Claire Moore (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Deregulation, Senator Wong. Can the minister outline to the Senate the importance of ensuring that the flood recovery package for Queensland and other flood affected states is economically responsible and consistent with our government’s fiscal strategy?

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

I thank Senator Moore, a Queensland senator, for her question. As we know, the Queensland floods are likely to be the largest natural disaster in our history in economic terms. We have all seen the human cost, as well, graphically and tragically displayed in recent weeks. As a government we are faced with two tasks—rebuilding Queensland and returning the federal budget to surplus. We are focused on both. This government has delivered a $5.6 billion package to rebuild Queensland and other flood-affected areas in Australia; a package that is both fiscally responsible and economically sound. Two-thirds of our package will be funded through spending cuts—two out of every three dollars. Another third will be delivered through a modest one-year progressive levy which will not be paid by people directly affected by floods or by low-income earners. Some 60 per cent of taxpayers will pay less than a dollar a week to help rebuild Queensland.

Obviously the government has had to make hard decisions in putting this package together. We have had to reduce funding for or cut programs which were priorities before the floods but which clearly, now that the focus is on rebuilding and reconstruction, cannot have the same priority. This government is delivering quickly on rebuilding—it is focused on rebuilding, unlike some—but at the same time it is also ensuring we protect our fiscal position. Yesterday we saw the opposition’s much heralded package. We heard so much about how tough it was going to be; so much about how easy it was going to be to find savings. But of course we know now how little work was actually done. (Time expired)

Claire Moore (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister outline to the Senate any alternative approaches to funding the flood recovery package for Queensland and other flood-affected states?

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

I will gladly answer Senator Moore’s question because the fact is that no credible alternative package has been put forward, despite all the chest beating from Mr Abbott and Mr Hockey and Mr Robb about how easy it was to find savings. This package fails on every level. It is driven by politics, not by what is right for Australia. There is no support for this alternative package. What Mr Abbott has announced is truly a friendless package. The Liberal frontbench does not support it. The coalition party room does not support it, particularly the National Party, whose leader has been humiliated. Many parts of industry hate it. The international aid community and supporters of the Murray-Darling Basin certainly do not support it, and South Australians certainly will not be able to support it. (Time expired)

Claire Moore (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister outline why it is important to fund the flood recovery in a manner consistent with the government’s plan to return the budget to surplus in 2012-13, and what risks are there to achieving this goal?

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

The primary risk to achieving this goal is the opposition. It is an opposition that had a $10.6 billion black hole in their election costings, and they are already a further $5.2 billion behind because of their refusal to pass our savings measures. Yesterday they put forward a package which double-counted $700 million. They refuse to pass savings measures and they have put forward a package which will increase the deficit next year. This opposition talks about being fiscally responsible. They had an opportunity yesterday to demonstrate that, and they have sorely failed. They have continued the tough talk that we heard in the election campaign, but they have a $10.6 billion black hole that was expanded again yesterday. (Time expired)