Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Wong. Can the minister outline for the Senate the importance of spreading the benefits of the mining boom to all corners of the economy? How is the government acting to ensure the mining boom benefits all Australians?

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 and the opportunity to speak about the importance of the Minerals Resource Rent Tax, a policy which is all about ensuring all Australians share in the benefits of the mining boom, a policy to fund a reduction in tax for small business and a boost to superannuation for working Australians and investment in infrastructure. This, as I have previously said, demonstrates the difference between this side of the chamber and those opposite. We want less tax on small business and more superannuation for workers; they want less tax for mining companies and higher profits for the big mining companies. And what is really interesting is that as each day goes on, as each day passes, more and more opposition members are starting to understand the ridiculous position that Mr Abbott has put the opposition in. In fact, one MP has told the West Australian it was 'insane' to hand back free money that was willingly being paid by the biggest miners. So there is a growing number of opposition members who understand that it is insane for the opposition to be seriously suggesting that they want to go to the next election telling small business, 'We are the coalition and we stand for higher taxes. We are the coalition and we stand for lower superannuation. We are the coalition and we stand for less tax on miners.' That is the ludicrous position that the opposition have got themselves into. And now what we are seeing day by day are backgroundings for the papers—

Honourable Senators:

Honourable senators interjecting—

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

Senator Wong, resume your seat. When there is silence on both sides we will proceed. Senators, if you wish to debate it the time is after question time, and you know that.

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

Thank you, Mr President. What we are seeing in the papers day by day is more and more coalition MPs backgrounding, telling people they think this is a bad idea. 'Abbott's policy is insane'—that is what coalition backbenchers think. (Time expired)

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister outline to the Senate how the Minerals Resource Rent Tax fits with the government's fiscal strategy? Is the minister aware of any alternative approaches to fiscal strategy?

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

The government does believe it is important that this tax fit with the government's fiscal strategy—and it does. However, what we see from the other side is the alternative approach to fiscal strategy, which is 'we're just going to spend but we don't want to work out how we're going to find the money'. This is an opposition led by a man who simply wants to make spending promises. He talks about being fiscally responsible, but all evidence points the other way—which is why we are increasingly seeing members of the opposition being prepared to speak to newspapers about the ridiculous and insane position that the coalition has got itself into. I note that we do at least have Mr Chester and Dr Washer prepared to put their names out there as people who do think this policy is wrong. One wonders, as the week goes on, how many more— (Time expired)

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I have a further supplementary question. Can the minister advise the Senate why the government focuses on ensuring major decisions such as the Minerals Resource Rent Tax package are consistent with our fiscal strategy and why it is important that spending promises are backed up by properly costed budget decisions?

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

It was interesting to note one of the headlines in the Australian Financial Review today said 'Abbott locks Coalition into big spend'. I am reminded of Mr Abbott yesterday who gave a speech where he talked a lot about fiscal matters. He said that a 'terrible judgment is pronounced' on those who do not make sure that the sums add up, all the while trying to hide on the podium in front of his $70 billion worth of cuts—

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

$70 billion!

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

$70 billion worth of cuts that he is going to have to make to make his spending promises add up. The largest components of the budget are social security, defence, health, education. What are you going to cut? This is what the coalition is going to have to answer at some stage before the next election: where does the $70 billion come from? What are you going to take out of health? What are you going to take out of social security? What are you going to take out of education? And what are you going to take out of defence? (Time expired)