Barnaby Joyce (Queensland, National Party, Leader of The Nationals in the Senate) Share this | Link to this | Hansard source

My question is to the Minister the Finance and Deregulation and Minister representing the Treasurer, Senator Wong. I refer the Minister to the fact that the Reserve Bank of Australia data has the government currently borrowing $27.8 billion in the first six months of this financial year, and we are now in excess of $262 billion in gross debt. Given that this is a larger amount than what the government borrowed in the first six months of the 2009-10 financial year, why is the government borrowing more money now than during the height of the global financial crisis?

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

Senator Joyce really does the opposition no credit when it comes to their economic credibility, and given the looks on the faces of the coalition front bench, I think people would agree with me on that side, because when Senator Joyce stands up a couple of those over there who might have some inkling about these issues just drop their heads. This is the man who seeks high office as a minister, should the coalition win government.

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

Senator Wong, come to the answer.

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

In relation to the government's debt position, I make two points: the first is that net debt, as a percentage of GDP was 10 per cent in 2011-12. That is around one-tenth the level of the major advanced economies. Under this government we see this nation with a AAA credit rating with a stable outlook from all three international credit-rating agencies. But Senator Joyce wants to come in here and say that he knows more than everyone else in the markets and everyone else in the rating agencies.

Barnaby Joyce (Queensland, National Party, Leader of The Nationals in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on relevance. Why has the government borrowed more money during the last six months than at the height of the global financial crisis?

Senator Conroy interjecting—

Would the Leader of the Government in the Senate stop interjecting—otherwise can we put the other bloke back?

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

There is no point of order. The minister is answering the question. The minister has 47 seconds remaining.

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

Senator Sinodinos is leaving the chamber. He cannot wait for your third question, Senator—or even your second question. Gross debt as a percentage of GDP is 18.4 per cent in 2011-12 and 2012-13. I take from that question an acknowledgement, which is an unusual one from the opposition, that there was in fact a global financial crisis. The opposition opposed the government's stimulus package, opposed the action that saved 200,000 jobs. One thing we know from that decision and from so many others is that it is the people on this side of the chamber who care about Australian jobs; it is the Labor Party who care about jobs, not those opposite. (Time expired)

Barnaby Joyce (Queensland, National Party, Leader of The Nationals in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. There was not an answer there, because they are not capable of one. I refer to the minister's media release in May 2011 in which she claimed that the government has delivered the fastest fiscal consolidation in modern budget history. Now that the government is breaking its promise to deliver a budget surplus in 2012-13 and continues to borrow at a record pace, will the minister now concede that this claim that she made is false?

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

Mr President, pardon me—the benefit of having a daughter in child care is you get every cold there is. It is the case that this government has made clear the challenges as a result of receiving much less revenue than was anticipated.

Senator Brandis interjecting—

The $70 billion is where you start in terms of how much you have to cut to return the budget to surplus. Those are not my words—they are Mr Robb's words; they are Mr Hockey's words. We know where you will start. You will start with low-income Australians—3.6 million Australians who get a tax cut under this government on their superannuation will be in the firing line. These are Tory values in action: 'Let's go after working people's superannuation.'

Senator Conroy interjecting—

Barnaby Joyce (Queensland, National Party, Leader of The Nationals in the Senate) Share this | Link to this | Hansard source

Mr President, the Leader of the Government in the Senate should realise that he is now a leader and should act like one. I have a point of order on relevance. It is about the claim that the minister herself made that this is the fastest fiscal consolidation in modern budget history. She made that claim. Does she stand by it or not?

Jacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Link to this | Hansard source

Mr President, on the point of order: again the opposition is monopolising time in question time with these spurious points of order. All that Senator Joyce has done is reread his question. He has not presented any rational argument for why Senator Wong has not been relevant to that question. I suggest she continue with her answer.

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

There is no point of order. The minister is to continue. Minister, you have four seconds.

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

I will be very clear with the senator: this government— (Time expired)

Barnaby Joyce (Queensland, National Party, Leader of The Nationals in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I remind the minister that the government borrowed $16 billion in the first half of 2009-10 and delivered a $54 billion deficit, $27 billion in the first half of 2010-11 and delivered a $47 billion deficit, and $32 billion in the first half of 2011-12 and delivered a $43 billion deficit. Is the finance minister able to tell us or even fathom a guess at what the deficit will be this year?

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

I remind the senator of a number of facts which those opposite dislike. This economy is 13 per cent larger than when the government was elected.

Senator Brandis interjecting—

If you look at the United Kingdom—and I know Senator Brandis always looks to mother England for his inspiration—their economy is smaller. We are 13 per cent larger and their economy is smaller than prior to the global financial crisis. We are, as I said, one of only eight economies in the world with a AAA credit rating with a stable outlook from all three major rating agencies.

The stimulus package that this government implemented saved 200,000 Australian jobs—200,000 families were not put on the unemployment queues, as those opposite would have. There is one party in the chamber that cares about jobs and it is the Australian Labor Party. It is most certainly not those opposite. (Time expired)