Richard Colbeck (Tasmania, Liberal Party, Parliamentary Secretary to the Minister for Finance and Administration) Share this | Hansard source

I indicate that the government will not be supporting the amendment and I seek leave to incorporate my summing-up speech on the bill.

Leave granted.

The incorporated speech read as follows—

I rise to bring what has been a vigorous debate on Appropriation Bill (No. 3) 2006-2007 and Appropriation Bill (No. 4) 2006-2007 to a close.

I would like to thank those senators who have made a contribution.

The Additional Estimates Bills seek appropriation authority from Parliament to meet requirements that have arisen since the last Budget.

The total appropriation being sought through the Additional Estimates Bills this year is somewhat in excess of $1.8 billion, and arises from changes in the estimates of programme expenditure and from policy decisions taken by the Government since the last Budget.

The initiatives for which funding is sought in these Bills reflect the Government’s continuing commitment to:

• maintaining stability in our region and enhancing our national security;
• investing in families;
• investing in a more skilled and dynamic workforce;
• investing in alternative transport fuels; and
• providing additional assistance to those suffering the effects of the drought and those receiving structural adjustment payments following measures to protect the Great Barrier Reef Marine Park.

The more significant measures for which appropriations are proposed include:

• $64.7 million to fund Australian police deployments in East Timor (including the contribution to the United Nations Integrated Mission in East Timor); and to expand the International Deployment Group by about 114 personnel in 2006-07. The expansion will allow the AFP to respond more quickly and comprehensively to crisis situations and will help to strengthen law enforcement capabilities across our region;
• An additional $46.2 million to deliver Stage 1 of the Enhanced Land Force initiative to increase the size of the Australian Army by one light infantry battalion.
• This will ensure that we have the capability to act in a manner commensurate with our regional responsibilities and to contribute to coalitions in areas further afield.
• A further $49.6 million is proposed to implement a number of innovative recruitment and retention initiatives to ensure the Australian Defence Force is able to attract and retain the people that are central to the maintenance of our defence capabilities.
• It is also proposed to provide $139.4 million for Operation ASTUTE to restore peace and stability in East Timor plus $49.7 million to acquire protective equipment to enhance the security and effectiveness of deployments to Iraq and Afghanistan.
• $34.9 million for the Protecting Australian Families Online package to create a National Filter Scheme to provide every Australian family with a free Internet filter as part of a comprehensive package of measures to crack-down on the scourge of Internet pornography;
• $53.6 million for the Skills, for the Future investment programme to support people aged 25 years and over who do not have a year 12 or equivalent qualifications and to promote career opportunities under the Skills for the Future initiative.
• Each year up to 30,000 vouchers valued at up to $3,000 will be made available to individuals in this group to undertake accredited literacy/numeracy, basic education and vocational certificate II courses;
• $136.1 million to encourage consumers to purchase new LPG vehicles and to convert existing vehicles to LPG;
• An additional $12 million to support primary producers in regions that
• have been declared eligible for Exceptional Circumstances assistance;
• and an additional $14 million to support primary producers in regions
• that have been declared eligible for interim income support.
• A further $17.3 million will be provided as taxable grants of up to $5,500 for eligible farmers, in areas that have been Exceptional Circumstances declared for more than three years, to obtain professional business and planning advice.
• $84 million has also been allocated for the Great Barrier Reef Structural Adjustment Package.

Strong Economy and Sound Budget Management

I wish to emphasise that the capacity of Government to respond effectively to the areas of need I have just outlined, is only possible because of our continuing strong management of the economy and ongoing economic reform.

The 2006-07 Mid-Year Economic and Fiscal Outlook reported that the economic and fiscal outlook for Australia remains sound, although the economy is being affected by a severe drought.

Since 1996, the economy has enjoyed a long period of sustained growth; in 2006-07 it is forecast to grow by 2½ per cent. During this sustained period of growth, the unemployment rate has fallen to 30-year lows, while inflation has remained moderate. The Consumer Price Index fell by 0.1 per cent in the December quarter 2006, to be 3.3 per cent higher than a year ago. The December quarter outcome was the first fall since the March quarter 1999, and reflected a sharp fall in petrol prices. In the period ahead, the CPI is expected to grow at a moderate rate.

The fiscal outlook continues to remain sound. The Government expects an underlying cash surplus of $11.8 billion for 2006-07, while surpluses are forecast over the forward years. These projected underlying cash surpluses emphasise Australia’s sound fiscal outlook at a time when many of the major advanced economies are continuing to experience significant deficits.

The Government has eliminated Commonwealth net debt and commenced saving for the future. $22.2 billion has been transferred to the Future Fund over the past two months, bringing the Government’s total contribution to over $40 billion. This is a significant contribution to help meet the Government’s superannuation liabilities. By addressing superannuation liabilities, the Future Fund will strengthen the Government’s financial position and help reduce pressures on the budget at a time when there will be spending challenges arising from an ageing population.

Conclusion

The people of Australia have enjoyed unprecedented economic prosperity thanks fundamentally to the Government’s impressive macroeconomic management. Through its commitment to sound financial management, the Government has put the budget in surplus, retired Government net debt, and commenced saving for its future obligations. This will free the next generation of Australians to meet their own challenges, unencumbered by the legacy of past Labor Governments that spent beyond their means.

These Bills are important pieces of legislation underpinning the Government’s programmes and reforms and deserve widespread support.

I commend the Additional Estimates Bills to the Senate.

Question negatived.

Original question agreed to.

Bills read a second time.