Christian Porter (Pearce, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline the savings task ahead of the current government? What are the current obstacles to addressing the budget issues facing the government and creating jobs?

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

I thank the member for Pearce for his question and I congratulate him on his outstanding maiden speech. He is absolutely right: there are obstacles. The biggest obstacle is the Australian Labor Party. The Australian Labor Party is now blocking $20 billion of savings that would improve the budget bottom line and reduce Labor's legacy of debt.

What is surprising—and it would be surprising to most—is that Labor are now opposing their own savings. The latest one came just last night—a $1.1 billion change to research and development tax changes. On 17 February this year Julia Gillard announced that she was changing research and development tax changes to save $1.1 billion to pay for a plan for Australian jobs. She went on to say: 'This is going to actually be a benefit to the Australian economy and obviously the budget.' Last night in the House the shadow assistant Treasurer stood up and said they would not support those cuts they announced in February.

Then the Labor Party announced on 13 April this year—only a little bit after April Fool's Day—$2.3 billion in savings from cuts in higher education to pay for their Gonski education reforms. And then Senator Kim Carr—Kim il Carr—said that they will not—

Honourable Members:

Honourable members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

I would ask the Treasurer to withdraw that comment.

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

I withdraw. It was so offensive! The $2.3 billion that the Labor Party announced to pay for Gonski, they are now opposing. They still want us to deliver their election promise to spend the money, but they do not want us to deliver their election promise to save the money. And then of course there was the $1.5 billion in the reversal of tax cuts that Labor promised as compensation for the carbon tax they were going to terminate.

So, on one hand Labor is saying, 'You should be more responsible with the budget' and on the other hand they are opposing everything we are doing to get the budget bottom line back in shape. And the Labor Party is now opposing everything they were doing to get the budget bottom line back in shape. There is a little message here: if you want to be a credible opposition you have to have some core principles. I know the Labor Party had no consistent core principles in government. But give it a shot in opposition, because hopefully you will be there a long time.