Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

My question is also to Senator Conroy. The minister can stop shaking, because it is not about the broadband fiasco but in his role representing the Treasurer. Will the minister rule out issuing debt, or in any other way borrowing, to fund the government’s infrastructure programs?

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

I thank Senator Macdonald for what may be the first question he has ever asked me in question time. As I said earlier this week in response to a question, in MYEFO the government is forecasting a modest surplus; however, as I have also said, as global conditions deteriorate that position will become tougher and tougher. Let me reiterate that the Rudd government remains committed to taking whatever action is necessary to strengthen growth and limit the impact of the global recession on Australian jobs.

Our strategy is to run budget surpluses on average over the medium term and to allow the automatic stabilisers in the budget to do their job. This is the position of a responsible government. MYEFO made it clear that the global financial crisis and the recession that has resulted have taken $40 billion off the budget surplus over the forward estimates. MYEFO is a reminder that, notwithstanding the sound state of our economy and the regulatory framework that underpins it, our budget is not immune from the global financial crisis, which has delivered a global recession and budget deficits all around the world. To put it into context for those opposite, some of the largest economies in the world are forecasting budget deficits in 2009. Specifically, the following countries have forecast budget deficits—at the stated shares of GDP—in 2009: the United States, minus 4.6— (Time expired)

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. My question was about government infrastructure programs and whether the government would be borrowing or issuing debt for them. I am sure that the minister is aware that the Building Australia Fund will have a capital of $12.6 billion. How much of that proposed capital will have been provided by the Rudd government and how much of that capital will have come from the surpluses built by the former coalition government?

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

Again we have the situation where we are asking questions across different representational responsibilities, but I am happy to give Senator Macdonald some information. The government remains strongly committed to a nation-building agenda, which is a key part of our Economic Security Strategy. The government has established the Building Australia Fund, the Education Investment Fund and the Health and Hospitals Fund to fund critical economic and social infrastructure. Legislation to set up these funds will be introduced shortly. We have already injected $26 billion into the funds, including $12.6 billion into the Building Australia Fund.

Opposition Senators:

Opposition senators interjecting—

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

It is your money—exactly right. As I said, we have already injected $26 billion into the funds, including $12.6 billion into the Building Australia Fund. (Time expired)

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. The minister has mentioned the $12.6 billion. Isn’t it a fact that $7.5 billion of that comes from the 2007-08 surplus created by the Howard government, $2.7 billion of it comes from the T3 proceeds, which was done by the Howard government, and that the balance of $2.4 billion comes from the Communications Fund, which was also established by the Howard government? I repeat: how much is the Rudd government putting into the Building Australia Fund and how much is the previous coalition government responsible for? If, Minister, you are going to suggest to me that the Labor Party is going to put anything into it, how could anyone believe that when last time you were in government you left a deficit of some $96 billion?

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

I will reiterate what I have already said in a previous answer, because Senator Macdonald has chosen to ignore the answers that have been given when he asked the questions. The Rudd government has established the Building Australia Fund, the Education Investment Fund and the Health and Hospitals Fund to fund critical economic and social infrastructure. As I mentioned, legislation to set theses funds up will be introduced shortly and we will be looking forward to your support for that. We have already injected $26 billion into these funds, including $12.6 billion into the Building Australia Fund. It could not be clearer than that. The government has asked Infrastructure Australia to bring forward its interim national priority list by December of this year— (Time expired)