Trish Crossin (NT, Australian Labor Party) Share this | Link to this | Hansard source

My question today is to the Minister for Finance and Deregulation, Senator Wong. I take this opportunity to congratulate her on this appointment in the ministry. Can the minister provide the Senate with an update on Australia’s economic performance, including how it compares internationally? How has the government ensured responsible economic management to date and into the future?

Honourable Senators:

Honourable senators interjecting—

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

Order! When there is silence we will proceed.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I thank Senator Crossin for the question. This government will continue the strong, stable and responsible economic management which we have delivered in our last term and which has kept this nation out of recession, which has created more than half a million jobs in this country in our first term and which will see the budget return to surplus in 2012-13. These achievements will provide a strong foundation for the future. Unlike other countries that have endured recession, this nation faces the future from a position of strength.

Just contemplate the differences. The Australian economy grew some 3.3 per cent over the past year. Look to the United States where the recession lasted some 18 months and saw GDP in that country contract by 4.1 per cent—one of the longest and deepest recessions in the postwar period. Unemployment in this country is 5.1 per cent. Compare that to the United States and the United Kingdom, where the levels of unemployment are closer to 10 per cent. And our net debt peaks at six per cent in 2011-12, comparing very favourably to the 94 per cent of GDP for the major advanced economies in 2015. This is a government that has an economic plan to lock in the nation’s success and to build a stronger, broader and more competitive economy unlike those opposite who bring nothing more to this parliament when it comes to economic policy than a desire to oppose—not a desire to put in place good policies for the nation and not a desire to build but a desire to oppose. They would rather see the government fail than the nation succeed. That is the reality of their position. In contrast we have put forward positive policies, reduction in the company tax rate and superannuation reform. (Time expired)

Trish Crossin (NT, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Could the minister also outline to the Senate the importance of fiscal policy and how the government’s fiscal strategy has ensured good economic management? I would like to know whether the minister is aware of any alternative policies which would hinder this good economic management?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

We on this side understand that fiscal strategy and getting your costings right is critical to good economic management. We understand that strong fiscal rules that keep spending focused and outline a clear plan to repay debt are important. I just remind those opposite and the Senate that we in this government have put in place far more stringent fiscal rules than were put in place under those opposite. We have said that not only will we bring the budget back to surplus three years early, faster than most other major advanced economies, but we will hold real spending growth to two per cent until the surplus reaches one per cent. Can I remind those opposite that under Peter Costello and Senator Minchin the average spending growth for your last five budgets was some 3.6 per cent, almost double what we have committed to. So let us remember. We on this side in our last two budgets have found some $80 billion worth— (Time expired)

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

Before calling Senator Crossin, I remind senators that if they wish to debate these issues the time is at the end of question time when we take note of the answers to questions.

Trish Crossin (NT, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Finally, can I ask the minister if she could further inform the Senate on any significant risks in maintaining responsible economic management?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The most significant risk comes from those opposite. We know this because when they were finally forced to put their election policies’ costings in for scrutiny there was a $10.6 billion black hole. No wonder they had to be dragged kicking and screaming by the Independents to actually ensure that their policies were properly scrutinised and costed. It was quite interesting watching the shadow finance minister through the election campaign doing a sort of pantomime version of the boy who did not want to do his homework in relation to submitting the costings to the Charter of Budget Honesty. First it was, ‘I left my homework at home,’ then it was, ‘I lost my homework,’ then it was, ‘I do not want to do my homework anyway.’ Even Mr Hockey— (Time expired)

Honourable Senators:

Honourable senators interjecting—

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

Order! When we have silence, we will proceed.