GREG JENNETT: We have Labor's Senate Leader Penny Wong, who is a member of the Shorten leadership group. Welcome Senator. Now, I know Labor likes to talk over 10 year figures and they are big numbers we're talking about there. As much as possible we will try to focus on the four year numbers and I'll put it to you that $8.9 billion seems to be the net impact, the saves, the improvements you've come up with here. But over four years that's not a lot of budget repair? In fact, we don't even know of that how much of it goes to budget repair, or just to cover your spends?
SENATOR PENNY WONG, CAMPAIGN SPOKESPERSON: Let's be clear what we've announced today. What we've announced is three sets of savings measures. We've re-done some of the savings we announced prior to the campaign, including things like negative gearing, very important. We have explained our position on the blocked saves, the so-called zombie measures and been clear about which of those we will continue to oppose and will reverse in government and which of those we would amend.
JENNETT: That's about a billion dollars worth, I think.
WONG: I think it's more than that. The net position on the blocked saves that we had not previously announced is a $23 billion cost over the 10 years, that's obviously substantially less than previously announced. And then of course we have new savings measures. The total announced today, that is the update of these savings, is just under $9 billion over the forwards and $105 billion over the 10 years. I know that Scott Morrison wants to disregard the 10 years. Can I tell you why it's important?
JENNETT: Yeah, go ahead.
WONG: Apart from the fact that Mr Morrison himself put out, the centrepiece of his budget was a 10 year plan, so every time he says 10 years is important-
JENNETT: Go ahead and make that point, but the reason they're tidy to compare is they are at least like with like, the four year numbers. But anyway
WONG: That's true to a certain point, but I think the important point here is that what the 10-year trajectory shows us is the strengthening of the structural budget position under Labor. Now people like to talk about the structural position in the budget, that is the medium and long term health of the budget. We have put in place a number of measures where we've made a decision they would build slower over time. The grandfathering provisions of the negative gearing change is an example of that.
JENNETT: Of the $8.9 billion in the first four years, that's $8.9 billion worth of improvements announcedtoday. We can't assume can we thatthat comes off the deficits because you're trying toplay catch up with your own spending commitments here.
WONG: What I'd say isthis is a set of announcements which demonstrates our commitment to continued savings. As Chris Bowen said,these are not the only announcement we will make on savings measures, this is not the only announcementwe will make onbudget improvements and we have committed to ensure that people when they vote have a very clear view about what the bottom line would be under Labor. What our four year position would be and what our 10-year position would be and we'll do it far earlier than Joe Hockey did and Tony Abbott did it at the last election, where they did it, I think it was the Thursday before the election.
JENNETT: Let's look at individual decisions that you have made. Family Tax Benefit A has a supplement payment $700 odd per child. You're going to crack down on that now, and it goes only to families on less than $100,000 and they get 50 per cent reduction. What leads you to make that decision, after all you've said about fairness?
WONG: This is a much fairer package than the Government's. Now we have to make difficult decisions, this is one of them to fund our priorities. And our priorities are investing in the Australian people, investing in our Australian people, schools, universities, TAFE and apprenticeships. Our priority is protecting Medicare, making sure there isn't a GP tax and, of course, investing in infrastructure because that is another one of the key ways in which you can increase productivity and growth.
JENNETT: But there must be an embedded assumption that money is not so required, no so urgent at the end of the financial year for those families?
WONG: We would have preferred not to have had to have made this decision, but if we're going to continue to fund the investment in our people that we think is so important, that I think Australians are so important. We've had to make difficult decisions and even with this decision which, as you say, is a reduction for families over $100,000, they will be significantly better off than under the Government's package.
JENNETT: And the private health insurance measures, how many people do you estimate that that may affect?
WONG: Well this is trying to better target private health insurance rebates. So to remove natural therapies, obviously I use acupuncture and many people use a whole range of natural therapies but the question is in this fiscal environment do we really want to continue to have those within the remit of what is effectively a government subsidy. So we've made a decision around that.
JENNETT: Where does that end, by the way? We've seen gradual claw backs on the generosity of private health rebates, this is the latest. Is that the end of the road?
WONG: This is the announcement we've made, the decision we've made, about private health insurance. Yes, you're right, there have been a range of decisions by Labor Governments in the past and the Liberal Government about private health insurance, but this is the decision we've made for this election.
JENNETT: And that came in a category called new savings.
WONG: It is a new savings measure.
JENNETT: And we didn't hear the end of those. I think the difference between the points Chris Bowen was making there and the ones Tony Burke was making, is that Chris Bowen has yet more savings to come. So is he actually finished in private health
WONG: I think you would assume that this is Labor's announcement on private health insurance. But would assume that there are more savings across the budget that we will look at.
JENNETT: Now, in the zombie tax area, I put it to you, none of those are particularly painful. Over the four years they're only just over $1 billion, there are indeed tax incentives of $860 million and the Higher Ed areas are small, around $24 million, $9 million, $120 million. In what way are they tough and politically painful in this campaign?
WONG: I think you will also see the Coalition criticising us for adopting those in part. Look, we've made a set of decisions about what we think is the priority in the budget and what we think is fair. And can I just make one point: there is only one party who is being honest about the budget position that would exist were they elected and that's the Labor Party. You will see Scott Morrison and Malcolm Turnbull being angry, shouty and hysterical. Instead of being angry, shouty and hysterical, why don't they just be honest?
JENNETT: You say honest; do you acknowledge risky? What's the calculated risk that you take in this?
WONG: Correct. This is a decision Labor has made. We're not being a small target, we're not doing what the Coalition did, which was to tell the Australian people there wouldn't be any cuts, there wouldn't be any savings,but there would be budget repair. Then come in and cut health, cut education, triple the deficit and add $100 billion to debt. We're not going to do that, whatwe're going to do isbe honest with Australians about the decisions we have made and the priority we place on education, Medicare and infrastructure.
JENNETT: And the Treasurer has, and I'm sure he will in a few moments time.
WONG: I'm sure he will be angry, shouty and hysterical.
JENNETT: Come back at you with lines like you vote for Labor you get deeper deficits, fact, and deeper debt that comes with that. It's a persuasive argument orit can be.
WONG: You vote for Scott Morrison, you get cuts and you get a dishonest budget. You get a dishonest Budget because he knows his budget won't pass in its current form and he also knows if he's elected again he and Malcolm are going to have to either increase taxes, perhaps a GST, or cut more spending to pay for a $50 billion tax cut.
JENNETT: All right, now just finally, word's coming in from different ballot draws for the ballot papers and in South Australiaso many people have been watching closely for microscopic differences and advantages in what's going to be a real arm wrestle in the Senate there. What have you heard from your home state as to the position that Labor's drawn?
WONG: I understand from the internet, we're second on the ballot paper, but look all of these things are not the key issue. The key issue, make your vote count. If you don't like what this Government's doing on Medicare, on schools, on infrastructure, make your vote count, vote Labor.
JENNETT: We're in unchartered territory, though, with the Senate voting system. Every little bit of advantage helps, I assume, and coming in number two can't be all that bad.
WONG: You've got to fight for every vote. Youve got to fight or every vote.
JENNETT: Penny Wong, thanks so much for your thoughts.
WONG: Good to be with you.
ENDS