Mike Symon (Deakin, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Acting Prime Minister. Will the Acting Prime Minister update the House on the global economic situation and the implications for our economy?

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

I thank the member for his question because, as all members would be aware, in Greece and many parts of Europe we face very profound economic challenges. These have been underscored in recent weeks by further events in Greece and across the European Community. The G8 has acknowledged at its weekend summit that growth and jobs must be the imperative for the global economy, and indeed here in Australia they have been our imperative from day one of the global financial crisis. The Prime Minister and I will continue to work through the G20 to ensure that the European leaders meet their commitments and put jobs and growth to the forefront of their decision making.

As we said very clearly in the budget, the situation in Europe continues to cast a very dark shadow over the global economy. We expect that Europe's economy will contract by three-quarters of a per cent this year. That was there in our budget forecast, published on the night of the budget. Australia is not immune from this global instability, but we do need to remember that we have some of the strongest economic fundamentals amongst developed economies. Our economy has grown something like seven per cent on its pre-crisis level. This is absolutely outstanding growth, and that is why over the next year and the year after that we will outperform every other major developed economy. That is something that everyone on this side of the House is very proud of. We have a low unemployment level here of 4.9 per cent. Compare that to what is going on in Europe. There have been something like 800,000 jobs created in this country since this government was elected, and we have a record pipeline of investment, very strong public finances and a AAA credit rating from the three major rating agencies for the first time in our history—not something ever achieved by those opposite at any time they were in government. And what is the reason for this? It is because we got the big economic calls right at the height of the global financial crisis. We supported small business, we supported employment and we supported our communities. That is what we are doing with the budget as well: bringing the budget back to surplus and putting in place the big reforms to continue the economic growth that is so important to the future of all Australians.

We have had a lot of negative talk from those opposite about our economy. They continue to talk it down on a daily basis. For them, it is as if the global financial crisis had never happened, the floods had never happened—none of these things had ever happened. They just go out there and talk down these fundamentals. But when it comes to putting the runs on the board for the economy we on this side of the House have gone there in spades. Those opposite can go out and talk our economy down, but we on this side of the House will continue to support it. (Time expired)