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

My question is to the Treasurer. The government's own budget papers show that the Treasurer has doubled the deficit since his last budget. Isn't it the case that spending as a percentage of the economy has gone up under this government and, in the first two budget years of the Abbott government, spending is expected to be near global financial crisis levels? Isn't it the case that the Treasurer has lost control of his budget while doubling the budget deficit?

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

I see! I have worked it out! The member for McMahon is trying to set up the member for Lilley here. He is trying to set up the member for Lilley, because it was the member for Lilley that delivered a budget that had the biggest percentage of spending in GDP terms in modern times—26 per cent of GDP. That was the member for Lilley.

We want to reduce government expenditure, and I would just quote Chris Richardson, who is a director at Deloitte Access Economics. He said this on budget night: 'Spending is really tight as a drum. And that is the hidden magic, if you like, and why you are getting better numbers in this budget.' That was Chris Richardson in an interview with David Speers on budget night: 'Spending is really tight as a drum'. We have endeavoured to reduce government expenditure, but the problem is Labor is opposing us at every single point and, despite that, we are still getting expenditure down. The fact is 86 per cent of all government spending is locked in by legislation. Of that government expenditure, a huge amount of it, such as Medicare and welfare payments, go out the door on the basis of demand. They are uncapped. So what happens is, if you want to change the level of government expenditure, you have to change the legislation, and that is one of the—

Tanya Plibersek (Sydney, Australian Labor Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

We know!

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

You know! That is very astute. The problem is you do not do. You know but you do not do. And, because you know and you do not do, the Labor Party left a whole lot of time bombs in the budget. The Parliamentary Budget Office on Friday said it was $101 billion yet to be legislated—$101 billion over 10 years. And do you know what? One hundred and one billion dollars over 10 years; $58.6 billion of commitments by the Leader of the Opposition over four years. He spent $220 million a minute in his budget in reply speech. He did not have savings of $220 million a minute; he had expenditure of $220 million a minute. So let me get this right. Labor come in here and cry crocodile tears about government expenditure and yet they do everything they possibly can to block us from reducing government expenditure in the Senate. That is hypocrisy. I am giving them the opportunity to deny the word hypocrisy but I do not think they will. Because underlying that hypocrisy is the inherent weakness—

Mr Snowdon interjecting —

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

The member for Lingiari is warned!

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

of the Leader of the Opposition. He is a weak man. He is like a reed in the wind. He goes whichever way the wind takes him in order to please the Left or the Right, in order to please the caucus or the union movement. The problem is the Australia people always pay the bill under this Bill.