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

My question is to the Treasurer. Will the Treasurer outline for the House the importance of keeping our economy strong to take full advantage of the opportunities of the Asian century?

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

I thank the member for Deakin for this very important question. We are experiencing a changing of the guard in the global economy, a shift in economic power from West to East. What is going to emerge here is the world's largest production zone and also the world's largest consumption zone. This presents enormous opportunities for Australia at the dawn of the Asian century. What is most important in maximising the opportunities that will come from growth in the region is to keep our domestic economy strong. We have one of the strongest economies in the developed world and we are set to grow faster than every major developed economy this year and the year after.

The foundation for economic strength is strong fiscal policy, and Australia's public finances are among the strongest in the world. Just days ago we had the ratings agency Fitch reaffirm our standing as one of only seven economies with a AAA rating and a stable outlook from all three major global ratings agencies. This is the first time this has ever occurred—that stable outlook from the three major global agencies—in Australia's history. What it says is that we do have the opportunity to maximise the opportunities that will flow from the region—not just in mining but also in services and manufacturing. What we must do is reverse the decade-long decline in our productivity by making essential investments in economic capacity so that we can maximise the opportunities which will flow from growth in the region. That is why the government is investing in education and skills. It is why we are investing in science and innovation and R&D funding. It is why we are investing in critical technology such as the NBN. It is why we have put in place a whole series of reforms to lift workforce participation—the tripling of the tax-free threshold, incentives for people to work additional hours.

This is the key to maximising the opportunities that will come from growth in the Asian region in the Asian century. And this is what will make us the winner in the Asian century. We have a forward-looking program to make sure we not only create prosperity but spread it right across the country. That is why the white paper is so important. It was not a waste of money as the shadow Treasurer has said; it is an important investment in our future to maximise the opportunities that will flow to this country from strong economic growth and very good social policies which spread opportunity to every corner of our country.