is getting it back to target. It's going to take time.' On another point, she said: 'Hairdressers and dentists, dining out in restaurants, sports and other creative activities—the prices of all these services are rising strongly.'

Because I mentioned my mum at the beginning of this speech, she will undoubtedly want to share this speech with some of her friends who may not completely understand how inflation works. So I thought I'd just quickly share that it's quite a basic, simple, formulaic equation. It's I+C+G(E-I). I stands for our investment. That's the money we have in our bank. The C is our consumption. It's the money that we spend as consumers. It's the point that the Reserve Bank governor just spoke to then: when we dine out, when we fuel our car et cetera. The G is all of the government's spending. The open-bracket formula, E minus 1, is exports minus imports, which is our terms of trade.

It's the government part of this equation which is putting upward pressure on inflation, and these commentators are calling it out. Alan Kohler, an Australian financial journalist, said:

It's the big-picture numbers that confirm this government to be an amazingly and unexpectedly big-spending one.

Amazing and unexpected because … Jim Chalmers has repeatedly said this would be a responsible government with a responsible budget, providing relief, repair and reform. But another "R" word is more appropriate: Risky.

These independent commentators are backing up time and time again. Chris Richardson, on Twitter, said:

My big ask of the Budget was that it didn't poke the inflationary bear.

I don't think it passed that test.

Ross Greenwood from Sky News said this is the biggest-taxing government in 23 years. So, when members come into this parliament and start talking about common sense from independent economists, this is what those very economists are saying about the government. Phil Coorey from the Financial Review had the headline 'Spending addiction fuels a new decade of future deficits'. My mum's friends deserve more. They don't deserve to sit in the cold, and they don't deserve this government.

See this speech in context