Brendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

My question is to the Prime Minister. The Reserve Bank of Australia has today said that growth in labour market incomes had been unusually weak and 'if it were to persist, would have implications for consumption growth and the risks posed by the level of household debt'. Given this comment, Prime Minister, why is the government threatening demand and the economy by supporting pay cuts for Australians?

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the honourable member for his question, and I note that the honourable member refers to the recent decision of the Fair Work Commission relating to Sunday and public holiday penalty rates in retail, hospitality and fast food. And the justification the Fair Work Commission gave—this is the Fair Work Commission, which the honourable member has again and again and again pledged to support, just like his leader; he has extolled the virtues of the independent umpire, but not now—was the increase in employment: more jobs, more businesses opening, page after page of examples of small businesses that said that the high rate of Sunday penalty rates and public holiday rates at the moment prevented them from opening. There are pages and pages of them. It was a decision based on evidence. The Fair Work Commission is backing small business, and so are we. Now, on the Reserve Bank, I will ask the Treasurer to add some remarks.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

As the member opposite may not know, household consumption in the December quarter grew by 0.5 per cent and was the strongest contributor to our economic growth.

Ms Macklin interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Jagajaga!

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The Reserve Bank has also drawn attention to the issue of wages growth, and the wage price index has been growing at 1.9 per cent, and this is the biggest challenge facing the economy, to lift what Australians are earning in this country. But what the Labor Party does not understand is that you cannot get a job in a business that is closed and you cannot get a pay rise in a company that is not earning any money. Those opposite think the money just falls from the sky to pay people's wages, and that is why they think they can tax business all day and all night and drive them out of business and people can still get wage increases.

Ms Henderson interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Corangamite!

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

Those opposite simply do not get it that if a business does not make money it cannot pay people wages. Now, the real heroes of this economy—

Ms Plibersek interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Sydney has been warned already.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

are the small businesses who have been putting their hands in their pockets year after year after year, after they have seen their profits go backwards, and they have kept those employees in jobs. Those opposite should say thank you to those small businesses rather than seek to punish them with higher taxes.

Ms Plibersek interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Sydney will cease interjecting. She has been warned twice. That is it.