Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Hansard source

It is important to update the Senate and the Australian public on the daily threats to the budget surplus. The Labor government will build a strong budget surplus of some $22 billion in the next year to fight inflation. It is very important to fight inflation, which is running at a 16-year high, in order to put downward pressure on interest rates. One of the ways to fight inflation is to have a significant budget surplus, which we have—as I have indicated—of some $22 billion. A very strong surplus is necessary for Australia if we are to fight inflation, and that is inflation we inherited from the Liberal-National Party coalition opposite when they were in government. There is greater pressure because of a range of global factors. We have seen the impact of the US subprime crisis and also of world oil prices. We know that the decision by the Liberal-National Party opposition to cause irresponsible delays to key budget measures in a range of legislation in the Senate will mean that, by the time we come back in about eight weeks, we will have lost approximately $284 million.