Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to the Treasurer's promise in the budget just three months ago: 'The government will return the budget to surplus in 2012-13.' I also refer the Prime Minister to the Treasurer's statement that this commitment has become an 'objective' or, today, a 'determination'; the finance minister's statement that it is now a 'plan'; the Assistant Treasurer's statement that it is now a 'guiding principle'; and the Prime Minister's own statement that it is now an 'expectation'. Is the Prime Minister's promise of a surplus in 2012-13 going the same way as her promise that 'there will be no carbon tax under a government I lead'?

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

In answer to the shadow Treasurer's question, yes, the budget in May had in the budget forecasts a surplus in 2012-13, exactly as we promised at the last election campaign. As the shadow Treasurer may have noticed—I hope he has noticed; it was certainly the subject of the Deputy Prime Minister's ministerial statement before question time—there has been turbulence in global markets.

Honourable Members:

Honourable members interjecting—

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

Order! The Prime Minister will resume her place. The Prime Minister has the call and she will be heard in silence.

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

Thank you very much, Mr Speaker. As the Deputy Prime Minister detailed in his statement to the House before question time—

Mr Abbott interjecting—

Yes, the Leader of the Opposition is right, I was not here to listen to it. I was at a funeral.

Opposition members interjecting—

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

The Prime Minister will resume her seat. I would hope that over the winter recess members have had the same response that I have had to the general behaviour in this House. One of the overriding comments that I receive is the inability of members in general to show respect and civility to each other. I am quite happy to have robust debates about issues, but when we have slanging matches about things to do more with personalities I think it drags us all down. I would hope, whilst I do not like to hear any interjections, that interjections would go to the substance. The Prime Minister has the call.

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

Thank you very much, Mr Speaker. In answer to the shadow Treasurer's question, the Deputy Prime Minister earlier today outlined the turbulence that there has been in global markets and the fact we are not immune from that even though, of course, our economy has got such strong fundamentals. What the Deputy Prime Minister made clear to the House is of course that it does have an impact, and when we update the forecasts in the Mid-Year Economic and Fiscal Outlook then we will update the impacts coming from that global turbulence that we have seen on markets and its potentials for impacting on global growth. The Treasurer has also made the obvious and common sense statement that impacts on global growth and potential impacts here make it more challenging for us to bring the budget back to surplus, but we are absolutely determined to do so and we expect to do so.

We are in a very different position coming to this task as compared with the opposition. We are in a different position because we have shown fiscal discipline throughout and we have adhered to a clear set of fiscal rules. That of course meant that when we went to the last election campaign we had all of our policies properly costed and we found offsetting savings for the new expenditures that we promised to the Australian people. The opposition did not take a similar approach and found itself in an $11 billion black hole. Now of course, since the election campaign, that $11 billion black hole has worsened to $70 billion. The shadow Treasurer has staked his reputation on the statement that he can find savings, cutbacks, to equal this $70 billion. He said very boldly—

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

Order! The Prime Minister will come back to the question.

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

On the question of budget surpluses, he said very boldly that 'finding $50 billion, $60 billion or $70 billion is about identifying waste, identifying areas where you do not need to proceed with programs'.

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order going to relevance. I am asking the Prime Minister to be accountable for her own promises, her own words.

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

The member for North Sydney will resume his place. As I have indicated, the Prime Minister under the standing orders is allowed to debate the question, but that debate must be directly relevant to the question.

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

Thank you very much, Mr Speaker. I was asked a question about the budget surplus and I have made the position of the government clear. I am simply asking for comparable clarity from the shadow Treasurer. If he is to find $70 billion in savings, then I ask him to list them. Seventy billion dollars is the equivalent of not paying pensions for two years. Seventy billion dollars is a lot of money. We await the shadow Treasurer's $70 billion list of cutbacks. I think Australians will be very interested to see it.