Helen Kroger (Victoria, Liberal Party) Share this | Link to this | Hansard source

Support for the Gillard Labor government is unquestionably at an all-time low, with a dramatic slump in their primary support. We see that every week when we open the papers and see the latest Newspoll. The latest Newspoll released in the Australian shows that their primary support base has slumped to 26 per cent. I have to suggest that this might have something to do with—to put it in the words of the Leader of the Australian Greens, Senator Bob Brown—the 'consensual alliance' between the Greens and the Gillard Labor government. At this time of all-time low support for the Gillard Labor government, we now hear that the Treasurer, Mr Wayne Swan, has been awarded—well done, Wayne—the title of treasurer of the year by the London based magazine Euromoney.

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

On a point of order, Mr President: I believe the Treasurer deserves to be referred to in this chamber with his full and proper title.

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Senator Kroger, please refer to the Treasurer by his complete title.

Helen Kroger (Victoria, Liberal Party) Share this | Link to this | Hansard source

Thank you for that advice, Mr Acting Deputy President—I did refer to him as the Treasurer, Mr Wayne Swan. This so-called acknowledgement has left many commentators, I would suggest, and certainly many of us up here on Capital Hill, lost for words, I have to say, given that arguably the Treasurer's greatest achievement to date has been to rack up a deficit of no less than $154 billion whilst turning $45 billion in the bank into a $110 billion credit card bill. This he seems to have accomplished with little effort. He does not seem to have had to put a lot of effort into this achievement—

Senator Sherry interjecting—

In fact, Senator Sherry, it is one of the things that you have done extremely well. We have seen—

Senator Sherry interjecting—

You see—you just scratch the surface a little and those sitting on the other side get very agitated about this. We have seen a historic level of government incompetence and mismanagement which has seen billions of dollars of Australians taxpayers' money flushed down the toilet.

With the surplus that was left by the former Howard-Costello government, Treasurer Wayne Swan went on a spending spree in the pursuit of stimulating the economy. We have acknowledged that the purpose of it was to— in his words—'stimulate the economy'. But he did it seemingly without any consideration for value for money or long-term benefits for Australia. I remind this chamber—with Senator Mason here, because he has prosecuted the case very effectively in this chamber—about the waste and mismanagement and total lack of consideration in formulating the so-called Building the Education Revolution. That program saw a focus on flash new school halls—sparkling amenities—but no real public policy consideration of how that would actually raise the education levels of our kids. It has not raised education standards and we have seen that in the recent results. It has had no impact on the education standards achieved by Australian students.

Let us not forget the Green Loans scheme and the pink batts debacle. We are still paying for that debacle and there are still to this day many households with electrified roofs. Then there is the shambolic way in which they are still dealing with the asylum seeker crisis. We discuss in this chamber every day this appalling state where we have a flotilla of boats coming to this country, and it is costing taxpayers an extra billion dollars a year just to maintain the status quo without actually fixing the problem. We are not going to the root of the problem—we have a continuing crisis in this area and the whole thing is being dealt with in a shambolic way.

Indeed, one can only congratulate the Treasurer for this accolade given the extraordinary financial recklessness of this government. What a great achievement it is. I would encourage those listening to this broadcast today to google the recipients of Euromoney honours. It makes for interesting reading. We find former awardees include corporations such as Lehman Brothers who, as we know, went belly up in 2007, taking the hard-earned cash of many Americans with them. It was the largest bankruptcy in US history. So the Treasurer, in being given this award, is amongst very distinguished company. The global financial services firm Morgan Stanley and the megabank Citigroup have both received honourable mentions, and yet they were bailed out by the US government in the latter stages to prevent their collapse. Whilst I would not suggest I am any soothsayer, I do not think that the Treasurer is necessarily standing in very good company.

Given the economic climate around the globe, who would have been possible contenders for this award? It is a reasonable question to ask.

Brett Mason (Queensland, Liberal Party, Shadow Minister for Universities and Research) Share this | Link to this | Hansard source

It could have been the Assistant Treasurer.

Helen Kroger (Victoria, Liberal Party) Share this | Link to this | Hansard source

It could have been the Assistant Treasurer. He could have been considered. In addition to the Assistant Treasurer, they could have considered the US Secretary of the Treasury, Timothy Geithner. He is facing the challenge of finding no less than US$3 trillion, at current exchange rates around A$2.9 trillion, in new deficit cuts to make sure that the US credit rating will not be downgraded any further. Then we have Giulio Tremonti, the incumbent Italian finance minister who has presided over that country's credit rating downgrading. Italy, as we know, currently carries a public debt of €1.9 trillion, or A$2.56 trillion, a portion of which must be refunded each year through the sale of government bonds. Then we have the Greek finance minister, Evangelos Venizelos, who is staring down the barrel of the financial gun and relies on the agreement of the European Union to ensure that the Greek economy does not experience a total collapse.

Even more financially stable countries such as Germany, France and Japan all face the challenge of protecting their own economic stability by bailing out other countries and dealing with the consequences of significant natural disasters which require huge financial reserves to complete their individual rebuilding task. So, compared with the rest of the world, Australia is indeed a fortunate country, with its continuing mining boom, but we must not take the situation for granted or be complacent. Our current circumstances do not mean that this government should think it can have an open chequebook for the things it is trying to ram through this parliament, including the introduction of a carbon tax. Our current circumstances should not be taken for granted, and it is the responsibility of this government to ensure that the necessary measures are taken to increase Australia's productivity, particularly in the manufacturing and service industries.

I know Senator Mason will be surprised by this, but the Treasurer, Mr Swan, has clearly benefited from the heavy lifting done by the former Howard-Costello government. We know it took the former Treasurer, Peter Costello, 10 years to pay back the $96 billion Labor debt from the Hawke-Keating years.

Honourable senators interjecting—

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Order! Senators Sherry, McEwen and Mason: under standing order 197, a senator shall not be interrupted except to make a point of order.

Helen Kroger (Victoria, Liberal Party) Share this | Link to this | Hansard source

Thank you, Mr Acting Deputy President. It is always very impressive when the chair knows and can quote the standing orders. Those on the other side have been getting a bit agitated about the due deference paid to former Treasurers who actually understood how to grow surpluses. It took Peter Costello 10 years to pay back that $96 billion of Labor debt that had been ratcheted up so easily during the Hawke-Keating years. The recipient of this award should be the former Treasurer, Peter Costello, who knew what it meant to apply financial discipline and responsibility to the task. That provided the basis for the current economic situation that the government enjoys. Euromoney magazine has commended Mr Swan for his careful stewardship of Australia's finances and economic performance, both during and since the global financial crisis. But this is not the full story, as the Australian newspaper so rightly pointed out in its editorial today, 21 September 2011. It states:

Mr Swan can claim credit for recognising—

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

What kind of research is that?

Helen Kroger (Victoria, Liberal Party) Share this | Link to this | Hansard source

We know that you have issues with the media—the media properly scrutinising what you do—but, Senator, it might pay you and help your understanding—

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Order! Senator Kroger, please address your remarks through the Chair. Senator Crossin, you will appreciate your opportunity to speak in silence in less than four minutes.

Helen Kroger (Victoria, Liberal Party) Share this | Link to this | Hansard source

Thank you, Mr Acting Deputy President. I quote from the Australian:

Mr Swan can claim credit for recognising the threat of the global financial crisis and responding quickly, particularly through cash injections, to stave off recession. However, much of the later rounds of stimulus spending was ill-targeted, poorly administered and unproductive. The resources boom, fuelled by continued Chinese demand, the rapid depreciation of the dollar via our floating currency and the aggressive easing of monetary policy by the Reserve Bank, as well as the stability of our financial sector, insulated us from the worst of the crisis.

I do not read too much in that about the contribution that the Treasurer has given to this whole situation. While we know that this government will take the credit for anything, and if I was them I probably would too, given their appalling track record on the governance of so much since they have been in office, recognition must be directed to the former government's handling of the economy and to former Treasurer Peter Costello for the way in which he set up this country so that it ensured us some protection against any vulnerabilities or unstable global economic challenges. The Treasurer, Wayne Swan, has presented us with fudgy budgets. He has promised to return the budget to surplus while borrowing $135 million a day to service the current debt. That is $135 million a day that every taxpayer will have to pay back before a single cent is saved for the government in the future.

After the categorical ruling out of 'There will be no carbon tax under a government I lead' by Prime Minister Gillard, we know how committed the Labor government is to its election promises. We know what it does with its pledges: it bins them. It has no credit and integrity in this regard whatsoever. The answer to this government's financial irresponsibility, and its total spending spree, is to raise more money by introducing more taxes. We see this again now and we will see it with the mining tax, which is the next thing the government wants to bring on the agenda.

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

Bring it on. Bring on the mining tax.

Helen Kroger (Victoria, Liberal Party) Share this | Link to this | Hansard source

Its answer to fixing problems is more taxes. It does not understand what financial management is all about. It is terrific to see Senator Sherry join us because he may learn a thing or two about this. (Time expired)