Michael Ronaldson (Victoria, Liberal Party) Share this | Hansard source

What a very silly speech from someone who I think should have known better. It is interesting that the only people who are actually concerned about the interest rate rise today, delivered by an independent Reserve Bank, are those on this side of the House because we are aware of the pain that will cause. Quite frankly, I have seen nothing but crocodile tears from the other side. You are actually pleased about the interest rate rise today because you can talk about it for political reasons. You are shedding crocodile tears, your hands are over your mouth, but underneath you are smirking about the fact that there was an interest rate rise.

The RBA made it quite clear today that this interest rate rise is due to the strength of the economy. It strongly reinforces the message that even with a strong economy there are challenges and pressures, and they have to be very carefully managed. It does require the commitment of senior government financial managers. It requires experience, dedication and commitment from the Prime Minister, the Treasurer and the finance minister. It is not the sort of management that you would trust to inexperience. It reinforces the point that even a strong economy needs safe hands to make sure that the levers are pulled properly. What you need is a Prime Minister and a Treasurer who are working together for short-, medium- and long-term gains. You do not need a Prime Minister without policies and you do not need a Treasurer without any ideas.

That effectively is what Senator Conroy is acknowledging today—their alternative is a Prime Minister with no policy and a Treasurer with no ideas. The cat was let out of the bag today—the inexperience of this alternative team. The shadow Treasurer, the would-be Treasurer, and his leader, who will be required to work together to manage this economy, cannot even get their lines right. The shadow Treasurer indicated today that he would, as Treasurer, maintain balanced budgets but only at the moment and in the current economic circumstances. When pressed by a journalist as to what his response would be in different circumstances he had no idea. His leader needed to step in over the top of him and say, ‘Our policies mirror the government’s policies.’ I can tell you quite clearly that this government’s policy does not under any circumstances countenance non-balanced budgets—deficit budgets. We have made that quite clear and we have stuck to that. That indeed has delivered to this country the sorts of outcomes that the Labor Party can only dream about. It has delivered low inflation and unemployment rates which are their lowest in 33 years. Already the shadow Treasurer, the would-be Treasurer of this country, has acknowledged that he may well deliver deficit budgets.

I am sure there is no-one listening to this today who would, under any circumstances, countenance the delivery of deficit budgets. This government has been able to maintain strong economic growth, low inflation, low employment and low interest rates on the back of surplus budgets. But three or four months out from an election we have an acknowledgement from the would-be Treasurer of this country that he will potentially run deficit budgets. I do not need to tell you what the outcome of that would be. It would be higher inflation and higher interest rates. (Time expired)