Mark Bishop (WA, 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 for the Senate the importance of strong and credible fiscal strategies?

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

I thank the senator for his question. We on this side understand the importance of strong credible fiscal strategies. We understand the importance of acting as the government did during the global financial crisis—putting stimulus into the economy saving 200,000 jobs. That is still opposed by the opposition, but 200,000 Australians and their families are kept in work by the actions of this government, a government that since 2007 has seen the creation of over 750,000 more jobs. But we also know that the global financial crisis ripped a hole in government revenue—some $130 billion worth of revenue losses over five years, something papered over by the opposition, something they want to ignore and pretend did not happen.

This government put in place a clear strategy to return the budget to surplus. We said that we would exercise restraint in spending and we did. We said that we would keep taxes below what we inherited from those on the other side and we are. We have been making the hard decisions to reprioritise expenditure, delivering net savings to the budget. We have one of the strongest fiscal positions in the developed world. But what do the other side have to offer the Australian people? Negativity and a $70 billion black hole, just to get back to the starting line. On this side we offer jobs and a clear fiscal strategy; on that side a $70 billion black hole.

Honourable Senators:

Honourable senators interjecting—

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

When there is silence across the chamber on both sides we will proceed.

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

We on this side care about jobs. That is demonstrated by our record. On that side they care about talking down the Australian economy and their $70 billion black hole. (Time expired)

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I have a supplementary question for the minister. What does the current financial market volatility tell us about the importance of strong fiscal strategies?

Honourable Senators:

Honourable senators interjecting—

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

If people want to shout comments across the chamber, which is disorderly, the time to debate the issue is at the end of question time.

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

(South Australia—) (): It says something about the opposition that when a question is asked about the volatility and turbulence of global markets they laugh. It says something about their economic credibility and how much they really care about ensuring this economy comes through this current volatility on global markets. We on this side understand the importance of a strong fiscal strategy; that is why we on this side, in the face of the global financial crisis and global recession, have kept public debt to extremely low levels—7.2 per cent peak net debt, less than one-tenth of the average of most advanced economies. That is why the IMF has given us a tick. What have they got on that side? A $70 billion black hole. Let us remember that that is just to get them up to the starting line. That is just to get them to cover all of Mr Abbott's spending promises. (Time expired)

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I have a further supplementary question to the minister. Why is it important to have a clear fiscal strategy in the current economic circumstances?

Honourable Senators:

Honourable senators interjecting—

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

I remind senators that it is disorderly to debate these issues across the chamber.

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

Clarity in fiscal strategy is always important in times of global uncertainty, and that is why the government has maintained a clear fiscal strategy. Regrettably that is not something that any longer has bipartisan support. What we have on the other side is a shadow Treasurer who one day blithely says they will get back to surplus earlier and then says he is going to oppose budget savings measures—and then he had to eat humble pie because he could not find alternative savings measures. We also appear to have a communications spokesperson, Mr Turnbull, calling for a sovereign wealth fund, a proposition that the shadow finance minister has said is incorrect. You have to ask who on that side actually speaks for the coalition when it comes to economic policy. Certainly the Australian people know only one thing and that is that those opposite have a big $70 billion black hole. (Time expired)