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

My question is to the Treasurer. I refer the Treasurer to the fact that the European carbon price has fallen 45 per cent in the last 12 months to be trading at less than $6.50 a tonne. Given that the budget relies on revenue of $29 a tonne in 2015 when the carbon tax is linked to the European price, will the Treasurer guarantee to revise the budget forecast to accurately reflect the massive loss in revenue of this carbon tax package?

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

It is extraordinary to get a question from the opposition about an international carbon price, a concept they do not even agree with. It is pleasing to hear that it might have some passing relevance to the introduction of a carbon price in Australia and perhaps, for the first time, some approval from those opposite—given the failure of their fear campaign about carbon pricing. The facts are these. This government budgets in a responsible way.

Mr Frydenberg interjecting—

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

Order! The member for Kooyong is warned!

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

We budget in line with the Charter of Budget Honesty set down by Peter Costello. So, as is the usual practice, we will bring our budget down in May and we will update all of our forecasts. We will do all that in May in the responsible way. There is a very stark contrast between the approach of us on this side of the House and the approach of those on that side of the House, because the Charter of Budget Honesty went out the window at the last election campaign. They did not comply with the Charter of Budget Honesty and were found after the election to have had an $11 billion black hole in their budget forecast, in complete breach of the charter.

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

Madam Speaker, I rise on a point of order as to relevance. The question is about the massive black hole in the carbon tax package and whether he is going to tell the truth in the budget.

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

For future points of order, I will not be tolerating debate. It has been abused too much. The Treasurer has the call and will return to the question before the chair.

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

Most certainly. I was asked a question about budgeting and we do follow the Charter of Budget Honesty, unlike those opposite. So it is a bit rich to get the sort of question we got today from the shadow Treasurer about the Charter of Budget Honesty, which they breached massively in the last election campaign—just a little bit rich. Also we have a question about a carbon price they do not believe in.

We will update our figures in the normal way in the May budget and wouldn't it be good if we could see from that side, just once, a costed policy? They are out there all the of time claiming that they are responsible. They are out there all of the time claiming that the government is spending too much. They are out there all of the time claiming there is an entitlement mentality and they are going to cut it back, but we cannot see one costed policy about anything.

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The Treasurer will return to the question.

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

So, if you want some honesty about these matters, how about you, who believes that government is too big and government is spending too much, put a policy on the table that is costed and take it to the PBO.

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

Madam Speaker, on a supplementary, and it goes to the Treasurer following his last answer. If he is going to tell the truth in the budget, as he just said he would, and there is going to be a $5 billion to $7 billion hole in the revenue from the carbon tax and a $2 billion hole in the mining tax revenue, and he has got to find the money for the NDIS and Gonski review, where is all this money coming from, Treasurer?

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

The shadow Treasurer and the Leader of the Opposition like to pretend that there has not been a revenue write-down in the budget of $160 billion over five years. They like to pretend that. So, if you take them seriously, what they are really arguing is that the government should have engaged in $160 billion worth of expenditure cuts over the past five years. Do you know what that would have done? It would have tanked our economy. We on this side of the House are committed to a balanced and responsible budget, a balanced and responsible fiscal policy, and we do that within the framework of our medium-term fiscal strategy, which is committed to surpluses on average across the cycle.

Opposition Members:

Opposition members interjecting—

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

That is for me to inquire of. The member for North Sydney.

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

Madam Speaker, I rise on a point of order. It goes to relevance. The question was about tax.

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

I thank the member for North Sydney. The member for North Sydney will resume his seat. The Treasurer has the call.

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

What the government is committed to and those opposite are not is a responsible budget policy that puts jobs and growth first. But if you listen to those on the other side of the House, you know what you will get: you will get slash and burn, low growth, higher unemployment, higher deficits and higher debt.

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The Treasurer will return to the question.

Opposition members interjecting—

Order! That is a very good interjection: 'What is this descending to?' But it is of course entirely out of order. I think everyone, including me, is wearing thin of the complete disregard for the procedures of this parliament. The member Reid has the call.