Barnaby Joyce (Queensland, National Party, Shadow Minister for Finance and Debt Reduction) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Evans. In the 2008-2009 budget, the Labor government forecast that this financial year we would have a surplus of $19.7 billion—that is a surplus. But they have delivered a record deficit of $57.1 billion—

Government Senators:

Government senators interjecting—

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

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

Barnaby Joyce (Queensland, National Party, Shadow Minister for Finance and Debt Reduction) Share this | Link to this | Hansard source

As I was saying, in 2008-2009 they said they would have a surplus of $19.7 billion. They have actually delivered a record deficit of $57.1 billion, and this government now expects us to believe a forecast of $1 billion in three years time. How can the Australian public give any credibility to what Labor states they will deliver, especially when these figures are built on the assumption of the best terms of trade in 60 years and they are made by a government with a record in blow-outs, including the $1.5 billion blow-out in the Building the Education Revolution and a complete lack of prudence and lack of value in the buildings that actually turned up.

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

I thank Senator Joyce for the question. He will forgive me if I do not take him terribly seriously when he quotes figures involving billions of dollars, but I have never sought to become finance minister myself. The opposition seem to be desperately searching around for an argument about debts without actually analysing the budget or analysing the reaction of all of the senior economic commentators on the budget. Everyone else recognises that the government is repaying the debt three years early. It is expected that we will see the budget return to surplus three years ahead of schedule in 2012-13, well before—

Opposition Senators:

Opposition senators interjecting—

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

Order! Senator Evans, resume your seat. If you want to debate the issue, the time for that is post question time. Senator Evans.

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

The budget will return to surplus three years ahead of schedule in 2012-13, well before any of the other major advanced economies. Senator Joyce seems to forget that we had a global financial crisis that severely impacted on all countries around the world and their financial positions. But what we now have as a result of this budget is that our debt position will be one which will see us return to surplus well before the other major advanced economies.

Barnaby Joyce (Queensland, National Party, Shadow Minister for Finance and Debt Reduction) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. On relevance, I direct the minister to the question that was asked. Can he please point to one Labor target that they have actually met and how can we possibly believe them?

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

There is no point of order. Senator Evans.

Government Senators:

Government senators interjecting—

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

Order! Those on my right, Senator Evans is waiting to answer the question.

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

As a result of the government’s management of the economy, we are actually going to exceed the previous forecast by bringing the debt level down three years early. We have also met a whole range of the targets we set. To fully offset all new spending is one of them. We kept the fiscal discipline in terms of new spending, which has allowed us to take advantage of the improving economy and pay off the debt quickly. That is very much meeting our commitment to fiscal constraint. (Time expired)

Barnaby Joyce (Queensland, National Party, Shadow Minister for Finance and Debt Reduction) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. It seems that the minister is directing us to how responsible the government are. Can he please inform the Senate of a further increase in government spending since the budget forecast of over $26 billion over the next three years? As Prime Minister Rudd would say, why has this reckless spending not stopped?

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

Clearly, Senator Joyce continues to struggle to read the financial statements, which is worrying for a former accountant. As has been made clear, not only are we repaying the debt early, but we have met the commitments which we made, which were to fully offset all new spending. Sure, we have invested heavily in health and heavily in skills, because those are the priorities for the economy, but we have offset all new spending so that we can bring down the debt quickly. We have held real spending growth to less than two per cent a year when the economy is growing above trend. We have saved and not spent recovering revenues. That will allow us to return the budget back to surplus sooner. So we have invested new money in things like health and schools, which are priorities, but we have fully offset all new spending with savings and this has allowed us to bring the economy— (Time expired)

Barnaby Joyce (Queensland, National Party, Shadow Minister for Finance and Debt Reduction) Share this | Link to this | Hansard source

Mr President, I ask a second supplementary question. Does the minister agree with Prime Minister Rudd’s comments made on 4 December 2008 that he believes that there is a strong economic case for budget belt-tightening to make the job of the Reserve Bank easier? If he does, why has the government not made the tough decisions to cut spending and reduce pressure on interest rates?

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

I am not sure where the Liberal opposition have been in terms of analysing the budget, but what is clear is that the budget has focused on bringing us back into the black three years earlier than expected under the last budget. The whole focus of the budget is to reduce debt and to take advantage of the fact that our economy is recovering much quicker than other economies because this government invested during the global financial crisis. We acted early, and by acting early we protected Australian jobs. The great result from this budget is the projection that unemployment will fall to, I think, 4¾ per cent over earlier projections of it being around eight per cent. That is a great result because it means more Australians are in jobs. If we had not put the fiscal stimulus in place, thousands more Australians would have been out of work. (Time expired)

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

Mr President, my question is to you. I ask about the budget item showing that $21.3 million extra will be spent on security for Parliament House in the coming financial year. I wonder if you would inform the Senate as to how that money will be spent and why it has been allocated.

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

Senator Brown, at this stage I have not had a close look at the final program as to how it will be spent. That is the global allocation that has been given. I will seek to get a full, detailed analysis of it for you and deliver it to you as soon as I reasonably can.

Government Senators:

Government senators interjecting—

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

Order! I can do without the assistance on my right. Senator Brown is entitled to and has asked a very appropriate question.

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

Mr President, I ask a supplementary question. It may be that some senators are not feeling as safe as I am in this place, but—

Honourable Senators:

Honourable senators interjecting—

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

Order! I need to hear Senator Brown, as the question is terribly important.

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

I wonder if you could also, in answering that question, Mr President, supply the House with any information there may be about further proposed spending measures to do with security in Parliament House.

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

Senator Brown, there is one thing I can say in response to your question. There would be some matters on which, because of the general security interests and wellbeing of the occupants of this place, it would be inappropriate to make those details public. But we are quite prepared to have a private briefing with you to give you those matters that need to be held in confidence. I can assure you, though, that the information that we will supply comes about directly as a result of the Security Management Board briefing both the Speaker and myself on the security needs of Parliament House. I have undertaken to give you a detailed analysis of what will be in that $21 million and I will get that to you, as I said, at the earliest possible time. But bear in mind there may be some constraint in terms of real security issues.

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Evans. The government has gambled its flawed budget modelling around huge new taxes on tobacco and the mining sector. Can the minister explain how the new tax on tobacco will reduce smoking while the huge new tax on mining will actually increase mining activity in Australia?

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

The first thing I can say is that it is not Labor Party policy to encourage smokers to kill themselves by smoking and therefore provide a saving to the health budget, as my friend Senator Minchin suggested. It is a novel response but not one this government will be adopting. I heard Senator Conroy talking about elasticity of demand and I thought, ‘God, that brings back terrible memories of economics tutorials,’ but I think in fact he is probably right in terms of the answer. The tobacco excise increase is going straight into health spending. We are using that money to deliver a better health system for Australians. As the senator well knows, there is a huge cost to the Australian health system as a result of the health impacts of smoking. So the excise increase is going to go straight into health spending and trying to boost our capacity to provide better health services for the Australian population.

The Resource Super Profits Tax will be devoted to new reforms to try and improve economic growth and make the tax system fairer and simpler. It is directed at supporting measures we propose, such as cutting the company tax rate to 28 per cent. I think everyone would recognise that that will be a very important achievement if we can achieve it. It is also about providing the $5,000 instant asset write-off for small business. It is about paying for the resource exploration rebate, which I think is a really important initiative for miners in our home state, Senator Back. We have done the economic modelling on the impact of the Resource Super Profits Tax. We do believe the industry will continue to grow, and all the independent economic modelling suggests that the economy will continue to grow. (Time expired)

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I have a supplementary question. Clearly the minister agrees with the mining industry that there is no increase in activity as a result of it.

Government Senators:

Government senators interjecting—

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

Order!

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

Given the popularity of mining sector investment by institutions, super funds, self-funded retirees and Australian investors, can the minister explain the effect of wiping $23 billion off the value of resource company values in the last two weeks as a result of the Prime Minister’s attack on this sector?

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

The senator seems to ignore the impact of international events on the stock markets, just like the Liberal Party seemed to want to deny the global financial crisis. I am confident that the mining industry will continue to grow and prosper under this tax regime. Your Premier of Western Australia, Mr Barnett, is about to increase his royalties that he taxes those same mining companies on because he thinks they can pay more tax. Mr Barnett agrees with us; he thinks they can pay more tax. Even their own industry admit in some of their submissions and their private comments that they can afford to pay more tax. Our economic analysis of the proposal is that in fact the Australian economy will continue to grow and that replacing royalties with the RSPT will actually increase resource sector investment by about 4.5 per cent. (Time expired)

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

I have a further supplementary question, Mr President. It is plain that the leader of the Senate does not understand the difference between royalty, which is the cost of sales—

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

Order! It should be a question.

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

Superannuation funds have now taken two severe hits during the term of this government. What confidence can the community have that continued mismanagement and poorly conceived tax grabs will not further erode retirement savings of our ageing population?

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

There are two responses to that. Firstly, the new resource taxation regime will see investment increase in the mining industry, it will see resource sector employment grow by about seven per cent and it will see resource sector output grow by 5.5 per cent. So the mining industry will continue to be strong and vibrant and its prospects are very good. In terms of superannuation, what this government proposes to do as part of the benefits from the Resource Super Profits Tax is to actually increase the superannuation guarantee from nine per cent to 12 per cent to support Australians in a proper retirement, to provide the income that they need to enjoy their retirement. It was a Labor initiative originally, and it is now a Labor proposal to build on that initiative to provide for the superannuation needs of Australians. It is about making sure there is a fair sharing of the resources boom, and part of that should be directed to improving Australian superannuation. (Time expired)

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

My question is to the Minister for Employment Participation, Senator Arbib. Minister, how in the budget package is the government addressing the growing needs of the economy? How will the government seek to steer off skills shortages and labour bottlenecks while providing flexibility to keep ahead of changes in the global economy? How will the government ensure that we do not have a two-speed economy that could see demand for skilled labour outstripping supply? What is the government doing to help adult literacy and numeracy to help older job seekers become job ready?

Mark Arbib (NSW, Australian Labor Party, Minister Assisting the Prime Minister for Government Service Delivery) Share this | Link to this | Hansard source

I thank the honourable senator for his question. I say from the outset that this is a budget that makes a down payment on the skills we need to expand the productive capacity of our economy. Over the last year we have created 225,000 jobs, when many other advanced economies were shedding hundreds of thousands of jobs. While most economies shrank by three per cent, ours grew by 1.4 per cent.

Opposition Senators:

Opposition senators interjecting—

Mark Arbib (NSW, Australian Labor Party, Minister Assisting the Prime Minister for Government Service Delivery) Share this | Link to this | Hansard source

Coalition senators do not like to hear it but it is true—1.4 per cent positive. When the global recession hit, the government acted. Without the stimulus—the stimulus that those opposite voted against six times—we would have gone into deep recession. We have avoided that. We have avoided the destruction of our skill base and protected jobs. It is not by accident; it is by design. And this budget builds on our success so far. Hard work and strong fiscal policies have seen us emerge from the global financial crisis with the lowest deficit and unemployment rates of any major advanced economy. These factors have also led to an escalation in demand for skilled labour. In the budget the Treasurer announced a $660 million Skills for Sustainable Growth package, which will deliver more apprentices, skilled adult literacy and numeracy programs and also better training for Australians.

We will not just rely on importing skills; we want more Australians trained. We want more young Australians trained as apprentices. That is why I am so happy that the Apprentice Kickstart program—which has been so successful—has been expanded. That program started today, with a tripling of the commencement bonus for business to support them to take on a teenage apprentice. That is good news for small business. (Time expired)

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

Mr President, I ask a supplementary question. Minister, can you continue to tell us what the government is doing to help young Australians start a trade? What measures are in the budget to help create more apprentices in areas of skills need? Minister, what figures are available that show how the government have performed to date in ensuring we help support apprentices now to create the trades workers of tomorrow?

Mark Arbib (NSW, Australian Labor Party, Minister Assisting the Prime Minister for Government Service Delivery) Share this | Link to this | Hansard source

Youth unemployment is still a big issue in this country—there is no doubt about it. While we have been successful in driving down unemployment to 5.3 per cent, there is no doubt that, across the globe, young people have borne the brunt of the global recession. Apprenticeships are the best way forward for young people—because you are not just giving them a job for the short term; you are giving them a career for the long term. That is what the government is delivering right now.

During the recession of the 1990s, apprenticeship commencements dropped by over 20 per cent. It took 13 years to make up for that downturn in apprenticeships. The skills shortage that hit the country under the watch of the Liberal Party was partly caused by their neglect in developing skills and training. Thanks to the work of the Rudd government and thanks to Apprentice Kickstart, we have, in 12 months, made up for the drop in apprenticeships during the global recession—an outstanding result. (Time expired)

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

Mr President, I ask a further supplementary question. Is the minister aware of any alternative policies that can help Australia meet our future skills needs? Do any of these plans involve making it harder for young Australians to secure an apprenticeship? What would be the impact of these alternative jobs and skills policies? Finally, Minister, do any of these policies involve replacing young Australians seeking to enter a trade with non-residents?

Mark Arbib (NSW, Australian Labor Party, Minister Assisting the Prime Minister for Government Service Delivery) Share this | Link to this | Hansard source

We have now been coming to this chamber for over two years, and I have asked the coalition to put on the table a jobs plan. After two years, they have no plans for jobs and no plans for employment—but they do have a plan for workers. It is called Work Choices. Senator Minchin again let the cat out of the bag on Sunday when he talked about the importance of Work Choices. We know that their leader, Mr Abbott, says that the term ‘Work Choices’ is dead—

Opposition Senators:

Opposition senators interjecting—

Mark Arbib (NSW, Australian Labor Party, Minister Assisting the Prime Minister for Government Service Delivery) Share this | Link to this | Hansard source

And who do the Liberal Party promote to be their leader in this chamber? One of the architects of Work Choices, Senator Abetz. Senator Abetz, who wrote the book on Work Choices—wrote the book on individual contracts—is now leading the Liberal Party in the Senate. We know their plan for workers—bringing back individual contracts and driving down the wages and conditions of workers. That is what Tony Abbott and the Liberal Party stand for. (Time expired)

Concetta Fierravanti-Wells (NSW, Liberal Party, Shadow Minister for Ageing) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Health and Ageing, Senator Ludwig. I refer in particular to Budget Paper No. 2, pages 223 and 224. Can the minister explain to frail and aged Australians who are waiting for a nursing home bed and explain to their families why the money put aside to pay for new high-care nursing home beds has now been shunted to failed state and territory public hospitals? Why is this money now being used for beds for the frail and aged in public hospitals who are waiting for a nursing home bed? Isn’t Kevin Rudd’s grand hospital plan simply shuffling beds and recycling money to buy off the states at a cost to frail and aged Australians?

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

Unlike some of the facts—or perhaps the lack of facts—that have been outlined in the question, the government will invest more than $900 million over the next four years to deliver more qualified staff, more aged-care places, more healthcare services and greater protection for older Australians receiving care. This will include up to $280 million to the states and territories to support long-stay older patients in public hospitals for 2,000 time-limited places. That is what this government is doing.

In addition, over the next four years the government will provide more than $47 million for aged care and community care and build on the more than 10,000 new places that have become operational, and also provide a 20 per cent increase in funding for aged care. That is what this government has done in this budget to support older Australians, particularly those people seeking aged care and stay.

In addition, for a national aged-care system, which the opposition were incapable of delivering in their 12 years in government, we are looking at $38.3 million being made available to take responsibility for the Home and Community Care Program—other than in Victoria and Western Australia—and to build a consistent aged-care system covering basic care at home through to nursing homes. That is what this government is doing.

In addition, there is $36.8 million to establish one-stop shops to provide aged-care information and assessments to help older Australians and their families to access the services that best suit their needs. This government is working in this area to ensure—

Concetta Fierravanti-Wells (NSW, Liberal Party, Shadow Minister for Ageing) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on relevance. I referred the minister to page 223 and 224 of the government’s own budget paper. He obviously has not read it. My question is: why have they taken money out of high-care residential aged-care nursing home beds for our frailest Australians and put it into the failed state and territory hospital system? That was my question. I was quoting from budget papers.

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

There is no point of order. I believe the minister has been answering the question. I invite the minister to continue his answer. He has 11 seconds remaining.

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

In 2010 the budget shows a redirection of funding of $247 million over four years from high-level residential care to high-level community aged care. (Time expired)

Concetta Fierravanti-Wells (NSW, Liberal Party, Shadow Minister for Ageing) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Aged and Community Services Australia have described the budget as leaving ‘aged care in rags’ while Aged and Community Care Victoria state that the budget ‘fails frail aged again’, and the commentary gets worse. At a time when the aged-care sector is in crisis and calling for major reform, why has our all-talking, no-action Prime Minister shunted aged care to the Productivity Commission— (Time expired)

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

In that failed attempt to ask a relevant question, I can answer that part. The government’s overall target of 113 operational places per 1,000 for people aged 70 years and over by 2010 will continue to be met. This government will continue to meet the needs of the aged people who require aged-care places. The aged-care places made available in the 2009-10 aged-care approval round will ensure that the overall target ratio will in fact be achieved. The allocation will also mean that the high-care to low-care ratio balance will be met. The 2009-10 aged-care approval round provides practical assistance that helps older people retain their independence. Initiatives in this budget will meet the needs of current aged-care clients, unlike what the inference was in that question. This government is acting in this area, unlike what the opposition did in their 12 years in government. (Time expired)

Concetta Fierravanti-Wells (NSW, Liberal Party, Shadow Minister for Ageing) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. In 2007 Labor promised ‘a new direction for frail and older Australians’ and ‘making the transition from hospital to aged care a priority area’. Shunting money destined for the frail and aged in nursing homes to prop up failed state and territory public hospitals attacks our most frail and vulnerable and surely has to be one of the lowest acts of this government. Isn’t the government doing the opposite of what it promised in 2007?

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

Again, the question is inaccurate in how it addresses this issue. What this government is doing is taking action in the aged-care area. Initiatives in this budget will meet the needs of current aged-care clients and prepare the system to meet the future demands of the increasing aged population. The Rudd government will invest the $900 million over four years to deliver more high-quality aged-care workers, more aged-care places, more healthcare services and greater protection for older Australians. That is what this government will do. This will include up to $280 million to the states and territories to support long-stay older patients in public hospitals. This government is taking action to support older Australians in aged care. This significant investment will support the integration of the aged-care system with local hospital networks as well. (Time expired)