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

My question is to the Minister for Finance and Deregulation, Senator Wong. I remind the minister of Labor's strident demand five years ago: 'This reckless spending must stop.' Can the minister confirm reports that Labor's own record in government has been more than $33 billion of new spending commitments just over the past three years alone, including $1.6 billion of new spending announced last month in its most recent Mid-Year Economic and Fiscal Outlook?

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

I can confirm a number of facts, and perhaps Senator Cormann would like to acquaint himself with the facts. The first fact is that we are a lower taxing government than those opposite were when they were in government—fact. Additional facts that they might want to be aware of are the facts around spending as a share of the economy, because there are a lot of statistics that people can put to their own ends but the facts are that this government, in this budget period, is spending less as a share of the economy over the forward estimates period—over a sustained period—than any government since the 1980s: at or below 24 per cent of GDP over four years. The last time that was achieved was in the 1980s, and it was certainly never achieved under the coalition government over that period.

I would make this point too: if those opposite are really saying that there should never be an increase in nominal spending then they should be up-front with the Australian people and say, 'We don't want pensions indexed; we don't want funding for schools and hospitals indexed; we don't want any of the indexation which currently exists in Commonwealth programs.'

If that is your policy then why don't you stand up and tell up everybody? You will not, because it is not true. You know that would be politically unacceptable, so you come in here and you put forward a whole range of so-called facts based on reading an article in a particular newspaper that you have not bothered to check out. Why don't you have a read of the budget papers and have a look at the spending as a share of GDP over the forwards and tax as a share of the economy over the forwards? If you do not understand it, turn around to Senator Sinidinos and he will explain it for you, Senator Cormann.

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

Mr President, I ask a supplementary question. I remind the minister of the Prime Minister's commitment last year that, 'Every time we announce something we properly account for it and properly fund it.' Given that the government has announced a multitude of unbudgeted, multibillion-dollar spending commitments in recent months, culminating in a $120 billion budget black hole on top of $172 billion in accumulated budget deficits already, can the minister explain where all the money is coming from?

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

Well, that was a killer blow, wasn't it! Mr President, perhaps I should explain some budget facts to those opposite. This government has offset all new spending since mid-2009. The fact is that we have been dealing with, as all other advanced economies have, a hit to our revenue base, a hit to our revenue, which is reflected with some $160 billion in revenue write-down over a number of budgets. So we have not only been offsetting new savings; we have also been offsetting a lower tax take. If Senator Cormann wants to look at the facts: if we were taxing as much as Peter Costello, the surplus in 2012-13 would be $24 billion.

Senator Cormann interjecting—

That is the reality, Senator Cormann, and no amount of your rhetoric is going to alter the facts of the government— (Time expired)

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

Mr President, I ask a further supplementary question. Given that since the election this minister has co-presided over a $33.3 billion blow-out in the budget deficit, just last financial year, and with spending as a share of GDP higher this financial year and every year of the forward estimates than the last year of the Howard government, even before taking $120 billion of unfunded spending promises into account, why should the Australian people trust this government, notorious for breaking commitments, to deliver a budget surplus in 2012-13?

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

Mr President, if Senator Cormann wants to talk about records, perhaps he should be up-front with his record that the economic team on that side of that chamber has never once delivered a costed set of policies that added up—never once. And I predict they never will, because they still refuse to say that they will comply with Peter Costello's Charter of Budget Honesty. It is extraordinary, isn't it. 'Senator Wong and Mr Swan from the other place,' these people on the other side say, 'are profligate spenders and don't know what they’re doing.' We are the ones who are complying with Peter Costello's Charter of Budget Honesty, whereas those over there, who continually beat their chests about how fiscally disciplined they are, keep going very quiet when it comes to the Charter of Budget Honesty. You just keep out there with your catering company costings and your $11 billion black hole that was found at the last election in $70 billion worth of cuts. (Time expired)