The PRESIDENT (Senator the Hon. John Hogg) took the chair at 09:30, read prayers and made an acknowledgement of country.
Assisting Victims of Overseas Terrorism Bill 2012
At the end of the motion, add:
and the bill be referred to the Legal and Constitutional Affairs Legislation Committee for inquiry and report by 8 May 2012.
In administering the framework, the Attorney-General must regularly consult with representatives of victims and their families, community or welfare organisations, health professionals, international humanitarian agencies and any other relevant bodies.
Weakening the influence of the West would advance their political goals by helping undermine those Muslims they view as corrupt and open to Western influence. We are seen as standing in the way of their goal to transform the Muslim world into a Taliban-style society. According to their simplistic worldview, we are part of the Christian West which, to them, is un-Islamic and therefore illegitimate.
The core values we hold and which are intrinsic to our success as a liberal democratic culture are anathema to these extremists. For them, our beliefs in democratic process, racial and gender equality, religious tolerance and equality of opportunity are mere human inventions at odds with God’s law. These values impede their political goals.
… the action is done or the threat is made with the intention of advancing a political, religious or ideological cause; …
The grim catalogue of torture and other ill treatment that has emerged from Syria's detention centres in a year of unrest against President Bashar al-Assad's government.
In administering the framework, the Secretary is to ensure that:
… … …
(c) procedures and practices established under … this Act and for the operation of the framework … are broadly commensurate with the procedures and practices established under State and Territory victims of crime compensation schemes.
SELECTION OF BILLS COMMITTEE
REPORT NO. 3 of 2012
15 March 2012
1. The committee met in private session on Wednesday, 14 March 2012 at 7.19 pm.
2. The committee resolved to recommend—That the following bills not be referred to committees:
The committee recommends accordingly.
3. The committee deferred consideration of the following bills to its next meeting:
(Anne McEwen)
Chair
15 March 2012
That the report be adopted.
That the following general business orders of the day be considered on Thursday, 22 March 2012 under the temporary order relating to the consideration of private senators’ bills:
No. 85 Solar Hot Water Rebate Bill 2012
No. 84 Assisting Victims of Overseas Terrorism Bill 2012.
No. 51 Environment Protection and Biodiversity Conservation Amendment (Bioregional Plans) Bill 2011.
That the time for the presentation of the report of the Community Affairs Legislation Committee on the provisions of the Personally Controlled Electronic Health Records Bill 2011 and a related bill be extended to 19 March 2012.
That leave of absence be granted to the following senators:
(a) Senator Boswell for today, on account of parliamentary business; and
(b) Senator Parry for 16 March 2012, on account of parliamentary business.
That the time for the presentation of the report of the Rural and Regional Affairs and Transport Legislation Committee on the 2011-12 additional estimates be extended to 22 March 2012.
That the Legal and Constitutional Affairs Legislation Committee be authorised to hold a public meeting during the sitting of the Senate on Friday, 16 March 2012, from 9.30 am, to take evidence for the committee’s inquiries into the Crimes Amendment (Fairness for Minors) Bill 2011 and the Migration Amendment (Removal of Mandatory Minimum Penalties) Bill 2012.
That the Joint Standing Committee on Foreign Affairs, Defence and Trade be authorised to hold a public meeting during the sitting of the Senate on Friday, 16 March 2012, from 9 am, to take evidence for the committee’s inquiry into the review of Defence annual report 2010-11.
That the Parliamentary Joint Committee on the Australian Commission for Law Enforcement Integrity be authorised to hold a public meeting during the sitting of the Senate on Friday, 16 March 2012, from 1.30 pm, to take evidence for the committee's inquiry into the integrity of overseas Commonwealth law enforcement operations.
That the Senate—
(a) notes that:
(i) since late 2010, the Renmark Paringa Council has made requests of the South Australian Government for assistance to reinforce levee banks along the River Murray and its tributaries and creeks in its council area, in order to minimise the risk of flooding to key infrastructure and assets, including environmental assets,
(ii) current levee banks in the Renmark Paringa Council area have not been substantially maintained since their construction in the late 1950s,
(iii) the cost of protecting the Renmark Paringa Council area from major flooding is in the vicinity of $2.8 million for capital works, which is some 50 per cent of the council's annual revenue, and
(iv) there is some $36.6 million in South Australian Government and Australian Government infrastructure assets in the Renmark Paringa Council area that would be at risk in a major flood event; and
(b) calls on the South Australian Government to urgently address the need to undertake the capital works necessary to minimise the risk of flood damage in the Renmark Paringa Council area.
That the Senate requests that, in the absence of a final report, the Committee of Privileges should provide a progress report, not later than Monday, 19 March 2012, on the matter referred to it by the Senate on 24 November 2011.
That the Senate—
(a) notes that:
(i) both universities and students recognise the contribution that student organisations, associations, unions and democratically elected student representatives make to the vibrancy of university culture, student life and the value of gaining a university degree for students,
(ii) under legislation passed in 2011 to restore student services on campuses via a student services and amenities fee, universities must consult with student organisations, associations, unions and democratically elected student representatives, and can develop funding agreements to pass on the fees they collect from students,
(iii) while some universities have both consulted and struck good funding agreements with these student organisations to pass on student services fees, other universities have still not made any commitment to pass on the student services fees they have collected to their student organisations,
(iv) many student organisations, associations, unions and democratically elected student representatives, which have been starved of money since the Howard Government era of voluntary student unionism, are struggling to re-establish essential student services such as subsidised day care, legal services, emergency loans and book banks, and
(v) the failure of some universities to make funding arrangements with these student organisations is causing uncertainty about the level and quality of services that can be provided to students in 2012; and
(b) calls on the Government to encourage all universities to consult with and develop funding agreements with student organisations, associations, unions and democratically elected student representatives to pass on a proportion of the student services and amenities fees collected.
[The Senate divided. [12:01]
(The President—Senator Hogg)
That the following matters be referred to the Rural and Regional Affairs and Transport References Committee for inquiry and report by 22 August 2012:
(a) the economic, social and environmental impacts of Australia's domestic and export coal seam gas (CSG)/liquid natural gas (LNG) industry on:
(i) surface and groundwater and future water licensing arrangements,
(ii) agricultural land and food production,
(iii) the coast and marine environments, including impacts on the Great Barrier Reef World Heritage Area and industries relying on these environments, including impacts from pipelines, ports, dredging and shipping,
(iv) the property rights and values of landholders,
(v) rural, regional and urban communities, and the effective management of relationships between mining and other interests, and
(vi) other related matters, including health impacts;
(b) the greenhouse gas emission intensity of Australia's domestic and export CSG/LNG industries across their lifecycle, and the adequacy of accounting, monitoring and compliance of greenhouse impacts;
(c) the potential impacts of other unconventional gas industries developing rapidly across Australia, including shale and tight gas;
(d) the adequacy of existing and proposed state, territory and Commonwealth regulatory regimes to manage the above issues, including cumulative impacts and the appropriateness of 'adaptive management' in regulating the industry; and
(e) any other related matter.
The Senate divided. [12:08]
(The President—Senator Hogg)
That the Senate—
(a) notes that:
(i) China's twelfth 5 year plan is expected to introduce caps on coal use from 2015,
(ii) the price of coking coal has already dropped some 40 per cent in the past year, due in large part to a drop in China's demand for imported coal,
(iii) China expects utility scale solar power to out-compete new coal-fired power stations by the end of the decade, while the Indian Government expects the cost crossover as soon as 2016,
(iv) India's economic giant, Tata Power, has publicly stated that its new investments will favour renewable energy, as coal power is becoming 'impossible' to develop,
(v) the Australian Bureau of Resource and Energy Economics (BREE) continues to predict that coal exports will double over the next two decades, and
(vi) Australia is leaving itself economically exposed by focusing on the development of coal export infrastructure; and
(b) calls on the Government to:
(i) require BREE to review its modelling based on the current geopolitics of coal, and
(ii) rethink Australia's economic settings, which assume ongoing increases in the coal export market, and instead look to broaden Australia's economic base and build a more competitive clean energy economy.
The Senate divided. [12:12]
(The President—Senator Hogg)
That leave of absence be granted to the following senators:
(a) Senators Evans, Farrell and Feeney for 16 March 2012, on account of parliamentary business; and
(b) Senators Carol Brown, Sherry, Sterle and Urquhart for 16 March 2012, for personal reasons.
Higher Education Support Amendment Bill (No. 1) 2012
That this bill may proceed without formalities and be now read a first time.
That this bill be now read a second time.
The Higher Education Support Amendment Bill (No. 1) 2012 clarifies the application and operation of indexation arrangements in the Higher Education Support Act 2003. It updates the definitions for 'course of study in dentistry' and 'course of study in veterinary science' and updates the Melbourne College of Divinity's name in light of its approval to operate under the title MCD University of Divinity.
The Bill also allows for technical amendments to the calculation of the voluntary repayment bonus to resolve rounding issues.
There is ambiguity in the Act about the application of the indexation provisions to amounts in the Act on 1 January 2011. The Government is making it clear that indexation should have been applied to amounts in the Act on 1 January 2011, and that the amounts that are indexed on 1 January 2012 are the 2011 indexed amounts.
The terms 'Course of Study in Dentistry' and 'Course of study in Veterinary Science' are used to determine which students are eligible for the higher FEE-HELP limit of $112,132 in 2012.
The Bill would amend the definitions for 'course of study in dentistry' and 'course of study in veterinary science' to clarify that only students undertaking courses of study in dentistry or veterinary science that satisfy the minimum academic requirements for registration as a dentist, veterinary surgeon or veterinary practitioner are eligible for the higher FEE HELP limit.
The Melbourne College of Divinity has been approved by the Victorian Registration and Qualifications Authority to operate under the name MCD University of Divinity until 31 December 2016.
Students can make a voluntary repayment towards their HELP debt to the Tax Office at any time. Voluntary repayments of $500 or more currently attract a 5 per cent bonus on the payment amount.
When calculating the effect of a person making a voluntary repayment of his or her HELP debt, the Act provides for a person to obtain a 5 per cent bonus and includes rounding rules in calculating whether a person has repaid their debt and the amount of debt repaid if it is only a partial repayment.
Currently, the effect of the rounding rules is that:
(a) When making a full repayment, the person benefits from the rounding because the amount of payment required to pay off their debt in full is reduced because the cents are rounded down; and
(b) When making a partial repayment, the person is disadvantaged because the value of the reduction to the outstanding debt due to a payment is rounded down.
The Bill amends the Act to provide that when calculating the effect of a person making a partial repayment towards his or her HELP debt, the amount would be rounded up to nearest dollar. The cents would continue to be rounded down to determine the amount required for the full repayment of a person's HELP debt amount. Effectively, the rounding rules will now always benefit a person making a voluntary repayment.
The Bill reflects the Government's continued commitment to improving Australia's higher education sector and expanding opportunities for Australians to obtain a high quality higher education.
STATEMENT OF REASONS FOR INTRODUCTION AND PASSAGE IN THE 2012 AUTUMN SITTINGS
HIGHER EDUCATION SUPPORT AMENDMENT BILL (NO. 1)
Purpose of the Bill
The bill will make policy changes as a result of the implementation of the demand driven funding system. It will update the definitions for 'Course of Study in Dentistry' and 'Course of Study in Veterinary Science'.
The bill will also update the Melbourne College of Divinity's (MCD) name in light of their approval to operate as a specialised university with the title MCD University of Divinity. The bill makes technical amendments to the calculation of voluntary repayment bonus to resolve rounding issues.
The bill will also make amendments to the Higher Education Support Act 2003 to clarify the application of indexation provisions.
Reasons for Urgency
To urgently clarify the indexation provisions of the Act.
Fairer Private Health Insurance Incentives Bill 2012
Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2012
Fairer Private Health Insurance Incentives (Medicare Levy Surcharge—Fringe Benefits) Bill 2012
… Julia has lost the trust of the Australian people and … if we don't change, the Labor Party is going to end up in Opposition.
I don't think we have captured the attention or the support of the broader Australian community, and obviously if we want to win an election, they have to listen to us, they have to trust us, they have to have empathy with us …
Well, certainly what we rejected is this hysterical allegation somehow that we are moving towards a carbon tax from the Liberals and their advertising. We certainly reject that.
YOUR correspondent Russell McGregor … should have no concern that Labor will "erode" or abolish the 30 per cent government rebate for private health insurance. Labor is committed—
to the maintenance of this rebate and I have given an ironclad guarantee of that on a number of occasions.
The truth is—
that I never had a secret plan to scrap the private health insurance rebate, and contrary … do not support such a claim.
The Private Health Insurance Rebate policy remains unchanged and—
will remain unchanged.
Private in-patients in public hospitals significantly contribute to the revenue of public hospitals, as private health insurers pay costs to the public hospital just as it would to a private hospital—
The strength of interaction between the two sectors—
has led some to describe them as ‘interdependent’ … reflecting the fact that the services and functions of each sector help to support the other. The interaction between the sectors may be demonstrated by, for example: the sharing of resources in co-located establishments; medical staff working across both sectors and the exchange of spillover benefits (the private sector benefiting from the public sector’s investment in medical training and research).
… the plural nature of the public and private hospital system is one of the strengths of Australia's health system. It is readily apparent that taxpayer sourced funding cannot bear the whole load of financing health care … Australia gets its best result when the two sectors have a strong symbiotic relationship …
As people withdraw from private health insurance, the burden on publically provided healthcare rises. The findings indicate that the cost of treating consumers in the public hospital system are expected to rise substantially above what is currently anticipated by Government.
The Government is firmly committed to retaining the existing private health insurance rebates.
The Private Health Insurance Rebate policy remains unchanged and will remain unchanged.
Both my Shadow Minister for Health, Nicola Roxon, and I have made clear on many occasions this year that Federal Labor is committed to retaining the existing private health insurance rebates, including the 30 per cent general rebate and the 35 and 40 per cent rebates for older Australians.
The truth is that I never had a secret plan to scrap the private health insurance rebate … For all Australians who wanted to have private health insurance, the private health insurance rebate would have remained under a Labor government. I gave an iron-clad guarantee of that during the election.
The difference between Tony "rock solid, iron-clad" Abbott and me is that when I make an "iron-clad commitment", I actually intend on keeping it.
I grow tired of saying this—Labor is committed to the 30 per cent private health insurance rebate.
YOUR correspondent … should have no concern that Labor will "erode" or abolish the 30 per cent government rebate for private health insurance. Labor is committed to the maintenance of this rebate and I have given an iron-clad guarantee of that on a number of occasions.
I grow tired of saying this—Labor is committed to the 30 per cent private health insurance rebate.
YOUR correspondent … should have no concern that Labor will "erode" or abolish the 30 per cent government rebate for private health insurance. Labor is committed to the maintenance of this rebate …
Labor is committed to the maintenance of this rebate …
… I have given an iron-clad guarantee of that on a number of occasions.
Labor understands and supports the aspirations of working people who want to run a decent small business.
That the Senate take note of the answers given by the Minister for Finance and Deregulation (Senator Wong) to questions without notice asked by Senators Sinodinos and Cormann today relating to the ministerial code of conduct and to the appointment of the next chair of the Future Fund.
That the Senate take note of the answer given by the Minister for Tertiary Education, Skills, Science and Research (Senator Evans) to a question without notice asked by Senator Siewert today relating to disability reform.
In the development and implementation of legislation and policies to implement the present Convention, and in other decision-making processes concerning issues relating to persons with disabilities, States Parties shall closely consult with and actively involve persons with disabilities, including children with disabilities, through their representative organizations.
That the Senate records its deep regret at the death, on 12 March 2012, of the Honourable Douglas Barr Scott, former Senator for New South Wales in 1970 and from 1974 to 1985, former Deputy President of the Senate from 1978 to 1979 and former Federal Minister for Special Trade Representations from 1979 to 1980, places on record its appreciation of his long and meritorious public service and tenders its profound sympathy to his family in their bereavement.
I am concerned that the Federal Government should enter still more vigorously in cooperation with the States upon an attempt at real decentralisation, at real population balance in this magnificent country, so that we may in fact stem the tide of population drift which threatens rural Australia today. The drift is from the towns and the villages and the farms to the metropolitan colossi of our coastline.
… and a suggestion that we should temper our concern for pure theory with social and political considerations lest we become slaves to ivory towered conceptions.
Mr President and honourable senators, I really ought to apologise for being part of the cause of keeping you away from your lunch on this Friday afternoon.
… I think I said that we should not regard ivory tower concepts as being the total answer. Unless things work among people in the community it does not matter how magnificent the theory is on a piece of paper; you had better alter it.
Mr President and honourable senators, thank you for the past 15 years.
Fairer Private Health Insurance Incentives Bill 2012
Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Bill 2012
Fairer Private Health Insurance Incentives (Medicare Levy Surcharge—Fringe Benefits) Bill 2012
I grow tired of saying this: Labor is committed to the 30 per cent private health insurance rebate.
Your correspondent … should have no concerns that Labor will erode or abolish the 30 per cent government rebate for private health insurance. Labor is committed to the maintenance of this rebate and I have given an iron-clad guarantee on that on a number of occasions.
What is absolutely clear I think now beyond any doubt, … is that this organisation—
in its current form has a culture that is so entrenched it won't be changed while it's kept in that form.
Thankyou for your letter of 29 October 2007 seeking clarification on Federal Labor's policy regarding private health insurance.
Both my Shadow Minister for Health, Nicola Roxon, and I have made clear on many occasions this year that Federal Labor is committed to retaining the existing private health insurance rebates—
including the 30 per cent general rebate and the 35 and 40 per cent rebates for older Australians. Federal Labor will also maintain Lifetime Health Cover and the Medicare Levy Surcharge.
Labor will maintain the existing framework for regulating private health insurance, including the process for approval of premium increases. Zero per cent premium adjustment is not Labor policy … I trust this allays your concerns.
The Government is firmly committed to retaining the existing private health insurance rebates.
The private health insurance rebate policy remains unchanged and will remain unchanged.
Both my Shadow Minister for Health, Nicola Roxon, and I have made clear on many occasions this year that Federal Labor is committed to retaining the existing private health insurance rebates, including the 30 per cent general rebate and the 35 and 40 per cent rebates for older Australians.
Let's move to another integral part of the health system, the private health rebate, the 30% rebate. Labor has said "Yes, we will keep it," but you have not said whether you will keep it in total. Can you say now that Labor, if elected, will maintain all of the ancillary measures that encompass the private health rebate?
Yes, I can. We've committed to it. We've committed to the 30%. We've committed to the 35% and 40% for older Australians. It's similar to this safety net. We know that many people rely heavily on the assistance that is now provided and would not be able to have private health insurance if that rebate wasn't paid.
And lifetime health cover and others that go with it, we are committed to those. We understand that Australia now has a mixed health system, both private and public, and we need them both to be strong in order for the community to be able to get the services.
So you will not wind back that 30% private health rebate, despite the fact that Labor has been ideologically opposed to it in the past?
No, we won't.
The truth is that I never had a plan to scrap the private health insurance rebate … For all Australians who want to have private health insurance, the private health insurance rebate would have remained under a Labor government. I gave an iron-clad guarantee of that during the election. … when I make ironclad commitment I intend on keeping it.
On many occasions for many months, Federal Labor has made it crystal clear that we are committed to retaining all of the existing Private Health Insurance rebates …
Yes, I can. We've committed to it. We've committed to the 30 per cent, we've committed to the 35% and 40% for older Australians. It's similar to the safety net. We know that many people rely heavily on the assistance that is now provided and would not be able to have private health insurance if that rebate wasn't paid. And lifetime health cover and others that go with it, we are committed to those. We understand that Australia now has a mixed health system, both private and public, and we need them both to be strong in order for our community to be able to get the services.
Both my Shadow Minister for Health, Nicola Roxon, and I have made clear on many occasions this year that Federal Labor is committed to retaining the existing private health insurance rebates—
In my community in Geelong people do not believe that it is appropriate for people earning hundreds of thousands of dollars a year to get middle class welfare from the Commonwealth to help support them in having private health insurance.
They are reforms that will make our healthcare system more sustainable, recognising that as we live longer our health needs become greater and we need additional money in the system to support people.
… these bills are fair. They are appropriate. It has been a consistent position that we have held for a long time.
Both my Shadow Minister for Health, Nicola Roxon, and I have made clear on many occasions this year that Federal Labor is committed to retaining the existing private health insurance rebates, including the 30 per cent general rebate and the 35 and 40 per cent rebates for older Australians.
The Government is firmly committed to retaining the existing private health insurance rebates.
The Senate divided. [18:04]
The President—Senator Hogg.
(1) Schedule 1, page 16 (after line 11), after item 17, insert:
17A Section 169-5 (heading)
Repeal the heading, substitute:
169-5 Information to be given annually to the Council and the Productivity Commission
17B After subsection 169-5(1)
Insert:
(1A) A private health insurer must, within 3 months after the end of each financial year, or within such further time as the Productivity Commission allows, give to the Productivity Commission such information (including financial accounts and statements) in respect of that year as the Productivity Commission requires to be given for use in preparing the report referred to in section 333-1A.
17C Subsection 169-5(2)
Omit "such accounts or statements", substitute "accounts or statements referred to in subsection (1) or (1A)".
(2) Schedule 1, page 20 (after line 9), after item 21, insert:
21A Before section 333-1
Insert:
333-1A Annual report by Productivity Commission
(1) The Productivity Commission must, as soon as practicable after 30 September in each year, give the Minister a report, for presentation to the Parliament, relating to changes in the composition of the persons insured under insurance policies issued by each private health insurer during the financial year ending on 30 June in that year.
Note: See also section 34C of the Acts Interpretation Act 1901 , which contains extra rules about periodic reports.
(2) The report must include:
(a) information about the number of persons who have ceased to be insured, and the number of persons who have downgraded their level of insurance, under insurance policies that *cover *hospital treatment during that financial year; and
(b) information about the number of persons who have ceased to be insured, and the number of persons who have downgraded their level of insurance, under insurance policies that cover *general treatment during that financial year; and
(c) information about the age and income tax bracket of those persons who have ceased to be insured, or who have downgraded their level of insurance, under insurance policies that cover hospital treatment or general treatment during that financial year; and
(d) any recommendations from the Productivity Commission for addressing:
(i) reductions in the number of persons insured under insurance policies that cover hospital treatment or general treatment; and
(ii) people electing to downgrade their level of insurance under insurance policies that cover hospital treatment or general treatment.
(3) However, the report must not include any information that would enable an individual to be identified.
(4) The Minister must publish on the Department's website the report, and a written response to the report, within 60 days after the first day on which the report is laid before a House of the Parliament in accordance with section 34C of the Acts Interpretation Act 1901 .
The Senate divided. [18:08]
(The President—Senator Hogg)
The Senate divided. [18:13]
(The President—Senator Hogg)
Minerals Resource Rent Tax Bill 2011
Minerals Resource Rent Tax (Consequential Amendments and Transitional Provisions) Bill 2011
Minerals Resource Rent Tax (Imposition—General) Bill 2011
Minerals Resource Rent Tax (Imposition—Customs) Bill 2011
Minerals Resource Rent Tax (Imposition—Excise) Bill 2011
Petroleum Resource Rent Tax Assessment Amendment Bill 2011
Petroleum Resource Rent Tax (Imposition—General) Bill 2011
Petroleum Resource Rent Tax (Imposition—Customs) Bill 2011
Petroleum Resource Rent Tax (Imposition—Excise) Bill 2011
Tax Laws Amendment (Stronger, Fairer, Simpler and Other Measures) Bill 2011
Superannuation Guarantee (Administration) Amendment Bill 2011
At the end of the motion, add:
but the Senate:
(a) notes that the Government has not complied with:
(i) the order of the Senate made on 1 November 2011, ordering the production of information relating to the cost of all measures attached to the mining tax over the current forward estimates; and
(ii) a number of other outstanding orders in relation to mining tax revenue estimates and related assumptions; and
(b) declines to consider the bill further until:
(i) the Government publicly releases all information it holds relating to:
(A) the commodity price and production volume assumptions it has used in respect of its mining tax revenue estimates; and
(B) the updated estimates of the cost of all measures associated with the mining tax over the forward estimates; and
(C) the cost estimate of its commitment to credit all State and Territory royalties against the resource rent tax liabilities; and
(D) the cost estimate of the upfront tax deductions able to be claimed by mining projects subject to the Minerals Resource Rent Tax on the basis of the market valuation method; and
(ii) the Senate has passed a resolution that the bills may be listed for debate.
… that's not to absolve the government, either. Its budget policy is clearer than the opposition's, and so it should be—it's the one running the country. But its budget performance is feeble. Yes, Australia's projected federal government deficit of $37 billion this fiscal year is tiny by international standards. Yes, Julia Gillard and Wayne Swan promise to have the budget out of deficit and back into surplus next fiscal year. On the current plan, it'll only just be a surplus—$1.5 billion for 2012-13—but a surplus none the less.
How can this be feeble? Consider our circumstances. First, the Labor government inherited surpluses and zero net debt, thanks to Peter Costello.
Second, look at the commodity windfall. The Reserve Bank runs an index of commodity prices. The Howard-Costello government produced 10 budget surpluses when the index was between about 40 and 50. Since Labor has been in power, the index has been between about 80 and 150. It now stands at about 140. In other words, this is a time of extraordinary bounty for a commodity exporter.
If Peter Costello could produce a surplus when the commodity price index was at 40, why is it so hard for Wayne Swan to produce one when it's at 140?
Such a fund could also kick-start a genuine venture capital market … so that more Australian inventions and innovations can be commercialised here.
Many countries, particularly those dependent upon single finite resource commodities, already have such funds—globally they are estimated to hold up to $4 trillion in assets.
When you hear conservatives these days speak of superannuation as a tax on employers they are either ill-informed or they are lying. The fall in unit labour costs and the upward shift in the profit share during the period of the Superannuation Guarantee Charge is simply a matter of statistical record. It is not a matter of argument.
There is not much glow in the Labor past because there was never a golden age for Australian Labor.
Australia's global share of the capital raised for mining projects has sunk from 21 per cent to 15 per cent since 2008 as other countries such as Russia, India and China attracted tens of billions of dollars in additional funding.
… … …
But in the same period, the value of capital raisings rose strongly in Africa (up 26 per cent), Canada (up 31 per cent), South America (up 59 per cent) and the rest of the world (up 78 per cent).