Kevin Rudd (Griffith, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to OECD research that concludes that the earlier governments invest in education the better the return for the child and the economy. Prime Minister, given these findings, why does Australia, even after last night’s budget, still rank last in the OECD on spending on early childhood education?

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I certainly agree that early intervention not only in a child’s education but also in assisting parents is highly desirable. I think the Leader of the Opposition would be aware of some of the discussions that took place at COAG on this matter, and I think the Leader of the Opposition would also be aware of the historic responsibility under our arrangements with state governments for early childhood education.

Steven Ciobo (Moncrieff, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Treasurer. Will the Treasurer outline to the House how the budget announced last night will strengthen the Australian economy to deal with the challenges of the future?

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the honourable member for Moncrieff for his question. The budget which the government announced last night will invest for Australia’s future. It will invest in higher education, with an innovative fund called the Higher Education Endowment Fund which will set up for a generation investment in higher education. It will give incentives for apprentices to take up first- and second-year apprenticeships in skills shortage areas. It will improve primary education. It will grow the capacity of the workforce. By improving child care, we will be able to give encouragement to those mothers who want to return to the workforce to do so.

Last night I announced income tax cuts for every Australian, which will increase the rewards a little for skill and effort. Our economy has come through a period of continuous economic growth, the like of which we have never had before in Australia. In order to keep Australia strong we now need to boost the capacity of the Australian economy. We will do that with an investment in skills, we will do that with an investment in education, we will do that with a better tax system, we will do that with investment in roads, we will do that with investment in rail, we will do that with our education endowment fund and we will do that with the Future Fund. This is a budget which locks in the benefits and the hard work of the past, and it invests for a future which our country deserves and wants to have.

Kevin Rudd (Griffith, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister confirm that Budget Paper No. 1 discloses that education spending as a proportion of total government expenditure will fall from 7.7 per cent in 2005-06 to 7.4 per cent in 2010-11? How can this be a budget about the future when the government’s investment in education, as a proportion of total spending, falls over the next four years?

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The basis on which the Leader of the Opposition asked the question is wrong because, whereas some years ago Austudy assistance was included in the education provision, it is no longer the case, and that gives a radically different outcome. While I am on my feet, can I remind the Leader of the Opposition that, when the government came to power, it inherited a $10 billion annual deficit and a $96 billion debt. As a consequence of that, it was necessary for us to make very significant spending reductions in our first budget. I can well remember that at the time I resolved that the only areas that would be quarantined from expenditure reductions were those relating to essential income support and defence and that every other area of the budget, because of the profligacy and the irresponsibility of the Australian Labor Party, had to bear its share of cuts. So that explains why some decisions were made in 1996.

But can I just say to the Leader of the Opposition that this groundbreaking historic commitment of $5 billion into the Higher Education Endowment Fund represents a genuine education revolution. This is an education revolution of which this country can be very proud. It reaches not only into universities but into technical education and schools. The Commonwealth is picking up the ball dropped in many areas by state governments.

I say to the Leader of the Opposition that the parents of Australia actually believe that, when their children leave school, they ought to be able to read and write and add up. They think those basics of education ought to be delivered by the education systems, which are the responsibility of the states. We are only too happy to plug the gaps that are emerging. That is why we have introduced this outstanding across-the-board voucher system—a voucher of $700 a year to address literacy and numeracy requirements. It is a wonderful provision and it is a wonderful earnest of this government’s long-term commitment to the education future for all Australians.