David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and the Acting Assistant Treasurer, Senator Cormann. Will the minister explain to the Senate what can be achieved if we repair the budget?

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

If we repair the budget now we will be able to protect living standards into the future on a sustainable basis. We will be able to grow a stronger economy where everyone has the opportunity to get ahead. Of course, we know that the Labor Party does not like to hear these things because they know it is true. The reason we know that it is true is because there is a precedent. We know that back in 1996—

Senator Kim Carr interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order! Senator Carr.

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

a previous coalition government inherited a budget in a mess from a previous Labor government. The previous Howard government inherited $96 billion of government net debt and a $10 billion deficit; and, of course, the Howard government, Mr Howard and Peter Costello, fixed the budget. They repaid the net debt left behind by the Labor Party which meant that we had to pay less public debt interest, we were able to deliver income tax cut after income tax cut and we were able to lift benefits and services for low- and middle-income families. These are all the things that you can do when you have sound financial management. The reason we have to fix the budget is because of where it leads. It leads to a better future. It leads to a situation where we can protect living standards for families, pensioners and everyone across Australia. It leads to a situation where we can lift—

Senator Polley interjecting—

Senator O'Neill interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order! Senator Polley and Senator O'Neill!

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

opportunities for people across Australia. That is what we have done in the past and that is what we are setting out to do now. For those who want to see what can be achieved when you get your budget back under control, look no further than what happened when the Howard government did the exact same thing. We ended up with a legacy of strong economic growth, strong jobs growth, income tax cut after income tax cut, increases in benefits and improvements in government services—all of that on a sustainable basis because the budget was under control.

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I do have a supplementary question. Will the minister explain whether there are any other countries around the world who have faced similar challenges?

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

I thank Senator Bushby for that question. Yes, there are, and we can learn from them.

Senator Conroy interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Conroy.

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

The late and great Baroness Margaret Thatcher faced a similar challenge in the United Kingdom back in 1979. She inherited a deficit of £8.5 billion in 1979.

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order! On my left.

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

She turned that into a surplus of £1 billion within the decade. We should listen very carefully to what the late Baroness Thatcher had to say. I know that people in this chamber hold her in very high regard—

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order!

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

Some of us hold Senator Wong in high regard—have a fondness for Senator Wong, even—but I would listen to Margaret Thatcher ahead of Senator Wong when it comes to managing the budget. Here are some quotes which I hope to be able to share with the chamber:

My policies are based not on some economics theory, but on the things that I and millions like me were brought up with …

(Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I have a further supplementary question. Will the minister advise the Senate whether there are any other lessons we can learn from the past when it comes to repairing the budget?

Senator Conroy interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order! Senator Conroy.

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

I think the chamber needs the wisdom of Margaret Thatcher so I will just share some of her great pearls of wisdom with you:

… what millions like me were brought up with: an honest day's work for an honest day's pay; live within your means; put by a nest egg for a rainy day; pay your bills on time …

And this one:

Like all western governments, ours has taken onto itself more and more activities, more and more responsibilities … none of us relish the prospect of cutting public expenditure. It is an unpleasant and difficult task.

The simple fact is that we cannot afford to promise more than we can deliver. We cannot continue borrowing tomorrow's money in order to pay for today's bread and butter. The jam has already gone.

And now a favourite of mine—a real favourite of mine:

Pennies don't fall from heaven, they have to be earned here on earth.

And:

… Socialist governments traditionally make a financial mess. They always run out of other people's money.

What I would say to Australia is reflect on what Margaret Thatcher had to say— (Time expired)