Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Abetz. I refer to the centrepiece of the budget, an $80 billion cut to hospitals and schools, and to the Prime Minister's pre-election promise that there would be no cuts to health and no cuts to education. I also refer to New South Wales Premier Mike Baird, who said the funding cuts are 'a kick in the guts'. Is Premier Baird right?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I am absolutely delighted to be able to talk about the centrepiece of the federal budget, because, unlike as Senator Wong would seek to portray it, the centrepiece of the federal budget is, as Senator Nash outlined in question time yesterday, the medical research foundation—a historic centrepiece position for this government. It is something that will look after future generations for many, many years to come. This is the sort of future planning that the Australian people elected the coalition to undertake. I am delighted to talk about the centrepiece because part and parcel of that centrepiece—and it is emblematic of our budgeting—is that, with this centrepiece, we are looking to the future. We are looking to the future to ensure—

Claire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | Link to this | Hansard source

Mr President, I rise on a point of order to do with relevance. The specific question is about Mr Baird's comment. Is Mr Baird right? That is the specific question, and we have now gone through more than half of the response without getting there.

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

I am listening to the minister's answer. The question was actually broader than that. The minister still has 57 seconds remaining to address the question. There is no point of order.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I was asked about the centrepiece of the budget, and, as is the wont of the Labor opposition, they could not help themselves but misrepresent that which the centrepiece of the budget actually is. So I am correcting the Leader of the Opposition in this place and advising her as to what the actual centrepiece is. But I can understand the Premier of New South Wales being disappointed with a former dishonest government having predicated expenditure in health and education which was not underpinned with a funding source. That is why the Australian Labor Party is guilty of having undertaken a hoax on the Australian people—

Senator Wong interjecting—

Senator Cormann interjecting—

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

Order! Senator Abetz, just resume your seat. Even though there are only six seconds remaining, Senator Cormann and Senator Wong, the two of you are debating the issue across the chamber, and I am trying to listen to Senator Abetz.

Senator Cameron interjecting—

Senator Cameron, Senator Abetz is entitled to be heard in silence. Senator Abetz, continue.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

The New South Wales Premier is entitled to be disappointed with the hoax perpetrated by the previous government. (Time expired)

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I refer to comments by the Queensland Premier, Mr Campbell Newman, who said:

You can't just throw the health and education issues on the states and not give them the money to deal with the problem.

…   …   …

This whole thing seems like a wedge to get the states to ask for the GST to be raised.

Is Premier Campbell Newman right?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I can indicate that I am not aware of what Premier Newman said, but what I do know is that Premier Newman faced a very similar situation to the situation that we now face in Canberra: a profligate Labor government that thought they could just borrow and borrow and borrow as though there were no tomorrow. Premier Newman in Queensland had to take very tough but responsible decisions to get their budget back on track. Similarly, we are seeking to do so in Canberra, and it stands to reason that people that had been given promises that clearly could not be fulfilled will feel disappointed. We as a government understand that. We acknowledge that. But at the end of the day we have to ensure that our government and budgeting are on a sustainable basis. (Time expired)

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I refer to comments by former Prime Minister John Howard, who today said that the government's budget changes to family tax benefits were 'in effect a tax rise'. Is former Prime Minister John Howard right?

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I am not going to get into the semantics as to whether something is a tax rise, whether it is a levy. What I can accept and what I will accept it is that a greater burden will be placed on the Australian people to repay the damage occasioned by the Australian Labor Party and the Greens.

Honourable Senators:

Honourable senators interjecting—

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

Resume your seat, Senator Abetz. Order! Senator Abetz, continue.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

I am in fact acknowledging that what Mr Howard said is very appropriate in the circumstances, because what I have said to those opposite is, 'I will not play the semantics.' I have been here 20 years. Some people say tax rise; some people say levy; some people say surcharge. I accept that there will be an extra burden on the Australian people. We regret that, but we have to do it to repay the debt from Labor. (Time expired)