Mark Furner (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Small Business and the Minister representing the Assistant Treasurer, Senator Sherry. Can the minister advise the Senate how the government's fully costed and budgeted economic policies are building a stronger economy and a fairer Australia? Is the minister aware of any alternative policies and do these alternative policies pose risks to the economic wellbeing of all Australians?

Opposition Senators:

Opposition senators interjecting—

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Mr President, the Liberal senators opposite will not be laughing when they come out of the ERC after looking for $70 billion in savings, I can assure you of that. We have seen in recent times a great deal of volatility in world financial markets. In large part, that has arisen as a consequence of concerns about Europe and the United States having very significant debt levels and high levels of unemployment. There is no better place in the advanced economic world to be than Australia in current circumstances. We have solid economic growth, low unemployment, well-regulated and well-capitalised banks, and this government has a proven track record throughout the global financial crisis of implementing policies to ensure that we did not enter recession and to ensure stability in our economy.

I have referred to the debt crisis. There is no doubt that many advanced economies have government debt levels that in many cases exceed 100 per cent of the total value of their economy, but Australia has lower debt than most major advanced economies. We are among only 14 major countries with a AAA credit rating and we have a clear plan to bring the budget back into surplus. So I was somewhat taken aback last week when I saw the press headlines, 'A $70 billion black hole'. I thought to myself, 'Where has this occurred in Australia?' The Liberal-National Party opposition have worked up a $70 billion black hole. At the last election it was $11 billion—

Opposition Senators:

Opposition senators interjecting—

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

They are laughing, but apparently Mr Hockey leaked this to highlight the seriousness of it. They have been promising so much. Mr Abbott has been around promising so much, like all of the shadow ministers— (Time expired)

Mark Furner (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. How is the Gillard government's plan to deliver the benefits of the mining boom to all Australians central to the nation's economic future?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

The Liberal-National Party has promised to scrap the mining tax, the resource tax—

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | Link to this | Hansard source

Hear, hear!

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

'Hear, hear', but where are you going to find the money to replace it? They are doing this at the same time as they are promising tax cuts. The money from the resource rent tax is to pay for cutting the tax on superannuation contributions, cutting the tax on the first $1,000 of savings, reducing company tax to 29 per cent and introducing a new generous depreciation arrangement for small business. Where is the Liberal-National Party going to get the money for those measures if it scraps that tax? The reality is, that is why they have to find some $70 billion in savings—because they have been running around the country saying they will scrap this tax while at the same time wanting to keep the measures it pays for. That is why they need the $70 billion. (Time expired)

Mark Furner (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I have a second supplementary question. Can the minister inform the Senate how the Gillard government is keeping up the responsible economic management that is so important to keeping our economy strong?

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

It is irresponsible of those opposite to promise to scrap a tax—and of course another one is the carbon tax—but where are they going to get the money from to pay for the pension increase? Maybe in this $70 billion of savings they are actually going to cut pensions? If you remove the tax that pays for the increase, you have to make these savings somewhere. Maybe they are going to reduce Medicare payments; otherwise, where will they find the tens of billions of dollars they need? Reduce pensions? If they reduce the resource rent tax they will have to claw back the compensation in income tax and social security payments. That is why they are $70 billion in debt. (Time expired)