Yvette D'Ath (Petrie, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister update the parliament on the government’s response to the global recession?

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

I thank the honourable member for her question. I note that those opposite take every opportunity to talk the Australian economy down. I note also that government members are doing everything within their power, through the government, to build the Australian economy up. That is why we are implementing a nation building for recovery plan.

In the final quarter of last year, the global economy virtually fell off a cliff. That is what happened in the events of Lehman’s week in September-October last year, when we saw economies right around the world and financial institutions within those economies begin to reel. We saw what followed in terms of the consequential growth performances of economies around the world. Our response, our nation building for recovery plan, saw us act immediately on the question of providing fiscal stimulus for the Australian economy and in particular support for the 1½ million Australians who work in the retail sector. Then there was the implementation of our infrastructure investment plan, which supports jobs and businesses today by investing in infrastructure for tomorrow. Seventy per cent of the government’s economic stimulus is being invested in infrastructure through our nation building for recovery plan.

The Australian government, through implementing these policies, has had an effect in cushioning the impact of the global recession on Australia so far. That is why Australia is doing better against most economic indicators than most other economies around the world at present. We still have many challenges ahead of us, and we intend to confront each of those challenges as it arises.

What is interesting on the part of those opposite, as they engage in the debate about deficit and debt, is that never once have the words ‘global economic recession’ passed their lips. It is as if the global economic recession has simply disappeared from reality; it is as if this country alone is faced with the challenges that have been brought about by what happened in the critical events of the last quarter of last year. For the benefit of those opposite, growth in the 30 OECD economies fell on average by 2.1 per cent in the first quarter of 2009. Twenty-three countries have fallen into this global recession. They include Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hungary, Iceland, Ireland, Italy, Japan, Luxembourg, Mexico, the Netherlands, New Zealand, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. Twenty-nine of the 30 OECD—

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

Mr Pyne interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Prime Minister will resume his seat. I just remind the Manager of Opposition Business, the member for Sturt, that standing order 65(b) applies to all members, and especially to him.

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

Twenty-nine of the 30 OECD countries have experienced at least one quarter of economic growth. As I have said to the House before, eight of Australia’s top 10 trading partners are currently experiencing recession. This is the worst global economic recession that we have seen in three-quarters of a century. Therefore, it directly affects Australian jobs, it affects Australian business and it affects the Australian economy. Australia’s growth in the fourth quarter of last year was negative 0.5 per cent. This was substantially stronger than the average of negative two per cent across the OECD. Australia had higher growth than all of the major advanced economies in the December quarter and was the sixth highest across the entire OECD. The average growth of all OECD countries that have already reported their March quarter GDP was negative 2.1 per cent, and markets are already expecting a negative quarter for Australia when data is released here on Wednesday. I challenge those opposite again to actually use the words ‘global economic recession’ and to understand that in the fourth quarter last year Australia performed relatively well against most other economies. In the first quarter this year it was negative 2.1 per cent, and the Australian government has been taking a range of active measures to cushion the impact of the recession on Australia.

I draw the attention of honourable members in the House to the fact that data on retail sales for April was released today. It showed that retail sales rose by 0.3 per cent. I repeat: retail sales rose by 0.3 per cent. Let us put this into context since the global economic recession hit in the fourth quarter last year. Since the government introduced its stimulus packages, first of all last October and then again in February, we have seen the flowthrough effect in terms of real activity in the economy. Honourable members should focus on these figures: Australian retail sales are now running at 4.8 per cent above their levels for November last year—4.8 per cent above. Every person—every one of the 1½ million Australians working in retail—will be pleased by those numbers. They are numbers which do not seem to feature at all in the public political discourse on the part of those opposite, who, as I have said before, have an interest in talking the economy down at every opportunity. The numbers for Australia—4.8 per cent above the levels of November last year—contrast with the 1.1 per cent fall across the major advanced economies over the same period. In Japan, retail sales fell by three per cent. US retail sales fell by 2.9 per cent and Canadian retail sales fell by 2.7 per cent.

Further data out today relates to company profits. Company profits in Australia fell by 7.2 per cent in the March quarter but are still 6.8 per cent higher through the year. Again I draw the attention of honourable members to the performance of the retail industry within the company profits data. While profits declined in most sectors of the Australian economy, the strongest growth in profits of all industries was recorded in the retail trade group, which rose by 15.5 per cent—15.5 per cent. I also draw honourable members’ attention to recent statements by major Australian retailers about the additional staff they are putting on in the retail sector around the country.

As they engage in a rolling strategy in the House and outside the House of talking the Australian economy down, I say to those opposite that when they do so they should reflect on the positive data which has emerged here on retail sales and the performance of our principal retailers. They are part and parcel—

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. Under standing order 104, the answer must be relevant to the question. After seven minutes of the answer from the Prime Minister, without interruption, he can no longer be relevant to the question and I ask him to draw it to a close. As the Deputy Prime Minister and the Treasurer once argued for four-minute answers to questions, seven minutes is long enough.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member for Sturt will resume his seat. The Prime Minister is responding to the question.

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

The measures the government has adopted through its national economic stimulus strategy and nation building for recovery—supporting jobs and business and apprenticeships today by investing in the nation building infrastructure we need for tomorrow—are helping this economy recover, given that we have enormous challenges bearing down upon us from the global economic recession.

This is the worst recession this country has seen in three-quarters of a century because of what is happening with the simultaneous downturn in economies right across the world. The government’s strategy is clear: nation building for recovery. We intend to build the economy up. I appeal to those opposite, both in this question time and beyond, to change their tone and to engage in some positive language—not simply to go negative all the time and talk the Australian economy down, because the Australian people expect and believe better of them and this parliament.