Michael Forshaw (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to Senator Evans, the Minister representing the Prime Minister. I ask: will the minister update the Senate on progress of the government’s luxury car tax measure and the implications for the budget surplus?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank Senator Forshaw for the question. As government senators would be aware, we are in a time of very uncertain economic conditions. The shocks to the global economy have, I think, created doubts about the future economically. It is a time when we certainly need steady and responsible financial management. Certainly this government sought to provide that leadership and that fiscal responsibility in its budget in May and, as part of that, the government sought to have a surplus of $22 billion, a significant surplus which was designed to buffer the Australian economy against those international factors and to ensure our capacity to fight inflation and put downward pressure on interest rates. We regard it as our main priority to assist Australian families by fighting inflation, trying to overcome the Liberal legacy of high inflation, and trying to overcome the Liberal legacy of 10 interest rate rises in a row.

The budget surplus is designed to assist Australian pensioners and Australian families in fighting inflation, which so corrodes their purchasing power and so corrodes their standard of living. It was a strategy which was widely endorsed in economic circles. They said it was a responsible budget because it provided the sort of buffer and security that was necessary for the economy.

Mr President, as you are aware, this morning, after last night’s debacle where the opposition could not successfully vandalise—

Opposition Senators:

Opposition senators interjecting—

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

They set out to be vandals and they could not even do that properly. I thought at least they were good at destruction but, no, they could not even do that properly. The Senate on the second reading defeated the luxury car tax bill, as is its right. It was defeated on the second reading, unfortunately, before there was any detailed debate, before senators could move amendments and before there was any real consideration of the bill.

That was a decision the Senate took this morning. Unfortunately, it knocks a half a billion dollar hole in the government surplus—half a billion dollars we do not have any longer—that undermines the capacity of this government to fight inflation and to bring downward pressure on interest rates. The surplus that was designed to help Australian families by fighting inflation by putting downward pressure on interest rates has been fundamentally undermined by the decision to defeat the luxury car tax and knock a half a billion dollar hole in the budget.

I want to make it clear: the government is not giving up the fight to defend this budget and we are not giving up the fight to have the luxury car tax bill carried by this parliament. Next week we will reintroduce the bill—

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

Next week is not a sitting week.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Next sitting week we will attempt again to get the Liberals to become responsible and to say the needs of Australian families are more important than those of the purchasers of luxury cars.

Opposition Senators:

Opposition senators interjecting—

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

We ask all senators to put Australian families first. Put families first!

Bill Heffernan (NSW, Liberal Party) Share this | Link to this | Hansard source

Mr President, on a point of order: can he stop yelling? Farmers do not consider four-wheel drives luxury vehicles, and that is why the government failed.

John Hogg (President) Share this | Link to this | Hansard source

There is no point of order. Senator Evans, you have 14 seconds left.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Put Australian families and pensioners first rather than putting luxury car owners first.

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

I draw the attention of senators on my left to the fact that Senator Parry is waiting for the call.