Guy Barnett (Tasmania, Liberal Party, Chairman of the Scrutiny of Government Waste Committee) Share this | Link to this | Hansard source

I move:

That the Senate take note of the document.

I take note of this report on Australia’s future tax system and the tax policy statement, together with the report to the Treasurer, and in that regard note the government’s perspective on the tax system was clearly demonstrated last night by its views of government spending and taxing. That government document confirms that this is a high-taxing, a high-spending and a high-debt government. The Rudd Labor government in this coming financial year will have a debt of $41 billion—the second highest since World War II. It is a very risky budget indeed. This is a high-taxing, high-spending Labor government and that is typical Labor.

The assumptions set out in the budget statements confirm that they are dodgy and in fact they are unbelievable. The figures are very rubbery. For example, they say that the tax on cigarettes will decrease the level of smoking, but that the tax on the mining sector will cause an increase in investment in mining. How can that be? That is absolutely absurd. That is simply not going to happen. One of their assumptions is based on the premise that the terms of trade will be the best in 60 years. This is a government that simply cannot be believed. It has made these promises in the never-never and they are simply not going to come true.

From this week, and from the start of this budget, you will see that the government will be borrowing $700 million a week to meet the commitments of their expenditure. The government is on a spendathon like no other government in recent history. Its reckless spending continues on and on.

In terms of Tasmania, we have been dudded yet again. Unfortunately, we have been left off the map. There is $1 billion going to the Australian rail authority but no new money for Tasmanian rail, and rail in Tasmania is in need of repair. In northern Tasmania there is no new money for the flood levies or the Bell Bay port development, and that was a failure of last year’s budget as well. There was $22 billion in infrastructure spending around the nation, but nothing went to Tasmania. So we have missed out big time.

In terms of agriculture, we have missed out in Tasmania. There have been cuts around the nation. The tremendously successful Landcare program works, and a lot of rural and regional farming communities are very involved and supportive of Landcare. Landcare operations around Australia have been cut by some $10 million. That is very disappointing, because a lot of volunteers are involved in Landcare. I feel for them and, on their behalf, I say we are very disappointed with that decision.

To top it off and in conclusion, the government are happily spending around about $126 million on advertising in advance of the federal election. They are spending taxpayers’ money on advertising, including on climate change. Mr Rudd said that climate change was the great moral challenge of our time and he wanted to get his ETS, that great big new tax, through. But he was prepared to give that up and say, ‘No, it’s not the greatest moral challenge of our time,’ and he has deferred it for three years. He is willing to spend taxpayers’ money on advertising on climate change in advance of the election, purely for political purposes.

The government say this is not a political budget and was not designed in advance of the next election. As soon as they say that, you know exactly the opposite is true and it is designed to try and gain votes. But I think the people will see through it. In terms of the impact on the Australian people, they will make their decision in due course. I seek leave to continue my remarks.

Leave granted; debate adjourned.