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

Some of those fiscal packages in other countries include tax cuts; some do not. I went through that in exhaustive detail yesterday. We have tax cuts factored into the forward estimates. We do not reduce these payments lightly, because we know they are essential to support growth and jobs in the near term. But we have decided on this small reduction which maintains the overall effectiveness of the government’s plan to support jobs and growth while taking into account the views of others. The government is acting responsibly to protect jobs and businesses by ensuring these bills are passed. We hope others will see the need to act responsibly and in the interests of Australia at this difficult time.

The government has entered into discussions with all relevant parties on the stimulus package in good faith. As I mentioned, we could have no discussions with the Liberal-National Party; their solution at this time of global fiscal and economic crisis is to do nothing, to wait and see. They have made their position clear. I can say that there have been constructive discussions with the parties and the Independent senator on the crossbenches. The government has had constructive discussions with Senator Brown over the past week. Senator Brown has proposed a number of sensible and pragmatic options, all designed to stimulate the economy and support jobs. The government will be working with Senator Brown to see a number of these proposals realised. Senator Fielding has made a good proposal on a community based jobs plan. The proposal has merit, and we have indicated that we wish to work with Senator Fielding to move the proposal forward. It will require some more work, but we are confident that we can move on it. He feels strongly about the issue; he expressed that yesterday. We share his concern, passion, commitment and focus.

Senator Xenophon has proposed to us over the past week a number of bring-forwards to Murray-Darling programs. That is reflected in the amendments that have been circulated in the Senate this morning. We have indicated to the senator our willingness to bring forward very significant funding. Senator Xenophon this morning has circulated an amendment which deals with the Murray-Darling. The government will not be supporting that amendment. This amendment was not provided nor mentioned to the government before it was circulated. Fiscal responsibility is very important to the government. In order to fund the additional spending that I have already mentioned, the government will move amendments. I am moving one now.

This is the point of decision for the Senate. As I have indicated, we have a deep and rapidly spreading disaster in the world financial system and economy. It was unknown that these effects would occur a year to 18 months ago, and it is spreading very rapidly. No-one would have believed the extent, the size and the depth of the collapse of the world’s fiscal system. This did not happen in Australia and they are events beyond our control, but they do impact on Australia as the economic recession spreads through a number of countries. China has significantly revised down its growth. That in turn affects Australia and its economy, Australia’s demand for minerals, and Australian jobs. This Labor government is not going to stand by and not do everything in its power to underpin and strengthen the Australian economy and jobs going forward during this very difficult time, certainly the most serious economic period since World War II. It is a consequence of what has become known as the US subprime crisis. I have talked on many occasions about the detailed aspects of that.

This package that the government has presented contains a number of very important elements. Many of them have been considered in this Senate. This package has not been rushed. We have until midnight to vote on it. There has been extensive analysis of this package in Senate committees, and that is a good thing. There has been significant debate and discussion yesterday and today on this package. I want to point out, in summary, the important aspects of this package, which is critical in underpinning the economy and jobs over the next couple of financial years. There is the tax bonus for working Australians, the single-income family bonus and the farmers hardship bonus. The National Party is not going to support the farmers hardship bonus. There is the back-to-school bonus and the training and learning bonus. In this financial year, 2008-09, it comes to a total of approximately $12.77 billion, adjusted by the amendments that I have outlined. For 2009-10 and 2010-11, the primary focus is on a number of programs: Building the Education Revolution, giving assistance to every school in Australia, building 20,000 social and defence homes and building energy-efficient homes. There is another issue that I frankly found surprising. We had no comment during the committee stage from the Liberal-National Party on the small business and general tax break totalling some $2.7 billion. They are the so-called champions of small business in this country. The components of the package total $2.7 billion and include a small business and general tax break, which the Liberal-National Party are saying no to.