DAVID PENBERTHY: Good morning, Senator Wong.
SENATOR PENNY WONG, LEADER OF THE OPPOSITION IN THE SENATE: Good morning Penbo, how are you?
PENBERTHY: Yeah, good thanks Penny.
WONG: How are you Jane?
PENBERTHY: I think Mark called you the Penmeister the other day didnt he?
JANE REILLY: Hey Penny you can call me Jano.
WONG: No, I wouldnt do that Jane.
PENBERTHY: Penny, could you start by telling us which of the budget measures will Labor definitely be opposing in the Senate?
WONG: Lets start by understanding what this budget means, Penbo. I mean this is a vicious attack on middle Australia. Its a budget that will hit your listeners. Itll hit you every time you get into your car, when you take your kids to the doctor, when you need a prescription. Itll hit our local hospitals, our local schools. Itll cost our kids more to go to university. And itll hit Australian pensioners.
I mean, its hitting those who work hard and those who are already doing it tough. And worst of all, these are all the things Tony Abbott said he wouldnt do before the election. Now, in terms of which particular measures, weve said absolutely this budget is an all-out assault on Medicare and we will fight that every step of the way.
PENBERTHY: So co-payment?
WONG: Absolutely. We should understand what this is. This is a Liberal Government wanting to do what Liberals always wanted to do, but realised Medicare was too popular. It is a Liberal Government attacking the universality of Medicare. It will create a two-tier system. It will ensure that fewer and fewer doctors bulk bill. And this has to be opposed every step of the way.
PENBERTHY: I also saw Chris Bowen, your Treasury spokesman, last night on Sky. He was saying that Labor will also oppose the increase in the age pension from 67 years to 70 years.
WONG: Yes we will, and the really devastating changes to indexation, which means that pensions wont keep up with cost of living increases. Another thing Tony Abbott said he wouldnt do. I mean why should pensioners be paying for this rolled-gold paid parental leave scheme that Tony Abbott still insists on funding?
PENBERTHY: A lot of our listeners though, Penny, are saying you could probably summarise their view about this budget, even though they dont like a lot of the cuts, and a lot of the charges theyre saying better now than in 10 years time and that a lot of this has been brought about by the fact that you guys left us with such a big deficit after you were in power for a relatively short space of time.
WONG: Lets understand why the Government wants people to believe there was a budget emergency. Its because they want to be able to break their promises. I mean, the federal budget got AAA credit ratings from all three ratings agencies the first time Australia ever got that. If youve got a budget emergency you dont get that.
Now you and I have spoken before about why you do need to keep making sensible savings in the budget to fund your expenditure things like schools and hospitals. But Tony Abbott didnt tell everyone before the election he was going to hike your fuel. He didnt tell you he was going to make you pay more to go to a doctor or more for medicine. He didnt tell you he was going to take billions of dollars out of your local hospitals and schools. And he certainly didnt tell pensioners that they were going to get hit. In fact, he told everyone the opposite no cuts to health, no cuts to education, no changes to the pension. That was a lie.
REILLY: Penny, on our show this morning its been suggested that we may have to look at increasing the GST. That would mean more money for South Australia. Is that a solution that we should be looking at?
WONG: Well thats exactly why Joe Hockeys done what hes done. Lets understand whats happened here. From Tony Abbott, the man who said no cuts to health and education, some $80 billion will be taken out of hospitals and schools over the next 10 years. And he says, well the states can make it up. Now he knows the only way the states can do that is to raise taxes.
It is a cynical move, a cynical move that will hit states hard, particularly hit South Australia hard. I think Tom Koutsantonis, the state treasurer, has been out talking about what this will mean for South Australia. How many beds this will mean fewer beds for South Australians in our local hospitals. These cuts will hit South Australians who need health services. And Joe Hockeys done it cynically.
PENBERTHY: But proportionally I know thats what Tom Koutsantonis is saying publicly, but its a bit like the old Keating line of never stand between a premier and a big bucket of money. Privately, wouldnt even though theyre a Labor Government if we get $1.30 for every $1, in South Australia, of GST revenue, it would be a bit of a cash bonanza for SA if the rate went up.
WONG: And who will pay for that? Lets remember who pays for the GST and who it hits hardest. Its a regressive tax and it hits those on lowest incomes more than people on high incomes. I mean the fundamental point here is the first one, though. This is a government that was elected on a platform that said no cuts to health, no cuts to education. And theyre massively cut health and education. Thats the fact.
REILLY: Penny I want to ask you now about your introduction of the twice annual indexation of the fuel excise. Were hearing that the Greens, who were going to vote for it, might vote against it. Whats your stand on that?
WONG: Weve come out and said we dont support an increase in this tax. In terms of peoples cost of living, its a big hit. Its a hit every time you get into the car. It also hits transport costs which then feed into other costs. Its pretty extraordinary isnt it? I remember Tony Abbott running around the country, telling everybody thered be no new taxes. Well heres a great big new tax on everything. Itll keep going up and up.
PENBERTHY: Senator Penny Wong, were going to have to leave it there. But thanks very much for talking to us this morning.
WONG: Good to speak with you both.
ENDS