HOST:
Firstly, to the issue of the early release of this. We've just touched on it during our panel there. But why is this being released a month early? On the same day as well that the mining tax receipts are being delivered.
DAVID BRADBURY:
I think it's important to understand that MYEFO is handed down as part of the government meeting its requirements under the Charter of Budget Honesty Act. The Charter of Budget Honesty Act sets out a whole series of requirements and it says that the mid-year review should be handed down either within six months of when the Budget is handed down or at the latest at the end of January. Now we are in compliance with that. Obviously, there have been a range of different judgements taken by governments in the past. I heard Mr Hockey out today, can I make this point, last year Mr Hockey criticised the government for delaying the release of MYEFO and he made a simple point. He said that in delaying the release of MYEFO the document won't be the subject of parliamentary scrutiny. Well, let's just have a look at what we've got here. We've only got another two parliamentary sitting weeks ahead of us. We've now released, or will release the document today. There will be adequate and ample opportunity to scrutinise it and provide that parliamentary scrutiny. We will always comply with the Charter of Budget Honesty, Mr Hockey should answer whether or not he intends to.
HOST:
But how can you release this Budget update before you actually get the numbers for the mining tax. Are you going to have to release another adjustment before May?
BRADBURY:
Let's keep this in perspective. The mining tax is a relatively small proportion of overall Commonwealth revenue. That's something that's important to recognise. Obviously the update and the nature of the update that's to be provided by us is one that takes into account all of the adjustments that need to be made across the range of modelling variables that need to be considered. The mining tax is one of those, but we've taken the decision to hand it down today. This is a very significant document. There'll be a range of measures, responsible savings measures, in place and we will need to progress those rather expeditiously if we are to continue to deliver what we have set out to achieve and that is to return the budget to surplus in this year.
HOST:
So will, you're still sure the Budget will return to surplus. What's going to be stung? Because Wayne Swan yesterday said in his update that Labor values, this Budget update was very much in line with Labor values. Can we take from that that the rich are going to be slugged?
BRADBURY:
Let's not get ahead of ourselves. At 11 o'clock today the document will be released in its totality. Obviously, in the context of continuing debt concerns in Europe, sluggish growth in the US, we've seen something of a relative slowdown in the Asian region, these are providing and presenting global headwinds for the Australian economy. But we should also remember that at the same time, our economy for the first time ever enjoys the AAA credit rating from all three major ratings agencies. We've got strong growth, the IMF is suggesting that our growth will be stronger than any major advanced economy this year and next year. Contained inflation, unemployment still with a five in front of it. These are the settings of an economy that should be returning to balance and achieving a surplus and that's why we've set out to deliver on that commitment.
HOST:
One you didn't mention there was interest rates. Is the timing of this announcement today, does that have anything to do with the Reserve Bank's meeting and its next decision on interest rates next month?
BRADBURY:
Of course we've always said the Reserve Bank will take its judgements and decisions independently, as it's required to do. But of course, we've also made the point that in running a tight fiscal policy we are giving the Reserve Bank the room it needs to cut rates if that's what it thinks is appropriate. And we saw from the Governor, from Glenn Stevens recently, that he made the point that there is still plenty of ammunition in the locker when it comes to monetary policy. But of course, by keeping a tight budget, we give the Reserve Bank that room that it needs to move.
HOST:
David Bradbury, Assistant Treasurer, we're out of time. Thanks for your time this morning.