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

Plainly not all of that is delivered in one financial year but, for the period ahead, I would draw to the attention of honourable members, including to the most voluminous interventions by the member for North Sydney, that for the year ahead we are looking at about $15 billion, or a figure approaching that, in terms of additional injection. If you take the Economic Security Strategy stimulus package announced in October, together with the one-year tranche of funding coming out of the COAG funding arrangements agreed last Saturday here in Canberra, this is necessary stimulus to be ahead of the curve for the challenges which we face for the period ahead.

I say to those opposite that the reason the government acted when it did—not just in providing guarantees to bank deposits and not just in delivering the economic stimulus strategy, which has been so robustly attacked by many members opposite, but also in continuing with our funding of reform programs with the states and territories—was to provide necessary stimulus in what will be a very difficult year, 2009. We did it to provide that additional one to 1.5 per cent of GDP injection into the economy—necessary action—on top of the now 300 basis point reduction in interest rates we have seen by the Reserve Bank over recent months. Of course, the bulk of those Reserve Bank interest rate cuts, together with the stimulus packages that we have announced, do not come into effect for some time, but we believe this is a necessary course of action to prepare for the difficulties which lie ahead.

I say to the House and to the opposition that the government’s strategy on stimulating the Australian economy and providing support for families and jobs ahead is clear cut. It is based on the national interest. I urge those opposite, rather than act consistently in their own political self-interest, to on a bipartisan basis get behind the measures which the government has embraced. It is the right course for the nation. It is what we need in what will be a very difficult year in 2009, when our growth numbers, employment growth and unemployment will be challenged and under severe duress.

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