Dean Smith (WA, Liberal Party) Share this | Hansard source

Sometimes in politics progress can be very slow, but I would like to congratulate the Labor Party on their contribution just then because we might have seen a glimmer—just a glimmer—of progress when it comes to reforming our nation's financial mess. I would like to start by talking about Senator Moore's contribution. It was very pleasing to hear Senator Moore suggest that the opposition is not necessarily opposed to the idea of a Commission of Audit. That is a small tick. We heard from Senator Moore that the Labor opposition is not opposed to reviewing programs to make sure that we do get better value for taxpayers' money, so that is a small tick. It was heartening to hear Senator Moore's contribution where she said that the Labor opposition is not alleging automatically that the new government will slash services to Australian taxpayers. So progress is slow in politics but I think, ladies and gentlemen, we might have had a glimmer of some progress in Senator Moore's contribution just a moment ago.

Senator Moore made the point, quite correctly, that we should start as we intend to finish. I think that is very, very important and I would like to come back to that point in a moment. However, what we did not hear from the Labor opposition was an admission that there is a problem. We did not hear from the Labor opposition that we have a problem in our country. I do not think Australian voters will accept that; I do not think Australian voters will buy that particular suggestion. So do not believe Senator Moore, do not even believe Senator Smith; however I would like to quote from a number of eminent commentators in our country. I thought I might start with Paul Kelly from the Australian. He provided some commentary around the Commission of Audit when it was first announced by our Treasurer and by the Minister for Finance, my Western Australian colleague Senator Cormann. So do not believe me, do not believe the Labor opposition; instead let us hear what Paul Kelly from the Australian had to say. He said:

This was documented by Finance Minister Mathias Cormann, who said that in six years of ALP government the average annual spending increase was more than 4 per cent in real terms, irrespective of Labor's fiscal rules.

So irrespective of what the previous government had tried to do, average spending increased by four per cent annually.

This figure will haunt Labor.

Not my words, not Tony Abbott's words but Paul Kelly's words about the performance of the previous government.

In short, the fiscal stimulus from the 2008-09 global crisis created a new spending plateau—

under the former government. Mr Kelly said:

The daunting strategic task facing Abbott and Hockey now emerges: they seek to impose off the Audit Commission a vast fiscal and public sector efficiency reform on an economy that is fragile and facing great investment uncertainties.

There is a problem and it needs to be addressed, but we heard not a hint from the Labor opposition that this country might be facing some dark days. So that is Paul Kelly.

I would also like to quote Adam Creighton, the economics contributor to the Australian. Adam says, in a very, very informed article in the Weekend Australian on 26 October this year:

Australia's apparent immunity to the economic travails of Europe and the US rests mainly on China's powerhouse economy and its demand for our resources.

This conveniently papers over an economy beset by excessive regulation, public spending and federal dysfunction.

This is an economy that was presided over for six years by the now Labor opposition, and we heard not one word in the previous speaker's contribution that there was a problem. Adam goes on to say:

Resource revenues are tipped to recede, leaving Australian governments' growing structural deficits starkly exposed. The RBA is anticipating a slump in mining investment and early signs other sectors will take up the slack aren't promising.

Unemployment continues to edge towards 6 per cent and investment levels outside mining, as Reserve Bank deputy governor—