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

In the context of that unprecedented boom in commodities prices, the estimates are that something in the order of $400 billion flowed into the Treasury coffers beyond normal budget parameters. The question which people have asked themselves in recent times is: what did the previous government use that money for? Did they invest it in infrastructure? No. As a consequence, the inflationary pressures which then emerged in the Australian economy were significant. As a consequence, the member for Higgins presided over 10 interest rate rises in a row. I did not hear anything about that in the question that was asked just before—10 interest rate rises in a row. Anyone sitting in the gallery or listening to the broadcast today who has a mortgage would know what suffering 10 interest rate rises in a row meant for the family back pocket. These were the circumstances which the government inherited.

Secondly, we now confront, as any honest analyst of current economic conditions would conclude, the worst financial crisis we have seen in three-quarters of a century. Those opposite find this an inconvenient truth. It is the truth and it is therefore becoming a crisis in the real economy. So I would say to those opposite: we can either have a real debate about real policy options to deal with the real economy challenges presented to Australia because of this crisis which originated in the United States or we can continue with this sort of bogus interjection on the part of those opposite, pretending that these underlying realities have somehow not changed. The member for Higgins in his most honest of moments knows all this to be true and factual. We are responding to the practical challenges with which we are confronted. I reiterate what I have said already: if the global financial crisis gets worse and puts the Australian economy more at risk then the government will take decisive action in the national interest, including temporarily going into deficit to stimulate the economy, build infrastructure and protect jobs.

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