The National Economic Debate

http://www.abc.net.au/tv/qanda/txt/s3813523.htm Panellists: Chris Bowen, Federal Treasurer; and Joe Hockey, Shadow Treasurer. -- Chris Bowen Chris Bowen emerged from the recent turmoil engulfing the Labor Party – including the leadership drama and the election loss – with his status as a senior Labor identity confirmed and enhanced. After Kevin Rudd’s victory over Julia Gillard for the leadership, in which he played a significant role agitating for change at the top, he was made Treasurer – the second most demanding job in politics. Following Labor’s defeat he held the fort as Acting Opposition Leader while the party ballot to elect a leader took place. Now he is shadow treasurer, a role that puts him at the forefront of the political contest. Since entering Parliament in 2004 as the member for Prospect (now McMahon after a redistribution) in the western suburbs of Sydney, Chris has risen rapidly through the ranks of the ALP. He became a minister after just three years as an MP and has held several senior portfolios, including Human Services and Immigration. Chris was born in the western suburbs in 1973 and attended local schools before going to the University of Sydney, where he gained a Bachelor of Economics degree. He joined the ALP at 15 and worked for State and federal politicians, and for the Finance Sector Union, before entering Parliament. He also spent many years on the Fairfield Council and was mayor at the age of 25. Chris is married to Bec and they have two children, Grace and Max. -- Joe Hockey Joe Hockey is a key member of the Opposition strategy team, and as shadow treasurer he has the challenge of beating Labor on the crucial battleground of the economy. Well-known as a moderate within the Liberal Party, Joe has occasionally been at odds with his colleagues on some fundamental philosophical issues and is seen by many as a future leadership contender. Joe was born in Sydney in 1965 and has a different background from many of his parliamentary colleagues. His father, Richard, was born in Palestine of Armenian background, and came to Australia in 1948. The family’s original name was Hokeidonian. Joe graduated in arts and law from the University of Sydney, where he was active in the Young Liberals. He worked as a banking and finance lawyer, then as Director of Policy to the Liberal Premier of NSW, John Fahey. He won the seat of North Sydney for the Liberal Party in 1996, following the retirement of well-known Independent Ted Mack. He joined the Howard ministry in 1998 as Minister for Financial Services and Regulation. His last ministry was in the Employment and Workplace Relations portfolio, which he held while the coalition was fighting an intense political battle over its contentious industrial relations policy, WorkChoices. Joe and his wife Melissa Babbage live in the Sydney suburb of Hunters Hill. They have three children, Xavier, Adelaide and Ignatius. ---- Audience: ALP 35%, Coalition 45%, Greens 10%, Other 2%, Not specified 8% HOUSING AFFORDABILITY Rudo Makuyana asked: I am a young professional living and working in western Sydney. Tired of renting, a few months ago I decided to look at what it would mean for me to own house. After talking to my bank and having a look at the market, I was left shell shocked if not slightly depressed at how it would almost be near impossible for me to achieve that dream and talking to my people my age I have realised that is not only me that feels this way. Can either you tell me what ideas your parties have in helping young people like me become homeowners before we retire, because at this rate my dream house is a long way away from me? SURPLUS OBSESSION Andrew Huynh asked: Mr Bowen and Mr Hockey, why has Australian politics turned into a constant obsession of who can reach a budget surplus first? Both parties claim to be responsible economic managers, yet what is so responsible about cutting spending to essential services such as health and higher education, when the debt is still considered to be relatively sustainable by world standards? TRUST AND BOWEN Bek Leys asked: Mr Bowen, the ALP has run us into more than a quarter of a trillion dollars in debt. Why should we trust you, yet another unproven ALP treasurer who is relatively unknown and could change on the whim of caucus, to manage this debt? What reason do we have to believe that you're not going to go the same way as your predecessors? COALITION COSTINGS Tim Shepherd asked: As a swinging voter with absolutely no idea of who I'm going to vote for, what is the reasoning (tactical or otherwise) for the Liberal Party to hold back their financial costings from us, the people who ultimately pay for it all, until the very last minute? For me, that's the most massive trust-killer for this whole campaign. How am I, or anyone, supposed to compare the two Parties on some sort of equal footing? AUSTERITY IN EUROPE Kishor Napier Ramen asked: Mr Hockey, austerity measures implemented in European countries such as the UK and Spain have had largely disastrous results, slowing down economic growth, increasing unemployment, reducing household incomes, and generally affecting the already disadvantaged the most. Given that one of your party's primary goals is a swift return to surplus, what guarantee can you give the Australian people that they will not suffer years of debilitating public service cuts under a coalition government? GST Pierre Hawach asked: Tax is a necessary evil which allows us to live the comfortable lifestyle and have the luxuries we have in Australia compared to other countries. Given that the GST is one of the most consistent and effective ways of increasing revenue for the government, why has the Labor government criticised any review of the GST? And why has the Liberal Party been so quick to dismiss its increase? PAID PARENTAL LEAVE Raghwa Sharma asked: How is the paid parental leave fair? It discriminates against all those women who earn less than 150k and men. When will Hockey let us know how he is going to fund all these promises? TERRITORY TAX CUT Brenda Ma asked: Minister Bowen: Recently, Prime Minister Rudd proposed to cut the company tax rate in the NT by a third, even though Labor members in particular David Bradbury previously called such policies from the Coalition as a "proposal to divide Australia in two". Why has there been a shift in tune from the government and how can we be assured that this new proposal isn't exploiting the Northern Territory potential as a mere political football? HOW TO FUND FUTURE NDIS? Ben Kyte asked: Given the Liberals have committed to the NDIS, and you are likely to be the next treasurer, can you tell us how you'll fund this scheme in full when it is expected to cost $15 billion a year and the Medicare levy increase only raises around $3 billion a year? And Mr Bowen if you are re-elected how will you fund it? SCHOOLS FUNDING Cynthia Ford asked: How can you commit to funding the generous, expensive parental leave but cannot commit to funding the important last 2 years of the Gonski Report? ABC CUT Gregory Chore asked: Is the coalition considering the sale and or the privatisation of the ABC in their fiscal review or in the foreseeable future? MANUFACTURING IN WESTERN SYDNEY Carol Trewick asked: Greater Western Sydney has seen the permanent loss of many large manufacturing blue collar jobs over the last 10 years with production moved to China or other Asian countries (big businesses such as Bonds, CSR Glass, Clark, and soon Shell). What incentives can the federal government provide for any large corporation to start up new substantial manufacturing plants in Greater Western Sydney to employ thousands of blue collar workers when the first choice of business now is to look to Asia to produce?