HAWLEY: Penny Wong, thanks very much for joining ABC24.
WONG: Good to be with you.
HAWLEY: Should we be concerned by the Treasurers comments? Is he softening us up for a longer time in deficit?
WONG: What the Treasurer is saying, and weve been saying for some time, is were seeing a continued hit to government revenues a sledgehammer, in fact. And thats really resulting from three factors. One is the fallout from the GFC, and the second is whats happening to the terms of trade. And third, of course, is whats happening to the dollar a very high dollar. Those last two factors, in particular, have a very substantial effect on our economy. It means that companies make less profits business generates less profit for a given amount of volume. That means government gets less revenue.
Now, people might want to play politics with this this is an economic point that sensible politicians have to deal with. And were being upfront that that is one of the challenges were grappling with as we put the Budget together.
HAWLEY: Well, will that so-called sledgehammer mean that you will not be able to deliver a surplus in the forward estimates?
WONG: What weve said is that we will adhere to our medium-term fiscal strategy, which is to return the budget to surplus over the cycle.
HAWLEY: And will you deliver a surplus in the forward estimates? Its a yes or no question in a sense.
WONG: ... And thats a yes/no question that well be answering when the Budget is printed and delivered in just a few weeks time.
HAWLEY: Ok, well if you dont
WONG: An unlike the Coalition, if I can say this, our figures will be there for everyone to see and for journalists like yourself to ask reasonable questions on. That is entirely not the case for Tony Abbott who doesnt want to tell you what his plans are.
HAWLEY: Well, if you dont deliver a surplus in the forward estimates, is that not another blow to the economic credibility of your Government?
WONG: Well, when it comes to economic credibility Id ask you to look at a few factors: over 900,000 jobs created since we came to government, an economy that is 13 per cent larger than when we came to government, when other economies are either smaller or a fraction of the level of growth. Weve got contained inflation, weve got low interest rates, and weve got unemployment at 5.4 per cent, which is relatively low when you look at other economies.
HAWLEY: And you must
WONG: Well, you might want to push that aside, Sam, but theyre a pretty important set of figures if youre looking at what really matters to families and working people in this country.
HAWLEY: And you must have a razor gang thats working over time at the moment, ahead of the Budget. Can you commit to the major promises that youve made to the NDIS can you guarantee that there will be substantial funding for the NDIS in the coming Budget, regardless of the state of your revenue?
WONG: The Prime Minister has already said that these are our priorities and our commitments: our commitment to implement DisabilityCare that is, as you called it, the National Disability Insurance Scheme a reform that is long overdue and our commitment to improve Australias schools.
And [the Prime Minister] has also said that these sorts of structural spends that is, spending that occurs over years, that is locked into the Budget needs structural savings. And that is the frame with which were looking at this Budget, which is a pretty tough Budget to put together.
HAWLEY: So, you will forgo a surplus in that sense, to ensure that your big promises the NDIS, the Gonski reforms are properly funded. Youre willing to give up a surplus, I guess, to make sure that your big promises are funded properly.
WONG: Sorry, Sam, thats not what I just said...
HAWLEY: I know thats not what you said, Im asking you the question, I think. Will you forgo a surplus to ensure that those big promises, and to some of the most vulnerable people in the community the disabled that those promises will be kept?
WONG: We will fund those promises through structural savings as the Prime Minister has said. Thats what Im saying.
HAWLEY: Ok, so in terms of those savings Im assuming youre not going to give me any idea where youre going to find those but Ill ask you anyway. How is the razor gang going? Are you finding it difficult to find those savings?
WONG: Well, all of these matters we will talk to in the Budget. But one thing I will say is were not going down the path that the Coalition has made clear theyre going down, which is to rip money out of the car industry, putting at risk thousands and thousands of jobs, particularly in my home state of South Australia.
Its quite an extraordinary proposition that Mr Abbott comes out and says: Im pro-worker, Im pro-job, but I want to take away investment in the car industry, not just in the future, but over the next few years, which means immediate job losses.
HAWLEY: Can I just ask you, very briefly, on another issue, the arrival, of course, of an asylum seeker boat in Geraldton Harbour an extraordinary sight there. Can the Government guarantee that that was a one-off, or is it now a free for all, as the Opposition says it is?
WONG: I think Tony Abbott in his language around this, I think you said to me previously he described the Government as surrendering on this issue. That really says something about the mans mindset he sees this as a war. But its not a war against people smuggling, its a war against the Government, where hes prepared to trash national interest in order to make a political point.
He knows that boats arrived on the mainland under his government. He also knows he is the one standing in the way of the implementation of the Houston Panel Report, which was a non-partisan, sensible approach on a very difficult policy matter.
HAWLEY: So, you take no responsibility the Government no responsibility for that boat arriving in Geraldton Harbour, just hundreds of metres from the shore line.
WONG: Well, look, were the Government, we take responsibility for all sorts of things which occur, including taking responsibility for economic growth, which is what weve ensured has occurred.
But what I would say on this issue is that we see constantly by the Opposition, the desire to play politics with this rather than grapple with the real issue, which is the policy settings and a very, very difficult policy problem.
HAWLEY: Although, shouldnt the community be concerned about such a major breach of border protection in this country?
WONG: ... and I understand the Minister has asked for a review of what has occurred, but I would make the point, as Minister Clare has, that boats arrived on the mainland under John Howard. So it is not unheard of for this to occur.
HAWLEY: Ok, Penny Wong, were out of time. Thanks so much for joining us.
WONG: Good to speak with you.
ENDS