WONG: Thanks very much for coming. Well, I want to talk today about budget numbers. And I want to talk about the admission today by Warren Truss that the $50 billion worth of savings that Joe Hockey keeps standing by isnt worth anything isnt worth any reliance.
What I want to talk about today is the fact that Mr Truss has made it very clear that $50 billion worth of savings cant be trusted. This is in direct contradiction to the shadow treasurer who has been saying for months and months and months that he stands by his $50 billion worth of savings fromthe election campaign.
What Mr Truss has made clear is that those savings arent available. Thats what Mr Truss has said. So the question for the Opposition today is this: just how much will you have to cut after the next election if you get into government? Just how much would an Abbott government have to cut from health services, from education services, from aged care services? Is it $70 billion, which Andrew Robb already backed in? Or is it more? Is it $80, $90, is it the full $120 billion that Mr Truss has referenced today? Thats the question for Joe Hockey, a man who has never got his numbers right. Its up to him to be upfront with the Australian people about just how much hes going to cut to get back in the black.
I want to also make some comments about the minerals tax. Its a very interesting debate at the moment; youve got all sorts of claims being made. Youve got claims being made that miners cant afford to pay tax from a company that has today admitted that they dont pay company tax. Weve got a company today admitting they dont pay company tax, but weve also got Mr Macfarlane who is saying today in one of the papers that mining company profits are extraordinary.
Its a very interesting debate isnt it? A mining company that doesnt pay company tax saying they dont want to pay tax and the Oppositions resources spokesperson saying mining company profits are extraordinary. All of this really goes to show that when Tony Abbott says miners are paying a fair share of tax that hes just not looking at the facts. Happy to take questions.
JOURNALIST: Minister when youre talking about being open, what about the openness of the key parameters of the mining tax that upon which so much of that is predicated upon? Youve got this conflict overwhether the mining tax will raise any revenue and people saying we cant actually make a fair call because we dont see all the information. Isnt it time that you released every key part of the modelling available?
WONG: The Australian Treasury who did the same sort of numbers, the same sort of revenue forecasts for Peter Costello, has done our forecasts. They put those into the budget figures and well update them in the usual way. I would say this though, the calls for more transparency, the calls for more detail are coming from two sources. First theyre coming from mining companies who say that they dont want to pay more tax, and second they are coming from the Opposition who dont believe that there should be a minerals tax. So lets understand the sources of these demands from mining companies who dont want to pay tax and the Opposition who says, no matter what you show us were going to oppose the mining tax.
JOURNALIST: Minister, Bob Brown also made the call today for further disclosures aboutthe mining tax. So there is another voice calling for greater transparency. Is Bob Brown wrong to call for that?
WONG: What Im saying is we are being upfront in our budget numbers budget quality figures about our forecasts of revenue. Of course they will be updated in the usual way; well update them in the mid year review.
But I would again make this point. We have Fortescue today saying we dont want to pay the mining tax, but by the way, we dont pay company tax. We have calls for transparency from the Opposition who dont believe miners should pay any more tax.
JOURNALIST: How much will you spend on the carbon tax advertising campaign and will it be party money or taxpayers money?
WONG: Weve already announced previously funding for the information campaign. I think the Prime Minister said yesterday that no decision regarding further advertising has been made. Im sure if there is any further decision on any advertising across Government it will be made public in the usual way.
JOURNALIST: You opposed the WorkChoices advertising campaign what would be different with this?
WONG: Lets stack up the numbers. We looked at millions and millions and millions,tens of millions of dollars on WorkChoices. I can recall in Opposition being given those wonderful mouse pads for WorkChoices, the fridge magnets. All sorts of paraphernalia, as well as television campaigns and a whole bunch of brochures millions of brochures that were put somewhere in a warehouse after a while and stayed there for many years.
This Governments spent far less on advertising than the Howard Government has spent on this campaign and overall.
JOURNALIST: And on the mining tax, the claim that the companies are making about why they wont it is because theyre big companies, they can loan money from the banks to do big projects, and theyve got these infrastructure write-offs built into the tax. Do you believe that that modelling is wrong? That because you can take infrastructure as a write-off that you wont have to pay any tax?
WONG: I think just be a little careful. I think that assertion has been made by one source and the Treasurer has refuted that, and thats been reported today. Those assertions are also not backed in by a number of the companies who say they will be paying tax.
But I again say this: if the Opposition cared about how much tax miners were paying, why are they opposing the minerals tax? Why are they opposing the minerals tax? If their position is, look you havent got this tax right, there should be more tax paid, why is their position that miners already pay a fair share of tax? I mean, their position makes no sense.
JOURNALIST: Minister with regard to budget savings, will it be a large savings task that is required to bring the budget back to surplus in 2012-13?
WONG: I think youve asked me that before David, and Ive said previously that the savings task is always ongoing. The savings task is never finished. The fact is we are in turbulent times in terms of the global economy. Obviously where the global economy is, the confidence issues arising out of the sovereign debt crisis in Europe, obviously Australias not immune from that and that does have an effect. But we remain determined to bring the budget back to surplus. And well be going through the usual process of updating those figures and making relevant decisions in relation to the mid-year review.
JOURNALIST: Treasury officials who appeared today at the inquiry said that they werent part of the negotiations with the miners for the MRRT, that that was done at a ministerial level. Theyve essentially crunched together the legislation on the data provided. Is there a possibility that the Government was fed the, sort of, optimistic volumes and other figures by dastardly mining barons to allow them to actually pay a lot less tax than you think they will?
WONG: I would say this: that the most recent Budget was a budget that included forecasts that Treasury undertook. Treasury is a very professional organisation, and one Im that ensures its forecasts are based on appropriate information. If there are updates to that thatll obviously occur in the mid-year review or any subsequent budgets.
JOURNALISTS: But theyre relying on volumes of revenues given to them by the miners, who are negotiating the tax -
WONG: I didnt hear all of the evidence today, obviously we had Senate question time. But I would say is Treasury bases its forecasts on information it thinks is appropriate and those forecasts are contained in the budget.
JOURNALIST: Minister what do you think of the Greens idea of modifying the law so that the Australia Network would always be part of the ABC? Wouldnt that make sense for the national broadcaster to keep that operation?
WONG: Senator Conroy has made a number of public statements about that issue. And given those public statements I think it is most appropriate if I simply refer you to him.
JOURNALIST: But Im not asking you about anything subject to an AFP investigation. Its only on the principle of the thing, on whether the Australia Network is about soft diplomacy overseas. So wouldnt it be natural for it to be part of the national broadcaster?
WONG: But there is a public discussion at the moment on a number of issues and I think in these circumstances its far better if I simply refer you to the responsible Minister.
JOURNALIST: Minister, the Greens have said now that we have a carbon tax we need to move forward quickly to 100 per cent renewables. Isnt that a bit dodgy considering they were just part of a process that created a system that was premised on the use of, the continuing use of natural gas, which is the biggest growth industry in Australia in export terms?
WONG: Obviously the Greens can say what the Greens wish, thats a matter for them. I think weve made our position clear. We see an important role for gas, particularly as a transition fuel. And we also see the importance of investing in renewables. And thats why weve got in place policies to invest in renewables.
JOURNALIST: But wasnt the basis, you know because you were involved, the basis of the negotiations was that gas would be a transition fuel. So, and they
WONG: Sorry, I thought I just said that.
JOURNALIST: You did, let me finish though Minister, and the Greens were part of the process. They werent an outsider who were saying, I hope we get what we want. They were part of the parenthood of the deal. How can they now claim that we need to move forward ahead of the deal?
WONG: Well youll have to ask Senator Brown that. What Id say is we based our policy on realistic policy assumptions about what fuels were available for energy use. And those assumptions are the ones that youve outlined. There is a very important role for gas. That is a very important part of the changing energy mix as Australia goes forward.
JOURNALIST: What are the outcomes from the Eurozone crisis at the moment that most concern you in terms of the outlook for MYEFO? Is it the fact that theres so much trouble on the market that thats going to suppress capital gains tax? Or is it something else thats more worrying?
WONG: I think the biggest issue for the whole world in relation to Europe is confidence, and the confidence of markets, and how that translates through confidence within domestic economies. And I think that is the level at which the sovereign debt crisis has been affecting the world. And thats why its so important that Europe proceed to implement the arrangements that they announced in late October. It really is extremely important that the Europeans do continue to do that. Thanks.
ENDS