Sarah Henderson (Corangamite, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister outline to the House what the 2015 Intergenerational report says about Australia's future?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Corangamite for her question and I can inform the House that today the government has released the fourth Intergenerational report, the Intergenerational report which provides a road map of our nation's likely development over the next four decades. I am pleased to say that the Intergenerational report shows clearly that our country's best days are ahead of us. Our country's best days are ahead of us, provided government plays to our strengths as a nation and provided government can live within its means. Australians will live longer and better lives amidst ever-boosted prosperity, provided government remains serious about economic reform in the decades ahead, as it has been for much of the decades past.

The good news that the Intergenerational report shows is that the structural reforms already proposed by this government, and passed by this parliament, have halved the deficit that was left to us by the former government. The reforms proposed by this government, and passed by this parliament, have halved deficits that were heading for 12 per cent of GDP. They have halved debt that was heading for 120 per cent of GDP under the policies of the former government. All of this is now well on the road to repair as the Intergenerational report shows. It shows that the debt and deficit problem that was out of control under the former government is now coming back under control thanks to a government that takes economic reform seriously. What this should do is give Australians much greater confidence about our long-term future.

There is so much room for optimism about this great country of ours right now: interest rates are low and stable; petrol prices are lower than they have been for years; last year power prices fell by the largest amount on record; and we have a dollar which is low and competitive and looks like being stable for quite some time. And we have a government which is open for business and serious about economic reform—a government which has gotten rid of the carbon tax; a government which has scrapped the mining tax; a government which has delivered $2 billion in business red tape cost reductions; and, above all else, a government which has delivered three free trade agreements that have defeated governments for a decade. I want my children and grandchildren to grow up in a better Australia than I did. A government's task is to make it so, and this government is delivering.

Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer to page 42 of the government's Intergenerational report. Can the Prime Minister confirm that the government believes that climate change may be beneficial?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I am happy to say to the Leader of the Opposition that climate change is real, humanity makes a difference, and it is very important for government to put in place strong and effective policies to deal with it. But I do suggest to the Leader of the Opposition that this is a report that should provide the foundation for an intelligent and sensible national conversation on how we do the right thing by our country. That is what we need. We need an intelligent and sensible conversation about how we do the right thing by our country by tackling the real problems that we face. That is what we should do.

The Intergenerational report has been prepared by the experts in Treasury. The Intergenerational report just has facts, and the facts are not Labor, the facts are not Liberal, the facts are not National, the facts are not Green—facts are facts. What we must do as a nation is deal with the facts of the problems and the opportunities that we have, and that is precisely what this government is doing. We are dealing with the facts and we are dealing with the challenges and the opportunities that we face. I am very proud to lead a government which has faced up to reality and already, thanks to the policies that we have proposed and that this parliament has supported, the debt and deficit problem which we inherited has been halved.

I understand that there might be a temptation on the part of member's opposite to go scouring through this document looking for political ammunition. There might be a temptation to scour this document to try to score political points. But I think we have seen the better angels of the Leader of the Opposition on a lot of subjects lately, and I am confident that this parliament is better than that. We can make serious efforts to address our nation's problems, and we will address them better if we can do it in a bipartisan spirit.

Alex Hawke (Mitchell, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline to the House the opportunity that the Intergenerational report represents for Australia's future? How does the government intend to respond to the report?

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

I thank the honourable member for Mitchell for his question and recognise that he, like all others on this side of the House and hopefully everyone on the other side of the House, is prepared to engage in a conversation with the Australian people about the destiny of the nation and the quality of life that we are going to bequeath to future generations of Australians. The Intergenerational report is a compact between the generations—between grandparents and grandchildren, between parents and children and between brothers and sisters. This is about determining our future and influencing our future.

One of the most stark figures in the Intergenerational report, which looks forward 40 years, is that the trajectory of longevity is going to continue. While life expectancy in the early 1900s was around 55, by the middle of this century life expectancy for newborns will be around 100. What that is going to do is change the way we live our lives. It is going to put different pressures on our lives that are in many ways quite different to those that we have had and the people that have gone before us had. Those days of the traditional life pattern of studying while you are young, working in middle ages and retiring when you are older are being turned on their heads with longevity, as we seek to go in and out of the workforce at various points and as we seek to better utilise technology to ensure that we can lift our output and lift our productivity.

Importantly we need to start planning now for the future. This is a conversation that the Australian people actually want to have. They want to talk about how we can have a more prosperous future and how we can work together to build the infrastructure, to strengthen prosperity and to ensure that we get the very best out of the many positive days we have ahead. Of course, that is going to take effort. The biggest driver of wealth creation is inevitably going to be what we can do to lift our output—

Ms Owens interjecting—

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

The member for Parramatta is warned!

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

to lift our output on an hourly basis. Each hour we work today has twice the output of someone working in 1970. If we can continue that trend of improving our output, more bang for our buck, that means that we can have a better quality of life and a more prosperous future. So, over the days, weeks and months ahead, every single member of the government, and I really hope every single member of the opposition and everyone involved in the community, is going to engage in the conversation about how we can have a more prosperous future, not just for ourselves but for the generations of Australians ahead.

Mark Butler (Port Adelaide, Australian Labor Party, Shadow Minister for Environment, Climate Change and Water) Share this | Link to this | Hansard source

My question is to the Prime Minister. Page 42 of the Intergenerational report acknowledges that over the past 40 years climate change has caused the south of Australia to become hotter, drier and more vulnerable to fire. Why then does the report include absolutely no information about climate change over the next 40 years? Is this just another example of the Prime Minister's refusal to accept the science of climate change?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I do hope that the opposition may be able to lift themselves from the spirit of partisanship, lift themselves from the kind of politicking which too often disfigures debate in this parliament, and try to look fairly and squarely at the issues facing our country. As an example of how sensible and rational and realistic and balanced this report is, let me read what it says about climate change:

Some economic effects may be beneficial — where regions become warmer or wetter this may allow for increased agricultural output — while others may be harmful. For example, lower rainfall may reduce crop yields, or transport infrastructure (such as roads, ports and rail networks) may become more susceptible to damage from extreme weather events.

So do justice to this report. Do justice to the expertise of the Treasury officials who have put it together. If you read on, the report talks about the way forward on climate change.

We have a strong and effective policy to deal with climate change. It involves establishing an emissions reduction fund that will deliver us better soils, more trees, smarter technology. As a result of these policies, we will achieve a 12 per cent reduction by 2020 on 2005 emissions levels. This is not just a 12 per cent reduction per head; it is a 30 per cent reduction. It is a 30 per cent reduction on 2005 levels on a per capita basis. This is a remarkably strong performance. We are not a government that runs around habitually blowing our trumpet, but when it comes to climate change, when it comes to actually reducing emissions, this country's record, under the policies of this government, will be absolutely amongst the best in the world.

Adam Bandt (Melbourne, Australian Greens) Share this | Link to this | Hansard source

My question is to the Prime Minister. Prime Minister, you have said that we need to stop intergenerational theft against our children and grandchildren and that we need to act urgently today to avoid dire consequences tomorrow. But, given how short a time the experts are giving us to avoid a massive attack on the Australian way of life, why won't you say the same about climate change?

Government Members:

Government members interjecting—

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

There will be silence on my right! The Prime Minister has the call and he would be assisted if those on my right did not interject.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

It would help if the member for Melbourne actually listened to the question time debate and was able to recast his question, if necessary, because I have already given the answer. We are taking strong and effective action on climate change. By 2020 we will have delivered a 12 per cent emissions reduction on 2005 levels, and on a per capita basis we will have delivered a 30 per cent reduction in emissions on 2005 levels. This is amongst the best performance of any country in the world. What we want to do is to achieve the right environmental outcomes without damaging the best economic outcomes. That is what we want to do. We do not believe that you help the environment by torpedoing the economy. That is what members opposite would do when they bring back the carbon tax.

When it comes to climate change, members opposite are basically being dictated to by the Greens. That is the problem. I say to members opposite: stand up for yourselves, stand up for the jobs of the workers who have historically supported you, and say to the Greens, 'We won't have any more of this carbon tax nonsense. We won't have any more of these economic hits. We will tackle climate change in ways which are good for the environment and good for the economy too.' That is what this government was elected to do—to tackle climate change in a way which does not damage the economy—and that is exactly what we are delivering.

Fiona Scott (Lindsay, Liberal Party) Share this | Link to this | Hansard source

My question is to the Deputy Prime Minister and Minister for Infrastructure and Regional Development. Will the Deputy Prime Minister please update the House on the Intergenerational report's findings with respect to the importance of infrastructure to support productivity growth?

Honourable Members:

Honourable members interjecting—

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

We will have silence on my left so that we can hear. The Deputy Prime Minister has the call, and we will not have any more of those reflections, thank you very much.

Mr Bowen interjecting—

The Member for McMahon is warned. The choice as to whether he stays or goes is now his.

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

I thank the member for Lindsay for her question. What is obvious from members opposite is that they are trying to put their heads in the sand and discredit the report, because they have no confidence in the future of this country. They are trying to talk down the achievements of our country and our potential for the future. This report has an enormous amount of information in it about what our country will be like.

Mr Champion interjecting—

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

The Member for Wakefield will leave standing order under 94(a). It is Thursday; he always enjoys an early mark. And take a bus!

The member for W akefield then left the chamber.

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

The Intergenerational report makes it clear that as a nation we will have a larger population and a bigger economy, and therefore we will need to invest substantially in providing the infrastructure to support a bigger nation—a nation that is contributing more internationally and providing a better lifestyle for the people of the country. Indeed, the report identifies infrastructure investment as absolutely critical to our economic future. That is why this government's $50 billion investment in infrastructure is so timely and so important for the future. It is important to this generation because it is creating jobs. It is creating economic activity now. But it builds the basic lifelines that will be so essential to underpin our economy in 40 years time. What we are doing now is therefore an investment in the future. It helps build our nation now, but it is also an investment in the future.

I guess there is no area where this is more important than in Western Sydney, where a large proportion of our nation's growth will actually occur. The forecasts are that there will be substantial population growth in Western Sydney. That is an area that is going to need significant infrastructure investment, and our $3-plus billion package for Western Sydney will help provide some of that vital infrastructure to support the growth in that region. Not only will we be building new roads and other important infrastructure of that nature—such as the new airport—this will be an area that will be a real part of the life and breadth of the new Sydney. That is work that we are undertaking now. Eight thousand people will be engaged on the roadworks project that we have committed to for that region. This is an investment in Western Sydney. It is an investment in providing infrastructure for today. It creates jobs and economic growth today, but it is also an investment in the future of that region, to ensure that it will have a lifestyle befitting its population and will contribute to the nation as a part of our intergenerational growth.

Steven Ciobo (Moncrieff, Liberal Party, Parliamentary Secretary to the Minister for Foreign Affairs) Share this | Link to this | Hansard source

I rise on a point of order. The member for Charlton made repeated disparaging comments about older Australians, and he should withdraw them.

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

Most certainly! Withdraw them.

Pat Conroy (Charlton, Australian Labor Party) Share this | Link to this | Hansard source

Madam Speaker, I said nothing about older Australians, but I withdraw to assist the House.

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

It would be rather unwise if you did!

Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer to the Intergenerational report released today. Is the Prime Minister's only plan for the future to make Australians work longer and to cut their pensions?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I certainly want Australians to achieve their economic potential. That is what I want. I want all Australians to achieve their economic potential and, for some of them, perhaps for many of them, that will mean working to an age that might not have been readily thought of in times past, because we are living longer and healthier lives. We are absolutely living longer and healthier lives. In the days when the pension age was set at 65, life expectancy at birth was under 60. Today, it is over 80. It is going up all the time, and healthy life expectancy is improving even faster and further. I acknowledge that. Members opposite used to acknowledge that. Early in their time in government they raised the pension age to 67. When they proposed this, they received full support from the then opposition, now the government.

When members opposite came up with sensible policies we supported of them, because that is what an intelligent and constructive political party does. When its opposition proposes something intelligent and constructive, it engages and it supports. That is what it does.

Honourable Members:

Honourable members interjecting—

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

The Member for Charlton!

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I think it makes sense to give more Australians more opportunities to live longer and more productive working lives. Why wouldn't members opposite agree with that? Why wouldn't they be prepared to enter into an intelligent national conversation about this? That is all we want.

Opposition members interjecting—

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

The Member for Bendigo will desist.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

If members opposite do not like our policies to help people live longer and more productive working lives, they should tell us what their policies are.

This was supposed to be the year of ideas. Give us one. So far the only idea they have come up with is to spend $100 million on the ATO to raise $1 billion. Well, next time they will be telling us to spend $1 billion on the ATO to raise $10 billion. That is the problem. All they can think of is spending more and taxing more. They just cannot help themselves. I actually think that deep down the Leader of the Opposition is better than that, and I would ask him to start demonstrating that now.