JOURNALIST: We've got with us in the lead up to Mr Swan's news conference, the Finance Minister Penny Wong, who has worked very closely with the Treasurer over the last few weeks.
Senator, thank you very much for your time.
WONG: Good morning.
JOURNALIST: You've had to obviously stand up to your ministerial colleagues who come up with spending proposals in the lead up to this Budget, including also the Prime Minister, you've had to stand up to her apparently. Did you win those arguments?
WONG: Well, I don't think the Prime Minister ever needs convincing about the need to come back to surplus. It's something she has articulated very clearly and she's absolutely been committed to do that. Both in terms of the decisions we have made but also to explain to the Australian people why we need to come back to surplus, as we see this mining boom gather pace in the years ahead.
JOURNALIST: But in terms of the ministerial colleagues, obviously they have plans within their portfolios. We'll come back to you in just a moment Minister Wong. We're going to cross now to the Treasurer, Wayne Swan.
[cross to the Treasurers press conference]
JOURNALIST: Treasurer Wayne Swan there on the eve of his fourth Budget. With me before and still here in the studio, the Finance Minister, Senator Penny Wong. So lets go - if we can go through some of those issues first. The Low Income Tax Offset, bringing it forward. How much does that hit the bottom line, if at all?
WONG: Oh well, what it is, is bringing forward the tax offset so that people get more of it each week, rather than just at the end of the year. So currently this tax break, which is for low income Australians, you get some of it in your weekly pay, or fortnightly pay, and you get some of it at the end of the year. What were doing is increasing the amount that you can get each week.
Now its not - were not pretending this is an enormous amount of money. It is a modest amount to help with the weekly, fortnightly and monthly bills that people get, so people get more - can get more money in their pocket.
JOURNALIST: And is there any shift to the bottom line or it doesnt cost anything or is it just reworking the money?
WONG: Obviously, youre bringing forward the effective tax expenditure because youre bringing forward it during the year rather than the end of the year. But its a sensible measure. Look, we doubled this Low Income Tax Offset since weve been in Government. And thats a good thing because its about directly targeting low income families and low income Australians.
JOURNALIST: It is modest though, isnt it? Its not a lot of money. Is this more symbolism to say, look, we get it, we understand that there are cost of living pressures?
WONG: Well I think for someone on $30,000, its about $300 through the year. And as I said, it is a modest amount. But you know we understand that every bit counts, particularly if youre a low income family. And this is our policy which is about trying to make sure people have more money as and when they need it.
JOURNALIST: But this is the first Budget in eight years that there haven't been tax cuts. You need to show youre doing something, dont you?
WONG: Kieran, I dont think we have pretended that there arent difficult decisions in this Budget. The cost of living pressures that people are experiencing out there, we have done a lot within our means to assist them in past budgets. Weve delivered tax cuts, weve delivered increases in the Child Care Rebate. And also, as Jenny Macklin reminded us, weve ensured the Family Tax Benefit can be paid to those families where there are teenagers who are studying. Thats a participation a learning or educational incentive as well as support for families.
JOURNALIST: Its a re-announcement though, isnt it? That was a re-announcement because it was committed to the election.
WONG: It was delivering on an election commitment.
JOURNALIST: Yeah but really that was budgeted previously wasnt it? So its not
WONG: We still have to find the room for it. You see, unlike Mr Hockey, we actually have to offset our spending. And this goes to the issue, I think you were starting to ask me before we broke to go to Waynes press conference; the Treasurers press conference. Weve had to make room for these spending initiatives. Thats our commitment.
Just as we offset new spending during the campaign, thats the approach weve taken through this Budget. And youll see tomorrow the fact that we have, in accordance with our priorities as a Government Labor priorities made the room for the spending commitments that weve made.
JOURNALIST: Minister, thats obviously your job in a large part to find the cuts. Was it difficult or, you know, was it difficult to rein in the colleagues in spending portfolios or did they understand that, yes it is a tough climate, theyve got to rein it in?
WONG: I think colleagues, the caucus, understands why we have to come back to surplus. Its a responsible thing to do. We dont want to add to price pressures as this mining boom gathers pace.
JOURNALIST: But ministers are still going to pitch up ideas, arent they?
WONG: Well having said that, having said that of course everybody would like their policy funded. And weve had to make choices that are based on our priorities, and the priorities which are economic priorities and Labor priorities.
JOURNALIST: Joe Hockey says that theres one big hole in this Budget and we heard the Treasurer respond to it. But really were not going to get the detail till the Mid-Year Economic Outlook, which is at the end of the year, on the carbon tax. So this is a Budget with a shadow hanging over it.
WONG: Joe Hockey says a lot of things and very few of them actually have any substance and this is one of them. And the Treasurers outlined the history for example of Prime Minister Howard who didnt put the GST or his emissions trading scheme into his Budget for prior to the election.
JOURNALIST: So because he does it, you can do it?
WONG: No, no because the point is you need to put the numbers in after you have made decisions about the design of the scheme, including what will the carbon price be and so forth. And we will do that just as we have previously done it.
This is just another furphy from Mr Hockey. He was trying to distract attention from two things. One is his $11 billion black hole. The fact that he would be in deficit were he the Treasurer of this country in every year of the budget estimates.
He also is trying to distract attention from his boast earlier this week that the Coalition will bring back the budget to surplus - bring the budget back to surplus a year early. Well we look forward to Mr Abbott on Thursday showing us how that will happen.
JOURNALIST: But Joe Hockeys comments to one side, if you look at the substance of this, its a Budget thats coming in the lead up to one very significant reform. It does mean that there is a shadow over the revenue projection, the expenditure, the inflation forecast.
WONG: I simply dont agree and remember we have
JOURNALIST: But the carbon taxs going to have a significant
WONG: Hang on, hang on.
JOURNALIST: ...impact on inflation, on everything.
WONG: Kieran, I dont agree. I think that is a proposition that Mr Hockey puts forward because he has no sound costings and savings to put forward of his own. We know he is delivering a black hole, thats what he as shadow Treasurer is delivering. We have said as the Government our intention on the carbon price is that it is broadly budget neutral. And as the Treasurer said again today, when decisions are made we will account for it. We will be responsible.
JOURNALIST: The first priority the Treasurer also said was to train Australians first. But given the unemployment forecast down to 4.5 per cent apparently over the next couple of years, and given the demand for skilled workers in Queensland, WA the mining states. The reports today that youre going to boost skilled migration to regional areas, it was almost inevitable that you had to do that, wasnt it?
WONG: Well as the Treasurer said, well announce the details of our migration program tomorrow. But I would say this: these are some of the examples of the sort of capacity constraints and the pressures that the mining boom will impose. And thats why we have to do what were doing, bring the budget back to surplus but train Australians and get more Australians in work. And that is very much what this budget is focused on.
JOURNALIST: But skilled migrations also a very important part isnt it to satisfy the capacity, the demands for labour in the mining sector particularly?
WONG: Were very conscious of the needs of the mining sector, the needs of the economy when it comes to workers and this is a Budget thats very much focused on that.
JOURNALIST: So is it all done and dusted, the Budget? This is your first.
WONG: This is my first, yes.
JOURNALIST: And how did you find it? Much sleep, is it all wrapped up?
WONG: Look its the day before so I think its pretty much set; set to go.
JOURNALIST: And how was it in terms of the workload must have been quite a rugged few weeks?
WONG: Theres a lot of things to get across but you work very closely with the Treasurer and he works enormously hard. And while Im able to say something on TV, I do want to say there are staff and public servants in my Department, in Treasury, and across the Government whove worked extraordinarily hard and we do thank them for their work.
JOURNALIST: One last issue if I can before you go and this is a story that emerged over the weekend, the deal with Malaysia on asylum seekers. You were born in Malaysia. What do you think of their track record on human rights?
WONG: On this issue I think Chris Bowen has made very clear the nature of Malaysias agreement in terms of how it will treat these asylum seekers, including not returning those who return to Malaysia to countries where they may be persecuted. Now that is an important undertaking and agreement from Malaysia.
This is a tough policy area and the only person who pretends theres an easy solution is Tony Abbott because he wants people to believe it. But I think people know this is a tough policy area, we need a regional approach because no one country can deal with this on its own. So this agreement with Malaysia is a very important part of that regional approach.
JOURNALIST: But their human rights record isnt that good is it? And also theyre not a signatory to the UN Convention on Refugees?
WONG: One of the principle things in the UN Convention is the principle of not returning people to places where they may be persecuted. And as Ive said, Malaysias made undertakings on that basis. We also have the UNHCR involved in dealing with those asylum seekers who are returned to Malaysia.
JOURNALIST: Finance Minister Penny Wong, thanks for your time.
WONG: Good to be with you.
ENDS