Dennis Jensen (Tangney, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Prime Minister, what is a temporary deficit?

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

As I said in response to an earlier question, the government’s policy, like that of those opposite, is to have a budget surplus across the economic cycle. Therefore it is a question of the length of the economic cycle. We are in unprecedented territory at the moment because of the global financial crisis. Therefore, under those circumstances, while I have said to the House that under current circumstances the government does not see the need to embark upon that course of action, if the global financial crisis worsens and if we need, therefore, to defend jobs, families and the economy in the national interest, then a temporary budget deficit would be acceptable under those circumstances.

I would say to those opposite, as they seek again to extract political mileage out of this because they are not concerned about defending jobs—they are not, because they are not interested in answers on this—that we have a strategy to see Australia through this crisis. Those opposite simply have a series of political cliches. As a jobs impact flows to Australian families, I would strongly suggest to those opposite that they pay close attention to the real answers that mums and dads of families across Australia will want. Mums and dads of families wanted decisive action on the question of their bank guarantees. This government delivered it.

Dennis Jensen (Tangney, Liberal Party) Share this | Link to this | Hansard source

I rise on a point of order. It was a very simple question. The point of order is on relevance. What is a temporary deficit?

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

Order! The Prime Minister is responding to the question.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I draw the honourable member’s attention to the orthodoxy of the government which preceded us, which was to have a budget surplus across the economic cycle, as is the orthodoxy of this government. The challenge we face is the unprecedented global economic terrain we now face—the worst crisis in 75 years—and therefore the necessity to embrace measures to support growth, families and jobs in what will be a very difficult 2009. Those opposite are interested in simple political cliches; we are interested in real policy responses to help families, to help jobs and to help the real economy.