Andrew Leigh (Fraser, Australian Labor Party) Share this | Hansard source

Those opposite are now denying this suggestion? That is interesting. If those opposite would like to stand up and rebut the member for Goldstein, you would be more than welcome to. God knows, there have been plenty of your colleagues that have disagreed with the member for Goldstein. Indeed, the member for North Sydney has disagreed many a time with the member for Goldstein on the issue of the coalition's black hole. But let me take him to task on this issue of interest rates. It is simply not the case that government borrowing in Australia drives up the interest rate. The interest rate is set by a combination of factors including the world interest rate. In a small, open economy we typically think of world savings as driving the price of funds and it being driven by the independent central bank. But the suggestion that a modest level of government borrowing affects the interest rate for small businesses is wrong and scurrilous, and it continues as part of a scare campaign run by those opposite.

Those opposite seem to be happiest when they are talking down the Australian economy, when they are trying to reduce consumer confidence in this country. But they cannot change the simple facts. In Australia unemployment is 5.2 per cent, in the US it is 8.3 per cent and in Europe it is now over 10 per cent. Our economy has grown to seven per cent since the GFC. Others have just recovered, lost ground or are struggling to recover.

I notice that members opposite would like to make comparisons with the past. Well, let us do so. When we came to office we faced higher inflation, higher interest rates and higher income taxes than we have today, but we now have a gold plated AAA credit rating from all three major agencies.

Mr Baldwin interjecting—

And, yes, we have debt, because we know the alternative to taking on debt. The alternative to taking on that debt would have meant hundreds of thousands of Australians thrown on the scrap heap of unemployment. We on this side of the House know what unemployment means, and we will fight to prevent that unemployment. You on that side of the House are clearly happy to have more unemployment in Australia if it means that you can refuse to take on a skerrick of debt. Those on the other side of the House are like a family who, as the floodwaters are rising, say, 'Oh, no, we couldn't possibly put a lifeboat on the credit card; we don't want to take up any credit card debt; let's just let the floodwaters rise.'

When the Leader of the Opposition went to London, he said, 'Australia has serious bragging rights. Compared to most developed countries, our economic circumstances are enviable.' If you want to hear from a more economically literate member of the opposition team, you could have the member for Wentworth speaking to a Liberal Party convention about 'the current success and strength of our economy against the troubles of so many others'. Our economy stands head and shoulders above other developed countries, and it is about time that those opposite stop trash-talking the Australian economy and began to speak honestly with the Australian people about the strength of the Australian economy. It is about time they began to speak honestly about the benefits for Australians and about good economic policies like a profits based tax on mining. A profits based tax on mining is economically sensible, because it recognises that, as mineral prices rise, mining companies ought to be able to afford more taxes going back to the people of Australia. Those mining resources can be dug up only once, and the Australian people are right to demand their fair share of the mineral resources that are theirs. So, yes, we are putting in place a profits based tax on minerals and we are putting in place a price on carbon pollution. These are key economic reforms laying the foundation for Australia's prosperity.

We are raising the compulsory superannuation contribution rate from nine per cent to 12 per cent. Those opposite are going to vote against it, as they voted against the introduction of compulsory superannuation. History proved them wrong then; history will prove them wrong again. At least they have a sense that they are going to be on the wrong side of history with this one, because they have said they will not try to wind it back if they were to win office. They have admitted that the increase in compulsory superannuation is good for Australian workers. It recognises that more Australians should be able to retire in dignity, and higher compulsory superannuation will allow them to do so. These appropriation bills are good economic management, part of the strong economic management that is the hallmark of this government.

In closing, I am pleased to note that the House of Representatives Standing Committee on Economics yesterday discharged the reference of the appropriation bills to our committee, an utterly bizarre reference. I am not sure, in the history of this parliament, whether the appropriation bills have ever been referred to the House economics committee, but those opposite decided that they wanted to play their political games, and the House economics committee has sent back that reference. What would an inquiry look like? Perhaps the member for Wright can enlighten us as to what such an inquiry would have looked like if the coalition had gone ahead with it. Thankfully, cooler heads have prevailed. I commend the bills to the House.

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