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 remind the Prime Minister that in the four months since the budget, the number of unemployed has risen by 18,000, many companies are reporting falling profits and there has been a sharp decline in commodity prices. Does the Prime Minister stand by the budget forecast that tax revenues will rise this financial year by almost $34 billion?

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

I thank the member for his question. Firstly, I would say to the member that I think it is very important that in this place we do not talk down the fundamental strength of the Australian economy. I would remind the member that our budget forecasts are predicated on the basis that commodity prices would peak during 2011. So we understood, in preparing the budget, that the commodity price peak part of the resources boom was being reached but we also understood that we were going to see increasing export volumes and that we were seeing an investment pipeline of $500 billion with more than $200 billion of it at an advanced stage.

Yes, when we look at the Australian economy today, we can look across the range of indicators about the health of the economy whether we are looking at growth, whether we are looking low inflation, whether we are looking at low interest rates or whether we are looking at an unemployment rate of just over five per cent, which around most of the world people would look at as a remarkable result. Imagine some of those towns in America and the circumstances of unemployment there. Imagine what is happening Spain and much of Europe and what is happening in the United Kingdom. So it is inappropriate and wrong for members of the opposition to come into this parliament and talk the Australian economy down.

Tony Abbott (Warringah, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Madam Deputy Speaker, I rise on a point of order: relevance. It was quite a simple and straightforward question. Does the Prime Minister stand by the budget forecast for the increase in revenue? Yes or no?

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

The Leader of the Opposition will resume his seat. The Prime Minister has the call.

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

I was pointing out it was a question the sole purpose of which was to create fear and concern about the Australian economy. That is not appropriate conduct by the shadow minister for finance. It is not appropriate conduct by the opposition leader but it fits in with their relentless negativity—that is for sure.

On budget forecasts, as the member ought to recall from his time in government, the way in which this works is budget forecasts are updated in the Midyear Economic and Fiscal Outlook, they are updated again in the budget and then, moving into the election, they will be updated in the pre-election fiscal outlook. And every step of the way we will engage in properly funded, properly costed policies, whereas the member who asked the question, who has acknowledged he has to cut $70 billion out of services for families, is trying to cover that up. Over here, we will make sure the Australian people have all of the information they need. If we are going to have this fiscal debate then the member should come to the dispatch box and should say he is prepared to get the opposition's policies properly costed; otherwise, why would anybody take him seriously?