Andrew Laming (Bowman, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to the statement of the Treasurer last Monday, when he said:

We stick by our forecasts. There are many forecasts out there but the official forecasts of the Commonwealth are for modest growth and modest surpluses.

Prime Minister, in the past three days what new information has the government received that has caused it to panic and abandon its forecasts?

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

I would refer the honourable member, in answer to his question, to the statement that I made yesterday. The statement that I made yesterday said that, under current circumstances, it is not necessary for the government to contemplate a temporary deficit to support jobs, growth and families. What I went on to say, in response to the honourable member’s question, was that, if the global financial crisis continues to worsen and puts the Australian economy more at risk, then the government will take the decisive action that is necessary, including the possibility of a temporary deficit, in order to support the economy, invest in infrastructure and support families and jobs. That is the government’s strategy. It is clear cut. Those are the circumstances which surround it.

The honourable member asks what the changing circumstances are, and again I would draw his attention to the statement I made yesterday and the stream of data which has emerged from the United States and around the world during the course of November. Secondly, I would draw the honourable member’s attention to my statement and its reference to the comments made to me by heads of government at both the G20 meeting and the APEC summit meeting. I say again to the honourable member: our strategy is clear—it is called fiscal stimulus to try and support jobs, growth and families. The alternative strategy is simply missing in action.