Helen Coonan (NSW, Liberal Party, Shadow Minister for Finance, Competition Policy and Deregulation) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Sherry. Given that the 2009-10 budget reveals a $210 billion fall in revenue over the forward estimates, will the minister advise the Senate what the major areas of revenue decline are?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Thank you for the question. Quite rightly, as has not been pointed out by those opposite on too many occasions, there is a significant fall in revenue of about $210 billion over the forward estimates and projections, and that has been brought about by—

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

A lack of business confidence in your leader.

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

What a silly interjection!

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

Senator Sherry, ignore interjections.

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

What a silly interjection from Senator Macdonald. He claims it has been brought about by the Prime Minister, Mr Rudd. That is simply not true. As is well known—though perhaps not well known by some in the Liberal and National parties—the world has entered a significant financial and economic recession. We are seeing a significant decline in growth in every comparable economy around the world. In fact, I think Australia is one of two countries that is not in an official recession.

Helen Coonan (NSW, Liberal Party, Shadow Minister for Finance, Competition Policy and Deregulation) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. The reasons for the $210 billion fall in revenue are all very interesting, but the question, and the relevance of the question, was that we simply want to know what the major areas of revenue decline are—not the reasons for it; the major areas of revenue decline.

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

Mr President, on the point of order: I think Senator Coonan actually made the point in taking the point of order that Senator Sherry is directly answering the question as to the impacts of the recession on revenue and the impact on government budgets. I think in taking her point of order, she made the case that Senator Sherry is exactly trying to deal with what is a serious question and he is giving it a very serious answer.

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

Senator Sherry, you have 56 seconds left to answer the question.

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

The global recession obviously has an impact on the Australian economy and in turn has an impact on government revenue. Let me give you some examples, which Senator Coonan has asked for. They are on page 5-46 of Budget Paper No.1, Senator Coonan, if you would care to look. Company tax declines from $61.7 billion to $58.8 billion; superannuation fund tax receipts decline from just over $12 billion to $9.14 billion; fringe benefits tax declines from almost $3.9 billion to $3.4 billion— (Time expired)

Helen Coonan (NSW, Liberal Party, Shadow Minister for Finance, Competition Policy and Deregulation) Share this | Link to this | Hansard source

My supplementary question, which Senator Sherry touched on in his answer to the primary question, is: how does Australia’s decline in revenue compare with revenue levels in comparable jurisdictions—for example, Canada, Sweden or the United States?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Thank you for the question. Obviously, given that we are facing a global recession, the depths of which we have not seen since the Great Depression, other countries in similar ways will be impacted in terms of revenue right across the types of areas that I have indicated. Obviously there will be a reduction in comparable taxes in other countries, depending on the nature and the structure of the various taxes they would have. Certainly with respect to individual income tax, for example, given the significant rise in unemployment that is occurring in other advanced economies—far worse than in Australia, I might say—that will have an impact on revenue from income tax, because receipts from income tax will go down.

Helen Coonan (NSW, Liberal Party, Shadow Minister for Finance, Competition Policy and Deregulation) Share this | Link to this | Hansard source

I have another supplementary for Senator Sherry, because I am intrigued by this. Given the strong budgetary position that this government inherited from the Howard government—not in similar ways to other jurisdictions, as Senator Sherry alluded to—why have our budget revenue estimates declined so dramatically?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I think it would be a good idea if Senator Coonan did read the budget paper and the page that I have referred to. I do find it amazing that the opposition, in Senator Coonan, would ask a question like this. I have indicated and it is well known—unfortunately not by some opposite—that we are in a world economic recession of great depth which has impacted on revenues to the budget to the tune of over $210 billion. As Senator Coonan asked, I went to three specific examples on page 5-46 of Budget Paper No.1—

Helen Coonan (NSW, Liberal Party, Shadow Minister for Finance, Competition Policy and Deregulation) Share this | Link to this | Hansard source

Senator Coonan interjecting—

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I am very happy to give you an answer, Senator Coonan. I have given you an answer in detail. In fact, I ask my own colleagues to draft me questions like this, but they do not seem to be particularly forthcoming; so I am happy to give you the response I have, Senator Coonan. (Time expired)

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Assistant Treasurer, Senator Sherry. Can the Assistant Treasurer confirm that the last 12 months have taken their toll on working families in Australia? With the worst global recession in the last 75 years impacting across the world economy, what action is being taken to protect working families from the impact of mortgage stress? Can the Assistant Treasurer advise the Senate of any new information which will assist those Australians currently paying off a mortgage? In particular, is there any further information on how those Australians can expect to be treated by their lenders?

Honourable Senators:

Honourable senators interjecting—

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

Order! There is a discussion going on in the front of the chamber here which is making it very difficult for me to hear you.

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Given that Australia is not immune from the effects of the global economy, what will the tangible impact of these initiatives be for Australian families during this time of economic instability?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Thank you, Senator Polley. The question is very good—not quite as good as the question I got from Senator Coonan, but nevertheless I have a response for you, Senator Polley, and I thank you for your interest in this very important issue. As I have noted a number of times in the Senate chamber, although unfortunately some members in the Liberal opposition do not yet seem to comprehend or understand the impact of the world financial and economic crisis, the Australian economy is not immune from the deep and widespread recession we have seen—the worst recession since the Great Depression. That is why the Rudd government has taken early and decisive measures—and I have mentioned some of these on occasion in the Senate—to cushion the Australian economy, to protect the Australian economy and to support jobs.

Indeed, I indicated earlier in the week that the latest Treasury estimates are that some 200,000 jobs have been protected in Australia as a consequence of the decisive actions of the Rudd Labor government—200,000 jobs that would otherwise have disappeared in the face of this global recession. Importantly, another decisive action that the Treasurer, Mr Swan, took was to over the weekend announce that all 144 retail banks, building societies and credit unions with a focus in the mortgage market have signed up to the government’s principles to assist borrowers who are experiencing financial difficulty as a result of the global depression. These principles will ensure that families finding it tough to pay off their mortgage in the face of the global recession will be treated more fairly by their bank, building society or credit union. There are a number of options available to borrowers in distress, including postponement for up to 12 months of the dates on which payments are due under a mortgage contract. (Time expired)

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the Assistant Treasurer confirm that the government is working hard with industry to protect Australian families from the impacts of the global recession? Are there any alternative views to tackling the impact on Australian families? Whilst it is clear that the global economy remains a serious concern and the impacts of the crisis are being cushioned by the action of the Rudd government, we are clearly not out of the woods yet. How do the Rudd government’s plans to protect Australians compare with the reckless policy alternative of ‘wait and see’?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

There was a comment from the Liberal-National party during that very good supplementary question that this was waffle. It is not waffle to outline measures taken under the leadership of a very fine Treasurer, Mr Swan, and to outline initiatives to protect Australians who are being affected by the global economic crisis. It is very important that the leadership and the decisive action as illustrated by the Treasurer, Mr Swan, in a range of areas should be indicated to the Australian community. As I was saying, to assist borrowers in distress—and I would have thought that the Liberal-National party would be interested in this—the options include a postponement of up to 12 months, an extension of the period of the contract, a reduction in the amount of each payment due under the contract, interest-only breaks on loan repayments and fee waivers. (Time expired)

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the Assistant Treasurer elaborate on the need for a solid policy position on tackling the economic impact of the global recession on Australia? Why is it important to address this issue from a place of decisiveness and action rather than to apply a negative, do-nothing attitude? Can the Assistant Treasurer point to any other examples of where the negative, do-nothing attitude has been applied, and has it worked in protecting jobs?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I have just run through the government’s practical measures assisting Australians who are in mortgage distress, but unfortunately the Liberal-National party opposite have no positive policy ideas in this area. They have not outlined anything. Their approach has been throughout this financial and economic crisis to sit back, sit on their hands and do nothing. They believe that the full impact of the world’s financial and economic crisis should be allowed to crash down on the Australian economy without any of the decisive actions needed to cushion the Australian economy. It is even worse: even in areas where they have some policy, they are badly split. There is a split on climate change. They have deferred the legislation because they cannot agree. The only thing they can agree on is to defer the legislation. They are split on alcopops; they have done a backflip. They are now supporting the alcopops tax, but at the same time four or five of them have crossed the floor in the House of Representatives. They have nothing to offer. (Time expired)