Andrew Robb (Goldstein, Liberal Party, Chairman of the Coalition Policy Development Committee) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to the fact that, after seven interest rate rises in a row under this government, a family with an average mortgage is now almost $6,000 a year worse off. Prime Minister, isn’t it true that interest rates would be significantly lower today had $10 billion not been wasted on programs such as insulation and school halls? And why won’t the government take steps to reduce the need to borrow $100 million a day when that is adding further upward pressure on interest rates?

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Goldstein for his question. I would say to the member for Goldstein that, if he is seriously concerned about debt and deficit questions, I can only imagine how anxious he was when he created the $11 billion black hole in the opposition’s costings. After the election campaign, after the complete refusal by the opposition to get its programs properly costed, the shadow minister would come in here—

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

Mr Speaker, I rise on a point of order. This answer is not directly relevant to the question.

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

Order! The Prime Minister will directly relate her comments to the question.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Thank you, Mr Speaker. On the question of prudent government financing, an $11 billion black hole is a very substantial problem and the member for Goldstein can answer to the Australian community for that. On the question of debt and deficit questions and prudent government financing, the member for Goldstein may also like to answer to the Australian community for why he and members of the coalition are preventing the passing in the Senate of a piece of legislation worth $1.9 billion in savings. How is it that the opposition can come into this place and actually claim any fiscal credibility, when that is their voting conduct? If you want to talk the talk then you really have to engage in the action that goes with it, and supporting a savings bill is part of that action.

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

Order! The Prime Minister will directly relate her response to the question, with less debate.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I was asked specifically about stimulus payments. I was asked specifically about stimulus payments that have gone to supporting jobs. This government is proud of having supported jobs during the global financial crisis. When the world moved into the global financial crisis and accompanying global recession, it was the right thing to do to provide economic stimulus to support jobs—absolutely the right thing to do. I am proud that as a government we chose, as one of the single biggest targets for that stimulus, Australian schools. That was the right thing to do as well.

Whilst the Minister for Regional Australia, Regional Development and Local Government was answering his question, members of the opposition, particularly the shadow Treasurer, were saying, ‘What have school halls got to do with productivity?’ Well, I suggest he goes and visits a school that has a new classroom, new flexible learning areas that enable teaching in a different way—

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

Mr Speaker, I raise a point of order. The Prime Minister is directly defying your ruling to be relevant to the question.

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

The member for Cowper will resume his seat. The Prime Minister is responding.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

And of course the expenditure into Australian schools, the transformation of learning spaces which enables teaching to be done in a different way, is going to be part of tomorrow’s productivity because productivity is very largely defined by the skills and capacities of the Australian people, and there is nothing more important to those future skills and capacities than what is happening in Australian schools today. So it was the right thing to provide economic stimulus to support jobs. The member for Goldstein may have preferred to see more people unemployed. That was not our way. We believe in the benefits and dignity of work.

And now, of course, it is the right thing to engage in the biggest fiscal consolidation process since the 1960s to bring the budget to surplus in 2012-13 as promised. We promised it during the election campaign. We had our promises properly costed. We provided matching savings. What that showed is that we would keep the bottom line and bring the budget to surplus in 2012-13, and we will.