Julie Collins (Franklin, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister update the House on the one-year anniversary of the government’s economic stimulus plan?

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

I thank the honourable member for her question.

Tony Abbott (Warringah, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, on a point of order: my understanding is that there is to be a ministerial statement at some stage on this, and I think that, rather than detain the House at great length now, it would be much more appropriate if this matter were left to the prime ministerial statement.

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

Order! The question was in order. The Prime Minister has the call.

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

Thank you very much, Mr Speaker. I thank the honourable member for her question because I believe all those who are attending the House today, and the nation at large, are interested in the state of the national economy. They are interested in how the nation has responded to the global economic recession. They are interested in the implications for jobs.

This government is optimistic about the economy’s future. This government is optimistic because the government has acted early and decisively to intervene to support the economy, keep the economy strong, provide and protect jobs in the economy and support working families on the way through. This is clearly illustrated when we actually look at the employment data around the world and the growth data around the world. Most recently we have seen the IMF put out growth data for the period 2010, and it is forecasting global growth of 3.9 per cent. This contrasts with 2009, when the global economy, for the first time since the war, actually contracted, by 0.8 per cent. Those are the dimensions of the economic challenge which we in this country faced last year. I also draw to the House’s attention what the IMF said when it released this data. It said:

Due to the still-fragile nature of the recovery, fiscal policies need to remain supportive of economic activity in the near term, and the fiscal stimulus planned for 2010 should be implemented fully.

That is the considered position of the IMF.

Australia’s achievements in response to this are as follows. We, uniquely among the major advanced economies, did not go into recession. This economy, uniquely of the advanced economies, grew in the period 2008-09. Thirdly, we generated the second lowest unemployment of the major advanced economies, and we did so with the lowest debt and the lowest deficit of the major advanced economies and, can I say to those opposite, while retaining this government’s and this country’s AAA credit rating.

The core of our national infrastructure stimulus plan is this: it is to intervene to protect Australian jobs, because we are serious about that. The numbers speak for themselves. Over the past year here in Australia, we have created some 112,000 jobs. Can I say to those opposite: as we look around the rest of the world’s data, in America in the same period of time 5.8 million jobs were lost; in Canada 321,000 jobs were lost; in the United Kingdom nearly half a million jobs were lost; in the European area at large more than three million jobs were lost; in Japan more than a million jobs were lost; and in Australia our employment growth, through those 112,000 jobs, went up as a consequence of government stimulus strategy and the participation in it by the Australian business community.

Can I also draw the House’s attention to the fact that, if we were to look at the comparison of what we have done in response to this global economic recession, it is actually important in terms of previous global recessions as well. During the global recession of the early eighties, global growth was 0.9 per cent; Australia’s unemployment rate peaked at 10.4 per cent. In the recession of the early nineties, our unemployment rate peaked at 10.9 per cent. In this global economic recession, the worst in 75 years, we through the MYEFO have forecast unemployment to peak at 6.35 and it is now 5.8 per cent.

My point is this: across the world jobs are being destroyed in practically every country on earth. Here, we actually added 112,000 jobs, and, secondly, against the measure of previous recessions where unemployment reached double digit figures in Australia, we have so far kept unemployment at between 5.5 and 5.8 per cent. That is the consequence of a government intervening through a national economic stimulus and infrastructure strategy. I conclude by saying that this has been to protect Australian jobs. We have done so through infrastructure projects. We are building some 27,000 infrastructure projects around the country. These projects have supported the creation of these 112,000 jobs over the past year, together with other activity from the Australian business community.

That is our policy; that is our approach. What is the alternative? The alternative is to pull $20 billion out of the infrastructure stimulus strategy. Five thousand school projects around the country have not yet commenced—5,000. So the challenge for those opposite is: if we are going to pull $20 billion out of the national infrastructure stimulus strategy, stand up and name the 5,000 schools where onsite construction has not commenced and name where you will make these cuts. Not only will you undermine those school communities, not only will you undermine Australia’s economic growth, but you will also undermine this government’s and this country’s proud record on employment and jobs.

Tony Abbott (Warringah, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, on indulgence—may I note the first anniversary of the package—

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

No. The Leader of the Opposition will resume his seat. There is no indulgence.

Tony Abbott (Warringah, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. With respect, and with some reluctance given your previous comments, may I say that normally when something is said in this parliament to note an anniversary there is an opportunity for the opposition to respond. The Prime Minister has commemorated the anniversary—

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

The Leader of the Opposition will resume his seat. I think that in the clear light of day, in consideration of events that happened before question time, the Leader of the Opposition will understand my reluctance to grant the indulgence. I ask him to reflect upon these issues because I do not want the granting of indulgence to become a controversial point and I think that we have to keep them at the appropriate level. I thank the Leader of the Opposition.