JOURNALIST: Good morning, Senator Penny Wong, Federal Finance Minister.
WONG: Good morning to you both.
JOURNALIST: Senator, before we get onto the business of the parliament, congratulations on the new baby on its way.
WONG: Thank you very much, very kind of you.
JOURNALIST: Whats the reaction been to the news?
WONG: Well I think as I said in the press conference last week, I wasnt going to talk about this any further publicly, for the reasons Im sure youll understand. But I did want to thank the many people who have sent us congratulations and welcomed the news, were really grateful.
JOURNALIST: I did notice an article, there was a piece by Miranda Devine on the weekend that got quite a fierce reaction - saying that its one thing for a gay couple to have a baby but its another for that then to be used as an argument for gay marriage. Do you agree with the basic premise of that?
WONG: Look Matt, I understand why youre asking me that. But I think I made very clear last week about how I want to handle this issue - this is about my family. I dont want to engage in a discussion about political issues on the basis of something so personal and Im sure youll understand why.
JOURNALIST: We do, and sincerely I hope it all goes well, its a lovely thing.
WONG: Thank you.
JOURNALIST: Now down to business, down to business. Minister you go back to parliament today, knowing that Labors primary vote is at near historic lows. How do you keep up the enthusiasm, knowing that voters arent with you?
WONG: Well youve got to focus on it doing what you think is right and thats what were doing. Whether its on the economy, whether its on pricing carbon, whether its on health. All of these things which are the Governments agenda. These are the things which we think are the right thing for the country so youve just got to focus on that.
JOURNALIST: Are you focusing on returning the budget to surplus in 2012-13? It was a commitment. Has it become a non-core commitment? Are we seeing in the language now, youre trying to cut yourself a little leeway?
WONG: Lets remember the budget we handed down this year. That laid out a clear plan to return the budget to surplus. And the reason for that was when we went into deficit to fund the stimulus package which kept the economy going during the global financial crisis; we believed it was very important to lay out that plan to return the budget to surplus. Now that remains the plan, to return the budget to surplus by 2012-13, but as the Prime Minister has said, as the Treasurer has said, as Ive said, it is going to be tough. Were not immune from some of the volatility that were seeing in global markets and in the global economy so obviously that potentially has an impact.
JOURNALIST: Are we seeing a change in the language here though because, and pardon me if I dont have the language quite right but during the election you werent saying, well have a plan to return to surplus. The language in the election was unambiguous we will return the budget to surplus in 2012-2013. Now you have a plan to do that.
WONG: Well I think this is just common sense. It was a pretty volatile period last week, wasnt it? If you look at what occurred, particularly on the US markets but also in Europe, there is a lot more volatility in terms of global markets.
Were not immune from changes in the global economy. We are very well placed, probably better placed than almost any other advanced economy to handle those changes and lets remember why. Very low public debt, weve got low unemployment and weve got a very strong pipeline of investment. And weve got very strong, well regulated, well capitalised financial institutions. So all of those things mean that we are well placed to handle what the world throws at us. But all we are saying is just as we were not immune from the GFC, were obviously not immune to events on global markets.
JOURNALIST: And have your forecasts already been revised down?
WONG: As the Treasurer said, it is really too early to make that assessment, we are seeing I keep using the word volatility and thats really the only word I can think of. Because you saw the share markets, the international markets move a lot last week. They came back to a reasonable position, but after a pretty difficult ride. So obviously well have to assess all that in due course.
JOURNALIST: So what timetable can our listeners reasonably expect? When will you get information which you will then pass on to them regarding forecasts and the likelihood of returning the budget to surplus?
WONG: We will issue whats called the Mid Year Economic and Fiscal Outlook, thats anticipated before the end of the year. And in the normal way, figures are updated at that time.
JOURNALIST: So nothing before December?
WONG: We would do it in the normal course of events prior to the end of the year and thats what well be doing.
JOURNALIST: The International Monetary Funds latest report according to The Australian-
WONG: Gave us a big tick.
JOURNALIST: And it says Australia has got some wriggle room, thats my words. But fiscal space to delay the return to surplus, to deal with the severe market downturn given low levels of government debt.
WONG: Thats a tick. (laughs)
JOURNALIST: I know.
WONG: Its good to talk about this because theres been a lot of talk around. I think at times like this its important to separate the fact from fiction. Our net debt peaks at 7.2 per cent of our GDP, thats less than one tenth of the average of most advanced economies, less than one tenth. And I think that gives you a sense of the fact that we have very low levels of public debt.
JOURNALIST: So if we have to as the International Monetary Fund says - weve got room. No seriously, theyre saying youve got room to delay the return to surplus. Theyre not hung up about it.
WONG: Sure, we have a track record as a government of responding to international conditions and doing whats needed. Thats what we did, thats what weve done previously, we did that during the global financial crisis. I have to say action that Tony Abbott and Joe Hockey opposed. Action which ensured we have an unemployment rate that has a five in front of it, compared to for example, the US and the UK which are a little bit less than double that.
JOURNALIST: So if you insist of sticking to your timetable and bringing in a surplus next financial year, will that be about Labor trying to improve damaged financial credibility rather than doing whats best for the economy?
WONG: Its always about doing the right thing for the economy. And thats the way you have to steer the economy, particularly at the times where you see a fair bit of movement globally.
JOURNALIST: So youre quite happy to say to your Treasurer lets just go into deficit. Its the best thing for the economy.
WONG: One of the things that we havent discussed is why we want to return to surplus and why we laid out that plan. And dont forget you have to look to the medium and the longer term, not just the short term. And in the medium term, weve got such a big pipeline of investment coming into this country its about $430 billion worth of projects. Now theres a very strong argument which Ive gone through I think on your program post the budget about why in that sort of economy you want to come back to surplus.
JOURNALIST: Senator Penny Wong thanks for talking to us.
WONG: Good to speak with you both.
ENDS