John Williams (NSW, National Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Sherry.

Doug Cameron (NSW, Australian Labor Party) Share this | Link to this | Hansard source

I have a question for Eric. Why doesn’t he explain himself?

Honourable Senators:

Honourable senators interjecting—

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

Order! Order! Senator Williams is entitled to be heard in silence.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Thank you, Mr President. What is the current federal government gross debt?

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

I shall find the appropriate figures for you. Thank you for your question. First of all, I make the point that the reason why government has debt in this country, and it is increasing, is a consequence of the world financial and economic crisis.

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

I raise a point of order, Mr President. The answer to this question is a number, not a story.

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

There is no point of order.

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

The reason why we have government debt in Australia is a consequence of the world economic and financial crisis. As I have pointed out on a number of occasions—and indeed yesterday Senator Coonan, the shadow minister for finance, referred to this—the Commonwealth revenues have been significantly affected by the global financial and economic crisis, to the tune of $210 billion. There are two forms of debt: gross debt and net debt.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

I asked about gross debt.

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

Yes, I heard your question, but I point out that there are two forms of debt. There is gross debt and net debt. The Liberal opposition have lapsed into a bad habit of only referring to gross debt. When they were in government, they would refer to net debt generally. So in terms of the gross debt for the 2008-09 financial year, the estimates have shown $111.9 billion. That is the level of gross debt. In terms of net debt, in 2008-09 it is $4.7 billion.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

I have a supplementary question, Mr President. What is the current total state debt now underwritten by the Commonwealth?

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

First of all, this is the federal parliament, the Commonwealth parliament, and I would suggest that the Liberal-National Party opposition focus on providing positive solutions and positive responses to the current global economic and financial crisis, from which Australia is not immune.

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

Senator Sherry, I draw your attention to the question.

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

I was just going on to point out, Mr President, that in terms of state debts, and territory debts I assume you are talking about as well, the Commonwealth is not responsible for the level of debt. That is a matter for state and territory governments. Because of the world economic and financial crisis, the Commonwealth, with the support of—

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

Mr President, on a point of order, I draw your attention to standing order 194(1), where it says that a senator shall not digress from the subject matter of any question. The answer to this question is a number, not a story. You have got four seconds left. Can you give us a number?

Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

On the point of order, Mr President: those opposite obviously want to interject rather than listen to the answer that Senator Sherry is providing. Senator Sherry is being relevant to the question; he is not digressing. What we see again is a point of order being used as a way to restate the question to make a statement—to make a point. I accept that the opposition at first blush raised the relevance issue, but they then digressed again. There is no point of order, I submit.

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

Senator Sherry, I draw your attention to the fact that there are four seconds remaining to answer the question.

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

1.1 per cent of GDP.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

I have a second supplementary question, Mr President. Will the minister take that question on notice and report back to the Senate the total state debt underwritten? Further, given that it took the coalition government more than a decade of hard work to pay off Labor’s $96 billion debt, how will Labor’s new debt, heading for $315 billion, possibly be repaid by future governments in a little over a decade?

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

I gave the senator the figure for state debt—

Opposition Senators:

Opposition senators interjecting—

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

Order! When there is silence, I will ask Senator Sherry to continue. The time for debating is post question time, for both sides.

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

I did give the senator the level of state debt, which is 1.1 per cent of GDP. You asked for the level and I have given you the level.

John Williams (NSW, National Party) Share this | Link to this | Hansard source

You are wrong.

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

The figure is correct; the percentage figure I have given you is correct. If you want further information, you should certainly clarify your question in your supplementary, which you failed to do. In terms of deficit, this Commonwealth government has responsibly set out a pathway for restoring the budget to surplus over the next six to seven years. That is very important in the context of the global economic and financial crisis. (Time expired)

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

My question is to the Minister representing the Prime Minister, Senator Evans. Isn’t it the case that over the past year the global financial crisis and the worst global recession in 75 years have unleashed an unprecedented wave of economic turmoil throughout the international and Australian economies? Can the minister please inform the Senate of the decisive action the Rudd Labor government has taken to stimulate the Australian economy during the global financial crisis, support jobs and protect working families from the effects of the global recession and set a path of nation building for recovery?

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

I thank the senator for his question. The Rudd government has acted swiftly to protect the national interest during this difficult economic period. The government’s $42 million nation-building plan will stimulate Australia’s economy and cushion Australians from the worst impacts of the global financial crisis by building the infrastructure we are going to need for tomorrow. Almost 70 per cent of the funds appropriated for economic stimulus is being spent on infrastructure. That is money being spent on our schools, rails, roads and ports—things that the former government failed to invest in.

I think we can be confident about our nation’s  future, despite the worst global recession in 75 years. We are weathering the storm better than most other advanced economies. Our GDP rose by 0.4 per cent in the March quarter and is 0.4 per cent higher over the year. During the same period, the G7 economies collectively contracted by 2.1 per cent. Australia now has the fastest economic growth, the lowest deficit and the lowest debt of all major advanced economies in the world. I think it is worth repeating: we have the fastest economic growth, the lowest deficit and the lowest debt of all major advanced economies in the world. Whilst those opposite want to talk down the Australian economy and be negative about these things, there is clear evidence that the government’s efforts to stimulate the economy are working to support Australian jobs and growth in the economy. We made the hard decisions in this year’s budget that have helped weather this international recession and we have taken decisive action on a range of fronts to invest in the success of the economy, to provide the stimulus needed that will help Australians through this turbulent time and to assist them to ensure we come out the other end in a much better condition than we otherwise would have. (Time expired)

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

Mr President, I ask a supplementary question. Can the minister also advise the Senate on any new evidence that shows how the Rudd government’s nation-building stimulus package is supporting the economy and jobs during the global recession? Are there any barriers to the government’s efforts to combat the impact on Australian families?

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

We are getting increasing evidence now that the government’s decisive action is working. In the last couple of days we have had reports from the IMF and the OECD that confirm that the economic stimulus package that the government put in place is starting to have a large impact on the Australian economy. People like Senator Joyce ought to focus on these things rather than negativity and the sideshows that we have seen in recent days. Those opposite have not been talking about jobs and the economy; they have been attempting to attack the Treasurer using false documents. Senator Abetz tried to use false documents at Senate estimates to mislead the Senate. He ought to answer this question: did he meet with Mr Grech beforehand and abuse Senate processes? Why does he hide behind—(Time expired)

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

Mr President, I ask a further supplementary question. Can the minister also advise the Senate on any recent independent assessments of the effectiveness of the Rudd government’s policy response to the global recession? Are there any barriers that are preventing the government from addressing these important issues?

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

There is evidence that the economic stimulus package is working, but we would be making much better progress if we could get legislation through this parliament, if we could get those opposite to do the work. We have covered virtually no legislation this week because the opposition are too scared to debate climate change because they are so wracked with division. They would rather misuse Senate process.

Opposition Senators:

Opposition senators interjecting—

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

Order! Senator Evans, resume your seat. When there is quiet we will resume.

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

The opposition ought to explain to the Australian people why they have refused to allow us to use the time of the parliament properly this week and why they, it seems, conspired to mislead the Senate during Senate committee hearings. What I think the Senate needs to know is: did Senator Abetz meet with Mr Grech before the hearings? Did he seek to misuse those hearings? I think he has to explain: was there a conspiracy involved? (Time expired)

Honourable Senators:

Honourable senators interjecting—

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

Order! I am waiting to call Senator Cormann, who is entitled to be heard in silence.