Chris Hayes (Fowler, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Deputy Prime Minister. Will the Deputy Prime Minister outline why it is important to invest in reforms to keep our economy strong?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Fowler for that question, because the Australian economy walks tall in the world. Our economy is now 11 per cent higher than when we came to office, and of course we have done that during a period when many other developed economies have gone backwards. One of the reasons that we are in this strong position is that during the global financial crisis and the global recession we put in place a range of policies to support employment and to support small business. We did this in the face of the worst global downturn in 80 years. That meant that we avoided the skill destruction and we avoided the capital destruction of small businesses that we see right around the world, which are holding all of those developed economies back.

But, most importantly, why did we do that? We did it to protect communities. We did it to protect families. We did it to protect small businesses. We did it because we understand that we live in a community; we do not just live in a corporation, and we bring those values towards our decision-making processes. We want to protect the very social fabric of our communities. Of course, to do that, you also have to invest in the future, and that means investment in education in particular: in schools, in vocational training and in universities. That is why we have found savings in our budget over the past five years to make room for those priorities. We have put in place a responsible fiscal policy. It is all about making sure that Australians have jobs and about getting a fair go, not just everything going to the fortunate few.

We on this side of the House will always stand up for working Australians. We will not have any part of tearing them down, which is why what we are seeing in Queensland and New South Wales at the moment is so regrettable. The big axe is being taken to health and education, having dramatic impacts on the lives and lifestyles of tens of thousands of Australian families right around the country, and there is the big attack on education spending in New South Wales as well—indiscriminately wielding the axe, cutting the basic services that go to the very basic fabric of our society.

We know that this is just a warm-up act for Tony Abbott and Joe Hockey, because they have a $70 billion budget crater.

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

Madam Deputy Speaker, I raise a point of order. The Deputy Prime Minister ought to know by now that you address members by their seat, not by their name, and I find it offensive that he continually flouts the standing orders, not just in this instance but quite often.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The Deputy Prime Minister will refer to people by their titles—

Mr Randall interjecting—

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Certainly.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

and the member for Canning is warned!

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I do understand why they are so sensitive, because they are going to take the axe to basic services, and they want to keep their agenda hidden just like Campbell Newman kept it hidden in Queensland. That is their objective: to have a commission of audit to hide the truth, not to tell the truth.

We on this side of the House understand that you have to build up the nation. You have to support your workforce. You do not do it by tearing working people down.

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

My question is to the Acting Prime Minister. What is the current level of Commonwealth government debt, today, in dollar terms?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Net debt 2011-12, $142.5 billion; 2012-13, $143.5 billion.

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

Gross debt!

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The member for North Sydney has asked his question.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Gross debt 2011-12, 265.8; 2012-13, 274.2.

Honourable members interjecting—

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

Order!

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I also wanted to make some—

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

Madam Deputy Speaker, on a point of order: I could not hear when the Deputy Prime Minister said '265'. I could not hear him.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The Deputy Prime Minister has just demonstrated amply for me why everybody in this chamber should pick up the standing orders and read 65(b). The Deputy Prime Minister has the call and will be heard in silence.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Thank you, Deputy Speaker, because I am only too happy to talk about debt. I am very happy to talk about it. Net debt in Australia as a percentage of GDP was 9.6 per cent in 2011-12. That is around one-tenth of the level of other major developed economies.

Why is that important? It goes back to the core of the disagreement in this chamber between the government and the opposition. We do have some net debt in this country now. We have it because the government took the responsible position of supporting jobs and small business during the global financial crisis and the global recession. The consequences of that action are the strong economic fundamentals we have and, most particularly, the gold plated AAA credit rating we have from the three major global rating agencies.

I make that point because here we have yet another scare campaign from those opposite. They are seeking to exaggerate our levels of debt and seeking to talk down our economy as they have day after day for the last few years—but all the time having the shame of having opposed what we did to make our economy strong, to support jobs and to protect the fabric of our community. That shows the clear contrast between the values those on that side of the House have and the values we on this side of the House have. We will always support working Australians and small businesses, but those opposite will always take the axe to them.

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

On a point of order, Madam Deputy Speaker: before I ask my supplementary question, I ask the Treasurer to table the document he was reading from.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

Was the Deputy Prime Minister reading from a document?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

No.

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

Madam Deputy Speaker, I ask a supplementary question. Does the Treasurer stand by the commitment he made on 21 May that government debt will be 'within the $250 billion cap'? If so, is he ruling out borrowing more to fund the government's $120 billion black hole?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Here we go—putting forward the shonky figure which appeared on the front page of the Financial Review. It is simply untrue. I stand by all the commitments we have given.