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 government's budget levy bill and to Senator Bernardi's claim that today is his 'first opportunity to have a conversation about these tax rates with members of my own party'. Can the minister confirm that the Prime Minister did not consult his own backbench before introducing this levy?

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

The simple fact is that we would not need to have this budget levy bill but for the deficit and debt disaster left to us by the previous Labor and Green government. So let us make no mistake as to the genesis of this particular legislation.

As is the wont with budgets, they go through all the normal processes, as did this particular budget. I also make the point that we on this side of the parliament actually embrace a great diversity of points of view within our parliamentary party. Unlike all those shoehorned into the party courtesy of the trade union movement and the trade union hacks that live on the other side, we have people who are willing to express a differing point of view without any fear of expulsion.

Opposition Senators:

Opposition senators interjecting—

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

Senator Abetz, you might resume your seat. Senator Abetz is entitled to be heard in silence.

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 on relevance. We have heard the beginning of the discussion and are yet to hear an answer to the specific question about consultation with the backbench. I ask you to draw the minister's attention to the question.

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

As I have said previously, I cannot tell the minister how to address the question. The minister has been going for one minute and two seconds and the minister still has 58 seconds in which 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

Mr President, I can understand that Senator Moore did not hear my answer, because of the bellowing of Senator Kim Carr. But what I did say to the Senate very clearly was that the budget had gone through the normal processes that budgets always go through. That is my answer to that particular part of the question.

Having said that, can I remind those opposite that we actually do allow freedom on our side of the parliament. People can express a point of view without the fear of expulsion, which is one of the great faults of the Australian Labor Party. They claim to represent and embrace diversity, but never diversity of views within the caucus—because, if there is, you will be expelled. It is not so on this side. Having said that, the government is committed to the debt levy bill and we are pleased that it looks as though it will go through—(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 have a supplementary question. I refer to the minister's response in relation to freedom and ask him this question: given that Senator Macdonald has today said that his inclination is to vote against the Prime Minister's Paid Parental Leave Scheme and Senators Smith, Bernardi, Boswell and Williams have also expressed grave reservations, does the Prime Minister's scheme in fact have the full support of the government party?

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

The government and the party room fully support the Paid Parental Leave Scheme. Having said that, and as I said in answer to the previous question, the coalition does have room for diversity of opinions and diversity of views—something that the Labor Party simply will not countenance. They will not allow a differing point of view.

Opposition Senators:

Opposition senators interjecting—

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

Senator Abetz, you will resume your seat, so that I can restore order. You are entitled to be heard. Senator Abetz, continue.

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

Thank you, Mr President. We on this side all know that, if the rules that are so manically enforced by Labor were to be relaced, Senator Conroy would have got up and spoken against the emissions trading scheme, wouldn't he? Yes, he would have done. We have the freedom to do that. We can be honest on this side of the chamber; whereas we know that there are those on the other side who are not given that freedom. (Time expired)

Honourable senators interjecting—

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

The level of cooperation in the chamber is very good, but I do need silence. Senator Wong is entitled to be heard in silence.

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. Given the open revolt on the floor of the Senate this morning, can the Leader of the Government in the Senate tell us why the Australian people should support a budget that even his own colleagues do not?

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

The only revolting thing in this chamber is the Labor Party's opposition to our budget measures, their unwillingness to accept that the debt and deficit disaster that they have left us needs to be fixed up. It needs to be fixed up. We as a nation cannot continue to borrow—listen to this—$1,000 million per month just to pay the interest on the existing borrowings. If we had not stopped the debt trajectory of the Labor-Greens government, that would have gone from $1 billion per month to $3,000 million per month that we would have had to borrow from overseas just to service the interest on the existing loans. That is economically irresponsible and, might I add, unconscionable intergenerational theft, of which we on this side will not be part.

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Leader of the Government in the Senate and Minister for Employment, Senator Abetz. Can the minister advise the Senate why the legacy the government inherited from its predecessor makes it so important for the Senate to pass the government's budget measures?

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

I thank Senator Back for his concern about the budgetary position that the Australian people face. The Australian people realise that they have inherited from Labor a debt and deficit disaster that, if left unaddressed, threatens the future prosperity of future generations of Australians and—as I just said before—would be both economically irresponsible and unconscionable intergenerational theft.

Let us just consider Labor's legacy: $667 billion worth of projected debt; $123 billion worth of deficits; the borrowing of $1,000 million in interest payments each and every month; and 200,000 more of our fellow Australians without a job. We all know that, unless remedial action is taken, government spending will blow out to nearly $700 billion within the decade, thanks to Labor's legacy. By 2024, a $24,500 millstone of Labor debt would be chained around every Australian's neck. That is every man, woman and child. This would mean for the average Australian household an additional debt burden of $63,700, courtesy of Senator Conroy and the Labor Party.

This is not a problem of the government's making, yet we are willing to address it. We would simply invite those opposite to help make a contribution in cleaning up the mess that they created—that they deliberately created in their bid to gain re-election in 2013. The responsibility now lies with this Senate to ensure that we get our fiscal parameters back into shape for the future wellbeing of all Australians.

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister inform the Senate of any international support received for the government's budget measures to fix Labor's debt and deficit disaster?

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

We will always do what is right by the Australian people for the Australian people, but it is nice to get endorsement from overseas, including last week from the Secretary-General of the OECD, who praised the government's budget as 'sustainable' and a 'durable solution' to fixing the debt and deficit disaster left by Labor. According to the Secretary-General:

We have seen with very great interest, and I think really with great expectations, that they—

the Australian government—

are dealing very directly and decisively with the budget deficit …

The OECD recognises that the government has inherited a debt and deficit disaster from Labor. Unlike Labor, the OECD recognises that direct and decisive action is required to get Australia's finances back on track. That is exactly the action the Australian people want us to take and we are taking. (Time expired)

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister advise the Senate of any impediments to the government's broader Economic Action Strategy to build a strong and prosperous economy with more jobs for more Australians?

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

Every day that Labor refuses to support the government's Economic Action Strategy and refuses to pass our legislation, it continues to dwell in its deficit and debt denial. If Labor took responsibility for its fiscal vandalism and acted in the national interest, it would immediately pass the government's legislative reform package, currently before the Senate. This package alone would immediately save the Australian economy some $20,000 million. Nothing is stopping Labor from coming into the Senate this afternoon or any time and passing our legislation to abolish the carbon tax, to abolish the mining tax, to unshackle Qantas and to re-establish the Australian Building and Construction Commission. Labor needs to take responsibility for its mess and stop resenting the decision of the Australian people made on 7 September— (Time expired)

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Cormann. Can the minister confirm evidence from Senate estimates that Treasury was not asked for and did not provide any advice to the government on changes to the diesel fuel tax rebate?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Sterle for that question. I can confirm that the information provided by Treasury officials at Senate estimates was accurate.

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Has the minister investigated which senior Liberals backgrounded the ABC about the government's prejudged threat to cut the diesel tax rebate to 'play the Nat's and push them into supporting the fuel excise indexation'?

Opposition Senators:

Opposition senators interjecting—

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

Order! When there is silence on both sides, we will proceed.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

This government and I, as Minister for Finance, are focused on fixing the budget mess Labor left behind. If you are asking me whether I am running a leak inquiry, no, I am not running a leak inquiry but I would say that the report on the ABC on that particular day, which Senator Sterle refers to, was entirely inaccurate. It could not possibly be based on information from anyone who was in any way, shape or form involved in the budget process, as all the ministers on the Expenditure Review Committee were. Indeed, the work done by the Expenditure Review Committee was very positive, very collaborative, and involved, of course, a common purpose by Liberal and National party ministers to fix the budget mess we have inherited from Labor and includes a measure to reintroduce indexation of fuel excise arrangements to ensure that the fuel excise keeps pace with inflation. (Time expired)

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister aware of comments by the Minister for Agriculture, Barnaby Joyce, who said:

Ultimately in any relationship you work on trust because without trust you have nothing.

Can the minister advise Mr Joyce and the Nationals which senior Liberals they can trust not to play the Nat's next time around, or Minister, is that simply too much for me to ask?

Opposition Senators:

Opposition senators interjecting—

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

Order, on both sides! Senator Cormann is entitled to be heard in silence. When there is silence, we will proceed.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Our friend and former colleague here in the Senate is absolutely right: trust is fundamentally important and at the heart of any good government. In this government we are strong, we are united, and there is lots of trust as we are fixing the budget mess left behind by the Labor Party because in this government there is strong sense of resolve and unity of purpose in fixing the budget mess Labor left behind. We are making the necessary decisions in order to put Australia on a stronger trajectory for the future. We are making the necessary decisions in order to protect our living standards and to build better opportunities and better prosperity for the future. Of course the Liberal and National parties are working together and have a great track record when it comes to providing good government for Australia. That is what we will continue to do and not get side-tracked by these political games that the Labor Party is engaged in in order to distract from their terrible track record in government. (Time expired)