LYNDAL CURTIS: Penny Wong, welcome to Capital Hill.
SENATOR PENNY WONG, LEADER OF THE OPPOSITION IN THE SENATE:Good to be with you.
CURTIS: Despite all the problems you had with the Budget, did the Government do the right thing by the economy by not hitting it too hard, too early?
WONG: There's not much you can say that's good about this Budget. This is a vicious attack on middle Australia and a vicious attack on the poor. This is a budget that will hit Australians when they go and see a doctor, every time they get into a car. It will hit pensioners, it will hit their local schools, their local hospitals. And it will hit them if their kids want to go to university. Worst of all, these are all the things Tony Abbott said he wouldn't do.
CURTIS: Perhaps in contrast to the rhetoric about a Budget emergency, the savings really don't kick in until years three and four. Given that the economy is still in a relatively fragile position now, was that the right way to construct it?
WONG: Certainly there wasn't a Budget emergency. And we all know that was a lie to give Tony Abbott cover to do precisely what he's done to break his promises. The economy is going through transition, we were very conscious of that. And despite the fact that the Coalition have always tried to pretend the Global Financial Crisis didn't happen, the reality is that we in Government had to make sure we kept the economy growing and we kept unemployment down. Unfortunately what we're seeing this Government do is to hit middle Australia, working people, and poor Australians.
CURTIS: They've also hit some of their core constituencies stay at home mothers, self-funded retirees. They've even told the States and Territories, which are largely of a Liberal or Coalition make-up, now, that they'll have to bear some pain too?
WONG: Let's go through that. Stay at home mums I don't think were told before the election that they'd be experiencing a cut. Self-funded retirees certainly weren't told before the election that they were going to get hit as well. But let's talk about the States and lets talk about schools and hospitals. One of the centerpieces of Tony Abbott's budget policy was the boasts that he would take $80 billion out of Australia's schools and hospitals over the next ten years. $80 billion.
Now, what are the States going do with that? We know that State Budgets also struggle to deliver services. This is a massive withdrawal of funds from schools and hospitals. That can only mean one thing; it means fewer beds, it means poorer educational outcomes, and it means that the Federal Government is holding a gun to the States' heads and wanting them to argue for a GST increase. It's a cynical ploy.
CURTIS: Fundamentally, do you believe that the Commonwealth does need to do some of the heavy lifting on some of the things that States deliver?
WONG: Fundamentally I think if you go to an election saying no cuts to health, no cuts to education, you shouldn't break that promise. And that was a lie. That was a lie by Tony Abbott. But more importantly, we're the party of Medicare. We are a party that poured more money into public hospitals, more money into schools, and we did it because we believed in fairness and what we're seeing from this Government is cuts that will hurt Australians.
CURTIS: Will you back in the temporary, the three year increase in income tax for high income earners?
WONG: This is a broken promise. We were deeply concerned when the suggestion was it would cut in at $80,000.
CURTIS: But you're less concerned now?
WONG: Certainly we're pleased that the Government has backed down after the campaign that did occur. We'll certainly be considering our position on that. Our priority, however, is to absolutely oppose the destruction of Medicare, which is what the Government is intent on doing, and absolutely oppose the hit on pensioners. It's one of the things about this budget, it will hit Australian pensioners, people who are already struggling to make ends meet.
CURTIS: If you oppose these things, the Government will be left negotiating with the Greens or a swag of minor parties and independents. Will you be talking to them to try and get them to support your position?
WONG: We always talk to the cross benchers and it certainly will be an interesting time in the Senate after the 1^st July; there will be a lot more cross benchers. And the Government will have to do the same. I notice that a number of Senators have already made their position clear on these issues and people across the political spectrum are united on this issue: this is a vicious budget. And it's a budget that hits poorer Australia, middle Australia, and breaks Tony Abbott's very clear pre-election pledges.
CURTIS: Penny Wong, thank you very much for your time.
WONG: Good to be with you.
ENDS