Senate debates

Monday, 12 August 2024

Questions without Notice

Economy

2:03 pm

Photo of Simon BirminghamSimon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Both the Treasurer and the Prime Minister have falsely claimed that government spending is not fuelling inflation. They've even boasted that they are making the RBA's job easier. On Thursday, when asked why the RBA had attributed a worsening outlook for underlying inflation to government spending, the Prime Minister said, 'That's not what they've said.' However, the RBA's statement on monetary policy is crystal clear:

Public demand is forecast to be stronger than previously expected, reflecting recent public spending announcements by federal and state and territory governments.

Minister, why is the Albanese government deliberately misrepresenting and contradicting precisely what the RBA is saying?

2:04 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

What I can say is that those on this side and all of the members of the Albanese government—from the Prime Minister through to the cabinet and ministry and the whole of the caucus—understand how hard things are for so many Australians. We understand how many families and pensioners are doing it tough, and so our first priority has been to work out how we can deliver cost-of-living relief in a responsible way. That is why you have seen the range of responsible measures that this government has put in place, including the tax cuts which are flowing through to workers from 1 July.

I would take the point that the opposition is making and note this: the opposition is very good at talking about what needs to happen. They're very good at telling people that we actually need to spend less, but do you know what they're not prepared to do? They're not prepared to tell us what they'd cut.

Photo of Murray WattMurray Watt (Queensland, Australian Labor Party, Minister for Employment and Workplace Relations) Share this | | Hansard source

What are you going to cut? Pensions?

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

Exactly! Is it housing? Is it health? Is it hospitals? Is it pensions? Is it social security? What is it that you would be proposing to cut? We know that Senator Hume, I think, as recently as last week was again raising concerns about tax cuts. She and Mr Dutton should come forward to the Australian people and tell them the truth. Are you actually proposing to roll back the tax cuts? That is what you said when they were originally announced. The point here is that we have a situation where the government, like across comparable economies worldwide, is dealing with an inflation challenge. We have worked through that, and— (Time expired)

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Birmingham, a first supplementary?

2:06 pm

Photo of Simon BirminghamSimon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | | Hansard source

I refer the Minister to George Washington University Assistant Professor Stephen Hamilton's statement:

The RBA is notoriously reticent to even come close to criticising the government. The fact they decided to point to high public demand in explaining sticky inflation is the central bank equivalent of screaming from the rooftops what the causes of the problem are.

Minister, is the RBA having to scream their concerns from the rooftops because the Prime Minister has his head buried in the sand?

2:07 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

We are very clear about the priority that we are giving to affording cost-of-living relief for Australians. That's because this caucus understands that Australians are doing it tough. If the proposition from those who purport to be the alternative government is that they want to somehow reduce the support that Australians are getting—if they want to roll back tax cuts, if they don't want to proceed with wage increases and if they don't want to proceed with energy bill relief—then they should say that. But they're not prepared to do that, are they? That's because they want to have a dishonest debate where they come in and quote academics at us but have no answer on the issue of cost of living. The only answer you have on cost of living is complaint. That's the only answer they have on cost of living: complaint. What they won't do is come in here and tell people: if they think government spending should be cut, what are they cutting? (Time expired)

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Birmingham, second supplementary?

2:08 pm

Photo of Simon BirminghamSimon Birmingham (SA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | | Hansard source

Prior to the election, Mr Albanese said: 'I won't blame someone else. I'll accept responsibility. That's what leaders do.' Does the Prime Minister accept, as the Reserve Bank of Australia has said, that public demand is forecast to be stronger than previously expected? Is government spending higher than was expected and forecast?

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

The Prime Minister absolutely takes responsibility for leading the government through a time of rising cost of living and takes responsibility for delivering responsible assistance and responsible relief to Australian families, Australian pensioners and more. That is what the Prime Minister is very clear about. He has made it clear that it is his and the government's No. 1 priority to deal with cost of living. We understand how hard it is for so many Australians but, unlike the opposition, we are getting on with the job of providing cost-of-living relief. We are getting on with the job of ensuring that tax cuts are rolled out as well as wage increases for childhood educators, the Medicare boost plus cheaper medicines and, of course, energy bill relief. How many of those policies do you oppose? How many of those policies would you roll back? Why don't you tell Australians that? You won't come in here and actually be honest about what you want to do. (Time expired)