Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Deregulation and Minister representing the Treasurer, Senator Wong. Can the minister update the Senate on the latest International Monetary Fund report on the performance of the Australian economy? How does this performance compare to the outlook for the global economy?

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

I thank the senator for her question. She, like many on this side, actually has an interest in the economy, which puts her in stark contrast to those on the other side. The IMF, in its article IV report on Australia released last week, stated:

Australia's performance since the onset of the global financial crisis has been enviable.

The fund also forecasts that Australia's economy will grow at 3.3 per cent in 2012, faster than any of the major advanced economies. It also notes we are well positioned to deal with the current global instability.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Who left you zero net government debt? Who left you billions of dollars in the Future Fund, in the higher education fund?

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

I hear Senator Cormann rabbiting on over there. If he really believes in economic credibility, he might do something about the $70 billion black hole. I read in the papers that he is on the razor gang to find it and they think it is doable. Well, fess up. Tell us where the cuts are. Tell us how you are going to fill a $70 billion black hole and provide tax cuts. You cannot do it, which is why you want to hide your costings. The truth—

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

We'll fix up your mess again.

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

Senator Wong, resume your seat. When there is silence we will proceed. Comments should be addressed to the chair.

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

The reality is the economic team on the other side has yet to get its costings right—not once. How embarrassing for a party that prides itself on economic management. There was an $11 billion black hole at the election. There is a $70 billion black hole by their own admission and a shadow Treasurer and a shadow finance minister who are fighting each other. What I would say to Senator Cormann is, if he wants to come in here and beat his chest about economic credibility, I dare him to put forward his costings and his numbers, because he will not. He will not be able to, because they have never been able to. (Time expired)

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Further to the International Monetary Fund's recognition of the strength of the Australian economy, can the minister inform the Senate if the IMF provided any comment on the approach the government took to keeping Australia out of recession?

Opposition Senators:

Opposition senators interjecting—

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

When you settle down, we will proceed. If you want to chew up question time this way, it makes it interesting for yourselves but has no interest for anyone else.

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

The IMF noted that Australia was:

… one of the few advanced economies to avoid a recession in recent years, reflecting its strong position at the onset of the crisis and a supportive macro policy response.

I like the way in which the opposition conveniently try to forget about the global financial crisis. It is extraordinary, isn't it? It was some sort of hiccup to them. We should not actually have responded! They would have been happy to see hundreds of thousands of Australians put onto the unemployment queues. There were 200,000 jobs saved as a result of the actions of this government and the work of Australian businesses and Australian workers—something about which the country should be proud.

But I would also make this point about the IMF: the IMF has endorsed not only the government's actions during the global financial crisis but the minerals resource rent tax and also pricing carbon. One would have thought the opposition might want to heed that. (Time expired)

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister outline for the Senate any comments from the IMF on Australia's fiscal policy and the impact this has had on the wider economy? Are there any challenges to maintaining the government's strong fiscal strategy?

Mitch Fifield (Victoria, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

Hands up those who still support Gillard.

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

This is not the time for that sort of interjection.

Senator Ian Macdonald interjecting—

If your purpose is to chew up question time, Senator Macdonald, you are achieving it.

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

In addition to endorsing the government's economic plan, the IMF—

Opposition Senators:

Opposition senators interjecting—

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

Order! When there is silence we will proceed. If you wish to have a chat, you can go outside.

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

As I was saying, in addition to endorsing the government's economic plans, the IMF commented favourably on the government's determination to bring the budget back to surplus and pointed out that this puts us miles ahead of our peers. Of course, the ability to return to surplus does depend on getting your numbers right. The opposition have yet to get their numbers right. Their $11 billion black hole, found by Treasury and Finance, from which they have never recovered, has now blown out to a $70 billion black hole—

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

You have no credibility.

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

Senator Cormann, I am losing my patience.

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

and their only answer is not to fill it but to hide it, and that is why they are getting set to oppose the Parliamentary Budget Office, which they used to support. It is because they are now the party of budget dishonesty. (Time expired)