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

My question is to the Minister representing the Treasurer, Senator Conroy. I refer the minister to the Financial Review this morning, which reported the following:

Commonwealth Securities economist Craig James cast doubt on the government’s rhetoric by saying that the budget surplus was in such good shape that losing $6.1 billion in revenue over four years would have little impact on the wider economy.

In light of Mr James’s remarks, I ask the minister how the government can seriously claim that there is a major macroeconomic difference between a surplus of $21.5 billion and a surplus of $20 billion. How on earth can a reduction in the surplus from $21.5 billion to $20 billion possibly be described as ‘vandalising the surplus’?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

That question again demonstrates how out of touch those on the other side are from the struggling families who are the victims of higher interest rates due to the irresponsible spending that ‘Doctor Yes’ over there, former Minister for Finance and Administration Senator Minchin, was incapable of dealing with. He could not stand up to the former Prime Minister. He could not say, ‘Look, Mr Prime Minister, do you think that when you took all of those suggested election promises, it was just to pick one, not to pick ten?’ Do you think that former minister for finance Senator Minchin was able to actually do a competent job?

The opposition can opportunistically pull apart the budget any way that they like. But the fact will always remain that the Rudd government is lowering taxes as a share of the economy. We are delivering $47 billion in personal income tax cuts. We are lowering the tax burden on the economy from the 24.7 per cent of GDP that we inherited to 23.8 per cent of GDP. Those figures are unarguable. That is lower than for any of the last six budgets. You can sit there and try to pretend that that is not the case, but the statistics are law. There is no arguing these issues.

When it comes to high-taxing governments, the Liberals take the crown, the cake and every other award you want to give them. Sitting over there are the members of the highest taxing governments. The former Minister for Finance in the highest taxing, highest spending government is sitting there right now asking questions and crying crocodile tears about the economy. The Liberals were the highest taxing government in our history. As I said, taxes as a share of GDP were 24.7 per cent. They imposed a higher tax burden on Australian families than any government in Australian history. Of course, that is in addition to the record inflation they gave Australian families—12 interest rate rises—and the Work Choices regime.

Now, the opposition’s irresponsible and reckless approach in the Senate is putting at risk the responsible economic policies introduced by the Rudd government. They are putting at risk the surplus that will buffer our economy from international forces and improve our ability to effectively fight inflation. It is something they gave up on and ran up the white flag over. Now they want to continue to undermine responsible economic management. They are putting at risk our ability to invest in the future productive capacity of the Australian economy for the benefit of all Australians. (Time expired)

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

Mr President, I ask a supplementary question. If the government is so concerned about inflation, why is it that the government is persisting with tax rises that will make Australian families pay higher prices for gas, for cars, for private health insurance and for a drink at the bar?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

The contrast today between a government outlining our agenda for the future and an opposition playing irresponsible games with a budget surplus in times of need could not be sharper. This country needs responsible economic management for the long term, not the short-term politics like those on the other side of the chamber are engaging in. It is not surprising that those opposite do not have a plan to secure our economy for the future. Between them they cannot produce a single, consistent view. Let us be clear, because again I keep hearing the bellows from those opposite about how taxes are going up. You were the highest taxing government in Australian history. We have lowered— (Time expired)