WONG: Im here with Robert McClelland to talk to you about the passage of the Social Security Amendment (Income Support for Regional Students) Bill which has just passed the Senate.
Today Tony Abbott has overturned constitutional conventions that have been part of Australias stable system of government for decades. He has overturned the conventions which have been part of our stable system of government. And the fact is this is an act of irresponsibility from the Opposition. The fact is governments have to manage the budget. Governments initiate bills which appropriate money. And what we have seen is Mr Abbotts Opposition overturning that convention.
Its an act of gross irresponsibility matched only by the fiscal irresponsibility we have also seen from the Opposition today. Because lets understand what the Opposition has voted for. Despite all their chest-beating about fiscal responsibility, they voted for a bill which hits the budget bottom line by $317 million with no offsetting savings. A $317 million addition to their budget black hole. An addition to their budget black hole, from the $10.6 billion in the election campaign. Another $300 plus million to be spent according to Tony Abbott without any offsetting savings.
So from Mr Abbott who says he believes in fiscal responsibility, from Mr Abbott who says that savings are easy to find, we see this week a bill passed with the support of his Senators that will put an additional $300 plus million onto the budget bottom line without any offsetting savings. This simply confirms yet again that Mr Abbott has no economic credibility.
MCCLELLAND: Yes, thank you. The Minister is absolutely right. This does upend a constitutional principle that has been confirmed in advice, for instance, going back to 1962 from Sir Garfield Barwick who was then a Liberal Attorney-General. And that advice confirms that under section 53 of the Constitution, bills appropriating revenue shall not originate in the Senate. And indeed for a bill appropriating revenue to be passed by the House of Representatives or to be introduced into the House of Representatives, it requires a message of recommendation from the Governor-General the Governor-General under our constitutional principles acting on the advice of the government of the day. This is confirmed in the standing orders and practices of the House of Representatives and indeed has been followed as a matter of precedence in recent years on two occasions.
So most certainly the Bill as passed insofar as it purports to appropriate monies cannot be passed by the Senate. And it cannot a bill appropriating monies cannot be passed by the House of Representatives unless it is endorsed or receives a recommendation from the Governor-General who of course acts on the advice of the Minister of the day.
JOURNALIST: So what advice will you be giving
WONG: Sorry, if I could just call on the labour force figures before you go to questions, if thats alright.
Well Im sure all of us welcome the release of the labour force figures which show more Australians in work and more Australians looking for work. An economy that despite the floods and the unprecedented natural disasters weve seen has still created some 24,000 jobs; 24,000 more jobs. Stronger than market expectations at a time when we have been experiencing as a nation these natural disasters. Thats a great result for Australia.
It builds on the jobs weve seen created since weve come to government. Now in total some 740,000 jobs have been created since we came to government. And just to put that in an international context. Over the same period the rest of the world has shed around 30 million jobs. Weve got an unemployment rate stable at 5 per cent. That is much better is better by a vast margin than many other advanced economies. For example we see the US at around 9 per cent. So we welcome todays labour force report.
Happy to take questions.
JOURNALIST: So what advice will you be giving the Governor-General and what process goes on from here since the Senate has passed these bills? And also, will the Government be finding offsetting savings for this measure if it does go through both Houses?
MCCLELLAND: Well it wont be a matter for the Governor-General because the government of the day wont recommend that the Bill be introduced into the House of Representatives. Certainly on the basis of precedence in fact, in 2008 the Speaker of the House of Representatives has taken the view that bills proposing to appropriate revenue can only be introduced by the government of the day; they cannot be introduced by a private member or member of the Opposition.
Now obviously this will be a matter for the Speaker. But we would expect that the Speaker would act on the basis of that precedent. I will now draw these matters, write to draw these matters to the attention of the Speaker. And, of course, I will refer him to the eminent authority of Sir Garfield Barwick and the precedence that they have acted on. I would expect that that would be the outcome in this case.
JOURNALIST: So just to clarify, youre not going to, you dont want this Bill to go to the House of Representatives, youre going to veto it from going there. Is that terribly democratic?
MCCLELLAND: Well again under our constitutional principles, this bill cannot be introduced into the House of Representatives. A bill appropriating monies into the House of Representatives must be accompanied by a message from the Governor-General. The Governor-General acts on the advice of the government of the day, and this is confirmed in the standing orders of the House of Representatives and precedence of the House of Representatives.
JOURNALIST: Senator Wong what does it say about the level of responsibility of non-government senators that under this minority government situation, not only do you have to struggle to get your own bills through, but you have new spending thrust upon you?
WONG: Well I would make the point that the non-government Senators on this occasion in terms of the Greens Senators did the right thing and voted against this legislation. The Greens were more responsible than Mr Abbott and his Senators. This is an act of great irresponsibility by Mr Abbott, and really he ought to do better. This is inconsistent with the arrangements which have always existed, which are part of our stable system of government.
And equally, Mr Abbott and his economic team should be judged not only by their fist-thumping when it comes to fiscal responsibility but what they actually do in the Parliament, what they actually do in the packages they announce. And their record is not good. Their record is not good. $10.6 billion black hole in the election campaign. And the Opposition supporting , not only todays bill but in another bill, in week in the Parliament, which would add $500 million if they ever were to pass, to the budget bottom line.
And the important thing here is, Mr Abbott, Mr Hockey, Mr Robb, should come out and explain why they think it is fiscally responsible to have their Senators moving legislation that has a cost, and why they think they have no responsibility for that whatsoever.
JOURNALIST: You think its a spoiler tactic to destabilise the Government? I mean they keep saying they want you out of office as soon as possible.
WONG: Were focused on doing whats important. Were focused on doing whats important. And whats important is getting this levy through the Parliament and giving Queenslanders and Australians in other flood-affected, cyclone-affected parts of Australia, the certainty they need to rebuild their lives, their homes and their communities. Thats whats important. The Opposition should be focusing on that.
JOURNALIST: On thejobs figures. Are you concerned theres been a drop in the number of full-time jobs but a big increase in part-time work which probably would have been driven by Christmas retail sales?
WONG: Obviously, theres been some movement as there often is, in terms of the proportion of full-time, proportion of part-time jobs. But I think overall, the picture is very good. 24,000 jobs created even in a difficult time, in terms of the nation facing these natural disasters. And an unemployment rate with a five in front of it. Compared to the rest of the world, thats a very, very good result. And weve created 740,000 jobs. And weve seen so many other jobs lost elsewhere, its a very good result for the Australian economy and the Australian community.
JOURNALIST: As the Finance Minister, do you have any issues with Julia Gillard moving towards going back on clawing GST back from the states under the health deal?
WONG: Look, I think questions on health Id refer to Nicola Roxon.
JOURNALIST: Andrew Wilkie said today that the Government was misguided in pursuing a surplus by 2012-13. Now youve been fairly rock solid obviously in saying thats what Labors target is. But you also need to get this flood levy passed. Mr Wilkie said he was not happy with the solar programs. Rob Oakeshott perhaps looking at cutting the joint strike fighters for example. Maybe even just one would save a $110 million. Are you in the room in these negotiations? What sort of measures would the Government countenance changing to get this levy through the house?
WONG: Thats a multi-barrelled question, but Ill attempt to do it justice. First, on the surplus we are very clear about our commitment about returning to surplus. There are very strong economic reasons for that and weve laid them out. Obviously, we have to get this levy through the Parliament. And we as a Government are in discussions with the cross-benches about the issues that they have raised. We think we put forward a very good package. A package two-thirds of which is funded through spending cuts, one-third through a modest levy to give the certainty to Queenslanders to rebuild. Thats whats important. Thats what were focused on.
JOURNALIST: Senator Wong, just on GST then. As Finance Minister do you have any problems with reneging on the GST deal and was the problem with Kevin Rudds structure , was it just that it was too complicated?
WONG: Theres a lot of speculation ahead of the COAG; theres obviously a lot of speculation. Im not going to add to that. And I think if you want further details on these discussions, Id refer you to Nicola Roxon
JOURNALIST: What is your view Senator, on the attempt by the Opposition to stall the flood levy legislation by taking it to a lower house inquiry?
WONG: What Id say is this - what do we think the community wants us to do? Does the community want us to get on with the job? Or does the community want us to play political games in the Parliament? I think the answer is pretty clear.
JOURNALIST: On jobs, are you worried next months figures (inaudible) by the Queensland floods?
WONG: Well obviously were talking about todays figures. And its a very pleasing result today. Weve been upfront as a Government about the fact there will be an impact on the economy from these natural disasters. The Treasurer has made that clear. I think all of us understand that if we look at where these disasters have hit. Obviously weve got an economy thats resilient, an economy thats got a very strong pipeline of investment and the outlook is very good. What we do have to focus on in the short-term is doing what we have to do to rebuild Queensland.
JOURNALIST: Senator theres a lot of reports out there today about exchange mergers and bids for the New York Stock Exchange. Do you think any of this global activity will have any impact on Australias view towards the Singapore-ASX merger and where is that? WONG: Theres a process as you know, that the Treasurer is responsible for foreign investment and that process will proceed as it always does in relation to these matters.