Annette Hurley (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Superannuation and Corporate Law, Senator Sherry, the Minister representing the Minister for Finance and Deregulation. Can the minister update the Senate on the steps the government is taking to govern as economic and fiscal conservatives whilst also addressing the key issues affecting working families across Australia?

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

I thank Senator Hurley for her very important question. The Rudd Labor government is delivering on its election commitments and promises. There are no core or non-core promises, as we saw from the previous Liberal government and made infamous by the declaration by the former Prime Minister, Mr Howard, of core and non-core promises after his election in 1996. We make commitments, we make promises and the Prime Minister, Mr Rudd, determines that we will deliver on all our promises and commitments.

Firstly, in respect of the budget, one of the important elements of the budget was our determination to tackle the legacy of high inflation, at a 16-year high, left to us by the former Liberal government. High inflation leads to upward pressure on interest rates, and that is why we have delivered a fiscally conservative budget. That is what is required, particularly in these uncertain times when we have seen the US subprime financial crisis and the impact of international oil prices. So the budget was carefully designed to deliver a significant surplus, some $22 billion in the next financial year, and to fight inflation by targeting government spending. But, in addition to that, one of the other major themes and commitments in the budget was to deliver a $55 billion family support package—$55 billion for a range of assistance to families in Australia. The budget also delivered a $22 billion package of support for building Australian infrastructure, $10 billion for the health and hospital fund and a further $11 billion for the Education Investment Fund. Education, health and infrastructure are very important areas. They are areas that were seriously neglected by the previous Liberal government.

After all of this we are proposing and we hope to deliver a $21.7 billion surplus—we are not sure because of the wrecking that is occurring as a consequence of the Liberal opposition’s irresponsible reference of a range of measures to so-called committees of inquiry, which will delay what we would hope would be the passage of those measures. The surplus is built on substantial savings of $33 billion over four years, including $7 billion in savings, through a disciplined fiscal approach, in 2008-09 alone. We have seen in this budget the lowest real increase in spending in almost 10 years. We have delivered on fiscal conservatism and budget responsibility, despite the vandalism we are seeing from the Liberal Party and the National Party—I cannot call them something else yet—and their irresponsible approach.

Honourable Senators:

Honourable senators interjecting—

Alan Ferguson (President) Share this | Link to this | Hansard source

Order!

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

Of course, as a consequence of the referral of these various bills to committees, we will see the budget surplus lowered by some $284 million. So we are seeing the surplus, as a direct consequence of the irresponsibility of the Liberal and National parties, being reduced by $284 million. This will put upward pressure on inflation.

Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

That’s nonsense.

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

No, it’s not nonsense, Senator Minchin, because I can recall you saying very similar things in the past—

Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

No.

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

when you were a fiscal conservative. But unfortunately, Senator Minchin, now the Liberal opposition leader in the Senate and former minister for finance, you have dropped the ball in the last year or two. We are not going to. (Time expired)

Alan Ferguson (President) Share this | Link to this | Hansard source

I inform the Senate that leave has been granted for Senator Barnett to table his document.