Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. Can the Treasurer confirm that the government did not adhere to longstanding budget conventions in its Mid-Year Economic and Fiscal Outlook by changing the methodology for forecasting unemployment and the terms of trade?

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

The methodology for unemployment and the terms of trade was recommended by the Treasury as an improvement on what happened under Labor, and thank God for that. Thank God for that, because Labor managed to get almost every single forecast wrong, including the one about promising to have a surplus.

Ms Julie Bishop (Curtin, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

They delivered a surplus—Swanny said they did.

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

I know. Maybe I am short-changing them, because they did claim a surplus on numerous occasions, but they never actually delivered one. Of course, the Treasury looked at its own forecasting—

Mr Briggs interjecting—

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

Order! The Assistant Minister for Infrastructure and Regional Development will desist.

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

The fact of the matter is that we want to have the most accurate forecast possible; that is what Treasury recommended, and that is what we accept. The methodology that they have used in MYEFO actually confirms the fact that Labor left the legacy of increasing deficits to $123 billion, of increasing debt to $667 billion and of below-trend growth, and they also left a legacy of higher unemployment: 6¼ per cent. That is their legacy of unemployment. When they came to government they inherited an unemployment rate of around four per cent. When they left government, they handed to us and to the Australian people an unemployment rate approaching 6¼ per cent, with 200,000 more Australians unemployed than when Labor first came into office. Does that cause any embarrassment to you, Bill? Does that cause any embarrassment to the Leader of the Opposition or to the shadow and former Treasurer? There is no sense of shame in Labor.

Opposition members interjecting—

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

He corrected himself.

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

There is no sense of shame that they left a slower economy, with bigger deficits, bigger debt and of course rising unemployment. There is no embarrassment, there is no shame, but there should be.