Michelle Landry (Capricornia, National Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer advise the House of the importance of sound fiscal policy and strong economic management to our transitioning economy? How is the government backing hardworking Australians to promote growth and jobs?

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

I thank the member for Capricornia for her question, because she is right: the Australian economy is transitioning, as the Prime Minister has just said, and that transition is being felt differently all across the country—whether it is in the regional areas of North Queensland, in Western Australia, in the suburbs of Sydney or Melbourne, or right across this country. The good news for the economy as a whole is that we are transitioning—positively transitioning—as the Prime Minister has just said. To ensure that this continues, we need to continue to back the Australians in who are making this transition occur each and every day. There are things that we need to do as a government and that we need to continue to do as a government. These are quite difficult times, and I know that it is cause for concern for those who have seen what has been happening in financial markets around the world, the volatility that has been occurring there and the low-growth environment globally that we are now facing.

It is important that we look past the dust of that volatility and look to what is happening in the real economy in Australia. In the real economy in Australia we are seeing growth. We are seeing growth in jobs and we are seeing growth in the economy, and we have got a government that is focused on growth and jobs. In these uncertain times, you need to have a very strong financial position, and that strong financial position needs a government that is not going to think that 'tax and spend' is a plan for growth—but that is what those opposite think. 'Tax and spend' is the approach of those opposite, and they think that is a plan for growth and jobs. We have a very different view, because we know the way to back in the transitioning economy. Economists like Paul Bloxham say that growth has been rebalancing, and the NAB group economist, Alan Oster, has said, 'The good domestic fundamentals are helping to offset what could potentially be a big drag on confidence from global markets.' The ANZ head of economics, Felicity Emmett, has said, 'The domestic economy, however, is currently not in bad shape, with the unemployment rate improving significantly over recent months,' and the confidence data that is coming through that the Prime Minister has referred to backs this up.

But you have got to back the confidence of Australians in by ensuring that the Australian government is doing the right thing by our budget, and that means ensuring we continue to get our expenditure under control. Expenditure is a share of the economy and it is falling from 25.9 per cent of the economy to 25.3 per cent under the savings proposals of this government. We have those savings proposals in place. They are outlined in the budget. That is our clear plan to consolidate the fiscal position of this government, but those opposite have a very different plan. They want to reverse $30 billion worth of savings that this government has seen pass through the parliament. They want to continue to oppose some $13 billion of other savings measures, including the $9 billion in savings measures we announced in MYEFO alone. On top of that, they want to spend almost $14 billion more. And to pay for this enormous $57 billion they have come up with nothing more than higher taxes. (Time expired)