Deborah O'Neill (Robertson, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Would the Treasurer update the House on recent economic data and what this says about our economy and the importance of continuing to invest in jobs?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Robertson for that very important question. There is some data out today that says a lot about the future of our economy, the future of growth here and our prospects well into the future. The fact is we do have an unprecedented investment pipeline in Australia. Today's capital expenditure numbers show that businesses are confidently investing in growing their businesses. In resources alone investment has gone from $35 billion in 2009-10 to more than $50 billion in 2010-11. This is expected to increase even further in 2011-12 to a record $83 billion, eight times greater than it was before the mining boom mark 1.

Total investment in 2010-11 is estimated to be $124 billion, with a record $139.5 billion expected in 2011-12. This is a very strong investment pipeline. It was also backed up today by ABARE's figures, which are talking about an investment pipeline in resources of $430 billion. It is a very strong investment pipeline, but we are all aware, certainly on this side of the House, that there was a very dramatic impact on our economy from the floods back in January and also from Cyclone Yasi. This was ignored by the Leader of the Opposition in his budget reply. It is probably the most significant event in the Australian economy in the past year and it did not even get a mention in the Leader of the Opposition's budget reply, much to the embarrassment of all the Queensland members over there, because the impact of Cyclone Yasi and the floods has been to rip $9 billion out of our economy in the short term. That will mean a dramatic impact on growth in the March quarter, and we will see that next week in the national accounts.

But these CAPEX numbers today are a reminder to all of us of the great opportunity that lies ahead for Australia: a strong growth outlook, low unemployment and strong job creation—260,000 jobs in the past year alone, with about 80 per cent of them being full time. During the time this government has been in power 700,000 jobs have been created and we are looking at another 500,000 jobs in the next two and a bit years. Everybody on this side of the House understands the importance of a job to the welfare of families and to the security of businesses. We understand it, but it is not understood by those on the other side of the House. That is why we are so intent on bringing the budget back to surplus in 2012-13. That is why making savings in the budget is so important. We have this strong investment pipeline and we cannot compound the inflationary pressures that will flow from it. That is why the government savings must pass: to keep jobs secure and to make sure that we are maximising the opportunities for the future. That is why we must have a disciplined fiscal policy and not something we see from those opposite—there is no policy at all.

And that is why we must put a price on carbon. It will give certainty for investors. But those on the other side of the House are not capable at all of facing up to the big decisions, particularly this Leader of the Opposition. He wants to run a negative campaign day after day. For our part we will get on with supporting our economy, putting the right policies in place, supporting jobs and families.