David Johnston (WA, Liberal Party, Shadow Minister for Resources and Energy) Share this | Hansard source

I move:

That the Senate take note of answers given today to questions without notice relating to Budget 2008-09.

One of the things that I want to stress in taking note of answers given today to questions about the budget is that a good budget, as we have seen in 10 consecutive years under Mr Costello, achieves three things: firstly, it is fiscally responsible; secondly, it focuses upon assisting those who are most in need; and, thirdly, it provides a vision for the future. This budget, as delivered by Treasurer Swan, increases expenditure by $34 billion over the next five years—and this is under the umbrella of Mr Swan fighting the inflation dragon. Thirty-four billion dollars is one of the greatest pieces of government expenditure this country has ever seen, on top of a $22 billion surplus, which is almost entirely delivered by the efforts of the previous Howard government.

Taxes are increased in this budget by $19 billion. If that is not inflationary, I do not know what possibly could be. But, worse than that, unemployment is increased by 134,000. One hundred and thirty-four thousand might not sound like much when you say it quickly, but it is bigger than the crowd at the grand final at the MCG in September. It is a hell of a lot of people. I also note that not only is unemployment increased by this budget but also, hidden away in Budget Paper No. 1 on page 2-5, interest rates are foreshadowed to increase into 2009. I will quote the words on page 2-5 of Budget Paper No. 1:

The unemployment rate is forecast to rise to 4¾ per cent by the June quarter 2009, as conditions in the labour market ease. This reflects an easing in non-farm GDP growth due to slower global growth, tighter credit conditions and higher interest rates.

Higher interest rates are foreshadowed into 2009. Those famous working families that this budget seeks to protect ought to realise that they are well and truly in the sights of a failed fiscal policy by Treasurer Swan.

This budget throws fuel on the flames of inflation. Food and petrol prices will increase. The head of the School of Taxation at the University of Sydney, in commenting on Labor’s new $2.5 billion tax on crude oil concentrate, said:

Last night they—

Labor—

brought in a tax on condensate ... So that’s quite significant. So that’ll feed through to petrol prices.

I repeat: ‘That will feed through to petrol prices.’ It is absolutely outrageous that we would see $2.5 billion raised through removing the exemption on condensate from fuel excise. Richard Ellis, from the Petroleum Production and Exploration Association, said that the ‘goalposts have been shifted without any consultation’. This is a plundering of oil and gas projects in Western Australia. Oil and gas exploration is under assault by this government to the tune of $2.5 billion. This year it was estimated that that measure would raise only $500 million. Prior to the election, the Labor Party had a policy which said that they would defend energy security in Australia. To impose a tax on companies that are seeking to find oil for Australia is a completely ridiculous way to go about securing Australia’s energy future. It is an absolute disgrace.

This budget fails the fiscal responsibility test. It talks about $40 billion being spent on the Future Fund, a $22 billion surplus, increasing spending by $34 billion, raising $2.5 billion from oil and gas condensate exemptions, but not one cent has been given to pensioners. I think it is an absolute scandal that, in all of this spending—$34 billion—not one red cent has been given to people who have an extremely fixed source of income on a week by week or month by month basis. (Time expired)