Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

If we look at the challenges facing the Australian economy at present, the global economic circumstances are difficult. We have a global financial crisis, we have significant falls on global stock markets and we also have a huge spike in global oil prices and food prices. All of these factors are affecting the state of the global economy, which is why five of the world’s top seven industrial economies have already generated negative growth in the last quarter or so. In Australia, our challenges are compounded by the record of the today absent member for Higgins as Treasurer of Australia. He is possibly out to lunch. Alex is not here anymore, so perhaps there is not a luncheon partner available.

The record of the member for Higgins in this respect is that, in the period when those opposite were in government, we experienced 10 interest rate rises in a row. This meant that, by the time we won office at the end of last year, Australians were paying interest rates which were the second highest in the developed world. Although those opposite do not want to hear this, the consequence of those interest rate rises resulted in the Liberals providing a $400-a-month interest rate hike for working families. Our response to that is responsible economic management. Our response to that is to ensure that we are prosecuting a national program of economic reform based on an education revolution, on building the nation’s infrastructure and on assisting working families, pensioners and carers on the way through with a package of payments. Some $55 billion for working families and $7.5 billion for pensioners and carers have been provided through the budget.

The honourable member asked specifically about one element of our economic strategy, and that goes to nation building. I would draw the attention of honourable members opposite to the figures which were released by the ABS last week which show that new capital spending in Australia hit a record $86.4 billion for the last financial year to June 2008. This is the highest final capex figure on record, and it shows an increase of 11.4 per cent from 2006 to 2007. I say to those opposite to also focus on this number, though it may not suit their current economic and political narrative, which is that the ABS has forecast capital expenditure—

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