Brett Whiteley (Braddon, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer explain to the House how the government is promoting economic growth through a stronger budget, and are there any threats to responsible fiscal policy?

Ms Plibersek interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Sydney will cease interjecting.

Ms Plibersek interjecting—

The member for Sydney is now warned.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Braddon for his question, because he knows that the way to have a strong budget is to have a strong economy. And the way to have a strong economy is to focus on policies that promote growth. We on this side of the House know that to promote growth you need a tax system that encourages people to work, save and invest, and to ensure that they are making the decisions that they want to make so that we can grow revenue based on stronger economic growth.

Those opposite have a different approach. They believe the way to have strong economic management—and it is a fallacy—is that you raise taxes and pull more out of people's pockets to chase higher and higher levels of expenditure, which is what those opposite seek to do. We believe that strong economic management is the road to building a stronger economy because it inspires confidence in both consumers and businesses.

Ms Butler interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

I remind the member for Griffith that she has been warned twice.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

We note the figures that have come out today in terms of the improvement in business and consumer confidence. These figures will move around and they will go up and down, and the way you earn confidence is to have the policies that backup that confidence. What we know as a government is that if we continue to focus on the path that we have been on—that is, to put in place the savings measures and to control the expenditure in the way we have and grow the economy—then we can return the budget to balance over time. I particularly want to commend the member for North Sydney, the former Treasurer, for the excellent work that he has done in building the strong foundation for what we—

Opposition members interjecting—

continue to work on as we move the budget towards surplus over time.

We have reduced real growth and government expenditure from 3.6 per cent on average per annum, as it was under Labor, down to 1.5 per cent on average in the 2015-16 budget and the forward estimates. We have implemented a total of 332 budget measures out of a total of 407. We have delivered $9.4 billion in expenditure savings from the 2015-16 budget already. Overall, since the 2013-14 MYEFO, some $85 billion worth of budget improvement measures, which includes over $64 billion in savings, has been delivered to ensure a stronger budget.

What have those opposite learned from this process and from their time of excessive spending? They currently have $57 billion worth of commitments and failures to support savings. They add up like this: $3.6 billion in budget measures that they themselves put forward that they refuse to support today, $14.7 billion in budget repair measures that we have put forward that they refuse to support, $33½ billion in spending measures that they want to see restored from savings that we have put forward, $10.3 billion in promises they have made since the 2015-16 budget and $3.8 billion in new and increased taxes. What have they learned in terms of savings to pay for that $57 billion-odd? There is $1.3 billion in taxes, but then they— (Time expired)