Jim Turnour (Leichhardt, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Deregulation. How is the government using fiscal policy to guard against uncertain international economic conditions? Are there any threats to the government’s approach?

Stuart Robert (Fadden, Liberal Party) Share this | Link to this | Hansard source

It’s your crystal ball!

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Fadden might get time to research that question himself. The member for Fadden is warned.

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I thank the member for Leichhardt for his question. He certainly has a good following in Leichhardt—I am not sure about in the chamber. The government is committed to delivering long-term, sustainable growth for the future Australian economy, and all of the major domestic policy initiatives of the government are connected to this ultimate objective, whether in infrastructure, the Education Revolution, the national broadband network, the Carbon Pollution Reduction Scheme or, most particularly, delivering a strong budget surplus that puts downward pressure on inflation and interest rates. That is particularly important in the event that we have further problems in international financial markets like what we have seen over the past few days. That simply underlines the importance of having strong fiscal settings and a very strong budget surplus in this country.

I note that the new Leader of the Opposition has described the international financial circumstances as ‘the gravest economic crisis globally in any of our lifetimes’. It certainly is a very serious financial crisis internationally, but some might debate whether the wider implications for the global economy are equivalent to things like the 1970s oil shock or the recessions of the early 1980s or early 1990s. Time will perhaps tell. I note the Leader of the Opposition is a bit sensitive on this point.

There is no question that there are very serious challenges facing the global economy. Australia is not immune from the implications of these challenges, but we are well positioned—indeed, better positioned than almost any other developed nation in the world—to ride out these challenges. We still have reasonably strong economic growth, low unemployment, good regulators, strongly capitalised banks, a strong budget surplus and, of course, money continuing to flow from the mining boom and particularly strong business investment, as the most recent data indicates. We are well placed to deal with these problems, and it is very important that we take a balanced view of the nature of these challenges and do not talk down the Australian economy. I note that the Leader of the Opposition’s sole criticism of the Treasurer—

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Minister for Finance and Deregulation has the call.

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I note that the sole criticism, the sole point of any coherence made by the Leader of the Opposition, previously the shadow Treasurer, was the claim that the Treasurer was talking down the Australian economy. When we look at his current rhetoric, it would perhaps be pertinent if he took some of his own advice and gave a slightly more balanced perspective on the challenges that are facing the Australian economy, because there are real-world people out there who are making spending choices and investment decisions based on, amongst other things, where the Australian economy is seen to be heading by Australia’s political leaders. So it would be important if the Leader of the Opposition were to take a balanced perspective on these things, because it is extremely important that the true position, the balanced perspective on these things, is conveyed to the Australian people.

We do have serious challenges, but we also have good settings to deal with those challenges. I note that the Leader of the Opposition has been seeking to cast a bit of cover on who he really is in recent times. He indicated that, because he lived in a flat for a time as a kid or something, he is the great representative of Struggle Street and the battlers.

Luke Hartsuyker (Cowper, National Party, Deputy Leader of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order going to relevance. I would ask you to bring the minister back to the question.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The minister knows that he is required to be relevant to the question.

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I am afraid this is entirely relevant. Unfortunately for the Leader of the Opposition, the Australian people are less interested in whether you come from privilege than whether you represent privilege. That is the truth of the opposition leader’s position. In spite of pretending to be the man from the battlers—

Ms Julie Bishop (Curtin, Liberal Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. I understand that the government is entirely intimidated by the new Leader of the Opposition—absolutely intimidated by him—but the personal denigration and attacks on successful Australians do not answer the question he was asked.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Deputy Leader of the Opposition will resume her seat.

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

In spite of portraying himself as the new-found friend of the battlers, the Leader of the Opposition was very recently an integral part of a government that gave the Australian people Work Choices—an industrial relations regime that tore away their penalty rates, their overtime and all the protections that lower paid battlers rely on in the workplace to give them some bargaining power.

He is also part of an opposition—as shadow Treasurer and now as the Leader of the Opposition—that is engaged in an exercise in the Senate to blow a very large hole in the budget surplus in order to fight for lower taxes for Ferrari buyers, Porsche buyers and Rolls-Royce buyers. He is also engaged in an action in the Senate to rip apart the budget surplus to defend the interests of big alcohol companies so that teenage girls can buy cheaper alcopops. He is also engaged in a vandalism exercise in the Senate to maintain a tax lurk that was put in place for big oil companies 30 years ago as a kick-start to new projects.

So the man who says that we are in the biggest economic crisis globally in our lifetime is at the same time engaged in an exercise in the Senate to rip apart the budget surplus, which is one of the key buffers for the Australian government and the Australian people in dealing with the consequences of the international crisis. Why? Because he is defending the interests of privileged, well-off Australians. The issues that he is pursuing and that the opposition is pursuing ultimately come back to who they really are, and that is the representatives of the better-off in our society.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The minister will bring his answer to a conclusion.

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The Leader of the Opposition has given nine major media interviews in the past 24 hours since becoming Leader of the Opposition. He has not once mentioned health. He has not once mentioned education. He has talked an awful lot about himself, but there has been no new significant policy initiative to deal either with the economic problems coming from the international crisis or indeed with the wider interests of working people in this country. The Rudd government is committed to looking after the interests of working people and to investing for the long-term future of the Australian economy.