SENATOR THE HON PENNY WONG
LEADER OF THE GOVERNMENT IN THE SENATE
MINISTER FOR FINANCE AND DEREGULATION
TRANSCRIPT
PRESS CONFERENCE
WONG: This morning when asked on NewsRadio to discuss Australia’s budget position and the fact we are one of only eight countries in the world to have a AAA credit rating with a stable outlook, Mr Robb referenced Lehman Brothers. He likened Australia’s budget position to that of Lehman Brothers, and pointed out that the collapse of Lehman Brothers was part of what precipitated the global financial crisis.
Well, what we have is the man who would be Finance Minister, another senior shadow minister of the Coalition, talking down the Australian economy. It’s irresponsible, it’s dishonest, it’s damaging to confidence. What we have is the man who would be Finance Minister warning investors off Australia.
It’s extraordinarily irresponsible but it really just perpetuates the approach Tony Abbott has taken since he’s been Leader of the Opposition: negativity, talking down the Australian economy and all the while confirming that he and members of his frontbench are simply not up to the task of running the Australian economy. They’re not fit to govern. Happy to take questions.
JOURNALIST: He didn’t really reference Lehmann Brothers, did he? He just said that Lehman Brothers still had a AAA rating and the rating agencies had been exposed for lax practices and perhaps questioning the value of the AAA credit rating…
WONG: Well, he’s asked… only eight countries in the world get a AAA rating from all three agencies. He then goes on to say – which is incorrect, in fact – that the collapse of Lehman Brothers, which started the GFC, on that very day they still had a AAA credit rating so what does a AAA rating really amount to? I mean this is just more economic irresponsibility from the Coalition but what’s more important is what it shows. It shows that they’re willing to talk down Australia in their own political interests. They’re willing to talk down Australia in their own political interests and what that shows is that they’re not fit to govern.
JOURNALIST: I was going to say that he said that the issue is not so much the rating but the actual financial position. He says there’s lot of red ink on there. Can I ask you exactly where we’re at? Is it a $6 billion hole in the revenues or an $8 billion hole?
WONG: I’m very happy to debate Mr Robb anywhere anytime about the state of the budget. And I’m happy to debate him about what savings should be put in place because Andrew Robb, like Joe Hockey, goes around talking about the importance of fiscal responsibility but he never delivers. He never delivers. He never tells Australians what he’s going to cut to fund their $70 billion black hole which has grown since the day they admitted that was the size of their savings task.
I mean, just recently we’ve seen a lot of discussion about the fringe benefit tax changes the Government has put in place – sensible, reasonable changes that are about the sustainability of the tax system and the federal budget. Well, the Coalition has said they want to oppose this. They need to tell Australians what they will cut in its place. Because $1.8 billion – which is what that saving is – is equivalent to all of the funding in the Health and Hospitals [Fund] Regional Priority Round and all the funding over five years for the Roads to Recovery Program. So is that what they’re going to cut? They should tell Australians what their alternatives are.
JOURNALIST: Can you tell Australians what you’re going to cut and what sort of sized hole of revenue you have to fill? Is it $6 billion or $8 billion?
WONG: We will, unlike the Coalition, make sure we present all of these facts to the Australian people. And as the Treasurer said in the last couple of days, as is the usual case, the Government will release an economic statement in due course, because it’s important we do update Australians on the state of the budget and the economy given what we’re seeing in the global economy. That puts us in very stark contrast to the Coalition. So what you have from the Government is a measured, responsible process where we will be transparent with the Australian people. What you have from the Coalition is talking down the economy, warning investors off Australia; it’s not in the national interest and it just demonstrates how irresponsible the Coalition have become. Can you imagine Peter Costello ever saying something like Andrew Robb said today?
JOURNALIST: Is the Government looking to cut the Schoolkids Bonus?
WONG: The Schoolkids Bonus is a very important policy area but I’m certainly not going to be drawn, ahead of the economic statement, on ruling things in, ruling things out and you wouldn’t expect me to.
JOURNALIST: You’ve attacked the Opposition often enough on that point. Can you rule it out?
WONG: Well, I can tell you this: unlike the Coalition we will actually put our savings measures and our bottom line on the table, something Joe Hockey has never done, has never done. Instead, all they’re doing is talking down the economy, warning investors off Australia.
JOURNALIST: It would be hypocritical, wouldn’t it, for you to cut the Schoolkids Bonus given the criticism that’s been levelled at the Opposition over this policy?
WONG: I’m not being drawn on ruling anything in or out ahead of a budget update and that’s been the case for as long as I’ve been Finance Minister and you wouldn’t expect me to.
JOURNALIST: What about superannuation?
WONG: I just answered the question saying I’m not going be ruling in or ruling out anything.
JOURNALIST: Can I try again and ask what is the size of the revenue hole that you’ve been advised you have compared to Budget time? Is it $6 billion or is it $8 billion?
WONG: We will update our figures in the economic statement which will be released in due course and we will do that responsibly and methodically and all of these things will be transparent to the Australian people.
JOURNALIST: Are you able to give a cost estimate on what the PNG asylum seeker deal would be?
WONG: I would anticipate that that would be amongst the aspects of the update of the economic statement.
JOURNALIST: Any rough (inaudible)
WONG: I’d rather work through those issues methodically, which is what we’re doing, and provide the full detail to the Australian people.
JOURNALIST: Andrew Robb does have some point, doesn’t he, a correct point, that the ratings agencies were found to have failed in what they were supposed to be doing. That they were conflicted, they were providing ratings based on a fee from clients. That’s not a poor argument.
WONG: I think the fact that Andrew Robb thinks it’s appropriate to talk down Australia’s economy, to warn off investors and to damage confidence really demonstrates he’s not fit for the office of government.
JOURNALIST: That wasn’t my question though. My question was about the ratings agencies dropping the ball during the GFC. Do you think that’s right?
WONG: You can ask Mr Robb to explain his comments; you can ask Mr Robb to explain his comments but I have a very clear view. We do regard the rating as important and the reason it’s important is, as you know, it’s all about investor confidence in the economy and in the nation, which is why the Government has taken the decisions we’ve taken to run a fiscal strategy that has got the confidence of the ratings agencies.
JOURNALIST: Jay Weatherill has said the AAA rating is really just a tool for a bond investor, that it’s not a measure of economic management at all. I think he and Andrew Robb may have a few shared opinions. Is Jay wrong in what he said?
WONG: This is a Government that does regard having a sound fiscal strategy as important and the fact that we have something that even Peter Costello never had – which is a AAA credit rating from all three ratings agencies with a stable outlook – is an important signal to investors about confidence in Australia’s economy and confidence in Australia’s public finances. Thanks very much.
JOURNALIST: Are there any areas at all that you can formally rule out (inaudible)…
WONG: I’m sorry, this is about the fourth time you’ve asked me this. I’m not a Finance Minister who will rule things in or out ahead of a budget update. Thank you very much.
ENDS
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