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

I move:

That these bills may proceed without formalities, may be taken together and be now read a first time.

Question agreed to.

Bills read a first time.

by leave—I move:

That the provisions of paragraphs (5) to (8) of standing order 111 not apply to these bills, allowing them to be considered during this period of sittings.

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

Mr President, the opposition will not oppose the exemption from the cut-off. I think it is clearly the will of the majority of the Senate that these bills again be debated, today. However, I trust that the government side and indeed the crossbenches are ready to debate these bills, if it is the will of the Senate that they be debated today, and that they be debated and brought to a conclusion. We on the opposition side do not want to see yet again another episode of filibustering, with backbenchers coming in here and making inane 15- or 20-minute contributions simply to fill in time while the government desperately try to buy off Senator Xenophon. We have seen a circus from the government. I trust, if they want to bring these bills on today as they want to override the proper cut-off order in this, that they are ready to deal with these bills and bring them to a conclusion and that we do not have a parade of filibusterers.

What this whole episode has revealed is the arrogance of this government. This government has now been mugged by the reality that this is a bicameral parliament; this is a parliament in which the government has a minority in the Senate. It has to deal with that reality. It is a reality which Mr Rudd has completely ignored. Mr Rudd comes to the parliament, dumps a $42 billion spending package on the table and says, ‘Pass this or else!’ That is not the way to deal with a bicameral parliament in which the government is in a minority in the Senate. If this government does not want to be held to ransom by the crossbenches, it had better learn pretty quickly that it needs, with major packages of this kind, to negotiate with the opposition, otherwise it will continue to be held to ransom—

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

You said no!

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

The government comes in and says—

Government Senators:

Government senators interjecting—

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

Order on my right!

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

‘Pass this $42 billion package or else!’ Never at any stage did it come to the opposition and say: ‘We have a crisis on our hands. We believe a major stimulus package is required. We want to deal with the opposition, the alternative government of the country. We want to come to an agreement with the opposition as to the appropriate package to provide a stimulus to the economy.’ Never at any stage was that done. Instead, they just landed the $42 billion on the table and, in Whitlamesque fashion, said, ‘Crash through or crash.’ Well, the government has crashed and it is now having to trade with the minor parties.

That all could have been avoided if this arrogant government had had the wit to sit down with the opposition and negotiate a sensible package to provide the stimulus that this country needs. We accept a stimulus package, but we do not accept $42 billion of expenditure—$9,500 of debt for every man, woman and child in this country. We do not accept that. The government could have negotiated a sensible package with us. Now we have this farce of the government negotiating with the crossbenches, buying them off to get a package through the parliament. It is outrageous and I hope this government has learned a very good lesson from this whole episode.

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

I thank the opposition for their support in having these bills dealt with today. I appreciate that they are prepared to allow us to debate these bills again without applying the cut-off. It is the sort of cooperation we welcome from the opposition. They have a very keen interest in having these matters resolved. They have a very keen interest in having them passed, because they know, if they have opened the Adelaide Advertiser or any other paper today, that if these bills are not passed they will wear the political blame. Certainly Senator Xenophon has got a lot of focus today, but the opposition know what the long-term political impact will be if these bills are not passed, so I appreciate their support.

I just rose to make the very simple point that everyone now understands: the reason the government is negotiating with the minor parties is because they are willing to negotiate. They take an interest in these issues. They accept that the stimulus package is in the national interest. What we are arguing about is the detail. Each of the minor parties has made a contribution to that. We have had our disagreements, but they are focused, as we are, on getting the package passed. The opposition dealt themselves out of the game last Wednesday. They said: ‘We will block it in the House of Representatives; we will block it in the Senate. We will make ourselves totally irrelevant to the process. We will not accept our responsibilities as parliamentarians or as an alternative government. We will rule ourselves out of the process.’ That is the decision they made; that is the decision they have to live with. They have come in during the last couple of days and said: ‘Why don’t they talk to us? Why don’t they negotiate with us?’ Because you declared you would oppose this every step of the way. And, while you may be feeling the heat and you may like to change your position, everybody knows that you decided that you would play long-term politics rather than act in the national interest.

Opposition senator after opposition senator came into this chamber and made big speeches about debts and Gough Whitlam. They convinced themselves of the righteousness of their position. They said, ‘Maybe in a year or so we can say we told you so.’ They said, ‘We’d rather play long-term politics than engage in the national interest today.’ So do not come in here and cry about not being consulted. The opposition dealt themselves out. Peter Costello went into the party room and frightened Malcolm Turnbull, and they all convinced themselves that they were better off sticking together and going down together on this ridiculously irresponsible path.

I know, from what I have read in the paper, that both your leader and deputy leader in this place did not agree with this tactic; they understood the stupidity of this tactic. It has been reported, and it has not been refuted as far as I have seen, that the leadership in the Senate actually said, ‘This is madness.’ There was an interesting combination: I understand Mr Pyne and Senator Minchin were as one on this. This is only just short of a miracle. There was an epiphany in the Liberal Party’s party room: Mr Pyne and Senator Minchin agreeing. That is what the Liberal Party has come to. This is the parlous state they have come to, that they both went around the back and met. I would have loved to have been a fly on the wall.

Mr President, to return to the very serious debate at hand, the reason the government are negotiating with the minor parties on this package is because we believe it is in the national interest to have a proper stimulus package to try to protect Australian jobs. We are very focused on that. We think it is important. The opposition have said they are not interested. They are going to vote no. They are not going to support Australian jobs; they are not going to support Australian families. They are just going to vote no. They have dealt themselves out of the debate. So I appreciate that the minor parties are cooperating with the government in the negotiations. I appreciate the responsible position the Greens, Senator Fielding and Senator Xenophon have taken. I would hope that Senator Xenophon and the minor parties today would again consider their position and support the government in trying to get these bills through. We are open to negotiation; we are open to trying to get the right package—not at any price, though, but it is important. We do regard it as a matter of urgency; we do think it is in the national interest and we would appreciate the support of the Senate.

If the opposition want to be relevant and think that this should not go on for a long time today, vote for the package; vote for the package and all will be resolved. If you think that the minors are holding people to ransom, as you say, act as an alternative government, act responsibly, and pass the package. If you indicate that today, clearly we will move through this very quickly. The decision is in their hands, Mr President. I appreciate their cooperation on procedural matters. That tells you where their hearts really lie on these issues. Hopefully, by the end of the day the Senate will support what is an important, responsible and urgently needed package of stimuli to protect jobs and to protect families from the worst effects of this global financial crisis.

Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

We again have an opportunity to get this stimulus package out there working for the economy. We will know within a few hours whether that is going to happen or not. The stakes are very high indeed. Listening to the opposition and the government a moment ago reminds me of how strange the world can be. Meanwhile outside the parliament we have Chinalco and Rio Tinto, the commissars of communism and the captains of capitalism, getting together and trying to get the Beijing power elite a purchase hold on Australian resources, shutting out their shareholders along the way. It is going to be interesting to see what happens there.

The Greens have been concerned about this package. I have made that very clear. In particular, we have had a lot of feedback from the public about what the opposition has called the cash splash—the tax bonuses. Billions of dollars going to—

Fiona Nash (NSW, National Party) Share this | Link to this | Hansard source

It is not a bonus; it is a loan.

Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I understand that. The opposition is right: this package will put the nation into debt—further debt. But I suspect that if the Howard government had stayed in power at the last election we would be doing exactly the same thing here in the parliament right now. The fact is, the opposition wants a multibillion dollar rescue package, just not this one because it has the government’s imprimatur.

The Greens, for all of that, have negotiated with the government. The outcomes have been extremely welcome. I heard the opposition complain yesterday that the Greens component of this package has double the jobs dividend of the rest of the package. I can tell you that that is exactly where we wanted to go in our negotiations: creating jobs in Australia, particularly local jobs and particularly green skill jobs, because that is where the economy will be going in the future.

For the first time getting the national government to focus on energy efficiency and water efficiency in new housing stock is a real breakthrough. It has been previously left to the states. We only had to listen to the federal bureaucracy before the Senate committee last Friday to understand that there was almost zero recognition of global housing standards on such things as insulation, solar hot water heating and—

Stephen Parry (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Pink batts.

Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

The opposition seems to think that pink batts—insulation—is a joke. It is a global industry and this component of this package—

Barnaby Joyce (Queensland, National Party) Share this | Link to this | Hansard source

Will be imported.

Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

The Leader of the National Party interjects.

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

Ignore interjections, Senator Bob Brown. You have been here long enough to know that. Address your comments through the chair. Those people being disorderly should refrain from interjecting.

Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I would like to, Mr President. I want to talk about the wool industry for a moment. The wool industry has been producing—

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. If I am not mistaken, we are not doing second readers; we are in fact discussing a procedural motion in relation to the cut-off. I would invite you to invite the Leader of the Australian Greens to in fact address his comments to the procedural matter before us.

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

The debate has been wide ranging. Senator Brown may continue.

Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

There is no greater compliment to me than for Senator Abetz to try and cut me short. The wool industry has developed insulation. I would have thought that we would have had the opposition benches promoting that at the moment and trying to see that it got the kick-along that it deserves. Instead, that has been left to the Greens.

Opposition Senators:

Opposition senators interjecting—

Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

That got them going, didn’t it! We have been able to get the liquid assets test, which applies before the unemployed are eligible for Newstart allowance, increased from $2,500 to $5,000. I remind the opposition that in 1997 it was the Howard government that imposed this harmful, punitive measure on people who lost their jobs. They said, ‘You’ve got to use your savings before you’ll get some unemployment assistance.’ That was a punitive measure by the Howard government. The Greens, in cooperation with the government, have been able to have that reversed. We would like to see it removed altogether.

There are $200 million in grants to local government, churches and other community organisations for job creation. That part of the package negotiated by the Greens alone contains 6,000 to 7,000 jobs.

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

This is a motion for an exemption of the cut-off, Senator Brown.

Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I am trying to argue why this measure should be exempt from the cut-off—so that these matters can be dealt with. You might remember that they were blocked by the opposition and Senator Xenophon yesterday. I am arguing as to why it is urgent that these be dealt with today and that we get the exemption from the cut-off. If we do not get the exemption from the cut-off, we will not get that $200 million package and the 6,000 to 7,000 jobs across Australia that would be created as a result of it.

The exemption would also allow us to proceed to discuss the $50 million extra to assist low-income earners and the unemployed. There is $10 million for bioremediation—Senator Hanson-Young and Senator Siewert were very keen to see something get done for the lower Murray—which will create jobs in the very area worst affected by the impact of drought on the lower Murray River.

If we can get the cut-off, there will also be $40 million extra for bikeways, as discussed. This is a major breakthrough in government thinking at the national level. It will be a precursor to a much bigger allocation in Infrastructure Australia for bikeways in cities and towns, and that includes rural areas right across Australia, as we catch up with the rest of the world in an age of climate change and such simple things as tackling obesity. Bikeways help enormously there. They improve the lifestyle of cities and get cars off the road at the same time.

There is also $60 million for heritage. Let me tell you why the cut-off should not be applied here. If it were, it would mean that this $60 million would have to wait for some future day. Rosslyn Beeby, the science and environment reporter from the Canberra Times, wrote this on 4 October last year:

Australia’s cultural heritage has been plunged into a crisis of neglect, as federal funds drop to their lowest level in more than 30 years, leading experts say.

A letter to heritage minister Peter Garrett, signed by 37 of Australia’s heritage heavyweights, says funding is:

… only going to major sites with powerful lobbies or to military sites overseas.

The letter also says that heritage conservation funding has been slashed. Now was this, under the Howard government. Members of the opposition might note that the letter states:

Heritage funding has been slashed to $200,000 for the whole of Australia this financial year, with no support for research or skills critical to protecting Australia’s historic heritage.

The Greens are rectifying that. It has taken the Greens. The opposition could have taken this position, but it did not. It has taken the Greens, with the good offices of the government, to bring in here $60 million, as against $200,000, for refurbishing Australia’s national heritage—its built heritage and its natural heritage.

There is much more in here, including a reassurance of $5 million per annum to Australia’s Bushfire Research Centre in Melbourne—and hopefully to upgrade that to a global bushfire research centre in an age where catastrophic fires, unfortunately, are predicted not only to become more frequent but to become more devastating, not just in this country but around the world.

So this is a package we are proud of. It is a package all five Greens senators have worked hard, with our staff, to achieve. We came forward with ideas and we met a positive response from the government. We want to see this cut-off applied so that these ideas can reach reality and get out there to help Australians who have either lost their jobs, are threatened with losing their jobs or need reskilling in an age of the greening of the economy so that they will have jobs in the future. So I support the motion.

Barnaby Joyce (Queensland, National Party) Share this | Link to this | Hansard source

In discussing this procedural motion for the cut-off, I think it is very important that we acknowledge exactly what happened yesterday in this chamber. Yesterday in this chamber, Senator Evans, when an adjournment was required, walked down to see Senator Bob Brown of the Greens and handed him the motion for Senator Brown to read out. Senator Brown, on behalf of the Greens, did Labor’s bidding. That is how close the arrangement is.

Government Senators:

Government senators interjecting—

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

Order!

Bob Brown (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, that was a complete manufacture. I will lend the honourable senator my glasses.

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

What is your point of order? There is no point of order. Senator Joyce has the call, but I draw his attention to the procedural motion.

Barnaby Joyce (Queensland, National Party) Share this | Link to this | Hansard source

I am discussing, Mr President, how we got to this procedural motion. Senator Evans was basically instructing Senator Bob Brown to do the Labor Party’s bidding on this issue and then, when it was actually mangled, we had Senator Ludwig correcting Senator Brown’s motion. At least within the coalition between the National Party and the Liberal Party it is open and transparent. But their coalition is something that is—

Government Senators:

Government senators interjecting—

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

Order! I understand that there is a little bit of excitement around the chamber this morning. Senator Joyce, though, is entitled to be heard in silence.

Barnaby Joyce (Queensland, National Party) Share this | Link to this | Hansard source

So the Labor Party were correcting Senator Bob Brown’s motion in this sort of nefarious approach they have to manipulating the structure of what is going on here. And the reason the Greens are very upset today is that Senator Xenophon has done a better job than them in protecting the Murray-Darling. Senator Xenophon actually had the courage and the conviction to go to bat for it. The Greens stayed back behind. I do not agree with the Greens but it surprises me today that we have to rely on Senator Xenophon to be doing their bidding. The Greens have compromised themselves on this issue and they have sold out to the Labor Party.

Government Senators:

Government senators interjecting—

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

Order! Senator Joyce, you are entitled to be heard in silence. Those on my right will cease interjecting.

Barnaby Joyce (Queensland, National Party) Share this | Link to this | Hansard source

They are supporting this motion. It is good that we are having this debate. But what is it all about? It is about selling Australia’s future, putting us in hock for up to $200 billion.

In my former life I was an accountant and all the time I would have people coming to see me and saying, ‘I think I am in so much trouble I may lose my house.’ One in the unfortunate things you would have to say to them is: ‘Yes, you are going to lose your house; it is gone. You are so deep in debt. You are out of control and you are drowning in debt.’ And Australia is that house for all of us; it is our communal house. Yet the Labor Party today are marching us towards a point of no return. They know of the view out there that this excessive debt is going to have huge ramifications for the future of this country. And the only people who are selling out—

Steve Hutchins (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Senator Hutchins interjecting—

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

Order! Senator Hutchins, you will cease interjecting. It is disorderly. Senator Joyce is entitled to be heard in silence.

Barnaby Joyce (Queensland, National Party) Share this | Link to this | Hansard source

The Labor Party are arrogant. They have shown no semblance of wanting to engage with this Senate in a constructive package. They have come in here with a gun-to-the-head mentality, showing that this is exactly how they are going to deal with the situation. And in the process we have shown to the Australian people a relationship between the Greens and the Labor Party that is delivered when required, where the Greens do the Labor Party’s bidding, even if it means the Greens have to sell their own people down the tube. That is one of the things that must be brought to light.

This is an arrogant Labor government. It is a government that has no interest in being open and transparent. They are holding a gun to the head of this Senate. They are currently trying to work-over Senator Xenophon. That is the approach that they are taking to the Australian people, and it has not taken them too long to get there. But one thing the Australian people understand clearly is that $200 billion worth of debt is very hard to repay. My question to the Labor Party is: what are you going to sell to pay this debt back? What do you have in mind to sell in order to pay back this Labor Party debt? You know where you are taking us. You know what you are doing to this nation. You know how deeply you are putting us into debt.

Steve Hutchins (NSW, Australian Labor Party) Share this | Link to this | Hansard source

You’ve signed your own death warrant.

Opposition Senators:

Opposition senators interjecting—

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

Senator Hutchins, I have already asked you to cease, on a couple of occasions, from interjecting. It is disorderly. And others on my right are interjecting as well. It is disorderly. Senator Joyce is entitled to be heard in silence.

Barnaby Joyce (Queensland, National Party) Share this | Link to this | Hansard source

Mr President, the Australian people are hearing the Labor Party interjecting and I say to the Australian people who are listening to this that that is because the Labor Party know where the truth lies. They know how smelly this whole process has been in the way they have conducted themselves. They have this arrogant approach: it is my way or the highway. ‘Get out of the way,’ is what the Prime Minister said. That is his form of negotiation: ‘Get out of my way and let me do my dirty work.’ At the same time the connotations are that there is a sort of moral threat if we do not put this package through—as if Mr Rudd is an omnipotent force of knowledge and you must listen to him and deal with his wishes within 48 hours.

If the Labor Party had openly engaged, if they had genuinely wanted to engage, with the coalition then we would have a stimulus package today that would be working. It would be underway. So the problems with the stimulus package rest on the heads of those opposite, because it is the Labor Party’s arrogance that has delivered us this situation. They cannot blame all the people all the time for their own mistakes.

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

Senator Sterle interjecting—

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

Senator Sterle, order!

Barnaby Joyce (Queensland, National Party) Share this | Link to this | Hansard source

I thank you for that Mr President. It is important that we clearly understand that the coalition between the Liberal Party and the National Party represents two distinct parties but on this issue we are as one. At least we are open and transparent about it, but the coalition between the Labor Party and the Greens has been taking the whole of the Australian people for a ride. So we support this motion but we hope that Australia does not have to live with $200 billion worth of debt, because I do not know and the Labor Party do not know—because they have never shown us—how on earth we are ever going to pay that money back.

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

The question is that the motion moved by Senator Sherry be agreed to.

Question agreed to.

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

I table a statement of reasons justifying the need for these bills to be considered during these sittings and seek leave to have the statement incorporated in Hansard.

Leave granted.

The statement read as follows—

Purpose of the Bills

The two Appropriation Bills are supplementary additional estimate appropriation Bills which request legislative authority for further expenses to be incurred in 2008-2009 in relation to the Government’s Nation Building and Jobs Plan. Passage of the Bills by 5 February 2009 will allow funds to be made available to departments, thereby ensuring implementation of the programs relating to the package.

Further annual appropriation bills are required to fund a number of measures announced on 3 February 2009. They include funds for the Building the Education Revolution, Energy Efficient Homes, regional and local community infrastructure, the Black Spot Program, repairing regional links on the national highway network and social housing. The additional funding required exceeds what is currently available to the departments and from the Advance to the Finance Minister. The 2008-2009 Additional Estimates Bills are not expected to be agreed to by Parliament until the end of the 2009 Autumn Sittings. Consequently, a set of supplementary bills is required to ensure implementation of the Plan.

The Household Stimulus Package Bill (No. 2) 2009 provides for necessary amendments to deliver on the announcement to provide one-off cash payments to eligible families, those in education and training, and drought affected farmers as part of the Plan.

The Tax Bonus for Working Australians Bill (No. 2) 2009 provides for a tax bonus payment that is to be paid to eligible Australian resident individual taxpayers from April 2009. The Commissioner of Taxation will administer the bonus payments. The bonus will be paid to eligible individual taxpayers based on whether they paid net income tax in the 2007-08 financial year and had a taxable income of $100,000 or less.

The Tax Bonus for Working Australians (Consequential Amendments) Bill (No. 2) 2009 also makes amendments consequential on the enactment of the Tax Bonus for Working Australians Bill (No. 2) 2009 to ensure that the bonus payments will not be taken into account for taxation purposes and also for the purposes of income testing for social security and family assistance payments.

The Commonwealth Inscribed Stock Amendment Bill 2009 provides for an increase in the cap on borrowings where special circumstances exist.

Reasons for Urgency

These measures give effect to the announcement by the Prime Minister and the Treasurer in a joint statement on 3 February 2009 outlining the Government’s Nation Building and Jobs Plan. This Plan has the objective of providing immediate stimulus to the Australian economy in the face of the global downturn.

A range of important nation building and jobs measures are contained in the Appropriation Bills.  Prompt passage of the legislation is needed so the approval and administrative processes, which involve other levels of government, can be established and the measures begin as soon as possible in 2008-09.

Introduction and passage of the Household Stimulus Bill is needed urgently to enable Centrelink system changes to be made which would provide for payments to begin in the fortnight from 11 March 2009. 

Introduction and passage of the Tax Bills are needed quickly to ensure the Australian Taxation Office can have systems in place and settle system design to ensure tax bonus payments can be made to eligible taxpayers from April 2009.

As a result of the deteriorating global economy and the consequent falling tax revenues, the budget is now expected to move into deficit.

The Commonwealth Inscribed Stock Act 1911 provides for a cap on the total face value of Commonwealth Government Securities on issue at any point in time, currently $75 billion.

This amendment inserts a new power for the Treasurer to declare that special circumstances exist, justifying an increase in the cap.  Once the declaration that special circumstances exist has been published in the Gazette, the cap on Commonwealth Government Securities on issue will be increased by $125 billion.

The amendment must be passed as quickly as possible in the Autumn Sittings to allow for the most efficient and effective management of the Commonwealth Government Securities issuance program.