Jane Hume (Victoria, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann. This government's commitment to economic growth and employment is irrefutable, but can the minister please explain to the Senate: what are the values and principles that underpin this government's plans for the economy and for jobs?

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

I thank Senator Hume for that question. It is an incredibly important question. Of course, the outcome that the government is focused on is: providing the best possible opportunity for Australians today and future generations of Australians to get ahead, to be successful and to have the most successful life they possibly can, because we understand that their individual success will contribute to our success as a nation, will contribute to providing opportunity to all Australians to be the best they possibly can be. That is why our government and our economic plan, our plan for jobs and growth, are based on the principles of freedom—the free market; reward for effort; encouraging people to stretch themselves, to work hard, to take risks. And, yes, our policies are based on the principle that we do need to ensure that we have an appropriately generous social safety net to look after those people in need of support.

Having a national economic plan that provides the best possible opportunity for individual Australians to be as successful as they can be will not only be good for them and their families and the communities they live in; it will be good for our country. It will help us generate the resources we need to ensure we can support those Australians who are doing it tough and we can continue to provide all of the necessary resources into providing a generously funded social safety net to ensure that those Australians that need that support can be appropriately supported. But let me be very, very clear: this is a government that wants to encourage people to be the best they can be. This is a government that wants to encourage people to pursue opportunity. This is a government that wants to incentivise people to make the best possible contribution to our country, to help contribute to our success as a nation and to help contribute to the success of their communities. That is how we create more jobs, that is how we create better-paid jobs and that is going to be a key battleground between now and the next election.

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

Senator Hume, a supplementary question?

Jane Hume (Victoria, Liberal Party) Share this | Link to this | Hansard source

Is the minister aware of any alternative approaches, and what would be the consequences for the economy and for jobs of those alternative approaches?

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

The Leader of the Opposition has made a judgement that people have forgotten the historical failure of socialism. The Leader of the Opposition believes that the politics of envy will work for him, that the politics of envy will help him be politically successful. He believes in pointing to Australians who are successful, who have done well, and telling Australians who are doing it tough: 'We want to tear down those people who have worked hard, who have taken risks and who have done the best they can. We are going to help you have a better life if only we go after those people that are successful.' Well, let me tell you, there was a reason for the historical failure of socialism. If you want to achieve equality of outcome instead of equality of opportunity, the people that are best able to be successful, the people that are best able to contribute to our success as a nation, the people that are best able to contribute to— (Time expired)

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

Senator Hume, a final supplementary question.

Jane Hume (Victoria, Liberal Party) Share this | Link to this | Hansard source

Can the minister please explain why it is so important for the government to focus on equal opportunity, rather than seeking to eliminate all inequality?

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

The historical failure of socialism has shown that, if you want to tear down those who are successful and those who are contributing to our success as a nation, then what you will do is lead to mediocrity, to less investment, fewer jobs and lower wages and you end up with less opportunity for people to get ahead. There are examples all around the world. If you want to make-believe that the way to create more opportunity is by tearing down people who are successful, there will be two things that happen in that circumstance: people who can be successful might leave or they will lose the incentive of stretching themselves and doing the best they can. Neither of them are good outcomes for our country, and this is not something that we believe is the best way forward for Australia. I believe that Australians will not support an agenda that will seek to turn Australia into a socialist economy.