Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

The Rudd government is very much focused on fighting the inflation challenge because we know inflation hurts families and businesses and undermines our capacity to build a modern, successful economy.

We have been focusing on our five-point plan. The first point is fiscal restraint, with the aim of delivering a budget surplus of at least 1.5 per cent of GDP in 2008-09. That fiscal discipline is vital to us in beating inflation. We have to find spending cuts. We have to cut the wasteful spending, such as the regional rorts program run by the previous government, and deliver the fiscal discipline that the previous government failed to deliver. We have to provide incentive to encourage private savings. We have already made a start on that with the First Home Saver Accounts, but more will be done.

We have to tackle the chronic skills shortage in the economy. I was blown away the other day when, I understand, the shadow Treasurer apparently claimed there is no skills crisis. I do not know where he has been, because every business that comes in my door, every business organisation that talks to me, says they have a skills crisis. But, according to the rudderless opposition, they do not think there is a skills crisis. As I look across the chamber, I see a skills crisis all right!