Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. We've seen the price of iron ore drop to US$81.80 per tonne, the lowest since November 2022. This is said to have massive impacts on Australia's finances, with your government making massive spending commitments well into the future. With every $10 drop in iron ore prices equalling $10 billion in lost national income and a potential $3 billion in lost company tax over the next three years, will you curtail unnecessary spending to protect the budget or order the approval of new mines to boost the bottom line?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

As I have said publicly and as the Treasurer has said, we've taken a conservative estimate in terms of the iron ore price and how it feeds into the budget, and we do that for good reason. We are seeing a decline in the iron ore price at the moment. It's tracking, I think, slightly ahead of what the Treasury forecasts are. But the work we've done on the budget is broader than just the iron ore price. The fact that, with our budget, we've turned Liberal debts into Labor surpluses has been because we have gone through and found what we considered wasteful spending and returned that to the budget. It has been because of the resilience of the labour market. The fact that more people are working and working more hours has been good for the budget as well, and, of course, it's good for those individuals. The fact that people are earning more is also good for the budget. We wanted wages to move again; they're moving again.

Not everything is determined by the iron ore price. Obviously, it's a significant contributor to the budget, and we are able to deliver a lot of services because of revenue to the budget. But we will manage the budget in a responsible and methodical way as we have been—finding savings where we can; prioritising services and cost-of-living programs where we can, where it doesn't add to inflation; and providing tax cuts to every taxpayer in Australia. They have been able to be found within the space in the budget. We will continue to do so.

As I just said in my previous answer, we have turned hundreds of billions of dollars of Liberal debt into Labor surpluses—two Labor surpluses. Gross debt will peak 9.7 per cent lower than was expected when you were in government, and we are paying $80 billion less on our interest bill because of the steps that we've taken to address the budget. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator McDonald, first supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

Your environment minister has ignored Indigenous Australians in Orange to block a $1 billion gold mine that had cleared all of its approvals. It was set to generate almost 1,000 jobs and millions in company taxes and royalty payments. What is the lost economic opportunity for Orange, for the local Indigenous population and the impact on the federal budget from that decision?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I don't accept the question. The question is inaccurate. The minister for the environment has responded to this today in the media. I think consultation with local traditional owners is an important part of the environment minister's decision. We are richer as a country because of the tens of thousands of years of First Nations culture. It is right, and the laws of this country actually set out the process for consideration of those matters.

No-one wanted to see a repeat of the Juukan Gorge. No-one in this chamber wanted to. It was a very similar decision to the one the deputy opposition leader in the other place made—some 50 kilometres from the decision, and I hope that the company involved will consider another place for the tailings dam.

Sue Lines (President) Share this | Link to this | Hansard source

Senator McDonald, second supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) Share this | Link to this | Hansard source

Minister, considering the looming budget black hole thanks to massive new Labor spending, plummeting iron ore prices under your watch and your government's continued vetos on new mining projects, how will you recoup the lost revenue, royalties and taxes from mining? Where will the money come from?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I'd like to know where the money will come from for nuclear power plants all over the country that haven't been costed yet. You've been very quiet about those, haven't you? You launched a big policy, and then everyone scurried away from it because you can't explain how you'll do it.

On what those opposite call wasteful spending, included in the amount that's used publicly—the $315 billion figure—is indexation of the aged-care pension, women's safety initiatives, energy bill relief, pay for aged-care and childcare workers, funding for new medicines on the PBS, cheaper child care and rent assistance. All of those things are what you, over there, consider to be wasteful spending. We don't. We think it's necessary spending, an investment in our community and in our country, and I think it gives just a little snapshot of what Australia would be like should you ever be in government again.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.