HARVEY: Joining us now for the Opposition's view is Senator Penny Wong, Labor Senator for South Australia. Good morning, Senator.

WONG: Morning, good to be with you.

HARVEY: Now, at a time when there's real pressure on the Budget, with the falling price of iron ore for instance, and everybody dependent on the government has to take a haircut, how can be the ABC be exempt?

WONG: At a time the Budget is facing some of those challenges, why is Tony Abbott proceeding with a Paid Parental Leave scheme that everybody knows is excessively generous? I mean, let's not beat around the bush. This is the latest of a series of broken promises this year from this Prime Minister. Broken promises which are hurting Australians and broken promises which will change the nation. This was simply a lie by the Prime Minister before the election. He said very clearly to Australians, no cuts to the ABC or SBS. There wasn't any little footnote, as the Liberals are trying to assert now.

GEOGHEGAN: So is your take on this, then, that this is ideologically driven?

WONG: I don't understand the motivation. You can ask Tony Abbott why broke his promises, I can't see into the reasons for that. I can probably, and Australians can probably guess why. But what I would say is this. Mr Abbott, Tony Abbott, made an unequivocal set of promises to Australians at the last election and what we've seen this year whether its on health, education, potential for changes to the GST, changes to the pension, or cuts to the ABC and SBS he has demonstrated in this last year he is a Prime Minister who lied to the Australian people, and then is prepared to be completely brazen about it.

I mean, I think the thing that is so extraordinary is not only that the Liberals wanted to lie prior to the last election, but they're actually telling Australians now oh no, they're not actually cuts. I mean they're treating everyone like mugs.

GEOGHEGAN: But of course we've seen with your Government, obviously, as far as the carbon tax, the current Government has made a lot of that, of broken promises. I don't think any Australian would be surprised that we hear and see broken promises.

WONG: You can be the judge. I said before the last election, when I was Minister for Finance, I said Tony Abbott will have to make substantial cuts in social spending, and he will. And I was howled down, as was the rest of the Labor Party, and Tony Abbott stood up in front of billboards, stood up in front of cameras, and he said no cuts to health, no cuts to education, no changes to the pension, no cuts to the ABC and SBS, and we know that was a lie. All of those propositions have now demonstrably been broken. And of course there was the GST promise, and we know they're preparing to break that.

HARVEY: At a time though when for instance when defence pay is below inflation, for instance, is there not...

WONG: And that is a disgraceful decision.

HARVEY: Sure, but as a notion...

WONG: That is a disgraceful decision.

HARVEY: Can I draw you back, sorry, Senator. I want to draw you back. It was an example to say, isn't there a fairness issue? That all government departments depending on allocations from the Government have to be seen to say that times are tough, and everybody has to get a reduced funding allocation?

WONG: I don't think you use a bad and unfair decision to justify another broken promise. So, I don't think the Government can use its decision to offer the ADF and their families a pay cut to justify breaking their promise to the ABC.

HARVEY: What's at stake in a State like South Australia ultimately a one newspaper town, even though there is a national newspaper as well if there is... if local content that airs local political discussions is cut?

WONG: It's deeply concerning that one of the consequences of Tony Abbott's broken promise may be the loss of production here in Adelaide, possibly the loss of jobs. I would say this, that is the latest in a series of broken promises. And if there are job losses, people should look not only to Tony Abbott, but to Christopher Pyne and all of his colleagues, who should stop standing up for their mate that is the Prime Minister and should start standing up for South Australia. If there are job losses, Christopher Pyne, be it on your head.

GEOGHEGAN: But of course we have heard from Christopher Pyne this past week who has essentially said there should be no cuts to TV production in South Australia then. Do you not agree with that?

WONG: Of course I agree with that, but the best way to ensure that is not to take millions of dollars out of the ABC. All Christopher Pyne is showing by the petition he's lodged as a Cabinet Minister the petition he's running on the cuts that hes signed up to he's showing either that he's a hypocrite or that he's ineffective. Thats all hes showing.

But can I just go back to the question asked earlier about the importance of the ABC? I don't think anyone in this country should underestimate the importance of our national broadcaster. Not only to the information that Australians receive to ensure all of us are informed properly informed about what is happening in our nation and in the world, but also to our cultural life. And I find this an extraordinary proposition from the Government that people should just forget somehow that they promised something very different before the last election.

HARVEY: Senator Wong, can I just shift the conversation slightly to the dynamics, the political dynamics, of the Senate...

WONG: Its an interesting place.

HARVEY: It does look so. There are reports today that Eric Abetz is going to have a discussion with the Senators and that the power dynamics are shifting. How do you read it from Canberra, and what do you think the consequences are if this PUP group is broken up?

WONG: I think its pretty funny that its somehow newsworthy that the Leader of the Government in the Senate is now going to have a conversation with the cross-benchers. I mean, you know, hold the press.

But it certainly has been an interesting week. And Id acknowledge Ricky Muir and Jacqui Lambie's courage over this week. That wasn't an easy thing to do for them. They came under a lot of pressure to support the Opposition, support Labor, when it comes to the financial advice reforms. And they also had to explain to Australians why they changed their position. And that's a difficult thing to do. And I thought they handled that very well.

Obviously it does mean the Senate has a different dynamic. But to be frank, I've always assumed that we needed to try and talk to all of the cross-benchers or certainly those who were open minded on particular pieces of legislation. That's the way Labor has approached it, and that's the way we'll continue to.

GEOGHEGAN: Senator Penny Wong, thanks so much for joining us.

WONG: Good to speak with you.

ENDS