Fiona O'Malley (Progressive Democrats)

If Senator Bacik would allow me to speak without interruption, I would come to the point. As Senator Harris said, we must grasp this nettle fast and furiously. It is not that long ago since the devastation of the 1980s. None of us wants to go back to the 1980s. In those years, if one could get the fare to leave the country, one would do so but things are so bad globally now there is nowhere to go and we must stay put and make the most of it. That means dealing with this problem fast and furiously. The Government must arrest the decline in the public finances.

This is an important first measure. The reaction is somewhat understandable, given the growth in the economy and the increases everybody got used to on a year on year basis, in particular those in the public sector. People in the public sector were well rewarded as a result of benchmarking and because they enjoy job security, they have been asked to make a contribution. Nobody likes to see a decrease in his or her income but the reality is we are in a terrible situation. I applaud the Government for having the bottle to ask these people to take this measure. I agree with those who say we need to see tax increases and the Minister has also said this. It is never wise for a Minister for Finance to indicate there will be tax increases if they are not going to be fairly immediate. The idea that he is going to wait until the next budget to implement the tax increases he mentioned yesterday is not wise. I agree we need to deal with this quickly. There is a sense in the public mood of the anger and annoyance of people. They are facing into the unknown and when facing into the unknown, into uncertainty and into a declining financial income, they want to see tough measures and they want to see them fast. Senator Quinn used a very good analogy about when one is ill, one does not want a slow and lingering death but, despite how unpalatable the medicine might be, one wants to take it so that one's recovery will be all the quicker and one will be able and adapted to deal with a recovery when it comes. This is the reason the Government needs to respond to the public need for action in dealing with the finances. This Bill is an important first step but the second half will be to look at how to expand the tax base. My party, which is now in decline, has never espoused increases in taxation, particularly on labour. However, we are in a situation where we need to expand the tax base in some shape or form. We cannot deny and continue to spend in the way we are doing without increasing the tax base in some shape or form and it needs to be done.

People need to be honest about what price they themselves are prepared to pay. The trade unions are doing a very good job of using this argument of unfairness but I do not accept it. If people look at the broader picture it is a progressive measure and all progressive tax measures are much fairer. It should be on the basis of one's ability to pay and this is what is outlined in the Bill.

I wish to make a point about the wartime spirit which has been referred to. I do not think the Opposition has an easy job. Members of the Opposition know they must be responsible because the day will come when they will be in Government. However, when the Opposition is trying to show that sense of responsibility it will see the political advantage and will make overtures towards public sector workers at the moment and say this proposal is not good enough and is unfair but the Opposition is not saying what it would do.