Page 2151 - Week 08 - Tuesday, 28 August 2007

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I again thank the committee for its consideration of these issues and remind the Assembly that this budget continues to build upon the important efficiency and structural reforms introduced in 2006-07. This budget demonstrates prudent and responsible economic management in the delivery of budget services—words used by Mr Mulcahy to describe past federal surpluses.

Mr Mulcahy: I am glad that you are taking a bit more advice from me, Jon.

MR STANHOPE: In the context of comments from the opposition, there is a commentary by the shadow treasurer, Mr Mulcahy. I take and use the words of Mr Mulcahy in describing the federal surplus as reflecting “prudent and responsible economic management”. Is it not interesting that when a budget surplus is delivered by Peter Costello and the Liberal Party it is prudent and responsible economic management, but when a surplus is delivered by a Labor government, for some reason, magically, it is no longer prudent and responsible economic management? That applies only to Liberal surpluses.

As we reflected previously, Mr Mulcahy has to acknowledge that the surpluses of other Liberal governments are prudent and responsible economic management because the Liberal Party in this place had the greatest difficulty ever delivering one. It was the only government since self-government in the ACT to deliver serial deficits. We had a Liberal Party deficit in 2005-06, a Liberal Party deficit in 2006-07, a Liberal Party deficit in 2007-08 and a Liberal Party deficit in 2008-09.

Never forget that four consecutive deficits is the legacy of the Liberal Party in this place—accumulated deficits by Bill Stefaniak in this previous life in government of over $600 million. There is an interesting thing about the Liberal Party’s $685 million of accumulated deficits over seven years in government. If you back-cast it under the GFS, the back-cast GFS deficits of the Liberal Party over of seven-year term in government would probably be in excess of $1 billion.

Reflect on this: the Australian accounting standard cumulative deficit of the Liberal Party in government I think was $685 million. Now we have a champion at GFS accounting, but I will do the work for Mr Mulcahy. I will get the numbers out. I will provide him with the information on a back-cast GFS cumulative deficit by the Liberal party government. I would not mind betting that if we back-cast the GFS deficits for the two terms of the Liberal Party in its seven years in government they would be somewhere of the order of $1 billion.

That is a tremendous record. As Mr Mulcahy scrabbles around to look for a Liberal budget that acknowledges, in his words, “prudent and responsible economic management delivering a surplus”, he has to look to a government other than his own because his government could not do it. This budget continues to be framed not only for today; it also takes the territory forward. I commend the response to the Assembly.

Debate (on motion by Mr Mulcahy) adjourned to a later hour.


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