27.5.14 Budget
Mr HAWKE (Mitchell) (14:21): My question is to the Treasurer. Will the Treasurer outline the importance of the structural reform contained in the budget? Can the Treasurer also outline what are the lessons that can be learned from past experiences in this regard?
Mr Husic interjecting—
The SPEAKER: The member for Chifley will desist!
Mr HOCKEY (North Sydney—The Treasurer) (14:21): I thank the member for Mitchell for his question because he knows how important it is to remember experiences from the past. Of course, the fact is that the experience that we are dealing with is that Labor left $667 billion of debt and $123 billion of deficits. When the Labor Party are challenged about what they would do about this very significant structural problem, they say: 'Don't worry. When we were in government we had $180 billion of savings.' I thought: 'Wow, $180 billion of savings. Let's go a bit into that,' because you have to peel it apart like an onion to find out what it really is. In fact, nearly half of it is increases in taxes—not savings, but actual increases in taxes.
Ms Owens interjecting—
Mr HOCKEY: In fact, their definition of savings is about taking more savings from the Australian taxpayer.
Ms Owens interjecting—
The SPEAKER: The member for Parramatta is warned!
Mr HOCKEY: That is the Labor Party's definition of savings. And then the second part of the $180 billion—
Mr Bowen interjecting—
Mr HOCKEY: I'm coming to you, china, in a minute—just a second. With the second part of the $180 billion, I thought, 'Wow, they saved $180 billion'. But they spent $152 billion of it on new expenditure. The problem was the expenditure kept going up and up and up, and that is why we are facing $667 billion of debt.
The fact is Labor once upon a time believed in structural reform. You know, Bob Hawke and Paul Keating, they believed in structural reform. In fact I went to the member from McMahon's book and found that he said:
The Hawke Government was introducing tough and controversial reforms to modernise the economy. … I knew that Labor was trying to make the economy grow so that kids like me could get better jobs.
If that is the case, then he should now be rusted on to our structural reforms that deliver a stronger economy. Instead, the Labor Party cannot hold a policy from week to week. They terminated the carbon tax, but now they are voting to keep it. Three weeks ago they said they were totally opposed to the deficit levy, now they are going to support it. And yesterday they were backgrounding that they were going to allow through the government's proposals in relation to the family tax benefit and then, today, they come out and say, no, they have reversed their position. So if Labor cannot hold a position from day to day and if Labor cannot hold a position from week to week, there is no chance, no chance on earth—
Dr Chalmers interjecting—
The SPEAKER: I tell the member for Rankin that he is warned!
Mr HOCKEY: that this Labor Party, which has no soul and has no principles, is ever going to deal with the structural challenges facing the Australian economy. The Labor Party of today has no principles, has no values, has no leadership.