Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question as to the Treasurer. Last week the Treasurer accused the RBA of 'smashing' the economy. Former RBA board member Graham Kraehe said:

For the treasurer to then be coming out and saying, 'Well, this is the Reserve Bank's fault.' I don't think another serious economist in the country … would agree with that …'

With falling disposable income and sticky high inflation hurting households, why is this government fighting the Reserve Bank while Australian families are going backwards?

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Thanks very much to the shadow Treasurer for a very similar question, that I answered comprehensively a moment ago. It usually takes the shadow Treasurer a bit longer than the rest of us, so let me go through it once again. First of all, any objective observer of the economy understands the combination of global economic uncertainty, persistent inflation and higher interest rates is slowing our economy—in our case, quite considerably. That's a point that I've been making since at least June of this year. That's the first point.

The second point is that, when it comes to taking responsibility for our part in the fight against inflation, I do. I've said that not just earlier today but on a number of occasions, and I mean it. I take responsibility for the fact that, when we came to office and there were deficits as far as the eye could see, and there was a trillion dollars in Liberal debt and not enough to show for it—

Milton Dick (Speaker) Share this | Link to this | Hansard source

The member for Hume has asked his question.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

we took important steps to try and clean up the mess that we inherited. We turned those two big Liberal deficits into two big Labor surpluses. We found almost $80 billion in savings. We showed spending restraint because we knew that, if we got the budget in better nick, we would help the governor and the Reserve Bank in their fight against inflation—our fight against inflation. Governor Bullock has acknowledged that our two surpluses are helping in the fight against inflation. So I make the same point again.

I also repeat the point that I made earlier, which is that the worst thing for any responsible decision-maker in our economy to be contemplating right now is $315 billion in secret cuts. The reason why they haven't come clean on that is that it's a recipe for recession. Theirs is a recipe for recession.

Milton Dick (Speaker) Share this | Link to this | Hansard source

Order! The member for Moreton is warned. The member for Hume on a point of order.

Angus Taylor (Hume, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

On relevance: the question did not mention alternative approaches, particularly alternative approaches that don't exist.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The Treasurer was not asked about alternative policies or alternative approaches. He has allowed some contrast. For the remainder of the answer I'm going to ask him to return to the question.

Jim Chalmers (Rankin, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

The point I'm making is that, more than acknowledging that people are doing it tough, we're doing something about it. This side of the parliament is trying to help people doing it tough. That side of the parliament would harm people with $315 billion in secret cuts to Medicare, pensions and payments, and that would be a recipe for recession. If they had their way, Australia would be in recession, wages would be lower and there'd be no help with the cost of living. We make no apology for taking a different approach. We are maintaining a primary focus on the fight against inflation. That's one of the reasons why it's halved since the year that we were elected. It's why we've got the budget in better nick. It's why we're rolling out meaningful and substantial cost-of-living help in the most responsible way we can. The most irresponsible thing that we could be doing right now is pulling hundreds of billions of dollars out of the economy, as those opposite want to do. They should come clean on their cuts so that people know the choice.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The Treasurer will resume his seat. The member for McEwen.