Malcolm Turnbull (Wentworth, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is addressed to the Prime Minister. I refer to Pacific Brands laying off 1,850 Australian workers who have been making shoes, clothes and homewares. I refer to the Prime Minister’s claim that his December clash splash would create 75,000 jobs and to the Treasurer’s claim a few weeks ago that the cash from the cash splash was spent on ‘socks and jocks and polo shirts’. Prime Minister, how does your socks and jocks led recovery look now, and how many more workers will lose their jobs because of your economic incompetence?

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

When it comes to the announcement today by Pacific Brands, the response from all members of this House should be one of extreme disappointment at the decision. Furthermore, reflecting on the fact that this is devastating and distressing news for the workers concerned, we understand from advice to the government that full entitlements will be paid. Under the TCF Structural Adjustment Program, affected workers will be immediately eligible for intensive support and customised assistance. Pacific Brands’ decision is bad news for the TCF sector and it is bad news for the economy. I understand that the Minister for Innovation, Industry, Science and Research had been informed by the Chairman of Pacific Brands that there was nothing the government could do to reverse the decision by the company. That was the position put to the government by the Chairman of Pacific Brands, I am advised.

The key challenge that we face in dealing with the impact of the global economic recession on Australian manufacturing and across the broad economy is ensuring that what we do through nation building, investment in schools and investment in support of consumers and families doing it tough is lift overall demand in this economy at a time when the private sector is in retreat. That is what underpins the government’s nation-building plan for the future. As the government has said repeatedly, there are no silver bullets in this. However, the challenge is this: either to reduce the impact of the global economic recession on Australia or to simply do nothing. Our strategy as a government is outlined in our nation-building plan for the future, an economic strategy to see Australia through the crisis. The alternative recommended by those opposite is to sit on our hands and do nothing.