House debates

Wednesday, 23 May 2012

Questions without Notice

Economy

2:32 pm

Photo of Melissa ParkeMelissa Parke (Fremantle, Australian Labor Party) Share this | | Hansard source

My question is to the Prime Minister. Will the Prime Minister update the House on how strongly Australia's economy is performing on the global stage?

Photo of Julia GillardJulia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | | Hansard source

I thank the member for Fremantle for her question. I had the opportunity whilst in Chicago at the NATO/ISAF Summit to talk to a number of leaders about circumstances in the global economy and particularly current circumstances in the European economy. I had the opportunity to meet with the Prime Minister of the United Kingdom, the Chancellor of Germany and the newly elected President of France. As members of the House would be aware, concern has been sparked yet again about circumstances in Europe arising from the inconclusive elections in Greece, and Greece is to go to another election. Indeed, that election will be resolved very shortly, before the forthcoming G20 meeting, and I anticipate that, just like the G8 meeting had a discussion about circumstances in the global economy, the G20 meeting will be very focused on the global economy and the circumstances of the eurozone.

As Australians watch these reports on their TV screens, it is understandable that people would be concerned. Some of the footage, particularly from Greece, has been particularly startling, with people feeling the economic pressures there. The Greek economy has undergone a very sizeable contraction, and circumstances for many of the people of Greece are very dire indeed, with unemployment at simply staggering levels. So it is understandable that Australians watching all of this would be concerned.

The Australian economy is not immune from international events, but Australians can be reassured that the Australian economy is in a very different circumstance from economies like Greece , like many others in Europe and even like the United States that people see on their TV screens. The fundamentals of our economy are strong. We have a AAA rating from all three credit agencies for the first time in our nation's history, strong public finances, economic growth, low unemployment and inflation within the Reserve Bank band. Consequently, that means that Australians can look on the Australian economy with confidence.

That does not mean that there are not some pressures in the Australian economy, particularly arising from the strength of the Australian dollar, with the pressures that puts on manufacturing, tourism and other sections of the economy. But Australians can be reassured about the fundamental strengths of our economy and they can also be reassured that this government will always put jobs first, the way we did during the global financial crisis. We will continue to do so.