David Coleman (Banks, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline the importance of fixing the budget? What have international organisations said about the budget in the past week?

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

I thank the honourable member for Banks for his question. It is the first sensible question from the member—from a member for Banks for a long time. You are a lot better than Daryl Melham. You are far more articulate. That is a very sensible question, and I say it is because, of course—

Mr Fitzgibbon interjecting—

He is a lot better than Daryl Melham, I will tell you, Joel. He has principles, this one. Now, I liked Daryl, but he went weak at the end. He went so weak with Labor. Fixing the budget is hugely important for Australia because, at the end of the day, we always have to fix up the Labor Party's problems, and they left us with $667 billion of debt. That means, if we do not address this issue, within 10 years we will have to spend $3 billion a month repaying the interest on Labor's debt. Seventy per cent of that goes to people living overseas because that is the group that we have had to borrow money from. So 70 per cent of that money goes to people overseas. As a result of our budget, we have reduced the potential debt by over $300 billion, and that is a significant step forward. However, there is so much more to be done, because, with all the measures that we have announced in the budget, we still do not get the budget back to surplus in the next four years. We still do not pay off Labor's debt over the next 10 years—the debt they racked up in just six years. We will not pay that off. With all the measures in the budget, we still do not get there. But the budget is a credible document that delivers. It delivers us savings that are absolutely necessary. Labor has no alternative.

The head of the OECD has praised Australia for its budget. Angel Gurria said:

… they are dealing very directly and decisively with the budget deficit.

He said:

We're always saying you should at least keep it balanced. This is a more sustainable, more durable type of solution.

He said that that means going for 80 per cent cuts and one-fifth tax increases.

The OECD currently employs the former assistant treasurer of the Labor Party. Maybe he provided advice to Angel Gurria. And the OECD currently employs the former chief of staff to the member for Lilley. Maybe he provided that advice to Angel Gurria. I would say to you that it is common sense. The only way a government can live on a sustainable basis is to live within its means, today.